The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-01-04
STATE Land POLICY
| QUESTION TO Face
STATE LEGISLATORS
Noodle Expected to Stress Need
for Retiring Sub. Margin.
al Acreage
U. S. TO ASSIST PROGRAM
Experience Of Bank Of North
Dakota Shows Heavy Cost
Of Real Estate Dealing
U. S. TO ASSIST PROGRAM

Adoption Of q constructive land use
policy will be one Of the major ques-
lions before the state legislature when
1t meets here January 8.
This Is indicated by q variety Of
factors, chief among which Is the
emphasis placed upon this necessity
BY Governor ELECT Thomas Noodle
In his campaign and the experience
Of the Bank Of North Dakota in loan
ing on North Dakota real estate.
In his inaugural address, Noodle Is
expected to emphasize the need for .
land classification program and for
readjustment Of the tax burden In line
with facts which such classifica-
ton would disclose. It Is his belief
that many farmers are struggling for
existence on land unsuited for crops
and that the state should help them
to adjust themselves. The federal
government will assist In this effort
since it Is in line with its established
policy Of getting people Oft Of SUBJ
marginal land and into surroundings
where they win have q better chance
to succeed.
Tho exact manner Of this ooopera-
ton probably will be outlined by the
governor-elect and BY the members Of
the legislature.
Report Spurs Effort
Squirting the effort viii be an analy-
sis Of the Bank Of North Dakotas land
operations made by z. NJ. Stangler,
bank manager. Hts report WIN show
that the state farm loan program has
been q dismal failure, that 1t has al
ready cost the state several million
dollars and will cost more before 1t is
finished. Although no definite rec
ommendation has been made by bank
officials, it Is expected that strong
pressure will develop at this session
to take the state out Of the land loan
business. Little opposition to such
q move Is In sight now.
The history Of the state land loan
ing business begun In 1919 Is indicated
by z few figures. From the beginning
to 1882, approximately 1922 loans
were made, the money being raised
by the sale Of bonds.
OF this number 6.276 loans have
been turned over to the federal land
bank through the government refin-
ancing program. From these the
state got $14,l75,23258. The deals re-
suited In loss but the aim was not
80 much to prevent small current
losses - to forestall bigger losses
later.
Heavy Lon IN Principal
The loss In principal represented by
these loans is $747, 7o4.93, according
to figures prepared by Bank Manager
r. n. 6tangler and In addition to that
losses caused by failure to collect In
terest are put ct 81 ,568, 666.S7.
But these two items are only part
Of the picture. Still to be figured Is
the amount which must be paid on
some Of this land to clear them Of
taxes. The Bank already has I'd.
vanced to the state 49,, SCOTT for
tax payments OH land and the end Is
not yet. Other items Of expense are:
insurance on farm buildings, $9l,-
575.7e: repair Of buildings. foreclosure
fees and miscellaneous advances $685.
556.36. The last two items were larger
but q the loans were refinanced the
Bank reimbursed itself for these adj
varces.
still In the possession Of the Bank
Of North Dakota after this extensive
dealing with the federal land bank
are 1896 loans and tracts Of land.
OF this number 1904 are open loans
and 2,272 are real estate tracts owned
by the bank. The principal balance
due on them Is placed ct $780,
52o05.
Stangler Gives View
It Is on these loans and foreclosed
tracts that the state still must take
it, major losses In connection with
it, venture into the land loan bust
ness and. judging from stansler's
comment, the prospect Is rather bleak
Here's his view:
I'm January, 1883, the state owned
real estate totalling about 5000. 900.
We have sold and disposed OF through
tho refinanciug program about d..
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