The Bismarck Tribune Newspaper, January 7, 1925, Page 2

DA OTR wrAtImM P PAGE TWO LUA wES THE BISMARCK TRIBUNE "| TEXT OF ADDRESS OF GOV. SORLIE T Many Recommendations Are Made to Ladies and Gentiemen of the Se ate and House of Representatives of |and should do so. I recommend that H the State of North Dakot you spend the first twenty of The Governor is directed by law) the session in considering and pass- to communicate to you at the open-| ing the necessary general appropri- Rising of the session, a message giving | ation bills providing for the actual | you information as to the comdition | nei of the state, and that) of the state, and recommending to|until these necessary bills have be your attention such matter as he| disposed of, legislation of y deem expedient. kind bi ‘Sos an tla 6 Be ete 4 Year HIEERS font ition of fhe e you w G Eee I recommend that you exercise tay rae you es ues) ah w3 aE {Strict economy in providing for of. ont HOS SL anaes has had the | ficials, clerks and helpers in con- | Ce edie aad vat [ducting the business of the session ahaa oi oh se you will aleo | X0U should hay efficient cler Ce We eeterts 1 ieee amend. foree, only for the a ale gory Gul socauail kinked aha ghee co si Ms hae aie ily tthe [should be no place in @he employ de i Bene prepara' ee td : i’ |the state for incompetents or poli- he Bees an Jrmation which |tict! hangers-on, Why not make a co YOU first-hand information| whish| record along these lines? HORA eriietininaticn, and cperueci’ of |,. The reservation to the people in fate _ Lo ; well Chisened the right to recall unsatisfactory of- vhich you should be w ormed ech ‘ : PO both as to the revenues which you|ici#!s, which is now a part of our Mes Kasco) o will be | #WS. makes biennial elections un- BUMMRG AiG voy poropeiation tol-state (necessary. | therefor mmend aM hd he atiounte of wnon| et 2 ke the necessary steps Rmeeeueerrcc: and ¥se aniou to initiate an amendment to the Con- ey which should be by you appro- ae vi ; stitution proyiding for general elec- priated for the purpose of carrying : se ‘i tions only once in four nd on the necessary business of the |, : 1 M for only one session of the legisla- M commonwealth. ee Bh " Keeping Appropriations Down — | Ure in that period. ae th My official connection with the |. The various departments adminis- W business of the state is so recent, ting the government and business i) Sees 3 recenls) of our state, as well as of our # and the sources of my information A i ties, counties and school districts are so much less direct that I shall baer Zs ; MarGY qirestime to. wdvisel you. in.tyinnave Been evolved) trom| time “to 5 = _ [time as ew laws ha £01 i - of connection. I suggest to you ROyeline semen, lve have mone: InlOgen propriate available and spend the income of the sta that if you can and will keep your appropriations well within approval of your constituent: ever, that it is poor business to ap- ticipated revenues you will earn the !sembly gan remedy this procedure fect, so that they necessarily cannot in all things co-ordinate. This lack of co-ordination has resulted in great duplication of endeavor and waste of time, energy and material. In any business corporation this condition would not be permitted to entire te; and the an- A comparison of the revenues col- | °*!t ee oe Be eee ty lected and. expended (which for [Such inefficient and wasteful meth- e: practical purposes, can easily be eee roull be sbaG 38 0) OLE ip u ascertained from the information Oe shicas cote paceman vthab« 4 Shown upon the face of the tax re- Oe Uae J CUES ed) | eints issued by the County Treas, | Provide for a State Efficiency Ex- ™ urer of our respective counties), | Pert: to be appointed by and to act p shows-a conditton of affairs that is|U"der the direction of the gover- t] shocking both to our sensibilities|"0" Such expert should devote his ti and to our pocketbooks. ‘Taxes upon | °F her entire time and skill to this n our lands and properties have, dur-|ffice and to the examination of ing the past ten. years, increased |SUCh Public offices, businesses or % one, two and sometimes three hun-|@¢Partments as the governor may assign from time to time. He or |, dred per cent so that their payment has become a tremendous ; line between legitimate taxat unwarranted confiscation properties has at least proached. These taxes have been i levied and imposed by various bodies, that is to s school dis its share in imposing its Each agency in levying more just and proper share has, excused itself with the thought that, while it possibly may have exceeded its just proportion, yet its share is gmpsmall*as compared with the whole amount of taxes levied, as to be al- © most negligible and unnoticeable iz upon our citizens; almost too griev- ous to be borne, and the unmarked been many and ricts, the civil townships, the villages and cities, the counties, and, finally, the state has each had she should be given atthority to examine all matters, books and pa- pers connected with of pertaining to the various subjects directed to examine. He or she should report to the governing board or official as the case may be, in writing, with a duplicate report directly to the governor, suggesting new laws, rules, methods, practices and app ances to render more efficient and economical the operation of public affairs. A sufficient salary should be provided so that a person of real ability may be employed. Such an officer should eventually attain proper co-ordination among our dif- ferent departments, boards and of- ices, which must result in more ef- |ficient management and greater economy. burden ion and of our ap- initiated, ay; the burden. than its perhaps. Bank Plan The banks of the state have here- t the aggregate; nevertheless, when © the levies made by those ‘several | ‘ofore been fccustomeds te erren b% “agencies have been assembled the| "24 and to secure such lon ke 4 result seldom fails to shock even ne pee Cae collateral of a face and actual value