St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-10-10
TURN The GANG OUT.
The Outrageous Business
Methods OF Some Officials
of North Dakota.
How by Stupidity They Are
Losing to the State Thou
sands OF Dollars.
z Fatal Siort-Sightedness in
the Handling Of Money
Of the Schools.
Opportunity for the People
to Do a Little House
Cleaning.
Special to the Globe.

Special to the Globe.
BISMARCK, y. D., Oct. "a new
piece CT eXtrayagaut folly on tie part OF
Republican officials comes to light here
today, and is given out to the GLOBES
CORRESPONDENT to make public for the
first time. 1t is straw which shows
how Republican officials raise the wind
for nrivate friends at the expense or
the people OF the state, and is another
indication how Republican government
is costing the new state of North Da-
kOja.
The two normal schools, at NIayvills
and Valley City, established by the pro-
visions OF the constitutional conyen-
tion. were each granted 4G.G00 acres OF
lan>l, with power to bond the same for
SchaGl purposes up to $4,000. or 5O
cents per acre. IN the aggregate, then,
these two institutions had $4,000 acres
OF land, upon which they desired to
raise $l00G0.
seton of School Boards.
The boards Of the two normal schools
concluded TO ask the state board OF
school lands to lend them the money
and take the bonds at 6 per cent, as
there was large surplus OF scnool
money in the state school fund, Which,
according to law, must be loaned out.
As the state board. according 20 law,
must guarantee tie interest on the
bonds issued by the normal schools at
Valley City and Mayyiiie, no matter
who took them, it was a business prop
oSitiOu unusually inviting to both SldeS,
as it secured the cash for the schools,
paid the state a good rate OF per cent
and made it unnecessary 1or the STATE
TO 20 security for the payment OF the
interest, as would have been the case
had the bonds been placed with for
eI%n creditor.
But the state board, composed Of
Burke, Booker, Spencer and Ogden, re-
fused 10 take the $4,000 bonds at per
cent. saving the $4,000 acres of land OF
the MayviIe and Valley City schools
was not sufficient security. SO the two
scio.3is fioated the bonds in the Eastern
ma: Get and the state guarantees the
per cent interest, SO is practically re-
spCnsibie for the loan anyway.
s E.Ittle As:ninity.
Meantime Messrs. Burke, Booker,
Sr2ncer and Ogden, of the slate board,
went into the market over at Grand
Forks and bought $500 worth OF INDIE
pendent school bonds outstanding until
sheif-worn i'll the office OF private
DONG ilf:H. fiSSG UOiiNSs h4'tNh ivy
bought at premium, net the STATE an
average OF about per cent.
thus tie state refused 10 take It's own
bonds at par at c per cent. which per
cent it is compelled TO guarantee to the
foreign buyers, and with the same
amount of money purchased old cut
standing bonds, scattered. al 4 per cent
a.id paid a premium for them. ouGi
0u;raneous business management would
break any private firm in very Short
tine. -,
l;y this operation the state of North
Dakota losses $500 every year, and as
the bonds were for twenty years the
aggregate loss will thus be about SlG,-
COS. This is a comfortable private
fortune.
~ ii not about time for the people of
thl state to turn out the old gang which,
in enc gulse OF another. has infested
it from territorial days down TO tue
present time? They Will go cut this
year in Tie interest Of eeonomy and po-
utical reform.