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THE ELGIN FAKMERS CHAMPION. n (r The Federal Farm Loan Act Synopsis of Its Salient Features Prepared by H. M. Hanson, Secretary-Treasurer Farm Mortgage Bankers' Association of America FEDERAL HARM LOAN ACT Paued by tht House ef Representa. tivt and the United States Sen. att June 27 and 28, 1916, Respectively. Igned by the President July 17, 1915. S. Provides for a federal land bank system In the continental United Stales (exclusive of Alaska) dividing the country Into twelve land bank districts totnposed of whole states. 8. The system Is operate as a bu reau of the United states treasury de partment and supervised by the fed eral farm loan board. The secretary f the treasury Is ex-offlcio chairman f tbe board with four other tnetnbers appointed by the president for eight years at an annual salary of JICK'O. One member Is designated farm loan commissioner and is the active execu tive oClcer. 3 Appointees ef Board: (a) Farm loan registrar for ruin land bank dis trict and (b) One or more land appraisers for each land bank district. Salaries paid by federal land bank or Joint stock land bank for which they act. (c) Lund bank examiner; salaried paid by tbe United .States. (d) Attorneys, experts, assistants nd othr employees to be paid by the United States. 17. Power ef the Board: (a) To organize and charter federal land banks, Joint stock land banks and na tional farm loan associations. (b) To retlew and alter the rate of Interest to be charged by federal land banks for loans. (c) To approte or reject any or all loans for bond Issue and to grant or refuse any ieclflc Issue of farm loan bonds of federal land banks and Joint stock land banks. (d) To regulate charges for ap praisal, examining titles and record ing. (e) To appraise land securing mort gages for bord Issue. (f) To exercise general supervisory authority over the federul land banks, fa nil loan associations and Joint stock land banks. 30. Th- farm loan comralIoner ahall examine the laws of every state and If on examination the Iowa of any slat' are ahonn to afford InsuRlclent protection to holders, Ita mortgages ahall be declared Ineligible under this act during the contl.-. 'unce of the laws In question. 32. The secretary of the treasury Is authorized to deposit United States funds In federal land banks at current government rate of Interest, the ag gregate of such funds not to exceed 10.000,000 at any one time. FEDERAL FARM LOAN BANKS ORQANIZATION. fii-ctlon 4. One til ench land bnnk district, Rrunches permitted within Ita district. OMi-era: President, vice president, secretury and treasurer; di rectum; six representatives of farm loan association and three represent ing the public Interest. Attorneys, as sistants, experts und other employ w. All salaries llxed hy farm louti bonrd and paid by bank. Subject to semian nual examinations by lurid bunk exutu Iner. CAPITAL STOCK. Kec. r. J7&0.000. May he owned by Individuals, llriiis, corporations und the United States and state governments. Si-c 6. Shares, jr each. Sec. 0. All Mock remaining unsule acrlbcd 30 duys lifter subscription books nre opened shall be 8iibrribed by the United States and thereafter only the United Slatei government und borrowem may acquire shares of stock. Sec. 5. United States government not to participate In dividends. All other stockholders share dividends equally, Kec. 6. The original capital stock shnll be gradually retired after the tci k held by farm lnah associations shall amount to $7.V),ikio. Kec. 6. Not less tlian 0 per cent of rapltnl shall be Invented In United rltutcn government bonds. POWERS. Sec. 13. To buy first fnrrn mort gages within Its district and to issue und sell farm loan bonds. Sec. 13. Ho receive from form loan associations Interest and amortization payments on mortgages and farm loun bonds. Sec. 13. To acquire and dispose of real and personal property necessary for the convenient transaction of bu. nessj and lend tuken In satisfaction of debts or purchased under Judgments, decrees or mortgages held by It, Shull Mot hold title exceeding five years. Bee. 13. To accept deposits of se niitlea or enrrent funds from member association but pay no Interest there CD. Bee. 13. To borrow money on se