The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-26

the interest Is promptly paid on all out
standing certificates One gentleman Of the
house figures that interest on land GER
tihcates Is reduced the state would lose $50, 800
and upward annually That, IL on the pre-
sumption that all the interest is paid prompt
ly.
At the sale Of state lands held in Otter
Tail county on July T. 1887, there were 178
descriptions of land offered for sale. and out
that had been forfeited to the state for n 1aMu
payment OF interest. aud there were SCOTS OF
othr tracts dlinqunt that were not adver
tised. We do not advertise land for resale
unless it 10 two or three years delinquent.
At sale held In Morrison county, Oct. rs,
1897. out Of 1ls pices offered, 6o were for
feited lands. At sale held in Crookston,
90 pieces. 80 were forfeited lands At sale
held in Clay county. June l. 1895, out of
liz pieces offered. 70 Were forfeited lands.
When lands are resold on account of delin-
quency in interest the back interest and taxes
are wiped out, resale cancels all back in
terest and taxes. 1t is safe to say that TODAY
fully one-third of all the outstanding certid-
Gates are delinquent In interest from one to
seven years. l make 1t point in every in
stance 10 give the holder of state land certi-
ncate, who is residing on and improving the
land, chance to pay up his interest and
taxes. Because when we resell, as | have
stated, the back interest and taxes are can
celed.
Fifteen years ago the interest on state
land certificates was reduced from to per
cent. Comparatively speaking, per cent
today is equal to per cent fifteen years ago
Money no longer commands 10 per cent. Mort
cages are being placed today at low a
rate as per cent. The state treasurer cannot
secure 8 per cent from banks. Nearly all OF
the frst-class city banks refuse to receive
state funds. At this writing there is SAP, O32 81
belonging to the permanent school and perma-
nent university funds in the state treasury.
AS have said. state land certificates are
the best security. In round numbers, there are
10000 land certificates outstanding at this
writing. States may repudiate their debts,
banks may fail, mushroom towns may fade
away, but the land remains, and, bear in
mind. the land is growing more valuable be-
cause of improvements, and the state never
parts with the title to its lands until every
dollar of taxes, interest penalty and principal
has been paid. By reducing the interest and
extending the time of payment of principal on
state lands, the state forces private holders
OF large tracts of land to give easier terms
to purchasers, all of which tends to the set
tlement, development and upbuilding of our
giant young commonwealth.
1t was not until the clerk had been
directed to call the roll on the passage
of the bill that the members appeared
to take any interest in the proceedings.
Mr.. Dwinnell Rep.), of Hernepin,
opened the debate by saying he was
surprised that none of the members
were willing to espouse the cause of
the bill on the floor Of the house
He differed from the state auditor on
the question of reduction in the rate
Of interest. The loss would be l per
cent on land now valued at 81. 900, 000
Selfish consideration should not inf1u-
ence any member, as it was the duty
to preserve and protect the school fund
against any class of people of the state.
Payments would be made at per cent
just the same as at per cent. 1t was
simply a question of the school fund
losing l per cent of its money on all
the lands sold and on all lands to be
sold. The auditor of the state had
made mistake in judgment. Purchas-
ers of the state lands had been allowed
and given long time to pay for them.
If the bill was passed, it became a con-
tract and could not be repealed at the
next session of the legislature if it
was found to be mistake. The total
amount received in the last four years
from sales and interest on state lands
was $500, 600, and there had been loaned
to towns and school districts OF the
state 100000, or 100000 more than
had been collected This would tend
to show that the fund was not in
creasing too fast for investment. He
did not believe that, as the state au-
ditor said, If the rate of interest was
reduced, the state could get more
money for state lards to be sold He
could see how spectators could be
benefited by the reduction.
Mr. jacobson Rep.), of Lac quf Parle,
said the question was one of business
principles. Only one side had been
presented by the member from Henne-
pin. If his argument was true that
the rate of interest had nothing to do
with the sale of lands then a mistake
had been made by the legislature of
1855 in reducing the rate from 10 to s
per cent. The rate of interest was
coming down to the rate of the old
country, and the people were not look
ing for a high rate. according to the
figures of the Hennepin member, in
the last four years the state had re-
ceived $500, 900 from the sale and in
tereSt of state lands at per cent and
loaned out $500, 600 at 4 per cent This
was the condition 1T was desired to pre-
vent by the bill.
The state wanted to dispose Of 1.500,-
COO acres of unsold land as fast as pos
sible. The acreage unsold was divided,
in the counties as follows: Aitkin. $685.
600; Cass 10000; Carlton $4,000; Crow
Wing, $4,000; Goodhue, 40; Hubbard. go
600; Itasca, $4,000; Kanabec, $4,000; Lac
qui Parle, "a; Marshall, IA 500: Pine, A.
2o0 ST. Louis, 100000; Swift, 200, and
Wadena, 25, 600.
In the southern part Of the state all
the school lands had been disposed Of
and the entire amount paid. The north
ern part of the state should be devel-
oped and the lands disposed Of. The
sale of the lands to settlers was worth
more than l per cent interest as when
sold it increased the taxes paid and de-
ve!oped the country.
Most of the railroad lands were To-
Gated in the northern part of the state
and the price charged was so high that
few had been sold. The bill would
force the railroad companies to dispose
of their lands at reasonable rates. The
state would lose nothing, as it would
keep the certificates outstanding few
years longer. Over so per cent of the
school lands sold in the past two years
had been resale. 1t was good bust
ness policy for the rate of interest TO
be reduced. The gentleman from Hen
nepin county who is opposing the bill
said there was no demand for the
measure. There was a demand for the
passage Of the bill and it came from
the farmers, who asked why the state
exacted per cent on the land sold and
then loaned it to other states for per
cent? n
Mr.. O'Nein Union), of Big Stone,
thought it was the member from Hen
nepin who had made mistake in judg-
ment rather than the state auditor.
The sale Of land would bring in more
money If the rate of interest was low
cred, and he favored the passage of the
bill
Mr.. Stivers Dem, Of Grow Wing,
favored the BILL The sale Of state
lands in recent years had brought bet
ter prices than railroad land in the
same locality, and this was due to the
lower rate of interest and longer time
for payment There was no sentiment