1014 . 
THE RURAL NEW-YORKER 
747 
ORGANIZING THE LAND BANK. 
Representatives of the Savings and Loan Associations 
of the State of New York met at the Banking Depart¬ 
ment in Albany on May 8, to outline plans for the or¬ 
ganization of the Land Bank. An organization com¬ 
mittee was appointed consisting of three delegates from 
each Judicial District of the State, the president of 
the State League, the president of the Metropolitan 
League, the president of the New York State Agricul¬ 
tural Society, and a representative of the State Bank¬ 
ing Department. The Superintendent of Banks is to 
prepare a suitable provision for incorporation in the 
by-laws of associations that propose to become mem¬ 
bers of the Land Bank. The superintendent will also 
notify each association in the State that it has the 
privilege of becoming a member of the Land Bank and 
of sharing in its provisions for the benefit of the mem¬ 
bers of the association. 
Governor Glynn paid the members the signal distinc¬ 
tion of attending the conference in person. His ad¬ 
dress was one of the best contributions to farm credit 
literature that has yet been heard on the subject. Stu¬ 
dents who were invited by the Governor during the reg¬ 
ular session of the Legislature to instruct him on the 
principles of cooperative credits began to realize how 
completely they had been misled by the Governor's 
modesty, when he began to reveal his breadth of in¬ 
formation and add entirely new chapters to the vol¬ 
umes that have already been written on the subject. 
He had the details of the systems in Europe and of the 
early attempts to establish a Land Bank in ante-bellum 
days in America as fresh in mind as his own early days 
on a New York State farm, where he learned the need 
a system to finance the farm mortgage. 
“When I came to Albany and became a bank direc¬ 
tor,” he said, “I found money there ready for business 
men in Albany, and Buffalo and New York, but none 
for the farmer; and I made up my mind that if I ever 
got into a position where I could do it, I would change 
these conditions. So when I became Governor, one of 
the first things I did was to send for the Superintendent 
of Banks and tell him I wanted a Land Bank, and 
whatever personal or political influence I have will be 
used for the development of this system of land mort¬ 
gage credits.” 
Governor Glynn’s enthusiasm became infectious, and 
the delegates went home predicting that the organiza¬ 
tion of the bank would be effected not later than the 
fifteenth of next September. 
LAND BANK OF THE STATE OF NEW YORK 
System of Mortgage Credits Explained. 
Part IV. 
FEATURES OF THE PLAN.—It has already been 
seen that this system of mortgage credits includes two 
features. First, the central institution, called the Land 
Bank, which is to gather money from outside sources 
through the sale of its own bonds secured by mort¬ 
gages, and furnish this money to the local associations 
for the use of farmers and home owners. The other 
feature of the system is the local organization, known 
as the savings and loan associations. The system was 
built up on the savings and loan association law be¬ 
cause these associations are purely cooperative. They 
are controlled and managed by the members; and the 
members get all the benefits. There is no profit to go 
to anyone else; and the administration is honest, effi¬ 
cient and economical. It would, of course, be possible 
to organize one or more large capitalized banks in the 
State for the purpose of loaning money on mortgages. 
This plan was considered and may yet be adopted sup¬ 
plementary to our present plan. But the cost of man¬ 
aging such an institution would be considerable, and 
naturally the capitalists who formed it would want to 
make the best possible profits for themselves. They 
would need to keep agents, and appraisers and collec¬ 
tors, in the field all the time, travelling from place to 
place, to look after the business, and the people who 
secured the loans would be obliged to pay this heavy 
expense in one way or another. It was to avoid this 
expense of costly administration and extra profits that 
the local association plan was adopted. The officers of 
the local association are familiar with values in the 
neighborhood. They also know the individuals who 
wish to borrow, and so know the moral risk in the loan. 
They are on the ground all the time to see that the 
rules are complied with and the property kept in proper 
repair. They are also there to make collection of in¬ 
terest and payments when due. While the association 
is young and small this work is done voluntarily by 
the members. There is no expense; and when the as¬ 
sociation grows large and strong the expense is trifling. 
