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Show SMOOT CHARGES ARE SUSTAINED Senate Report Shows Concerns Forced Premium n Order to Get Lojan Washington. Charges of Senator Smoot (Hep.) Utah, "and other senators that borrowers from joint stock laud banks in some cases had been charged illegal premiums, were declared sustained sus-tained in a repart made to the senate by Chairman Lobdell of the federal farm loan board. In reply to a resolution of inquiry adopted by the senate, Chairman Lobdell, Lob-dell, in a letter discussing reports of illegal charges being Imposed upon borrowers, bor-rowers, said : "That such charges have been made we know beyond question. Individual cases have been called to our attention atten-tion and investigation has developed others. Considering the number (of official loans) involved and the opportunity oppor-tunity for extortions, we believe they have been surprisingly few." Chairman Lobdell added that the board, when It learned that borrowers were required to subscribe for the stock of two joint stock banks at a premium in order to secure loans, had issued an order storing the practice and requiring the banks to take up the stock and to repay premium plus iuterest. |