The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-01-18
STATE BODY MAKES DEAL FOR
SALE OF $3,500,000 OF HAIL
WARRANTS T00UTSIDE FIRM
With Completion of Legal For.
malities Entire Issue Would
Be Taken at Graded Price
IMMEDIATE OFFER is MADE

VCA ANOWu luduCleT 10 LIS
pose of 100000 at 81 Pei
Cent Of Par Value
Farmers of the state are today Of.
fered an opportunity to dispose o1
1921 hail warrants at near par value
as the result of an agreement con-
summated by the state administration
it was announced today.
Under the agreement the Mime
sofa Loan and Trust Company agrees
to purchase the entire $3,500,000 1921
hair warrants as soon as certain
legal requirements are met, probably
early in February, at 2 per cent dis
count. In the meantime, to provide
a sale for warrants to farmers who
are anxious to obtain money during
this month, the administration has
obtained an offer from we'll known
business man Of the state whose name
is kept secret at his request to pur-
chase 100000 of warrants at 3 per
cent discount.
The agreement followed submission
Of propositions to purchase the war
rants by a half dozen Twin City and
eastern financial concerns. After a
long conference between Governor
Nestos and Attorney General Johnson
OF the Industrial Commission, and
Commissioner of Insurance S. A. Ols-
ness, the two propositions above NAM
ed were accepted as the best submit
ted.
To Pay Par in June.
The Minnesota Loan and Trust
Company's offer was to lessen the dis
count rate at 1-2 per cent each month
after February, so that by June they
would pay 100 cents on the dollar
for the warrants. It was stated, how
ever, that the company would not take
warrants after June Is.
Farmers have sold 1921 hail war
rants at discounts ranging as high
as 20 per cent. Negotiations were
begun recently by the state admin
istration with a view to reducing this
discount which Governor Nestos de-
clared was far more than the farm
ers should be called upon to pay.
Since it was. announced these negotl-
ations were under way the discount
rate had fallen to 5 per cent
Farmers who wish to Immediately
obtain cash for warrants will be able
to sell them at 81 (total amount not
to exceed $2OO,O0O), these warrants to
be assembled in the farm loan depart
ment Of the Bank of North Dakota
for delivery to the unnamed North
Dakota purchaser.
The plan to handle the sales to the
Minnesota Loan and Trust Company,
when legal requirements are COM
pleted, is as follows: Warrants will
be delivered, probably to the Indus
trial Commission. The Industrial
Commission will deposit the warrants
with the state treasurer and issue
debenture in $5O,000 and 100000
amounts, which the Minnesota Loan
and Trust Company will purchase at
2 per cent discount, the farmer then
receiving the amount Of his hail war
rant, less 2 per cent.
The trust company agrees to pay
all expenses .of printing debentures,
and other expense of handling out Of
the 2 per cent discount, is was said.
fs3 NestOs Is Pleased.
The 1920 hail warrants, some OF
which are unpaid, are not included in
the agreement as the administration
believes that all will be retired with
payment of taxes in the spring. The
1921 hail warrants may run for a
year or more.
Governor Nestos said today he be-
lieved that the agreement was an ex-
ceptionally good one for farmers:
"When l discovered shortly After
taking office, that discounts from 10
to 20 per cent was demanded on these
warrants, felt that it was an out
rage and since that time have been
comforting with half a dozen different
financial institutions to have them
take these warrants, or debentures
based upon them for near par" the
governor said.
''The offer we have just had from
financier of our state to purchase
100000 of warrants at 81 per cent
of the face value is the best offer We
have had on the warrants themselves
.The offer Of the Minnesota Loan aflt
Trust Company to handle the war
rants after February first at 9S pei
cent of face value in exchange for the
state debentures at par is the bes
debenture offer we have had as a re
suit of this selling campaign, and thu
settling of number of questions o
law and procedure we will be in ex
cellent shape to handle all future is
sues of hail warrants with the chance
that they may then be handled a
par.''
Attorney General Johnson wen
thoroughly into the legal phases 0
the question with the firms negotlat
ing for the warrants, and his opinion
satisfied them on many points. MI
Johnson plans to clear up all lesa
points that might be raised IN con
nection with the hail warrants in tn
future so that a future stable mar
ket can be created for them.
MAN HELD FOR ROBBERY
jamestown, n. D., Jan. 1S-Joh
IN, ,,cfi0a