The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-09-19

the practice In North Dakota, so that
South Dakota, like our state. Is the
largest single land owner in the state
Only 2,211 loans out of 1916 have
been paid. March IA, 1925, the South
Dakota legislature called halt on
the departments operations. This
is a good hint for the next North
Dakota legislature.
!. This. then, brings us to point we
wish to make. Judging that only
2,211 loans have been made, the
volume of business done by the state
rural credit department is some
where in the neighborhood of $780,
600, 600.
Listen, attentive taxpayer!
What do you think it will ultim-
ately cost South Dakota to loan this
money, even as it is costing you, Mr.
North Dakota Taxpayer, for the
same kind of an experiment in your
state?
Costs Million a Year
The staggering sum of more than
a million a year for every year the
department has been operating. 1t
is hard to estimate the cost accurate
ly, but it has been so excessively high
as to result in almost a 100000
dollar deficit to date.
And the cost item of the rural
credit experiment to the taxpayer
has not been finally established and
cannot be until the day of final
liquidation. Enough is known now
to make reasonable man know he
has had enough of such squander-
ing of public money.
The rural credit directors report
on the operating expense of the bu-
1920, showed $1.149.6426l Against
this item was 1927 40 Of earned
income, so the loss for that year
alone was 1922, 481.21. This has been
going on since 1917.
I have before me the last printed
report of Director Willy in which he
says in the last IA years of operation
a S1O,OOO000 balance has been grad
ually and regularly" consumed to pay
the OPERATING EXPENSES of the
rural credits departments. North Da-
kota's rural credit picture may not
be as black, but the situation should
have thorough airing at the next
session.
Four reasons are assigned for
South Dakota's failure to make rural
credits a going concern. They are
typical the nation over where such
enterprises have been tried:
First-1nsufficient interest margin.
Second-LaX Collections.
Third-Too liberal credit.
Fourth-The farm depression.
Mr.. Willy puts farm depression as
the last OF the causes. He does not
say least" of them, however.
X X X
But the South Dakota picture is
not complete yet At Haynes, N. D..
! the state is involved in a state
owned coal mine. This state enter
prise is operated under the title of
the South Dakota Coal Mining COM
mission. Originally s150,O0O was APP
propriated to start South Dakota in
10 the coal business in 1919. Two
subsequent appropriations brought
the kitty up to the grand total of
Sl85O0O. 1t was intended that the
mine should make money and the
state treasury be paid back the s185,-
OOO. The taxpayers are still holding
the sack and IL years of operation
has produced no tangible profits.
This $4,000 "locn" by the state to
| the coal commission at 5 Der cent
now represents an investment of
1851 ,130. No depletion or deprecia-
| ton reserve is being set un at the
mine and the charge is made that
coal is being sold at price less than
the cost of production. Here again
the taxpayer Is getting mulcted be-
cause t. state is engaged in a very
questionable venture The books
show a deficit since operation of
more than $4,000.
X * X
North Dakota turned to the mill
| ing OF flour as an experiment after
trying out the creamery and home
building businesses in addition to
banking. South Dakota found more
romance in coal mining and cement
manufacture. In addition to the lig-
mite mine at Haynes, South Dakota
has cement plant at Rapid City.
The states cement experience has
not run long enough to establish the
usual batting average of losses. It's
| DOCKS show that one hand has al
most washed the other. So far the
state has been swapping dollars, on
paper at least. But here again, de-
probation and other items are not
! considered in figuring operating
profits. Those who have made a
study Of the Rapid City cement plant
are OF the opinion that if the inter-
est and depreciation were figured,
| as is done in all going businesses, the
cement plant instead of showing that
it is breaking even would actually
be in the red. Yet the state is young
IN the cement business into which it
has not plunged as deeply as into
the rural credit business.
The cement plant under caption of
internal improvement" has assigned
to it s270,0OO in GO bonds and ST.
13o.O0O IN per cent bonds making
total of 100000 which started the
state in the cement business. There
was balance in the cement fund
June 30. 1881. of 1928 ,248.54.
This then. in brief, Is South Da-
kotas record in the field of govern
ment ownership. It is probably no
better or no worse than what has
obtained in other states when gov
eminent embarks in business.
1t will take long time to liquidate
certain state enterprises in North
and South Dakota but if the Job is
tackled in the proper spirit great
stride toward real tax relief will have
been accomplished.
Next in importance then will come
the de linking of our educational
budgets.
the tax primer has just made a
coca start IN these twin states of the
Missouri Valley.
|