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The Seaforth News, 1934-08-23, Page 7THURSDAY, AUGUST 23, 1934 THE SEAFORTH NEWS PAGE SEVEN. 1 1 1 1 11 1 1 1 Duplicate Monthly Statements We can save you money on Bill and Charge Forms, standard sizes to fit ledgers, white or colors. It will pay you to see our samples. 0 1 Also best quality Me•ta1 Hinged Sec - The Seaforth News 1 tonal Post Binders and Index. 1011111111 Phone 84 •TI.11,•••••,"7-4,,IT'IrV'T,,r.E...1"4”.,V.V.TP^Trv"TrW"T—T,T, A DOLLAR'S WORTH Clip this coupon and mail it with $1 for a six weeks' trial subscription to THE CHRISTIAN SCIENCE MONITOR Published by THE CHRISTIAN Samson POSLISIITNO SOCIETY Boston, Massachusetts, II. S. A, In It you will and the daily good news of the World from its 800 speolol wrlterS, as well as departments devoted to women's and children's interests, sports, 181015, 5118005, education, TROIS, STO You 00111 be iand to TYTITOTIO iota TOST home 50 fearless nn advocate of pence and prohibition. And don't miss Snubs, Our Doe, nod the Sundial and the other features. THE CHRISTIAN SCIENCE MONITOR, Back Bay Station, Boston, Masa. Please send sue a sis weeks' trial subscription. X enclose one dollar OP. Ait t11 (Pains. Please print) (Address) (Toe n) (State) Services We Can Render In the time of need PROTECTION is your best friend. Life Insurance —To protect your LOVED ONES Auto Insurance— To protect you against LIABEIJITY to PUBLIC and their PROPERTY Fire Insurance— To protect your HOME and its CONTENTS. Sickness and Accident Insurance— To protect your INCOME Any of the above lines we can give you in strong and reliable companies. Te interested, call or write, E. C. CHAMBERLAIN INSURANCE AGENCY Phone 334 Seaforth, Ont. MIN15115==.11, 0. H. McInnes Chiropractor Electro Therapist — Massage Office — Commercial Hotel Hours—Mon. and Thers. after- noons and by appointment FOOT CORRECTION by manipulation—Sun-ray treat- ment Phone 227. AN EXPLANATION 1 Of The Purpose of The Farmers' Creditors Arrangement Act iAt ffre last session oi Parliament there was passed an Act to ;facilitate comprises and arrangements between farmers and their creditors. ;This Act Was drafted for the spec- ific purpose of dealing with the finan- cial difficulties of farmers. For mak- ing arrangements as between farmers amid their creditors :Paella:rent desired that the mechanism provided should be as simple .and inexpensive as pos- sible. Parliament further desired to provide machinery inexpensive to the farmer in that type of case where .1.- rangeoseitts ,or compromises cannot artvantageottsly be made ,whereby a clearance can be obtained by the .debtor. The question 01 jurisdietion has so often been raised .relative to debt ad- justmeet .ehat the legat position should, be borne in mild, Under the Consti-1 talion the Federal Parllainleirt dealei with legislation coming within the term "Banileruptcy and Insolvency" whereas the Provincial Legislature has conteail of ',Property wed, Civil Ricelete" The term ba 111(13011)1" was or- iginally applied back in early clays only to fraudulent persons, Theword however has end ergone a transfer of senseBoy.' the popular settee means an iesolvent debtor or one who is unable to meet his liabilities. Bankruptcy is not fraudulent when claims are beyond the capacity to pay. ;Until the ,passing of the Bankrupt- cy Act by the Paliament of Canada 'it 1110:9 there was no bankruptcy legisla- tion as such although the provincial legislatures had to a degree sought to deal With the problem by passing Voluntary AseIgnment Acts, the pre - 011100 off Quebee dealing with the same subject in certain -sections of its Civil Code. In cases of bankruptcy and insolvency naturally there will develop a great many intricate and technical questions. Conflicting inter- ests, and claims when in Om total they much exceed the capacity to pay produce these tangles which are dif- ficult to enravol. While ender the Bankruptcy Act a farmer cannot be forced into bankruptcy. yet he can voluntarily assign and seek relief under the Act. Owing to the far-flung nature of the Dominion, its relative seam popelation, and because of the infrequency in normal times of re- course by matey of our citizens to bankruptcy, the centres of adminis- tration of ban;kruptcy law are usually removed from one another by con- siderable ;distance. Because of the ne- cessity of full and complete notice, of full and complete detail of adver- tising, etc., the expense involved' in any case under the Bankruptcy Act is considerable and hence many farm- ers: feel that they cannot seek re- lief under it. Parliament in the Ace recently passed has sought to make available in the simplest possible manner machinery whereby: ,ecee ICOnitprOMiSeS or reartange- menes may be effected oT the debts of ,ehose farmers who are unable to pay but whose statements of affairs arid general desire indicate hope of k51100005, (h), !Where the indebtedness