The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-02-12
PROMOTERS DESIRE.
LEGISLATION
LAND PROJECT MEN WOULD GIVE
STATE PERMISSION TO
INVEST IN BONDS.

Helena, Feb. 11.-(Special.)-The
whom have been helping about the
capitol of late days, are seeking to
get through a provision in one of the
bills relating to the ror1ns of invest
ments for the permanent funds of the
state which will permit the state of
ficials having those funds in charge
to purchase with them some of the
bonds for these projects. 1t is under
stood that provisions rocking to this
end have been incorporated in a bill
now on general orters in the house.
In connection with this matter it
may be of interest to call attention
to the fact that in tie sister state of
Wyoming, more thsn 1000, 900 acres
have been embraced in Carey projects,
and a large amount in bonds based
upon these projects has been floated
in the east without the slightest diff.
fioulty. Having completed the hand
ling Of its first 1000, 900 acres, Wy
oming is now undertaking the work of
similarly disposing of an additional
million.
This result has been made possible
by reason of the fact that the legis-
lature of Wyoming at an early date
took the Carey projects seriously and
earnestly in han and provided by
law a business basis for their organi-
cation and management, and safe
Guarded them as a financial invest
ment. Up to this date the legislation
affecting similar projects in Montana
has been wholly inadequate to pat
local projects on a par with those il
Wyoming, and for this principal rea-
son there has been lic;:e if any sale
in the east for bonds based Upon the
Carey projects in this state.
1t is now proposed that, in addition
to furnishing Carey project promoters
with tillable and at a very low price,
the state Indispensable in the floating
dorsement to the validity and business
s~oundness Of a number of projects
which apparently find the support of
the state indispensable in the floating
of their bonds. The investment of
state funds in a portion of the bonds
for any one of these projects would
have just that aspect to an outsider
who might be considering an invest
ment in them.
Not only so, but if there should be
anything like a generous investment
by the state in a number of these pro-
jects, the amount Of money that would
be left in the permanent funds for
loaning on improved farm property
would be seriously diminished.
If the Carey project promoters have
their way about it in new legislation
the restrictions hedged about the MAX
ing of farm loans and the expense to
be met by the farmers wanting the
loans, will be sufficient to cause a
repetition of the history of the last
three years in the matter of state
loans to farmers The existing law
has proved utterly unattractive to the
farmers of Montana who We're in the
market for loans, to such an extent
that not a single formal application
has been made for a farm loan under
it's provisions. If it can be kept so,
and at the same time a provision car
ried in a new law which would per-
nit the investment of the permanent
funds in Carey project bonds at six
per cent the authorities in charge of
the funds might be persuaded that an
investment of that sort was to be pre-
ferred over an investment in school
district or other bonds yielding an in
terest to the state of 4 or at the most
5 per Ger
While the assistance of the state in
financing these projects might be very
desirable to the gentlemen Interested,
and be very beneficial to the state it
self, in forwarding the settlement of
lands in various counties of the state,
those who are to be the most immedi-
ately benefited should be perfectly
willing hat the Legislature should first
provide laws that will guarantee the
administration of the Carey projects
upon an absolutely sound business
basis. 1t would not be difficult to
draft such legislation, and it is a fair
presumption that the legislative mind
at this time would be in a very re
ceptive state. Without such legisla-
ton, however, any investment of the
state funds along this line would be
hazardous, and the plea for such ac-
ton should receive no more than the
scantiest Of courtesy from the 18th
assembly.
1t is not a far cry to suggest that
the assembly will take this view Of
the matter.