rurlty and pay Interest thereon. Bee. 13. To buy and sell United Statea bonds. Bee. 13. To appraise lands for bond Iratte and In charge applicants and bor rowers the cost of land appraisal, x aminintf titles, recording and other le gal ' id fee-, to be puld In cuih ! or be r-,ad part of lrn and paid In arD'rf.za on payment. Sec 14 To a"erf m'nigice only from fann l"sn associations and ap proved agen's See 1-4 To aeeept dej-vsf f Tjr rnt funds onlj from Its stnrkboldTs Her C To become nnaar.al scents of UnltH States government aud de pository of public money PuoUe de jrfjslta cannot b lnvied In mort gages or farm ln bonds. See. 18 To dpolt Its rnr1ties and current funds subject to check with any member bank of tbe f-deral reserve system and to retv Interest thereon. BONDS. fc. 20 Issaed Id fries o! WCO or more, in denominations of 125. HO JKO J.vnod JK'O. Sec 20 Jlay bear a maxlmata rate of l per ent Interest per annum. Sec 19 Mortgagee end United States government bonds equal In amount to the farts loan bond la4 are retained a eollateral iturlty by the land bank registrar. Sec. 14 The outstanding farm loan bonds shall not exceed 20 times tbe capital and surplus. Sec. 21 Shall be guaranteed by bank of lue and all other federal land bank. Sec 17 No lwu Is authorized without the approval of the farm loan board. Sec. 22. Substitution of mortgages and United States government bonds held as collateral to farm loan bonds Is t-erraltted. TAXATION. Sec 20. The capital stock, sur plus, mortgages and farm loan bonds and all Income derived therefrom are exempt from federal, state, municipal and local taxation. Sec. 2C Heal property taken and held under the provisions of sections 11 and 13 Is not tax exempt. AGENTS. Sec. 1.',. Inroriorated banks, trust companies, mortgage companies or chartered savings institution may act as agents for federal land banks If no farm loan association has been formed In a given locality after one year. Sec 15. Ilorrowers securing loans through agents are required to sub scribe 0 per cent of the loan to the capital of the federal land bank. Sec IS Agents are entitled to a commission of one-half of 1 per cent Imt annum on unpaid principal of each loan they negotiate and tbe bank shall pay agent for actual expenses for ap praising land, examining titles, exe cuting ond recording the mortgage pa pers whbh shall be added to the face of the loan. Sec. IS. Agents shall Indorse and become liable for the payment of the loans they negotiate and the nggre. gate unpaid principal of such loans shall not exceed ten times the ugent's capital and surplus. i'l'C. IS Agents are required to moke good nil default within 30 dnys after notice. Sec. 1ft. All collections made shall be remitted without charge. SPECIAL PROVISIONS. Sec. 22. Amortization mid other payments constitute a trust fund to be Invested us follow: (a) To pay off maturing farm loan bond Issues. (h) To piirrtinse farm loan bonds. (c) To lend on first farm mortgages within the district. (d) To buy United States govern ment bonds. Sec. 23. Heerve and dividends: No limit Is placed on dividend distributions after n reserve account has been bultt tip from earnings equal to 20 per cent tf the cnpltnl stock and ofter 5 per cent of the net earnings annually thereafter are added to the reserve ac count. Sec. 23 Iteserve funds to be Invent ed as prescribed by the federal funn loan bonrd. Sec. 27. Pnnn lonn bonds nre lawful Investments for fiduciary and trust funds and security for all public de IKtslts, Sec. 27. Federal reserve bank may buy nml sell farm loan bnmR Sec. 21). I'rnvlslon Is made for dls dilution and the nj.pnlntmcnt of a re ceiver. Cec. 14. No commission or chnrge not specifically authorized In this act shall be demanded or received. NATIONAL FARM LOAN ASSOCI ATIONS ORQANIZATION. 8ectlon 7. Ten fann owners desir ing loans aggregating $20,000 or more may form such an nsiioclutlon. Hee. 7. Its affairs nre administered by Ave directors, including president, vice president and a lonn committee, of three serving without compensation, and by a secretary treasurer with sal ary fixed hy the form loan board and paid by the association. CAPITAL STOCK. Sec. 8. Shares, JS cuch; (0) carry ing double liability; (8) may be owned only by borrow em who are required to subscribe 0 per cent of their loan in he caj"a! rr4 of tbe a -' H'-i hlr-h to nre jt-rr.'