There is no profit to go to anyone outside of the as¬ 
sociation. The members get the benefit of low rates of 
interest on the loan, and if there is any profit from 
it, he gets it back in dividends. The Land Bank en¬ 
ables all the mortgage creditors of the State to mass all 
their mortgage credits behind the Land Bank bonds, 
making them by State supervision an attractive invest¬ 
ment, and the borrowers will reap the benefit of this 
sound and stable security without any more responsi¬ 
bility than he now incurs in placing a mortgage with 
an individual or institution. He will get his mortgage 
money at the rate of the Land Bank bonds plus the 
actual, economical expense of operating the bank. For 
the first time anywhere in this country the mortgages of 
the small homes and farms are placed on the financial 
basis to which their merit entitles them, and on a plane 
equal to that of any other industrial security in the 
whole country. 
COST OF LOAN.—The farmer or home owner may 
borrow on a mortgage for 40 years or less. The rate 
of interest will be determined by the rate of the Land 
Bank bonds, and expense of administration. The bor¬ 
rower will make an amortization payment of one per 
cent, a year on a 40-year mortgage; and if interest is 
about 4.3 per cent, his annual payments will be $5.25 on 
every hundred dollars borrowed. At the end of the 40 
years there will be no mortgage left. This is based 
on the French table of annuities. So long as the 
borrower pays his annual dues, the mortgage cannot 
be calied for payment, but the borrower has the right 
to pay any part or all of the mortgage at any time and 
close the account. 
PLANNING FOR ASSOCIATION.—Where local 
associations now exist it will be well for neighboring 
farmers to become members, but before doing so it may 
be necessary for the city and village association to 
change its by-laws so that payments may be made quar¬ 
terly, semi-annually or possibly in some places yearly. 
If the old association for any reason does not wish to 
change its by-laws to allow longer intervals of payment 
then a new association may be formed in the same terri- 
tory. The monthly system of payments may not be adapted 
to farmers in some sections. The combination of vil¬ 
lage and farm interests will undoubtedly strengthen the 
local associations. Where new associations are formed 
it will be well to interest both village and farming 
classes, but where this is not practical, then the asso¬ 
ciation may be formed either by residents of the city or 
village or by farmers exclusively. 
The people needing mortgage accommodations are 
fortunate that Governor Glynn and the Banking De¬ 
partment of the State are deeply interested in the sub¬ 
ject, and are willing and anxious to do everything pos¬ 
sible to organize and develop the system. Full in¬ 
structions and blanks will be supplied by the Banking 
Department, and organizers and instructors will be 
furnished by the State Department of Agriculture. Of 
course men are fortunate if they do not need a mort¬ 
gage. Such citizens will not be interested for them¬ 
selves. No one would suggest a mortgage for an owner 
who does not need the money, but for those who need 
it and must have it, no better system has yet been de¬ 
vised. 
SAFE INVESTMENTS.—The Land Bank bonds 
will be a convenient and safe investment for wage 
earners, farmers or any investor, large or small. They 
will be written in small denominations and may be 
bought and sold from one person to another. A per¬ 
son with $20 idle may buy a Land Bank bond and it 
will earn interest at once. When he wants the money 
he can sell it, or if he has more money idle he can buy 
another. This opportunity to invest in safe bonds ought 
to absorb much of the money that now goes to get-rich- 
quick schemes and gold-brick ventures. J. J. D. 
THE FARMER OR THE PHEASANT. 
In this great Empire State the law considers a 
pheasant of greater importance than a farmer. The 
law protects the pheasant and does not protect the 
farmer. The pheasant can pull acres of corn and the 
farmer must stand by and see his crop destroyed, and 
he must not harm so much as a pinfeather on the 
pheasant. 
That is the way A. B. Katkamier of Ontario Co., 
N. Y., puts it. He gives the following cor¬ 
respondence : 
Macedon, N. Y., April 6, 1914. 
