Grand Forks herald., 1922-06-10
Independent Candidate Also
Points Out How Nestos
Administration Has Made
Farm Loan Department
One OF Real Service 70
People. vi.
(Herald Special service.9

Beach. N. D.. June 9.-Georso
shafer. candidate for attorney general
on the Independent Republican ticket
opened his campaign for election
with an address here tonight.
Mr.. Shafer called particular a4ten-t
ton to the prostitution of the Ate
torney Generals office for politicaI
purposes during the NonpartisaA
league administration. quoting the
declaration Of F. L. Watkins to the
state enforcement league that the de-
a public scandal, and that the law
was grossly misused for political pur.
poses" r5a% gs3'fS
He also touched on the scandlous
mismanagement of the affairs Of the
state home building association ana
showed how under the present ad-'
ministration the farm loan depart
nent of the Bank Of North Dakota
had been put on a business basis OF
real service to the farmers of the
state.
His address was in part as follows:
E MIR. Shafcr's Address
II entered the attorney generalN
office on Decent Der LIST, 1921, and the
financial status of that department
Immediately came to nay attention.
The conduct of the state licensing de-
partment over which the attorney
general has supervision, had become
notorious during the last year under
the administration of Mr.. Lemke and
H. B. Dunbar. However, it was not
possible for me- to fully appreciate the
riotiously extravagant and wasteful
manner in which the funds of this
department had been expended until
1 came into personal contact with the
office. When reached Bismarck,
Attorney General johnson had already
ordered an audit to be made Of this
department and on December 18th a
report of such audit was made to us,
in which it was disclosed that during
the preceding eleven months the totaf
income Of the Office was $63, 3,2S9.4O.
While during the same time / the ex-
penditur1ss were 500, ,0oS. .1i !, z leaving
a deficit of unpaid bills in the sum
of S5,717.01. !. It appeared therefrom
l,that Mr., Lemke had en- pioyed as
many as 81 persons in this depart
E1ent, including Inspectors, investiga-
tors, and clerks, of whom So were
"investigators'' and had paid out more
than s25. 100000 in travelling expenses
from January / to Novembe %, 1921.
A Public Scandal
Mr.. F. l.. Watkins, who was q
member of the staff OF this de-
partment during the Lemke reg
ime. stated in his annual report
to the state Enforcement league
held at Fargo ON May 25th, this
year, that the administration of
this department was "a public
scandal" that the law was gross
ly misused for political purposes"
and that it was administered by
men who lacked in Integrity snd
character. The records fully
substantiate this sweeping con-
demnation by Mr.. Watkins. and It
seems self evident that this de-
spartment was administered large
ly as political adjunct 70 the
former administration. and rot in
accordance with the spirit OF the
law. nor the intent OF the law
makers.
Since we came into the office tho
income of this department for SIX
months last past. has been $6,053.50,
just enough to pay current operating
| expenses with only one clerk and two
men on the staff. The s5.0O0.00 de-
| f.cit still remains unpaid and continues
as liability Of the state. While the
limited income Of the department has