is out tef all proportion to the meets in order to make a fresh start the only reason- able couese is to seek a Bankruptcy diecharge, and ;the Act ,makes peovis- ion for an assignment at little ex- pense to ;the farmer. The object of the legislation can best be indicated by quoting the Pre- amble to the Act itself: "Whereas in view of the depressed state of agnioul- hire the present indebtedness of many , farmers is beyond their capacity to „pay; and whereas it is eaSeRtial in the interest of the Dominion to retain the ofannters on the land as efficient pro - deicers and For such purpose it is. cessary to provide means whereby comprises or rearrangements may be effected ,of debts of farmers who are unable to pay." ;Parliament was faced with great difficulty in the drafting ,o1 legislation which would fairly and equitably take cave of the rights both of debtor and ceeditor. This difficulty was en- hanced when Parliament had knowl- edge of the fact that almost everyone in the position of creditor was arise himself or itself in the position of debtor to someone else by virtue of contract or of trust. Parliament, how- ever, regarded as parament the ne- cessity of legislatiag 00 etated above "in the interest of the Doinheion to retain the farmers oet the land as 01- ficiient producers." It felt that if the debtor and creditor can be brought together easily and the actual facts and circumstances obtain reasonable and frank consideration then that there should 'andwould be au under- etaading areived at. The legislation makes available to both sides the op- portunity that there may be fair in- veseigation of the true ,situatioe, This shoteld mean a fresh start ;for the debtor, a start which will mean that while he will still have obligations those obligations will be so rearrang- ed that he can face the future with confidence and be no longer in de- fault. Each panty must be prepared to deal reasonably with the other, A settlement is needed between debtor and creditor need it must be macie without destroying the basis of credit and coolfidente, as well without un- dermining the basis of co-operation, If, under the Act, the parties at their meeting cannot agree then there is prorision for appeal to a tribunal which can formulate a 'binding pro- posal basing it upon the "preseet and prospective capability of the debtor to perform the obligations prescribed and the productive value of the farm" (section 112), The procedure to be followed by a farmer seeking relief is simple. The Governor in Council will appoint in the judicial centre of every farming commenity au Official Receiver. To this man the farmer may go, The Official Receiver will assist him in preparing his Statement of Affairs and in Making a proposal to his cre- ditors. This proposal and a statement of his affairs will go to each creditor with notice of date and place of meet- ing. At this meeting the farmer's ate elite; and the proposal will be frankly and informally discueeed. The proposal of the farmer may provide for a compromise or an ex- tension of time or a scheme of ar- rangement in relation to a debt ow- ing to a secure creditor, or in rela- tion to a debtor who has acquired mo- vable or immovable property sublet to a right of redemption, but in that event the concurrence of the secured creditor or emit person, shall be re- quired, except be the case of a pro- posal ;formulated and cop:firmed by the Board of Review, which is the tribunal to which request can be made when the efforts before the Official Receiver have proved; abortive, the request to be made by the farmer or any creditor, n the ease of an assignment, peti- tion or proposal, in the province of Quebec, the Superior Court of the ju- dicial district where the farmer re-. sides, rind in other provinces, the county or district court, shall have \exclusive jurisdiction under the Act, subject to appeal to the Appeal Court of the province. !When a proposal has been concur- red in by three-quarters of the mese- cured creditors and by the secured creditors it ie to be approved by the c-ourt, and 0vhenever It is apProeed by the court, or when it has been form - elated and confirmed by the Board of Review the court may order the far- mer to execute any mortgage, con- veyance or other instrument notes - earl' to give effect to the proposah ;When the farmer files a proposal with the Official Receiver it acts as a stay of proceedings and no action cant be taken against the farmer for a period of sixty days frOm the date of filing, but from the date Of filing all the property of the farmer is under he authority of the court pending the final disposition of any proceed- ings in connection with the proposal. flat each province there is provision for a Board of Review, which shall consist of a Chief Conweiseioner and two other Commissioners. The Chief Conernissi6ner shall be a judge a the Superior or Supreme Court of the Province. One Commissioner