iithose who are responsible for the t 8 condition, which all profess to de-|‘W® and often three times the ; amount of the money borrowed. In oe erred : the event of inability of the banks f It seems that the levying and ex-| 19°. ihedloanaiatmatuniaisorone t: »pending of taxes in large amounts |‘° PY yen. ere ; , ses have been sustained. I rec- Biekespbecome a fad if not a fashion, | oo sa 4s, eretten ta vneetbeay ive kk _and we strive to comfort ourselves = ai ae ad ake swith the reflection that in ow consideration and action, and urge r neigh: | the passage of such laws as‘in your pee ee cities, countiosy-and states! ica cment will remedy, athe) iwronk onditions are just as bad, and | 4y\ bl eaeeoah i : herefore, we are not personally re-| Ve Problems of handling our closed " M banks and those that may hereaft d «sponsible or blamable ay erear tet: : | close, so ‘as to cause the least loss aP Time For Halt and inconvenience to the depositors, uA Our state, in common with all ag-|is one that should engage the seri- t) *Titultural communities, has negoti-|ous attention of the state govern- i ated its way through, and is still| ment. Under the present and accept- ttl Zexperiencing extraordinary business ed method of doing business, the “conditions. Agriculture and ‘onnected' with wen abused, broken, < crushed by circumstances ove; we have had little _ then, when we could least sby our own tax collectors, Staxes for which we have not ed responsibility, collectively. = It is time to call a halt. tention of all taxing bodies state will be called to the n = of stringent economy. years been obliged to Eselves- many of the “most of the luxuries to whi y have been accustomed. It, Sfore, behooves us, ». Upon nues “and to practice the utmost ly B ii Bots inet f of the state. ‘Ivearnestly recommend that : etonomy. Let us, and each oer ; se in our dealing with Ee : is, @eonomy and thrift. uct public affairs with thi ire and attention that we ‘give and do give to our own z ness. Wi fends bebasiness of /to the depositors, agriculture deflated. and control; git, our pockets have been turned in- “side-out and our last penny taken individually or Our citizens, Sas individuals, have in the past few deny them- comforts and who are living and “spending the state reve- to realize the necestities of, nial and economy in conducting the You, gentlemen of the assembly, y your action taken during the next ixty days, can do very much #relieve the oppressive situation, and tters ‘pertaining to the expendi- és titre @f.public moneys you shall ex- ‘etcise ‘the strictest supervision and mine not to be ashamed to be is, or to exercise the most scru- | that we, as servants of the ate, entrusted with the obligations id duties of office, should con- have got to be on|not been reopened, possession of all ‘ae business men if we ex-|its assets should be taken by the ice 46-conduct the state's business|Bank of North Dakota, which shall stom in the-past|to be ade, and yt *bill-providing | such assets agcertained #8 nearly as things have state government assumes to exam- ine and control all state banks, and by permitting their operation, to advertise to the public generally that such banks are safe depositaries for money. When a bank fails the state au- thorities assume absolute control of its management, but in no manner provide any funds to assist either in reopening or in conserving the as- sets of the closed bank. As a re- sult, during the period through which we kave just passed, a vast amount of papers, equitably the property of the depositors has been lost by reason of the inability of the- failed institutions to pay back to other banks the loans obtained, prior to their failure. This has re- sulted in the foreclosure of pledges secured by property of vastly great- er value than the amount of the debts secured. In some instances reasonably good commercial paper, well secured, of a face value three times that of the money borrowed has been pledged, and when the fail- ure came and the failed institution had no available funds with which to redeem the pledged paper; the pledge has been foreclosed, the pa- per bid in for the amount of the debt or loss, and the depositors have been robbed in their hebplessness. Wants Investigation I recommend that you immediate- ly appoint a committee to examine into the whole question and ascer- tain if the following suggestion cannot be put ‘into practical ‘form and effect. Within a stated time, say ninety same|days after a. bank has closed its should| doors, or sooner upon request of person-|the State Examiner, if the bank has r Which and afford to pay assum- The at- in the ecessity ich they there- self-de- to in all of us, public It is to suc-|immediately cause a careful exam- ination and appraisal of its assets e net value of There shall then be issued certificates of claim for the amount of yetive deposits. The Bank reve- | of Nort Dakota shall make a pub- ve as-|lic statement that in that. particu! for the | may be. tthe | proof ive ex- ir rel ‘ New Governor 7 A. G. SORLIE failed bank, it will advance to the depositors upon the security of their Certificates of Proof of Claim, a certain percentage thereof at an in- terest rate of six percent, the amount so loaned to be not mere than, y, seventy-five per cent of the ue of such certificates, ac- cording to the said appraisal. The Bank of North Dakota should ‘be given authority to collect, compro- mise, discount, sell, or in any legi- timate manner realize tpon the as- sets of such closed bank as soon as be, and apply the proceeds ed, first to the payment of it: costs and disbursements in connec- tion with said matter, together with such sums as will repay it for its expenses of liquidation, and second, the payment of the Certificates Proof of Claim. It should also made the duty of the, Bank of North Dakota to redeem or purchase any mortgages or pledges of prop- erty where a valuable equity re- mains to the failed bank, and to advance such sums as are necessary therefor. To