Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-02-11

ly that they will be particularly in
terested in paying up the contracts.
An examination of the list of land
owners who are lapsing in their pay.
ments indicates that a big percentage
of he men are financially able to
meet the rayments--'but they are get
ting ate money cheaper than they
can get il elsewhere. which seeming
ly is the whole solution SO far as
their laxness in paying up is con-
cerned.
The present apparent deficit at the
university grows out OF the fact that
'ilc institution has failed 70 realize
this estimated income from the land
grant fund and from the educational
mill tax. State direct appropriations,
as were made by the Legislature two
a definite income for the biennial
years ago, were realized, with the
exception Of two Or three small nes
Preslpposing that a condition
similar to the one of the past year
prevails next year, it will then be ne-
cessary for the university to 60 out
and make a Kew loan and to pay a
higher rate Of interest for the same.
A system of state control, that
would provide each institution with
a definite income from the biennial
period, is far more favorable than
HE present uncertain method. The
institution would then know it's
money limits and there then would
be absolutely no excuse for deficits,
nor is i; likely that any would &C.
cur.
What Plan Means.
The adoption of the. plan that Mr..
Young has suggested would entail no
little study Of the financial system of
the entire state. Presenting thai the
university's total expenditure for two
years was estimated at $1,000 900 and
that the legislature passed appropria-
lion measures sufficient to guarantee
that amount to the university. Of
that 100000 the estimated income
for the land grant for the coming
new year would be $4,000, while
the educational tax would realize
$1,000 toward the, $500, 900. Those
two items combined give the uniyer-
sity a total of $685. 900 in the two
year pericl, leaving $174,OC0 that the
state would have to provide for by
direct appropriation. -
Presuming tina. the land grant in.
come fails of the estimated amount
and that the educational mill tax in
come also falls short, it would then
become the duty of the state, under
the plan proposed to finance tina,
portion Of the outstanding income
that is not available and this could
be done through loans made directly
from the permanent funds Of the: uni
itself, o: of one of the other
funds. The state, being the agent. of
university in handling the lands
the income from beth The land. grant
and the mill tax would be in a. posi-
ton to realize on it's claims against
the university and would retire the
money for the loan made of, the ner-
fund when the income is
AVAILABLE. ~. --.b
BY the adoption, of. this plan the,
university, instead of having to: pay.
per cent as is now the case would
have to pay only 5 per cent and prob
only 4 per cent. This same con-
lition applies to every other institu.
ion in the state. .,s =
What Would the Individual Do?
Judge Young, in discussing this
Of finance, compared. the
tate to an individual engaged in a
gigantic business, such as the states
business is. The individual would
just how much money he had.
lie would know in just what funds
re had l. placed and would operate
such manner as to insure each
.und the amount of money it re-
luires. If this business man was
short in one fund and had a
in another fund, he would
simply loan money from the surplus
und to that fund which is short and
le would thus avoid the payment OF
interest. No sensible business man
would leave $4,000 in one fund draw.
ng , or 4 per CEN; interest and 20
y: and make a new loan of $4,000
rom an outsider and pay him s per
'ent. Yet that is what the state Of
\crtll Dakota is doing.
Institutions Worry Along.
The university situa-ion is cited
lere as a concrete example of bene-
that could come to the state
through a comprehensive scheme of
that would place the entire
r