-r ts esat -;'.unt of t'.txt la tht feAenl land nt S-e g. Shares are pd for ta '' 'P the i mount may b- add! tbe '- of tb loan axl rt-tir4 ta mrit Lstlon payments at par In vcb c 'be fac of tb kan shall IKK eie-r4 be ;o p. ceat 4 SO prt Uaa tutioo. Set. 7. A5iDt aa hre aaiy b leed for operatlag ipe-ri If fundi are Dot otbt.rwW arzUaMe. POWERS. Set. io. T afraJ taod far taart rage tbrovgti Its tf.au coauauttre f tbree. S. 11. To Itelorse sad become liable foe tbe mortgages f iu tbare boldr. S. 11. To rcHve a ad deliver tbe ptwee4s of loan to borrow erv. S. 11. To acstaire and dt"t of profwrty nry for tbe ctrnvenieat tranaacttoa of lu balae.- Sec. 11. To Ue certiacite" of de f4t for not ;oar tban eae year aad to pay 4 per cent latere: tbereoe. coot era bl iato farm loan bnods at the federal UbmJ bask of Its district. Sec. 7. To receive and tranc3lt to lh federal land baak paraeots ef la tere!: and principal tad amoniutloa payments. LOANS. , Se. 12. Loeas hatl be ecared by first mortgages oe lend wltbia lu land hank UtrtcL SectJon 12. To ma from i to 40 years with aa M-tlaatioa and wltb ad ditional optional prepayments after five yearx. ec. 12. Interest co len ball not exceed 8 T CeOt r UBt" JO OO the unpaid priadpaL See. 12. Ilorrower fball pay S per cent lmple Interest on d-faulted twymentv Se. 12. lans may be made for the following purr.oes and for no other under penalty : (a) To parchae land for agricul tural puiroes. (b) To purchase equipment fertil iser and live ;ock for the operation of the mortgaged farm. (c) To provide buildings and for the Improvement of farai lands. (d) To pay debts existing at time of organization of the first national farm loan association within the county. Sec. 12. Maximum loan $10,000; minimum loan J Id. Sec. '2. No loan shall eiceed 50 per cent i the value of the land mortgaged and 20 per cent of the permanent In sured Improvements. Sec. 12. No loans shall be made to any ierson who Is not at the time or shortly to become engaged In the culti vation of the farm mortgaged. Note. All applications for loans originate with the national farm loan associations or agents and all loans am made and closed by the federal land banks. This does not apply to Joint stock land bunks. TAXATION. See. 20. Same as applies to federal land banks. SPECIAL PROVISIONS, t Sec. 0. Aoclntlons may retain ns coininlvdon one-eighth of 1 per cent semiannually from Interest payments on the unpaid principal of loans. Sec. 0. Aoclntlons may borrow from federal land banks at 0 per cent annual Interest up to one-fourth of Its totMl stockholdings In said bunk. Sec. 24. Ke.Mrves and dividends: No limit is placed on dividend distri butions ufter the reserve mcntiut. built up from net earnings equal 20 per tent of the capital stock nnd after 2 per cent of the net earnings annually thereafter ure udded to the reserve ac count. Sec, 2S. Defaults must be made good within 30 days after notice. Sec. 20. l'rovlslon Is mude for dis solution und the appointment of a re ceiver. JOINT STOCK LAND BANKS ORGANIZATION. Section 10. A private corporation subject to the requirements tinder this act which may be formed bj ten or more persons with n bourd of director of live or more. Sec. 10. Mny operate within the state lu which Its principal olllce Is lo cated and within .some one cantlugu csis stiile. Sec. 2S Subject to semiannual ex aminations by the federal luud bank examiner. CAPITAL STOCK. Sec. 10. J2.W.OH) minimum. Sec. 10. Double liability of share holders. Sec 10. The United States govern ment rhull own none of the shares of stock. Sec. 10. No farm lonn bonds can be Issued until the capital stock Is fully paid, although the bnnk mny l'-cln business when one-tinlf of the cf.,iiiul Is subscribed nnd paid lu cash. POWERS. Sec. 10. To lend money on fnrm mortgage security. Sec. 10. To Issue aud sell farm loan bonds. Sec. 10. To Issue fnrm loun bonds up to in times the amount of Its capi tal nnd surplus. Sec. 10. Except aa otherwise pro vided It bus the powers of and Is sub ject to the restrictions Imposed on federal lund bunks. PRIVILEQE8. Sec. 10. Mny lend more than $10.0)0 to any one borrower, but not be) ond bO per cent of the value of the lund und 20 per cent of the permanent In siirml Improvements. See. Id. Louua art not restricted to te r-Tvrs pref1Vl for natvr. J 'e-t i.a siloes. $e 1. Loa taty t-e osde to fa"a owner regmUeM of wbether en-car-" In caltlv-t.eo ef tbe Und taert fares! or aot. Se. 1. 