shall be appointed as a representative of cre- ditors and one Comtnissioner as a reP- i.e.:mutative of debtors, While each of the Commissioners, apart from the Chief Commissioner, ae stated above, is a representative of a particular clasS, debto0 or creditor as the case may be, yet their appointments will primarily be based an the soundness of their judgment as reasonable men, and their •knotelledge of conditions, and their appointment to the Board 141 be on that !tests and not for the pur- pose of having each appear as advo- cate for either a debtor or creditor in matters that come before the Board. When no propose has been ap- proved by the creditors the Board of Review shall endeavour on applica- Lien by the farmer or any creditor to .formu•late all acceptable proposal to be submitted to the creditors and the debtor, and the Board shall consider representations on the part of those interested. f any such proposal formulated by the I3,oard is approved by the creditors and the debtor, it shall be filed in the court an'd shall be binding on the debtor and all the creditors—secured and unsecured, If the creditors or the debtor de- cline to approve the proposal so for- mulated, the Board may nevertheless confirm such proposal, either as for- mulated or as amended by the Board, he which case it shall be approved by the court and shall be binding upon all 110 creditors and the debtor as be the case of a proposal duly accepted. There is another interesting section hi the Act which is new in the law of Canada. It provides that whenever any rate of interest exceeding seven per cealt is stipulated for in any mort- gage Of farm real estate, if any per- son liable to pay the mortgage ten- ders or pays to the person entitled to receive the money, the amount owing on such mortgage and interest to the time of payment, together with three months' further interest in lieu of no- tice, no interest shall after the expiry ef elle three months' ,period referred to be chargeable, payable or recover- able in respect,of the said mortgage et any rate in excess of ,five per cent per annum, llt can readily be eeen that the leg- islation e:eplained above has been passed by Parliament for the purpose of arranging, settlements on the basis of compromise, for the perpose oi re- moving, in difficult economic times, to the greatest .possible extent, the ir- ritation and vexation of court process as it affects not only the debtor but the creditor. • The success 'desired for this legisla- tion by 1?arliament Call be obtained only if all parties concernedget til- gehher with a real spirit of comprom- ise. In those eases where rearrange- ments are entered into there will he iedicalted a measure of succees but the real success of the legislation can he determined by the manner in which the parties respect the obligations tons newly created, The farmer should realize that failure on bis part honest- ly to endeavour to observe these new obligations may mean that he can be eetitioued agaenst in bankruptcy, not- withstanding section 7 of the Baole- ruptcy Act Fla It now reads. The legieletion is intended to bring the benefits cst bankruotcy into the rural areas and seeks to do' it without suhmitting the fawner to whet he »lay feel may be indignity on going through .the Bankruptcy Comte Alt the benelite of legislation in 50 far as they can be passed on to the individual having to do With solvency are carried to 111111. and 1100 restricted in operation to the larger centres. DROUGHT IN KANSAS This is ft summary of observations made CU E. Two-day '509 -mile motor trip through Eastern and Central and into Western lettistie. The pur- pose was to get a frit -hand vlcw c4 conditions in the beart of the region which normally produces the bulk of America's meat and bread, and a large part of her milk, butter ands veget- ables, but is 11011' laid waste by d omelet t. The territory traversed was selected ae typicaL of all the drought -stricken lands front Canada to the 'Gulf and iron; the Rockies to the Appalachiane, except for the North,,vest area which has suffered from the Mowing away of its top soil. lerom Kansas City, to., the routs covered the Kew Valley, a mixed farming and dairy country around Topeka normally so lush and fertile that is known locally as "The Val- ley of the Nile" and "The Garden Spot 0,1 America," passed though the rich blue -stern ranges knowe :re the "Flint near Emporia and Wi- chite, penetrated. at Salina the edge if the great \Vestern Kansas wheat belt which grows oneelifth of the na- tion's wheat in good years, and cross- ed the rolling prairies of wheat and pasture lead to Manhattan, Kansas, seat of the State college of agrice - ture, and back in the .Ka- Valley again, 11)uring most of the trip the temper- e351e 111115 over 100 degrees and fre- qtlently crossed 1,f015%. ,Driving west- ward, nnder the burning sun, one ran into the hot south arid southwest wiacis which have