The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-02-01
EXPERIMENT IN
INDUSTRY COST
STATE $641,000
L. r. Crawford, Secretary of
Industrial Commission, AS
serts Total Loss Large
SAYS BANK LOST HEAVIEST
Figures Bank of North Dakota
Has Lost $255,0O0 and
Expects Greater Total

. O"Acu, SIdte-0peIdLeu luuuSIIleS Gus
$641,041.52 between July l, 1919 and
December 81, 1921, according to COM
pilations made by Lewis F. Crawford
secretary of the Industrial Commits
sion, in. the annual report of the COM
mission submitted to the Secretary of
State today.
There has been loss in the opera
tion of the Bank of North Dakota, the
Homebuilders' Association, and the
Drake flour mill, according to Mr..
Crawford's report.
The losses, particularly that of the
Bank Of North Dakota and the Home
builders Association, will be much
greater than the figures given above,
the Bank of North Dakota now being
made by the Bishop, Brissman and
Company will undoubtedly result in
the charging off of huge sums in bad
loans and in money held in defunct
banks, he asserts, and the refusal Of
practically every person for whom a
home was built under the Homebuild-
ers' Association law to pay for his
home at the price it cost to build, will
increase the loss of that department.
Mill TO BE Costly ~.
The Grand Forks mill project, which
is not completed, will show loss Of
several hundred thousands of dollars,
the commission secretary asserts, be-
cause of shrinkage due to the letting
of contracts at peak prices OF labor
and material.
The people of the state must pay
dearly for the poor management and
the business experiments of the Nom
partisan league administration, Mr..
Crawford concludes from his investi-
cations during which the report was
prepared.
when government gets out Of its
domain it loses efficiency, multiplies
leaks and gives an opportunity for
controlling the electorate by inflated
,pay-rolls," says Mr.. Crawford, refer
ring to the states engagement in bus
mess enterprises. ''Between the pos
sible and the impossible the line of
distinction when family drawn, finds
men ready to take the taxpayers
money on the most ill-conceived and
visionary projects"
People Must Pay.
The commission secretary asserts
that there is mot one oasis in the
dreary desert of failure" and regrets
that better report cannot be made.
IF by refusing to see the truth we
could expunge the past and restore
the lost funds to our people, we would
close our eyes. Not all the employees
of the state serving under the Indus
trial Commission were incompetent or
unmindful Of the states welfare by
any means, but those who were COM
petent and had high ideals of service
we're, it seems, Judging by results, III
hopeless minority
Mr.. Crawford declares that from the
launching of the business activities
under the commission there has been
an almost total lack of organizations,
and gives as some of the causes, false
theories, lack of training on the part
of those named as managers, the new
ness of the work; ill-defined duties;
wide powers under the laws and lack
of judicial Interpretation, but most OF
all official incompetency and tall
ure OF the former commission to ex-
ercise adequate supervision.
Says Body Economizing
Tile new Industrial Commission,
which came into office as result~of
the recall election, is endeavoring to
remedy the situation by exercising
economy, he says. He mentions that
the salary of the manager of the Bank
of North Dakota was cut from SlO,O0O
to $4,000 annually; head of the farm
loan department from $4,000 to $4,000;
secretary of Industrial Commission
from $4,000 to $4,000; manager OF
Drake mill from $4,000 to $2,1OO and
the publicity department formerly un-
der VIM. G. Roylance has been discon-
tinued at a saving of $4,000 a year
in the salaries of Roylance and 9TH
ers expenses and salaries. The publ
cation of the bank bulletin has been
discontinued at a saving of $4,000
year, he says.
The loss in the operation OF the
Bank of North Dakota during the per-
iod from July /. 1919 to Dec. 81, 1921,
is placed at S225,0SS.14; loss OF the
Drake mill, $74,379.12; loss of the
Homebuilders Association S113, ,25676.
To ascertain his total loss of operat:
ing the state industries Mr.. Crawford
includes expenses of the Industrial
Commission of s1S2,305.47; Mill and
Elevator Association of S16,Ol2.03
which, he says, is properly cnarge-
able because it was incurred by tne
commission charged with the manage
ment of the industries.