The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-01-04
C. o n -, TIN l.! Il, U E D
State Land Policy
Question to Face
State Legislators

2OO,OOO worth OF TINS lana but, be.
cause 80 many loans are in bad con-
dition. we now have nearly $7.O00.000
worth Of land. In considering where
these lands are located. I know that
the revenue from them In the way Of
returns will be exceedingly small. A
good many Of the tracts owned are In
terribly bad condition and I know the
interest payments will not amount to
q great deal, considering the condition
Of the loans"
The only hope Of relief, stangler
asserts. Is succession Of good crops
at fair prices which will restore land
values and the earning power Of farm
property.
Meanwhile. the payment Of interest
on real estate bonds Is presented as
q major cause Of concern.
Through the refinancing program
the fund for paying the principal Of
bonds has been put In good condition.
at least temporarily. On January l.
81 ,O00, 900 in bonds were due and
we're retired. In addition. $4,000. 600
in bonds not then due were retired
to save the payment Of interest and
there remained in the fund for paying
bond principal $8.464,356.l3 in cash.
Stangler estimates that this IS enough
to retire bonds which will come due up
to 1o45 and, with additional amounts
from cash payments and loans now
being completed it will care for bond
payment demands up to the end Of
1915.
The interest account. however, is in
much worse shape. On January l.
1888, the state treasurer owed the
bank Sass. 900 which had been used
to pay bond interest and, in addition
was $4,000 overdrawn. This was
subsequently paid off and the only
amount owing by the treasurer Is
$460, 900, borrowed In December to
make January bond interest payments
That interest collections will be
far from enough to meet the amounts
due is indicated by the history Of the
last two years, during which $1.794,-
934.93 was collected. This was les
than enough to meet the interest pay.
ments for either Of those years. Be.
cause Of bond retirements, however
the interest payments due In the fu.
ture will be less than in previous years
the amount for 1885 being $685.
477.44.
Because of poor collections and thu
bad conditions Of many loans still
held by the bank. Stangler observes
1T Is not hard to reach the conclusion
that If the interest Is to be met it viii
be necessary to provide funds othel
than those obtained through interes
collections"
What to do is up to the legislature
he said, but he expressed the view tina
the best way to meet the situation
Is to continue diverting motor vehicle
license revenues Of about 81 200 900 ,
year into this fund as was done b!
the legislature two years ago. Ever
If the state board Of equalization
makes excessively heavy tax levie
against real estate to meet the situa
ton. he observed. it might not pro
duce the necessary revenue since |
good many taxpayers are not payinl
their taxes now.
All Of these facts will be brough
out for the legislature In due course
They indicate clearly that the stat
will be many years in paying for it
land leaning experiment. no matte
what Is done.
AS q matter Of fact the state ha
been going out Of the land loan bust
ness as rapidly as possible. Many o
its loans have been retired by trans
fer to the land bank and no new one
have been made. This legislature ma
see action to make this retiremen
a formal one.