Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1893-02-17

quarter section of s2,s472o, on which. by
the constitution, One-tifth was paid down,
making cash permanent fund received in
1871 in July or later for investment of
Sll3,53O60. No other moneys came into
the permanent school fund for investment
or that could be invested prior to the sum-
mer OF 1872. except for leases, ETC., and this
sum OF Sll3, ,5306O is approximately all
out until 1892.
Section l62 of the constitution provides
the mode given to the school and uni.
verslty board OF this state without the aid
o. any legislation by the state to loan out
the permanent school funds. The section
reads thus:
"The moneys of the permanent school
fund and other educational funds shall be
invested only in bonds of school corpora
tiOns in the state, bonds of the United
States. bonds of the state of North Dakota
or IN first mortgages on farm lands in the
state, not exceeding in amount one third
OF the actual value OF subdivision on which
determined by the board of appraisers of
school lands"
Inc same persons were on the county
board of appraisers in 1891 in each of the
counties that had made appraisals before
sale OF the land sold in 1891, on which an.
praisals the sales of 1891 were based. and
these sales showed that they had appraised
posing the state board in anticipation
of those sales and a month before they
were made, then had passed resolution
of their board that they would entertain
applications for farm land loans under Sec
tiOn l62, of the constitution, at 8 per cent,
without any bonus in each of the Red
River valley counties in which they were
then about to make sales and which sales
would test the selling value of wild lands
in that county. for the sales we're of small
and scattered tracts covering all portions
Of Red River valley counties. This they
did about school bonds month before
and shey whsn haa money money to buy them
bonds that could be furnished to any
extent exceDt such as could then be con-
trOlled by Wall street, and agents of theirs
here. II this notice had been given those
applications would have come in for farm
loans. and if the loans thus made would
not bear nor would not have been safe,
what safety is there for the payment of the
80 per cent. yet remaining due on all
school lands that the state has heretofore
sold for $4,000 quarter. The semi
annual payments of interest ON these sales
are on the 80 per cent of the principal yet
due and are being made with as much
prOmptness as is the interest on school
Nhu lAC ISdkeS lOI puC-
chase money represents 30 per cent. of the
full value of the school land sold, while
these loan investments which would have
been made)in the same county at One.third
valuation, and the same individuals on the
board as made the aDpriasements of the
sales of 1891 and 1892 would have repre-
sented, out SS]N1 per cent. at the outside of
the actual value of the lands mOrtgaged IN
this state.
Can the state be safe in its present mode
of sales aud have been unsafe in these
loan investments?
The state would have obtained double
the security that it now retains for the so
per cent. of the sale price of the school
lands. No man acquainted with the situa-
tion can deny but what all of the money
Could have been promptly invested in 1891
in Dakota farm loan mortgages at a
greater rate of interest than we now
obtain on these purchased school bonds
without the payment of any premium to
get the mortgage and with perfect security
to the state. And had there been an occa-
si0nal borrower who would have neglected
to pay and have forced the state fore.
closeure the land purchased taken by the
state, instead OF making loss, would on
these sales nave added great profit to the
fund. 1t would have inju ed the state in
this, If it may be called an injury, 1t would
have kept the money out of Wall street
anu houI IL ~ Iloilie III INoItll DakOta. Ill
great many instances it would have
prevented bankers and loan agents
from extOrting a larger interest
than s per cent. on farm loans and
taking an enormous bonus in addition,
and the borrower, not being weakened by
the larger interest, would have been in Il
better condition to pay. Fewer force
smaller depression of real estate value
would ensure which would strengthen and
add tG the value not only on the school
lands for which we yet hold so per cent OF
the sale price, but for the many thousands
of acres we are expected to sell in the near
vited settlement, added to the property
value of the state and promoted the good
OF the whole mass.
The total sales in Cass. Grand Forks,
Pembina, Walsh and Traill counties in
1891 were 30,Sl6 9S acres, which realized
$567 81, or an average of Sl5.42 an acre,
or $2,W7O quarter, or nearly $1,000 a
quarter.
In 1892 the state sold 66.79l.20 acres in
the same Red River valley towns for 81 1885,
924.7S. being all average Of $l9.25 per acre
for wild land as it averaged all over
the Red River valley from the south to the
north end Of the state, or an average of
$3,O5O per quarter section. While the sales
OF the two years represent II total IF 81
6US. IL acres for total sum OF Sl,S5S. .57S 80,
being an average Of over $S 600 per quarter
for wild farming lands for ali the school
and university lands the school board has
sold to date. What we have said about
the fund Of 1891 should have heen invested
should apply to the year 1892 except that
no portion of the fund received in 1892
which came in as interest on these pay
ments on these sold lands and In rents on
the lands we are leasing and giving hay
privileges on. should have been taken nut
Of the teachers fund, made sacred to run
the schools for the year. and been invested
In any kind OF securities whatever.
We enter this protest at this stage to
warn the legislature of its duties and
power and to prevent this or anv other
school board we shall have hereafter in the
state from sending our money to Wall
street and to bring about u reform against
methods which have prevailed too much
not only IN North Dakota: Of driving pub
lie money east, to fatten Wall street and
enhance the money Of the west and not
only create but force the conditions that
force our people. to pay additional bonus