Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1922-02-18

eialistie undertakings. The extreme
opposition would Wipf out the wh0ls
league program and llquldate the
state industries GaEsFRoF Aeslns Is
taking d moderate stand. lie would
complete the state elevator and Hour
mill under construction and trans
form the state bank into q purely
rural credit institution,
A new element has been pumped
into the situation BIZ the appearance
of petitions Tor the initiation ot II
new laws, proposed by Judge Rahs
insoH 81 the supreme court who was
elected as a N0HnaTtlsah league
candidate, Judge Robinson would
repeal numerous laws and make
some new ones, including one pros
yidlng that all unpaid real estate taxs
60 iar the last three yeats be reduced
SO per cent, all interest penalties and
costs cancelled aud property tax sales
in the last two wears except 20 bona
iide purchasers be declared void.
Big Loss Reported.
After making q survey Of the IN
dustries created under the league
regime the Nestos administration has
reported that a loss OF about Sos0,n0O
on these undertakings has been dis
covered up TO date, The governor
expressed the opinion that the state
hail insurance institution is the only
feature oil the league program that
has worked out satisfactorily 50 far.
Several hundred thousand dollars
were wasted by unbusinesslik e
methods In the construction OF The
Grand Forks elevator and Hour mill.
according 10 the officers Of the new
administration, though this Is denied
by league leaders who assert that the
project would have been completed
within the original estimates had II |
not been for the big rise ~ the cost
Of material and labor. About Sl,l0O.-
600 has been expended so far and II
will require 81. 100000 more and an
other year TO complete the plant.
The flour mill at Drake, which |
was purchased for $4,000, has been
closed down as a complete failure:
Its produe, could not be marketed
successfully in competition with that
OF the capitalistie millers and II lost
$4,000 in two years.
The Bank OF North Dakota, which
was 10 have saved the farmers from
the exactions OF capitalistic bankers
incurred a loss on its banking busi-
ness which is estimated at S2S00OO.
It's private banking department IS
being liquidated, but the policy OF
the new administration is to retain
the bank as depository OF state
and municipal funds and as the base
Of operation OF the rural credit sys-
tenn. $50 ..-
Favors Rural Credit System.
Governor Nestos believes that the
rural credit system can be made a
great boon to the farmer when it has
been reorganized and placed on a
,elf-sustaining basis. The extent OF
he losses believed to have been in
cured by the rural credit system
Inder the league administration has
lot been ascertained. About $780,
100 has been loaned, some Of it on
security, according TO the
governor.
Another undertaking was the build
ng OF hc.nes which were not TO ex-
,eed $4,000 each in cost Tor any
,erson who was able to pay $1,000
Town. The state built 81 houses at
cost OF $4,000, although the limit
# cost had been fixed at S250,000.
)nly one was built on farm and I
'nly ons for laboring man. Many
we're built for officials of the state
and other leaders in
he league. A city. house built for
me state official cost $4,000. This !
enture is being abandoned at loss. {
One benefit the league conferred !
pom the state-ina dvertently. 1t