Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-03-12
LAW BODY HAS
BUSY PERIOD
Power Bill Is Approved by House;
Senate Rejects Commissioner
N. j. HOlmberg.
BY HENRY G. TEIGAN


The expose made of conditions in
the Rural Credits bureau by Cover
nor Floyd B. Olson the other day, has
not tended to diminish the governors
popularity with the people.
Former Secretary H. H. Flowers is
alleged to have garnered commissions
totaling $47,077.25 on premiums for
insurance on foreclosed farms. The
records show that Mr.. Flowers and
VIM. Walsh of Minneapolis, who was
then an officer of the Twin City Fire
Insurance company entered into
contract by which 20 per cent of the
premiums should be paid to any agent
designated by Mr.. Flowers. This con-
tract is obviously violation of the
state law which forbids any govern
ment officials from entering into a
contract for the state for which he
intends to derive private gain.
Made Excess Loan.
1t is also charged by G. F. Gaaren-
strom, who, as secretary of the Com
mission, made the investigation, that
Mr.. Flowers was instrumental in hav-
ing the bureau make a loan on farm
owned by his sOn-in-law in the amount
of $500, which loan was grossly in
excess of the valuation of the prop
erty. Moreover, there were no build
ings on the land and Gaarenstrom
contends that the law governing the
making of loans by the Rural Credits
bureau, forbids making loans on I'M
improved land.
Governor Olson presented the facts
to County Attorney Michael Kinkead
of Ramsey county for whatever ac-
tion the latter may decide upon.
BlOOm.StOckwelI Bill Approved.
The bill introduced by Representa-
tives Bloom, Stockwell and twenty
three other house members, has been
approved in committee of the whole,
and is given better than even chance
of being passed by the Senate.
This bill permits any municipality
owning and operating an electric light
and power plant to extend power lines
into rural districts or to neighboring
cities and villages ito sell electricity
to customers singly or collectively
The bill is being fought strenuously
by the power companies, and it is
apparent that it is not going to have
such easy shedding before it weathers
the opposition in the senate. The
bill may, of course, count upon the
support of the Farmer-Labor members
of that body and also upon the sup
port of several senators representing
more successful municipal light plants
in operation. A senator coming from
such district can ill afford to align
himself with the power crowd, even
though it might be made worth while
for him to do so.
The bill was slightly amended in
the house so as to require approval
of the electors of the municipality
before any attempt is made to extend
power lines beyond the borders of
in the measure that any Indebtedness
incurred in the construction of power
lines shall ''in no case be made a
charge against the municipality, but
shall be payable and paid out of cur
rent revenues"
Holmberg appointment Rejected.
The state senate on Wednesday of
last week refused to confirm the ap-
pointment of N. ]. Holmberg to the
office of commissioner of agriculture.
The vote came on a report from the
committee on agriculture favoring dis
approval of his confirmation: The
vote was 4S to 10.
Only the stalwarts of the senate
stood by their party colleague. All
Fermentation members, but Senator
Siegel of st. Paul, voted for adoption
of the report.
The main argument urged against
confirmation of Mr.. Holmberg was
that as head of the department of
agriculture he would be in a position
to obstruct the program and policies
of Governor Olson. 1t was admitted
by even his supporters that Mr.. Holm
berg had campaigned against Mr.. Oh
son last year and that he had urged
the election of Olson's Republican op-
ponent.