The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-05-22
NESTOS OPENS
FIGHT; ATTACKS
n. p. PROPOSALS
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| North Dakota, and in the Home
| Builders Association Ask them
it is your right and indeed your duty
why more bonds should be issued,
more interest paid and heavier taxes
collected than now? Ask them, if
/ you please, how the Farmers and
to pay more taxes than they have
! been paying the past seven years.
Where Will 1t Come from
Where will the millions of dol
| lars come from with which to build
more mills, elevators. packing plants,
hrIquctting plants etc? They
must come from the sale Of more
North Dakota bonds. There is no
other source You know that from
bitter experience. And who will
pay the interest on these bonds :?
You know, also from bitter expert
cnce, that you. the taxpayers of this
state, will pay that interest. Let
me remind you of some very recent
experience with bond interest
More bonds mean more interest
to be paid. The annual interest
charge on the bonds issued as cap
ital Of tn" Bank Of North Dakota
and sold, amounts to SIG, 122.50. The
interest on the bonds issued for the
mill and elevator construction and
operation amounts to 1929, 10000 per
year, not to consider the annual
interest charge on the $l5,000,000
Of farm loan bonds so far sold,
which under the careful manage
ment of Mr.. Green, the manager of
the Bank OF North Dakota. we hope
will not, to any substantial extent.
become burden on the Taxpayers
Since the law provides that there
shall be added to the state levy each
year sufficient amount to pay
whatever portion of the interest on
these bonds can not reasonably be
expected or secured from the earn
ings Of the industry for which the
bonds have been issued, every
thinking taxpayer will want only
such state owned industries as will
be certain to earn enough money to
pay all running expenses, the in
terest on the bonds, and enough
more to offset the depreciation of
the plant. Otherwise, he will have
to pay the deficit us a part of his
taxes. From this there is no escape.
In the last few years we have been
compelled to levy 1854 1926 to
pay the inevitable deficit in inter
est on the industrial bonds, and
now 100000 annually for the next
Home Builders Association. In
1927 we will also have to levy $780,
600 and in 1923, S7s4,45O to pay the
principal of Bank of North Oak ota,
and milling bonds maturing the fol-
lowing July, and even if we do not
enter upon any new experiments
every taxpayer for nearly quar-
ter of century will find his tax
receipt bearing evidence of the re-
suit of our disastrous venture in
state owned industries. 1t is not
particularly pleasing or encourag-
ing prospect and | am sure that
every voter who has property and
income and pays taxes will demand
clear and convincing proof that any
additional state owned Industries,
for the Establishment of which they
are going to issue bonds, can be
made to pay, before he will vote for
candidates definitely pledged to
such Il program.
Judging Future
The future, the Governor asserted,
can only be judged by the past. He
compared the League rule to, that
Of the Independents.
With regard to the mill and ele-
vator at Grand Forks he said that
the Independent convention did not
believe it wise to continue the eX-
pertinent, but that it was not to be
expected that the mill would be
financial success in the first year
While it was creating a market for
flour and building an organization,
and that, therefore, the Independ-
ent convention declared for a fur
Their trial.
With regard to alleged differences
between G. +. Austin, general man
aGer, and members of the mill
board, the Governor declared the
differences were not more than
might exist in any business. He
said, too, that the board of man.
ayers in their anxiety to stop loss
as wanted to be cautious while Mr..
Austin wanted to put through his
organization as quickly as possible.
He said now the business is pro-
crossing nicely and he is confident
of good results this year.
The statement of opposition pa
pers that a board Of managers
should not have been created, is bas-
ed on ignorance or malice, said the
Governor, adding that it was fool
ish to expect an Industrial Commits
sion, 200 miles from the mill loaded
down with other state duties, to
give the mill the personal attention
required from a board of directors
Also, he added, members of the In
dustrial Commission are mot. men
familiar with the business.
Management Of Bank
The Governor referred to the
heavy losses of the Drake mill un-