Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-06-05

people Of the state. 4
Lack of ABILITY.
Among the things that were made,
apparent by this investigation was q
lack OF business ability and business
experience on the part of both the
elected omcials and the appointees Of
the FORMER administration. This
caused ilnefhciency, waste, and hope
less entanglements in practicable every
one OF the lines of business and IN.
the various departments managed by
them. This condition has been ad-
mitted by some of their appointees.
MI. McGovern, said when he resiAned
after he had been severely criticized
9 his rank mismanagement Of the
Drake Mill: I am q grain man., not,
q mill man. 1 have long wanted to
be relieved of tho mill duties But
he was not relieved by the old admin
istration, responsible FOR placing him,
there until the losses aggregated sew
eral times the total value of the whole.
Drake project. Outside Of the. state
ments made by these employees them
selves. the evidence is quite conclusive
and convincing. The report ofN the
auditing arm indicates that the book
losses already definitely ascertained
for the various lines of business con-
Quoted by. the Industrial Commission
are as follows:
Losses shown.
Industrial Commission ..$15s,34s.73
Home Builders Ass'n..... 1855, 974.74
Bank of North Dakota. -. 150,475.64
MIL & Elev. Assn......... ,187,194.17
1----
Total Book LOSS .$SSs.9s3.2s
I'm addition thereto large additions
al losses will be shown to have been
suffered under their mismanagement
when the affairs have been wound up,
and the definite and final, amount of
these losses a~scertatned- It Is now
estimated that these losses will total
from two to three, millions Of dollars
even If the best Of business judgment
and skill is employed IN salvagtng the
securities and other property, and.
closing up these business projects. "A
In the second place one Of the
great weaknesses of3the old admits
tration was the continual playing OF
politics In the management OF every
phase of the public business and the
apparent disposition to. ask the ques-
ton of the political effect! of any act
or expenditure rather than the ques-
ton as to whether they were serving
the people of the state by such act.
Farm Loan Department. a.
lone Of the departments in which
this was SO largely true was in the
farm loan department.. where incom-
petence and petty politics were at all
times in evidence and control. Wheth-
er you consider the size Aof the loans
to political associates and other ia
vored individuals, the contents Of the
correspondence, or the appraisers re-
pdtts, or the concentration Of loans in
certain favored sections, the political
trend of all OF the work OF this de-
partment is conclusively proven.
Numberless illustrations right from
the public records can be given in
proof of this statement.
"Mallie Townsend, n of their. apA
3, praisers In. Sheridan county, on an up
praisement April 20, 1920 says: This
man paid $1,10O for tho land : . :
He has made leaguers of every ma in
that township since he moved. in
there, so / guess he is entitled to a
loan, and if you want this changed, !
will do it when 1 come in Two ap-
praisers' reports from Renville coun-
ty say: I regard this as an Al loan.
Safe and conservative, a desirable in
vestment to n AL farmer who at
the same time votes the league ticket
straight'-and the other report-'His
brother introduced Townley at the
last N. P. rally in MOhall which ought
to help some And from Mclean
county: This land is only three
miles from Max and he is the only
Lacquer in that county that is for
two or three miles, and he has the
land and is a fair loan, so I would
not shave him. Our. report on "a
Burleigh county quarter tells<ssse
He is a good Lacquer and il you birds
can't help the men that are feedins
you, you are no good.i These iliustra
tions together with the favoritism
shown j. N Hagan, ID. ]. Mcmahon,
and others. shows the<vicious political
trend Of the whole business.
League Banks Favored.
"In addition to that we have the re-
deposits by the Bank of North Da-
: kota in the other banks OF h state
where it is, clearly shown that the
Bank of North Dakota was looked
upon as and used as a valuable and
necessary adjunct of the political ma.
chine of the old administration. rath'
er thar as an agency of public bust.
ness to serve all the people Of the
state. For instance the average loans
and redepos.ts in the thirty six Of the
banks that might properly be called
league banks, as they were either
owned, operated, and controlled BY
: league leaders, or SO sltuateu a.
peculiarly to serve such leaders. wal
more tina fifty thousand dollars. II
each as compared with an average tr
<about sexen hundred other banks o.
the state, neutral and Independent
Of only about five thousand dollar:
each. II we consider the situation
in the city of Fargo. where they hac
nine banks OF which one was a league
bank, we find that in the league banl
there was loaned and re-deposited 81,
dollars for every dollar Of capita
stock and surplus whereas in the 9th
er eight banks who were neutral o
s Independent. there was an averag.
deposit of five cents for each dollar 8
capital stock-a and surplus. I'm thes'
banks. In the three league banks II
Cas- county, the Scandinavian-Ameri
can bank Of Fargo. the bank at Pros
per. and the Peoples State bank 0
Cawelton. the Bank Of North Dakot.
Mad in loans, r~e-deposits and over
drafts $4~se,619.93, and it is now T.
well established fact that thes'
moneys belonging to THO people of tn