The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-02-05
FINANCING OF
STATES MILL
ISBR0UGHT UP
Appropriation Of $35O,0OO
May be Asked at Hands
of Legislature
WOULD AVOID LOANS
With $5OO,OOO Bond Issuing
Power, Thought Mill
Could be Financed
WOULD AVOID LOANS

The North Dakota legislature will
probably be asked to appropriate
$500, 900 to be used as an operating
fund by the state owned mill and
elevator.
This developed as the result of a
conference between Governor A. G..
Sorlie, the two Independent members
of the state industrial commission
Attorney General George Shafer,
and Commissioner j. A. Kitchen.
At this conference the Governor
indicated that he, was willing to take
the full authority and responsibility
connected with the operation of the
mill and elevator, but raised the
question Of finance, asking what the
other two commissioners would be
willing to have the Bank of North
Dakota do along the line of further
loans to the milling enterprise in
case he should take full charge of it
according to the terms which the In
dependent legislators have laid down.
The Independent commissioners re-
piled in effect that they could make
no promises in the matter of future
loans. They made it plain that this
did not mean that they would refuse
to authorize such loans, but simply
that they could not bind themselves,
or the Bank of North Dakota by
blanket promises for the future.
1t was then suggested to the Gov
ernor by the two Independents that
it might be possible for him to meet
this question by legislative APP
preparation. After some discussion
it was agreed by all present that
100000 should be the amount asked
by the governor for the operating
account along with an additional
$4,000 to clean up an outstanding
deficit on the construction account
of the mill and elevator which has
thus far been borne BY loan from
the Bank of North Dakota.
The Governor has placed the mat
ter in the hands Of Senator D. H.
Hamilton, one of the League leaders
in the senate. and it is probable that
Senator Hamilton will either place
the matter before the senate appro-
priation committee. or himself intro
duce an appropriation bill for the
amount asked.
Constitutional Limit
The two independent members of
the industrial commission pointed
out to the governor, however, that
he might encounter difficulties in
connection with the proposed appro-
priation on account of the constitu-
tional limitations on taxation. It
was pointed out to him that the apA
preparations recommended by the
budget board would bring the state
tax levy for the next two years peri
lously close to this limit. The gov
ernor declared himself to be conf
dent however that the necessary ap-
preparation could be raised with tax
alton without exceeding the limit.
AT the same time he said he doubt
ed if it would be actually necessary
to use the additional funds which
will be placed at his disposal if the
ed. He was confident, he said, that
ed. He was cofident, he said, that
under his plans for the establish
ment of a terminal market and the
handling of warehouse receipts, the
mill and elevator could finance its
self especially when it was consid-
cred that the industrial commission
had the authority to issue 100000 Of
mill operating bonds in addition to
those which have already been is
sued.
The issuance of these bonds is of
course contingent largely on the in
ventories Of the mill. and elevator
on which the bonds are. based,