scorched and, •wilted the core fields, and made the blooms drop off the potato, tomato and other plants. Repeated gusts struck one itt the face in waves as if one were driv- ing past an endless furnace, the door of which was contineally being open- ed and closed.. The reporter stepped frequently at towns and cross-roads, talking with farmers, storekeepers, merchants, edi- tors, agricultural experts and public officials, Practically every one agreed upon the significance of the gloomy 1110 0(400 101101) one saw with one's 0011 eyes, Unlees heavy 10.2110 come soon enough to barren pasture lands, to grow Fall crops of feed for dairy and beef cattle, and to moisten the grouted for the winter wheat crop, it was generally agreed, the United State e Inc another :great emerg- ency next year, 1The drought has already eliminated the surpluses oi ,wheat, livestock and corn, which were a great factor in causiteg, and prolonging the depres- sion, If it continues, people are say- ing, the problem will ehift from that of 011 economy of overabundance back to the age-old one of aa economy of scarcity, lit is taken for granted that prices of meat, milk, vegetables and canned goods will go up in the cities thie winter, and perhaps of bread next year. At the same time it is pointed out, the destruction already done by the drought cut farm purchasing power to such an enormous extent as to make larger and 'larger amounts of Federal relief money neceseary; with the logical implications as to taxation or inflation when it comes time to pay the bill, The threat to business and employ - mem in the !todustrial East if the far- mers stop .buying again is• regarded here as obvious. IBut 'this is only one side of the picture—ehe side that will come op if the drought continues. There is a more hopeful side. People are :ray- ing that droughts , like de,pressioes, have alwaes ended in the past. If heavy weeding rains come soon en- ough, the breeding herds of liveetock. next winterwheat crop, and various fall crops will be saved. It is argued that the surpluses which have depressed .farm prices for years will be out of the way, that next year's crop e should bring better prcifite than for years, and that a revived farm purchasing power would more than make up to the in - &Istria! East for an increased cost of liv1".1.1g Thus, from this double-barreled point of view, the nation is engaged willy-nilly in a tremendous .gamble with nature. The coin has been flip- ped and must fall pretty soon. If it comes clown, dry, MOM hard perhaps worse than before; \vet, good times again, In every section of the State visited, except dor the flint hills, the country- side was burned' to a crisp. The only green vegetation consisted of trees and a relatively few scattered patches of yollthr, corn, alfalfa and kaffir corn. Rivers and streams were empty or so low as to be of little use to the sur- rounding lands. One paesed mile after mile of seorCiled, Withered corn, wilting and drooping to the ground. Where there should be goocl roasting care at this season, there were no ears at all. The stalke were dried and curling in the heat. Inside where there should have been moisture, there was noth- ing but dry and dusty powder wher elle seized it in the hand. :There were additional miles of bar- ren pasture land, binned to a dead brown 111 Most eaSes, in some cases as black as Et plong,hed field, Cattle were seen plitheticatly try- in33 graze on land which did not killer it 111olltildtd to ao acre. The only *Ten things to be seen in many•fields were a few weeds. In others, cattle were etancting around dry water holes huddled together with their heads dcewd, as they stand in winter when a storm 01 coming up. 'Afore stood un- der trees in river bottoms, munching at a few green spite on the hard cak- ed ground. .efoet of the cattle in the country are off the. barren pasture lands and hack in the "feed -,lots" where the far- mers are trying to save them, ,Like- wise with the hogs, the surplus in 0011 1011 was pretty well eliminated last year by the killing of "the 6.000.000 little pigs." Ilearmers were passed 011 the road hauling water from distant places for their herde. Oil company tank cars were carrying water to other farms free of charge. 