The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1925-03-20
SUBMIT RURAL
CREDIT REPORT
Legislative Investigation Find
ings Avoid Recommendations
on Policy-Charge In
fIated Valuations.

St. Paul-Minnesota will suffer sub
stantial losses in its S40,000,000 rural
credits loan experiment, carried on in
the last two years. and some of the
losses grew out of "incompetency and
lack of judgment" by some of the ap-
praisers, joint legislative commit
tee, which has conducted an investi-
cation, reported to the legislature.
The rural credits bureau 1t criti-
cized for the manner in which 1t per-
mitted inflated valuation to be made
by appraisers.
The committee specifically avoided
any recommendation regarding the
future policy of the state in the farm
loan business believing it to be out
side the scope of it's investigations
and perview."
The report said that records fur
nished from the bureau showed that
on February 1 the states investment
in the lands where foreclosures have
been completed and where the state
has acquired title to the land, sub
ject to the right to redeem, is in ex-
cess of 100000. There are 235 de-
linquent loans amounting to SLAB
900, on which foreclosure has not yet
been commenced and the committee
pointed to these as another probable
source of loss although any estimate
of aggregate loss was held to be "mer-
est conjecture"
Riders Attacked.
while the committee feels that
the state will suffer losses, it cannot
say that such losses are greater or
more numerous than could be ex-
pected under the circumstances in
the handling of the emergency meas
ure of $4O,O0O,O00," the report read
The committee report, which was
prepared by Senator Chris Rosen-
meier, was signed by Senatros C.. A.
Lund, w. A. Just and Rosenmeier;
and Representatives R. A Wilkinson,
Henry Spindler and Marius VALDEZ,
the six members of the joint investi-
eating committee.
Adopt Rural Credit Report.
Reduction of the loan limits under
the rural credits act and creation of
system of district appraisers are au-
thorized in bill introduced.
The bill was introduced in the SEN
ate by Senators c. A. Lund, w. A.
Just and c.. Rosenmier, senate mem
bers of the joint legislative committee
which investigated the rural credits
bureau, and in the house by Represen-
tatives R. A. Wilkinson, Henry Spind-
Ter and Marius Waldal, the three
house members who served on the in
vestigating committee.
In general, the bill carries out the
recommendations which the investi-
eating committee made at the con-
illusions of its inquiry.
Governor Insists on Reorganization.
In a recent interview Governor
Christianson placed upon the 1925
legislature the definite responsibility
for meeting public demand for saving
taxpayers money when he said that
mandate from their constituents
calls upon majority OF the legisla-
tors to enact program for reorgan-
ization of the state government.
81 told the voters who elected me
that l would try to make every tax
dollar paid into the state treasury
give 100 cents of service" the COVER
nor said "This week there has been
placed before the upper body of the
legislature an instrument which
would enable me to carry out that
pledge.
81 expect the legislature to make
the reorganization bill a law. 1. is
the outstanding measure before the
legislators"
Mr. Christianson said that there is
ample time for intelligent action by
the legislature, which is to adjourn
April g.
"The people elected me governor of
Minnesota" the governor continued.
"The voters demanded that there be
a reorganization of the state govern
ment along lines which would accom-
plish economy and efficiency. The
house interim committee has given
the basis for such a plan. The SEN
ate committe has improved it and
the house committee is perfecting its
draft The whole issue now is before
the legislature as its paramount
work"
1.-The consolidation of departments
are important, in line with economy
and would prevent duplication"
Governor Christianson pointed to a
heap of letters and communications,
which are pouring into his office from
all over the state, as evidence that
reorganization is the key of all pub
lie demand in Minnesota.
Mr.. Christianson made known that
he did not propose to send special
message to the legislature bearing on
reorganization. He said he had
stated his position clearly in his In
augural address.
Senate Favors Printing Plant.
The state senate overturned the
majority report of its civil administra-
ton committee and adopted minority
report recommending for passage a
bill establishing state printing plant.
On the vote, 81 senators favored the
minority report and rs voted against
1t.
The bill would establish a state
printing plant, to do the state print
ing. appropriating $325.00O to put the
plant in operation. Under the senate
rules and the minority report, the bill
now must go to the senate finance
committee for consideration.