The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-11-19
farm LOAN SYSTEM
IN LAND DEPARTMENT
IS IN SUSPENSION NOW
ByerIy Says He Has No Funds
With Which to Function
in This Activity
fAVORS APPRAISAL CHANGE
Also Calls Attention to Lack of
Authority for Leasing Areas
Containing Gas

Classification of the 1,780, 140 acres
of state land in charge Of the state
land department Is urged by W. E.
Byerly. commissioner, in the biennial
report filed with Governor George F.
Shafer.
A change in the system of APP
praisals in making Of farm leans is
also recommended by Mr. Byerly.
This department." the report says,
'at this time has charge Of 1,78O,-
14O.17 acres Of state land, 102. 104.14
acres of which is foreclosed land with
other foreclosures pending.
This land is scattered all over the
state and part is contained in every
county in the state. None OF this
land has ever been classified and in
most cases our information is simply
to the effect that the state owns a
certain tract Of land without any alb
solute knowledge of it's intrinsic value
either for sale or rental purposes.
"The minimum rental price on pas
ture land is the same all over the
state and should be changed. In some
instances it should be increased while
in others it should be decreased, de-
pending upon the value of the land
and it's desirability for use for the
purposes intended. It would cost
considerable money to classify this
land. yet if the department is to
handle it as it should be handled,
the increase in the income from the
land for the benefit Of common
schools and other state institutions
would certainly justify the cost of
classification"
No Funds For Farm Loans
Because Of lack Of funds the de-
partment was compelled to discon-
tinue the making Of farm loans al
most a year ago. the report states.
The system for the making Of farm
loans was described by Mr.. Byerly as
very poor" and he recommended
changes lin hopes they may be rene
died for the benefit of any loans that
may be made in the future"
Under the present system" the
report continues, the county auditor,
chairman of county commissioners
and county superintendent of schools
of the various counties of the state
!. compose the official appraisal board
while we have in almost every in.
stance had the hearty cooperation OF
these officials, we do not feel that a
loan should be made through this de-
partment unless an officer directly
RESPONSIBLE to the board of university
and school lands has personally in
spected and reported on every farm
loan application. The county officials
: concerned in these loans are not Sc
lected by their constituents with any
knowledge as to their fitness to be-
come land appraisers. They are also
kept quite busy In attending to Other
affairs in connection with their of.
fices and do not always have the time
to give to the appraisal of farm loans
Bank Has Better System
Frequently appraisalS r made
from general knowledge of the prem
Uses and such information Is not al
ways correct and dependable, al
though it is always given no doubt
in good faith. Very few. If any, o.
these officials desire to have this re-
sponsibility. It is in fact a constan'
source Of annoyance to them: yer,
frequently results in bad local feel,
ing, and it is not an uncommon &C
currence to have quite a variance O.
opinions transmitted to this Office
through this system.
I'm my opinion, the farm loan de-
partment will never be fully satisfac
tory until some change is made in tn
system Of appraiSalS. PRACTICAL,
every land commissioner reporting t,
the governor since the making o
farm loans through this department
was inaugurated. has recommended
change. The present system followed
by the Bank Of North Dakota is, il
my estimation. far more efficient an,
is not on the whole any more expen
sive to the applicant than the on
prescribed by the constitution for thi
department to follow. It is a physica
impossibility for this or any other in
stitution to get the services they wis
or need without having supervisor
power over the party rendering tn
service"
New Collection Law Lauded
Mr.. Byerly termed as satisfactory
law passed at the last session Of tn
legislature changing the plan Of col
lecting farm loan principal ard in
terest, and requiring their paymer
to the land commissioners office In
stead of at the various offices of til
county treasurers Throughout. til
state.
"This law" the report said. "hs
worked out very. satisfactorily an
has made it possible for this office
all times to give exact and up-to-dal
information as to the standing of tt
farm loans without first consultir
by mail or telephone the count
treasurer Of the county In which tx
land was located.
"Our present system Of collectir
money on land contracts is very sin
lar to the old system of ~collectir
money on farm loans and does n
work at all satisfactorily. Princip
and interest on land contracts shou
by all means be made payable at tn
office rather than at the office Of Il
various county treasurers.
Payments Tardy Coming In
I'VE constantly receive mail al
long distance telephone calls as to Il
standing Of certain contracts. but a
seldom in position to give exact /,
formation, by reason of the fact tn
tho county treasurer may alrea,
have collected q sum Of money viii,
has not yet been reported to this O
flee, and thus our information
often misinformation. Under Il
present system this department il
varibly has to give information as
the necessary amount to reinstate
AAncAled contract. and also as 10 Il