'There were many miles of wheat fields, burned brown and dry, left un- totiched sinee the winter wheat crop was harvested in June. Except for the drought, the farmers would be plowing them now and getting them ready for the seed. !Potato, tomato and other vegetable fields were barreis under the hot sum The plant, were withered and their yield .05e poor both in quantity anti quality. Scrawny .potatoes, one-third or one-fourth the normal size of these large Western spuds, were picked up from the fields. lEruit trees by the hundred were dead and dying from a combination of the terrific heat Which lasted all through July and from the lack oi moisture. In some places cattle had broken, into orchards and were stretching ,thelir nicks to strip Inc trees of their leaves, Denuded tree trunks lay on the ground w -here farm- ers had ent them down to let then cattle eat the leaves. iSielely and scraWny 130114 Ir' were seen on chicken farms, Like the cattle and hogs, they have not enough feed to go around and wilt not lav this winter unie.ss the drought ie braken, Of coteree, the whole picture was not so bad as this, but most of it 'wee, There were some green fields and pastures, some fat cows and hogs and some growing things to be seen, but they were only spots, and the spots were scarce. Most farmers sem said that it was the worst drought they ever had ex- perienced,. There was art old-timer itt the Kaw Valley, 830 years old, who has owned and worked the same farm for ily.,fottr years -48100 acres of what has always been rated as Kaw Valley land." "This is the worst I ever saw," he said, 'My corn is burned, is falling down. I have 110 forage, no fodder this year. Where we will get hay to carry our livestock through the win- ter, I do not know. Looks as if the one chance is to plant wheat and trust to rain in time to .provide paet, ure this fall," Thee man's experience is typical; according to one of the best in' formed farm experts in Topeka. lAt a filling station where a stop was made for gas a group of fann- ers were sitting around. They were doing netethee else but waiting for rake, There was nothing else to do. "Tee got 1120 acres in corn and if it produces more than a bushel art acre be surprised," said one, "Didn't get enough to ell a seed bag from thirty acres of potatoes. Paid $1180 for the seed, got 75 cents for the potatoes. I lead seven acres in tomatoes—that 315;000 plant5 ami got exactly four tomatoes from tne V 11°1%jd"a"re we going to eat this winter?" he was asked. "Guess well have to postpone that," he said with a short laugh. IABOtiler man in the Katy Valley Said: "Two weeke ago I wonldn't have taken ninety. bushels an acre for my corn. Today I'd take 100," ee. storekeeper in Central Kans..; said he could not buy a 'case of car: - n0(1 tomatoes or canned core (oleo any jobbers because of the shontaee in vegetables. He asserted that there was not nearly enough feed in ths county eupply the livestock that the government could not take the distress cattle away fast enough. That was the cry everywhere, the lack of feed for livestock, There ovs not enough on the farms to go around and the prices of hay, alfalfa and °thoe. fodder imported from outside were prohibitive, what with their scarcity and the high freight rates. There was oot much cash around, and people weer waiting for their cornehog cheques from the govern- ment, The wheat allotment cheque> received lest spring had kept the farmers goiag until nom and some good money was expected in thoee eections where fair wheat crops were harvested before the drought struck tttis rlection. 'Every one agreed that the Ameri- can government would have to plow itit sol .111siney lilt° tile ,farna reg,ione this fall and winter in the form of loans, corn -hog payments, cattle 9u:- elm:es and; indirect relief for distress- ed familive. !A field agent for a farmers' es - operative reported that there were 43,000 cattle in his coenty and that 25,000 had already been booked for government purchase, with more be- ing added to the list daily. In county after eounty, farmers and stockmen asserted that 75 per cent of the cat& in the county would, be lost if it did not rain soon. ;In several placee the farmers said their cattle had eaten all the green stuff in the pastures and were 00.0 eating wends, some dying from pois- onous ttiectlii. 'The situation is very eerione 15113 is getting worse every day," :5a1.1. Dean I -Tarry Lineberger of farmere' extension division of the 0011015. "The only thing that will save ue i; rain, The corn crop is ruined heyere.i. repair. Our breeding heeds of cattle are threatened. Otto wheat crop has been short since 1930. Every year since has been dry, ibis being the w''''''r('')tr spring gardens were a fail- ure and it look, now as if we woull not have any Tall gardens to speak of. That means no worth -while can- ning crop. • "But a good. soaking rain 00 three or four inches, if it came soon en- ough, would start things back again, and once the drought was broken there probably would follow more rain, as always in the poet We are very much worried, but we are feet downcast. We are hoping for rain." Persian Balm is alluringly fragrant. Adds a charming refinement to the most 'tinis•hed appearance, Creates and preserves complexions of surpassing loveliness and texture, Softens and white:es the hands. Cools and dispels all irritation caused by weather con- ditions. Swiftly absorbed by the tis- sues leaving never a N,estige dE sticki- ness. ,A peerless toilet requisite. In- valuable to all wotnen who care for elegance anel distinction. Want and For Sale Ads, 3 times, 50c