The weekly times-record. (Valley City, N.D.) 1912-1922, 1920-12-30
THE UNPLEASANT FACTS

1.o'hAHS 10 ever SdlIltu ny CLOSING
ones eyes to unpleasant facts.
What are the unpleasant facts about
the states various industrial enter
prises?
Il. The homebuilders association has
spent it's appropriation of 100000 in
overhead and organization expenses.
1t has no money to finish the work
now under way, and the houses that
have been built have been sold at an
average loss of $1,000 to $4,000. The
association has large quantity of
high priced lumber on it's hands, and
it is doubtful if it's cost accounting
system has been kept with sufficient
accuracy to permit the department to
state exactly what any one job cost.
2. The Bank of North Dakota has
suspended operations to the extent
that it is refusing to permit those de-
positors who want to withdraw their
funds to do so, and if those depositors
were paid: all remaining deposits, con-
sisting of the expense funds of the
state and the state institutions, will
be found to be tied up in long time
lians and advances to state industries.
3. The state experimental flour
mill at Drake probably has been los
ing money at rapid rate when the
very limited size Of the enterprise is
considered. The work on the big mill
at Grand Forks is but partly finished,
and there is no money available to
complete it. The experience with the
Drake mill does not hold out any hope
that the big Grand Forks mill can be
operated at a profit, and there is no
reason to believe that it will improve
marketing conditions if it is. The
Drake mill has sold flour at higher
price than privately owned mills, and
it has paid less for wheat,
On such a showing the state is now
called upon to pour several million dol
lars into these various industries to
permit them to continue. If the Bank
of North Dakota is to continue to func-
ton as bank. and if our state insti-
tutions and our state government it.
self, are to have any funds for cur
rent operating expenses, the banks
capital must be sold to somebody 9TH
er that the depositors. In other
words, the 100000 of bank bonds
must be turned into cash.
If the omebuilders enterprise is to
continue along present expensive lines:
it must have large amount OF money.
Socialistic dreamers can lose a lot of
money in the contracting business.
And if the state mill and elevator
are to be completed and operated, they
call for hundreds of thousands of dol
lars.
There are three possible courses
open-wreckage salvage and the con-
tinued throwing Of good money after
day. ''.-.
Which of these three courses do we
want to pursue?
The first is out of the question, of
course, and the last one ought to be.
Do we want to continue the Bank of
North Dakota when it has loaned less
that $4,000, O0O-that sum including
all the funds of the state institutions
to farmers, during it's existence, or
do we want some plan like the South
Dakota plan which has brought $685.
100000 of outside capital into the
state for farm loans?
Do we want to continue paying sub
sides of 81 900 to 1000 to every man
who will let the state build house for
him? If so, why not pay the subsidy
direct instead Of in its present form
Do we want a state mill and eleva-
tor operated by the same men and the
same manner as the Drake expert
mental mill which is losing money de-
spite freedom from taxes, selling -four
for more than private mills charge,
and paying less for wheat?-Forum.