Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-13
o A GOOD ALIB1.

vince the people of the state that the spirit Of the
law was not violated in the loaning of money with
which to aid in the building of a home for this state
official which cost more than $4,000. Their defense
lis necessarily confined to the spirit Of the law, be-
cause its letter is so plain there is no getting around
ut. The law says in so many words that the Home
builders association shall not buy or build for any
!person a home costing more than $4,000, or a farm
home costing more than $4,000. The loan which
may be made is limited to 80 per cent of this max
imunl: Mr.. Lemke's home has cost a lot more than
So ,0O0-stimates vary from $4,000 to '$15,000. At
any rate the cost is so much greater than the limit
prescribed IN the law that it cannot be accounted for
Ion the basis of minor extras which often swell the
cost of a building beyond what swas anticipated. 1t
is apparent that Mr.. Lemke intended to have built
Tor himself a residence twice as costly as is prescrib-
ed in the plain terms of the law. How large the house
rs. how many rooms it has, and what color it is paint
led are all immaterial. The association has done that
which the law prohibits, and it has done this for Mr..
iLemke, one of the officers in charge Of its work.
Coming to the spirit Of the law, what was the
intended for? When the law was framed, and
many times since then, we have been told that its
purpose was to enable the man of small means to
acquire a home of his own. People of small means
cannot afford to own and occupy ten thousand dollar
houses. The man who can afford a home costing
more than $4,000 is in no special need Of assistance
from the state. If his circumstances warrant a more
costly structure and he needs to borrow part of the
iprlce, he can be accommodated by any one of the
scores Of private agencies. 1t is the little fellow who
iAScuS Hclp, II anyone Goes. $3.50.
There can be no rational objection to Mr.. Lem
ke.s' building for himself any sort Of : house that
suits his fancy. II he wants a mansion, and has the
price to pay for il, that is his business. But when he
appropriates to his own use, for assistance in build
ing that mansion, a loan that other men less fortu-
nate thar himself need, the public becomes inter
iested.
The chief excuse offered for the making Of this
iloan Is that because OF the greater value of the prop
lserty the loan Is better secured than It would be if
3INanAd on . & N00H cSsco rs po,ar<x Sw1o%i:o - IL
point at all. The purpose Of the law, if Il has been
correctly stated, was not to find a safe investment
for somebody's money, but to help a lot Of little fell
lows to build homes. And the Lemke transaction
used up $4,000 which some other fellow needed.
JIG the cost Of the Len1ke house is $4,000, the loan
$4,000, and Lemke IS providing the rest, he has So
1900 Of actual ..oney to invest in q home. With that
5000 he could have built a very comfortable resi-
idence, q, with that margin, he could have borrowed
the others$ N goo from private sources. leaying. $4,000
to be loaned to some person who wanted 4 cheaper
home and had not the means with which 70 obtain
lone; AS i is, the available funds have been used
Iup in the Ler1ke and other similar loans, and work
men desiring loans have been told that they must
provide the money themselves. IS
N 1920 40 2Nf 49, N64A r2h