The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-07
FACING THE FACTS

COnSiuer WndL Is W w IHe hHoi
outcome Of her venture into the
field Of state socialism.
Here are some OF the facts:
The total delinquent prin-
cipal and interest Of the Farm
Loan Department of the Bank
of North Dakota amounted to
$429.5O7.27 on Nov. Z, 1928.
OF this amount $27O,255.79 is
delinquent principal and inter
est on loans made in Series
"a. 1t is shown that 200 OF
6S7 loans in Series "a, which
embraces most all Of the loans
made during the Nonpartisan
Administration, are delinquent
both as to principal and inter
est The State probably will
have to take over the land on
which the 200 loans were made.
The audit Of the Drake Flour
Mill shows that the deficit has
increased to $S9,67S.1l, while
| the book value of the mill Is
only $23.111.G1.
AS to the Mill and Elevator at
Grand Forks the statement OF Mr..
{. +. Austin, manager, In recent
speech before the Fargo Commons
Club is Illuminating. He says:
Up to Aug. 1, 1923. we had
lost $10S,OO0 From Aug. /. to
Dec. 1, we made profit Of
$4,000.
But note how this profit Is fig
ured Let Mr.. Austin explain It:
| This profit is figured on the
basis that The State has a So
100000 investment in this Mill
and Elevator 1t has outstand-
ing bonds of that amount.
drawing interest of $1S0.00O
per year. That is a fixed
charge which the State must
meet, even though we turned
the key in the door and did not
turn out a barrel Of flour.
! figure that If we make any
part OF that 10000 over and
above operating costs we have
made just that much for the
State.
All of which is true. but it new
ertheless remains that the State Is
i; being called upon to pay out thou
sands of dollars every year to meet
the interest on the investment
The money the State pays ont
over and above what the Mill anC
Elevator might actually make
through operation. must be raised
by taxation. F' ''
One Of the principal factors Civ
en- by the accountant, who exam
ined the Drake Mill. for the in
creased difficulties of the mill, i
that of competition by the Crane
Forks Mill. Here we have tn
State operating! two mills, the on
knitting the other.
) And that is not all. Recent
/ one of the large milling concern
of Minneapolis. which has severa
, mills located in the State, ordere
three of them closed, the presiden
4 of the milling company issuing
statement saying that it was I'M
, possible to compete with the Gran
Forks Mill because of the natur
Z of the competition. If that state
= nent is correct one. then W
have the peculiar situation existin
in North Dakota where the Stat
owned Grand Forks Mill is bein
operated to the serious injury G
I another State owned mill, and like
J. wise is driving out of the State pr
vate mills which have been payin
taxes and which have been asset
to the communities in which the
7 are located. III
II Even though the State foreclose
= on these 200 loans of Series "a
e on which neither principal nor il
y terest have been paid, 1t can onl
= take back the land which may G
may not be worth the face Of til
loan, and it must make up the de
8 ficit through taxation.
) OF course, it is true that niue
!: CT the principal and interest undo
: the total delinquency of 1920, 5O7.2
probably will be paid. Some of til
loans have been made to legitima'
famersswho> have been caught u
the agricultural depression, an
! not to deserving Nonpartisans' Z
r was so frequently the case undt
Nonpartisan rule. But the q
J; loans in Series "a on which til
State does not expect to realiz
are sufficient to point a lesson. :,
= Even though the State shou
sell the Drake Mill. a huge defic
will have to be paid through ta1
alton. - -
I Even though the Grand Forl
}. Mill continues to show anyopera
ing profit, it must show conside
able more than just an opcratin
profit before 1t can be considere
! an asset to- the State. It. mu'
make enough to carry the intere
and reduce some Of the principa
/ Or thousands upon thousands
: dollars will have to be levied fro
: property owners to, meet the boz
y payments.
There is perhaps no use now
: rbilosDphize upon the question
state socialism. because we have
with us and must settle the pro
lem someway, somehow. But I'll
prospect is not pleasing one.
+ Fargo Forum.
e DODGING A RESPONSIBILITY,
q 1t Is difficult TO think, OF Seer
tary 11onhv nc diShnf1nSf ar as