'teret oa kas jjull not exrt-rd more than 1 per CrnL the la teret rate ejtb::e4 for Its last series f twoX nor more tban 6 per cent la aay cxr. Sc 1& OiaaaWoat or other ekarges not fp-rttciily lethorlied by lkl act ibxli do: t-e deraiaded or re- BONDS. . X Itnetf in "cries et eiaO"0 or mere, ta desomtaiUtms of tzi, IT-0, JKO. $'') end JIO'X Set 20. May bear aaxl-aua rate of i per cent tia'.erest per nnnm. Sec. 14 lk.ad sball be so engrived i to be reae..y distlamishaMe froa federal lind bank bonds. SC- 19. Mortgages and Cnlted States gove-jment boads e3U&l In aaaonnt to tbe tana loaa beads .sned are rett'ned as collatertl security by tbe land bank registrar. Set 17. No l.ue U authorized with out tb approval of tht farm loan board. tee. 27. Federal reserve banks are aatborlzed to bey and sell tbe boadj of Joint stock lansl banks. Sec. 22. Substitution or mortgages and United States gover aent boads beld a collateral to farm loan bonds Is r-rmltted. Sec. 27. lt bonds are lawful Invest ments for fiduciary and trut funds and severity for all public deposits. TAXATION. See. 26. Tbe capital stock, surplus and earnings are subject to the taxing powers of tbe ste. Sec. 24 Its mortgages tiecuted en der tht- act and lu farm loan bonds and all income derived thereirota ar exempt froca federal, state and tacaJc tpal tad local taxation. tec 28. Heal property takea and held under tfie provisions of sections 11 end 13 is aot tax exempt. SPECIAL PROVISIONS. Sec C Joint stock land banks ar made public depositories and financial agents of the United States govern ment. Sec. C Public deposits cannot be la vested In farm mortgages or in farm loan bonds. Sec. 10. Hales of Interest for loans under 0 per cent are not subject to review or alteration by the farm loan board. Sec. 13. Shall receive no deposits except public depoMts. Sec 22. Amortization and other payments constitute a trust fund to bt Invested as follows: (u) To pay off Its maturing furra loan bonds. (b) To purchase farm loan bonds. (c) To lend n first mortgages with in Its prescribed field. (d) To purchase United States gov ernment bonds. Sec 23. Reserve and dividends pro vided for as In the case of federal land bunks. Sec. ISt. Provision Is made for dis solution and the appointment of a receiver. THIS DEALER HAD REAL TACT Stout and Thin Customers Use Special Mirrors In Wearing Apparel Ettabllihment. i A dealer In wearing nppnrel, noticing that his stout customers and his very thin customers often were sensitive as to their figures, Instnllcd two full length mirrors .. special design, says Popular Mechanics magazine. One ai slightly concave and the other sllg'uly convex. When a stout customer tried on n suit Mie wns led to the concave mirror for self-Inspection, nnd was able to see her figure as It would appear with Its measurements reduced. When a thin person came In to try on clothes she whs taken to the convex mirror, where the opposite effect wus pro duced. Only Moistened His Lips. Omer Scildder, a Columbus real es tnte and Insurance agent, told some of the other business men who have of fices In the Hussett building that he was hot. They agreed that they were Just us hot us he was. "I call eat sill the Ice cream you fellows ure willing to buy," Scudder declared. The others made up 00 cents nnd sent out for a half gullon of cream, They had n notion that Scudder would cat about a quart after which they would divide the remaining quart among themselves. Scudder surround ed the entire half gallon of Ice cream, smacked his lips and asked them whether they were not going to get him enough Ice cream for a real taste. The business men looked at ench oth er, smiled sickly and returned to their places of business. lndlunapolli New s. The Three Philosophers. Tor the llrst lime In their lives thren genuine, simon-pure philos ophers went out riding In a motor car. After they hed ridden about twenty miles out In the country the car broke down. Said the first philosopher: "I have long wanted to study cer'aln as pects of nature, and thlf affords m the particular prospect I most ad mire." Snld the second philosophers "I observe there Is a fnnnhouse over there where food can doubtless be ob tained In stifllclent quantities." Sold the third philosopher: "I have long wnnted to be. In a situation where, without moving, sustenance would N brought to me by one friend, whlls the other discoursed on the beauties of nature." Life. DAIRYING IS A READY -S j.SSBBBBBBHBk2iaaJB. , - wi IjSBrtriFP a aA Vav SnYawawa mHmVmu IxmHawaL VaVI Tjt M mk "e V S(WeJB-r73'feCj;X- ftvftvEBHiT.wwAA'aMClKa1aaw Bull It Half of Herd In Breeding for Dairy Cows It Is Important to Have a Good Male He Represents Half of Value of the Herd From a Breed Ing Standpoint (By M PURVIS ? Dairying is a confining business to be sure. It ecqulres dully attention end the work must be done with reg-' ylarlty, each duty requiring attention at practically the Mime hour, w.-ek fcfter week, rain or shine. Suudu), J'ourth of July and Thanksgiving. It Is this everlasting routine that prevents a great many from taking up dairying as a regular part of the furm svork. It is the mertcnn dlstuste for being bound dowi and hedged In that J-'p! the dairy part of our funn work very much In the background. Norwithi-tanding tills undesirable phatf of dairying. It bus some advan tage which producing grain, huj or live ttock for market have not. It is a busllievs on which the opera tor Is able to count without much danger ef having his plans mlscurrv oo account of wet or dry weather, trly or late frosts, or uu.v other of the things which so often mar the pro jects of the most careful husbandman. With a little forethought the dairy nan ma) be ns free from worry ubout the weather as any other man living. Blow high or blow low the cows come home and the consuming public I rctjy to take all the buttee that Is produced, or the creamery or cheese factory Is waiting to weigh in the milk nnd distribute checks every month. This Is another advantage. The live stock breeder must wait two, three or flve years fo- his cattle to gut In i-hape for market, the swine breeder gets his mone) only once a year and the sheepman Is likely to have his profits knocked away by tariff ngltH tlon on n big crop of wool In Australia, or n sudden panic among the "preda tory wealthy." Umpires may full nnd nations dlap- TURNING UNDER COVER CROP Sometimes Advisable to Follow Prac tice Early on Account of Soil Be ing In Good Condition. It Is sometimes udv lHble to turn under n cover crop curlier on account , of the soil being In good condition, whereus If put off for n fen day or u week dry weather uilit prevent tUe work being done us It should be. I When the land i to be planted to cot- ! ton It w 111 be necessary to turn the I cover crop under earlier, rogardle-. of the htnge of growth. This will ullnvv ' n few days for the land to settle and i to be gotten In proper condition for a good seed bed. The plow should be followed closely with the harrow, to pulverize the soil before the wind nnd sunshine dries It out. Unless the soil Is full of moisture or there nre pros pects of an early rain, It I best to run a roller over the land to firm tl, which will aid In holding the moW ture. The roller should aluajs be followed with the weeder or light smoothing harrow to mulch the top soil. DAIRY COW USED AS MARKET Animal Will Pay High Price for Home- Grown Feeds Farmer Permitted to Improve Land. That the profit from selling mill;, butter and cream Is not the chief profit In keeping dairy cuttle Is point ed out hy n gentleman of wltlu experi ence In the South. There Is much greuter protlt In selling home-grow n feed to the cow than In selling on u poor market. Oat and vetch hay, corn stover, slIiiKe, cow pea buy nnd sor ghum enn be grown nt n very low cost and are among the best feed for the dnlry cow. If the cow- I n good one she will pay full market price for the hay, and the fnrmer will not have to bnle or haul to mnrket. Keep records, charge the hay to the cows, and weed ( out those that do not pay. Cheap milk cannot tie mnue unies ine iiiriiii'r grows his own feed. Selling the cow-home-grown feeds not only makes cheap milk but permits the farmer to Improve his land