Hon. Thomas Carmody, Attorney General, Albany, 
Dear Sir:—For two years my corn fields have been 
badly damaged by the pheasants pulling up the seed¬ 
ling corn plants. This year I desire to grow a measured 
acre of corn, in order to get a maximum yield. I want 
every corn plant to grow. Will you please tell me how 
I can protect the corn field from the pheasants? Two 
years ago the seed corn was tarred, and last year con¬ 
siderable shelled corn was sown over the field, but 
neither method seemed to have any deterring effect on 
the corn pulling by the pheasants. 
Yours very truly, 
A. B. KATKAMIER. 
The Attorney General referred matter to the Com¬ 
missioner of Agriculture, as coming within the juris¬ 
diction of that officer, and his reply is as follows: 
Albany, April 20, 1914. 
Mr. A. B. Katkamier, Macedon, N. Y. 
My Dear Sir:—The Attorney General has referred 
to this office (Department of Agriculture) your com¬ 
munication addressed to him in regard to the destruc¬ 
tion of corn plants by the pheasants. We have a some¬ 
what similar question up in regard to the girdling of 
young apple trees by rabbits. 
I appreciate the fact that there must be some relief 
found from this situation, but I confess I hardly know 
how it can be worked out under the law as it now 
stands. These rabbits and birds are protected by law, 
so that it is unlawful to shoot or destroy them, and 
there is no question but. in many localities, they are 
causing much damage. I am going to take this ques¬ 
tion up with the Conservation Commission and some 
others, and see if some plan cannot be worked out that 
will relieve this situation. 
Sincerely yours, 
cai.vix j. iiuson, Commissioner. 
It will give the Commissioner extra power to “take 
this question up” if we all express our opinion on the 
subject. Here is a chance to stick a stamp for the 
corn crop. 
New York State News. 
AFTER ROAD CONTRACTORS.—The attorney- 
general has instituted proceedings to recover thousands 
of dollars from road contractors and their bondsmen 
for violating their contracts in road construction. It 
is stated that the State highway commissioner will co¬ 
operate with the attorney-general in these proceedings. 
Probably the first cases will be in Rockland and Suf¬ 
folk counties where graft indictments have been re¬ 
cently found, and Warren and Montgomery counties 
will be next on the list. Under the highway law all 
contractors are bonded for 50 per cent, of the amount 
of their contracts and the bond is held until the roads 
have been accepted by the State authorities. In sev¬ 
eral of the cases it is said that the State still holds the 
bonds of contractors who have built roads that have 
not been constructed in accordance with the contracts. 
In Rockland County the alleged loss to the State is 
put at $21,417; in Warren County $15,800; in Suf¬ 
folk County $38,000 and in Montgomery County $5,846. 
NEW FORESTRY BUILDING.—The program of 
exercises upon the opening of the new forestry build¬ 
ing at Cornell University, May 15, was elaborate and 
introduced to those in attendance some of the foremost 
forestry experts and officials. Among the prominent 
names were those of W. B. Greeley, Washington, D. 
C.; C. R. Pettis, Albany, superintendent of forests: 
Charles M. Dow, director of the Letehworth park and 
arboretum of Jamestown, N. Y.; W. II. Vary, master 
of the State Grange who discussed forestry on the 
farm; James W. Tourney, of the Yale Forest Sehoo’, 
New Haven. Conn.; F. L. Moore of Watertown, N. 
Y.; II. S. Drinker of Pennsylvania, president of the 
American Forestry Association; J. S. Whipple, presi¬ 
dent of the State Forestry Ass ation: Dr. L. H. 
Bailey of Ithaca; Gifford Pinchot. president of the 
National Conservation Commission. 
BOVINE TUBERCULOSIS CONFERENCE.—At 
a conference held at the agricultural deparintent on May 
11. the question of eliminating or restricting bovine tu¬ 
berculosis was discussed. It was the opinion of those 
present that the bovine tuberculosis law has not re¬ 
sulted in the elimination of this disease to the extent 
that had been hoped for. A resolution was adopted 
asking Gov. Glynn to appoint a commission to in¬ 
vestigate the subject and report, with recommendations 
for legislation, to the governor before the convening 
of the legislature of 1915. The governor was requested 
to name on the commission, with such others as he 
deemed advisable Commissioner Huson, Dr. V. A. 