by having larpr quantities manure. lti'nnd l'lirmer. KEEP THE CHICKS SEPARATE Do Not Allow Young Fowls to Run Where They Are Likely to Pick Up Disease Germs. Do not allow young chicks to run tvhere older chicks or fowlR have been or to go In the coops nnd houses of the older chicks and fowls, because they nre llkvly to get disease germs from such places which, while they mny not uTect the older ones, may Immediately cause trouble for the younger one. - MONEY BUSINESS pepr, until the map of Kurope look like a western lundsenpe after a cy clone, but people must have milk, but ter and chwse nnd the price gets u little better every enr. No dairyman need worry about the result of the, election for Republicans, Democrat nnd Socialists nllke need the products of the dairy or they will not feel that thev are getting what Is coming to them. The money from the dairy come weekly, or at longest, monthly, and It Is a cash denl nil the time. The prices vary with the enon a little but they run n line that take the fnme up and down curves year nftor year. Many dairymen are trying to llnil the method which will allow them to keep the largest number of caws on n given acreage. A much better object nould be sought If they wen to try to s'.ure the largest possible number of cows which will produ-e n pound of butter every day for ten months of every year of their activi ties. I'arm dairying l"n't the poorest business In the world by n good many long marks, but American farmer show it disposition to let the foreign emigrant take the business and mnki the money, which shows that Ameri can farmers are not nlwnys nwnke to the most profitable part of fanning. Money every week and the furm getting richer every yenr ought to be an attractive propo-ltlon. We ought to have more farm dairies and fewer worn-out fnrm The dairyman who Hoes not et n high murk, and test hi cow regu larly and s.vstemntlcally, will alvvny curry In the herd utm cows which art kept at a Io, to reduce the nvorage of the herd. f AVOID CHANCE OF INFECTION Not Advisable for Farmer to Put Money Into Hogs That Have Not Been Previously Immunized. (Hy XV V Hlft't Ml I-nsrtment ef Vet eri!iFr MsM m OkIiIu-u A ard St CVIIege Stillwater) It will nut be necessary to vaccinate hogs In order to Insure them ngnitit any possibility of Infection from an Immune breeding niilmul thnt jou nlslit vvant to bring on your place. Ilreedlng herds thut nre Immunized are usuully treated 'about weaning time,' or. In other woids, when they are about two or three months old. The possibility of transferring infec tion from the Immunized process ex-. tends over u period of three or four week. After that you uui snfely say that Immune breeding animals are free from Infection as u result of their treatment, so. It jou purclmso a breed ing iiulmnl six months or u year old. It would be u safe proposition with out extra precaution. Immunization Is becoming so com moil and thoroughly priictleiil that I would not for a minute advise any man to put money Into purebred hogs for breeding purpose tlmt nave not been previously immunized. EARLY HARVESTING OF OATS Cutting Early Solves Problem of Dis posing of Late Maturing Crops Aid to Clover. Unrly harvesting of oats for lmy Is the unusual practice suggested by the fnrm crops department at Iowa state college as solving the problem of dis posing of this crop. As a nurse crop for clover or other legumes, the gieat objection Is Its Into iniiturltj. If outs are cut for liny when the grnln Is In the milk stage and properly cured, the liny secured Is re garded by mail) as nearly, equal to red clover, Huiiovp the oats two or three week earlier than usual, thus exposlne, the joung clover plants at u time when the In-lit of the sun Is ,.,8 PeTl,ro. 'I hi practice also leaves ,r ,m,. ture In the soil in lie used lu producing h slig growth of clover. MANY CATTLE-DIPPING VATS Five Hundred and Forty Constructed In Alabama Durlno March 34,1)71 Cattle Treated. I'lve bundled nml fully ,u,w clt,M dipping viitH were built Aliibiiiim .lining ihu month of .Man-h. making a tolnl In the state nf 2,21s. l( tu, nine routine in uM,., systematic, eimlliiitlmi Is now lu progiess, :i I WT1 nil Hi. vveli. dipped an eivptloiiall huge iiiiiuhei for s.i curly In tho year. mam .