Moore and Hon. Seth Low. The Wheeler-Machold bill 
which passed the Senate but was killed in the rules 
committee of the Assembly, was intended to supplant the 
present law and it will be recommended that the new 
commission make it the basis of a new measure to be 
introduced in the next legislature. 
STATE GRANGE SCHOLARSHIPS.—The time is 
approaching for the examination of candidates for the 
State Grange scholarships. These scholarships have a 
value of $50 each and are awarded on competitive ex¬ 
amination based on a general knowledge of arithmetic, 
geography, history and English composition. The State 
Grange appropriates annually $600 for the 12 scholar¬ 
ships. Candidates must be at least 17 years of age 
and members of the Grange. Examinations are to be 
held in each county where there is an applicant on the 
third Saturday in June, and under the supervision of 
the Pomona Grange master and a committee of two 
chosen by him. These scholarships have been contin¬ 
ued for several years and with growing interest. They 
have served to extend Grange influence and attract 
interest in the activities of the Grange. In many coun¬ 
ties there are young men who have taken this short 
Winter course greatly to their benefit, and who have 
returned to the farm with a broader view of the calling 
of agriculture and a renewed interest in the farm. 
NEW YORK APPLE GRADING LAW.—On July 
1 the new apple grading law will become operative. 
The law provides for four classes of fruit, or rather 
grades of fruit. First, the New York standard fancy 
grade. Second, the Standard “A” grade. Third, the 
Standard “B” grade. Fourth, Unclassified, compris¬ 
ing apples not conforming to the specifications required 
of the preceding grades, or if conforming are not brand¬ 
ed in accordance therewith. All closed apple package. 1 ! 
shall bear the name of the packer or the person by 
whose authority the apples were packed, the correct 
name of the variety, the grade of the apples contained 
and the minimum size of the fruit. Violations of the 
law are punishable by a fine, for the first offense, and 
not more than $25 and not less than $10; for the sec¬ 
ond offense by a fine of not more than $50 and not 
less than $25 and for the third and each subsequent 
offense, by a fine not exceeding $200 and not less than 
$50 together, in all cases, with the costs of prosecution 
BARGE CANAL FLEET.—An important bit of 
news is to the effect that a barge canal fleet of 30 ves¬ 
sels will run betwen New York and Buffalo when the 
barge canal is completed. The New York and Buffalo 
Steamship company will soon be incorporated at Al¬ 
bany, with a capital of $3,500,000 to operate this line 
of fast freight vessels on the canal. The vessels will be 
driven by electricity and operated from the pilot hous^ 
instead of from the engine room. Owing to the fact 
that there will be 380 bridges over the canal, 
the majority of them only about 15 feet above the 
level of the water, the vessels will be built low and 
resemble enclosed car floats. Each will be 275 feet 
in length and 40 feet in width and will have a capacity 
of 1.500 tons. The distance from New York to Buffalo 
via the canal is about 500 miles which will be cov¬ 
ered by the boats in 108 hours. This time will include 
35 hours for stops and 12 hours delay in the locks. 
The average speed of the boats will be eight miles an 
hour but they can make ten. These boats will cost 
about $6,500 each. That this canal traffic will prove 
a very considerable competitor to the railways when 
the full fleet is in operation, is shown by the advantage 
it will have in the point of time of transportation. It 
is said that it takes quick freight eight days to reach 
Buffalo from New York and heavy freight, such as coal, 
sometimes nearly three weeks. This by rail. An offi¬ 
cial of the proposed line of vessels is quoted as saying 
that the boats will make the trip in three days anil 
the rates will be 20 per cent lower than rail rates. 
These fast boats will be known as express boats and 
will stop at Albany. Troy, Schenectady, Utica. Syra¬ 
cuse and Rochester. The other boats will stop at all 
of the 30 cities on the route and will make the trip in 
119 hours. The boats will make no stops at any of the 
Hudson River cities, except Albany, and will not be 
operated on the lakes. j. w. D. 