do this will require that the Bank of North Dakota shall advance much money, and proper provision must be - made therefor, which, as to banks to close here- after, will not be very difficult. This suggested plan must in no way be confused with the State Guaranty of Deposits. The theory upon which this plan operates is that the Bank of North Dakota shall advance only a proportion of the actual value of the assets. All ad- vances made should be returned with interest from the proceeds of collections. If properly -administer- ed, this plan should bring to all de- positors a measure of immediate re- lief, should prevent waste, and do away with the tremendous cost of bank receiverships. The plan means only thatthe Bank of North Dakota, the instrument of the state, shall as- sist the depositors with the state’s money and credit, all properly se- cured. The plan proposed is tenta- tive only, and it is possible it can be arranged so that the state bank can purchase such certificates of Proof of Claim outright. I believe, if your committee will make use of the best financial abil- ity and counsel within and without the state, a plan and law along the general lines herein suggested can be evolved which will be of inestim- able value to the commonwealth, and which will eventually be adopted by the nation to protect depositors in national banks. Disrespect For Law The growing disrespect for our penal institutes and the law gener- ally, especially upon the part of the younger generation, is a matter that is attracting much attention and discussion and causes alarm among those of us who are closely obser- ving the moral and social reactions of our citizens. Disrespect “for the law easily leads to disregard for and violations of those penal statutes which, without overbearing moral nécessity, assume to regulate the lives and habits of. our citizens; and such violations lead to others more serious until af times, one is led to wonder if we are to become a nation of habitual law-breakers. Sociolo- gists are continually writing and talking along these lines, and’ many theories have been propounded re- garding the cause of this serious moral condition, and many remedies proposed therefor. In my judgment the fault lies very largely at the door of mistaken moral reformers who are continually asking for the passage of laws regulating the lives and habits of our citizens, and im- posing penalties for the doing of acts which, in themselves, are not morally wrong. These reformers usually represent organized minori- ties who, by force of their organi- zation and apparent power, and also bécause of the high moral plane up- on which they assume to! stand, im- press upon our lawmakers the nece sity for and cayse the enactment of many laws which are not approved by the great body of our citizens; and thus we find upon our statute books many laws which are not sup- ported by, a healthful public opinion, the violations of which are general- ly winked at, and for which a con- viction in our law courts is not gen- erally deemed a disgrace. The pass- ing.and putting into effect such laws: is a dangerous meddling with the inalienable rights of our cit- izens, and while they may be held by the courts to be constitutional as an exercise of the police power, they not only.do. not accomplish the reforms their sponsors hoped for, but they lead up t6 a disregard for the law in,gehetal, atid.d tim: ably more I suggest [Ro more ‘such | ut. upon the statute books and that some that are now there shall be repealed. Would Repeal Cigarette Law In this connection I call to your attention Chapters 91 and 92 of our penal code as amended, making the selling of snuff and cigarettes a crime and imposing penalties there- fore. The taking of snuff, and the smoking of cigarettes are habits, while to some of us these habits may appear undesirable, unhealth- ful and filthy, yet there is nothing inherently vicious in either, which should be inhibited by law; and these statutes are not supported by an enlightened public opinion. We have only to go back to the time of the war when our ladies all over the land were engaged in giving and sending to our soldiers in the camps and trenches vast quantities of tobaccos and cigarettes, which were distributed through the good offices of the Y. M. C. A., the Sal- vation Army and the Knights of Columbus, yet, when our boys re- turned home after the war, they found that the purchase and sale of some of these articles, under the laws of this state, were made illegal. While it is legally possible to pur- chase the same beyond the state, and have them delivered by the United States Mail at his door, yet it is a crime for anyone to sell or give away snuff or cigarettes and a person who passes to a friend a package of cigarettes, or even one cigarette is made a criminal. This condition is unhealthy and leads to disrespect for the law. It tends to make good citizens into criminals and is a condition tHat should not be tolerated. I, therefore, suggest that these statutes be repealed. Such repeal will save much cost and expense in attempting to enforce these laws, and tend toward.economy in the handling of our problems of govern- ment. e In addition to this, I suggest that a law be passed imposing a reason- able stamp tax upon all snuffs and Cigarettes, say five cents per package and providing proper machinery for enforcing the same. If this is done, it will provide a net revenue of per- haps $500,000.00 per annum, which can be used in the general fund to relieve our tax burdens, or applied to some special purpose, say for in- stance, the liquidation of failed banks and making advances to de- positors, to be repaid in due time out of the assets of such banks when collected, or the special fund provided for that purpose. As a method of raising additional revenue for use in the building and repair of state highways, you may perhaps consider the imposition of an additional tax of one cent per gallon upon gasoline. This tax may be somewhat burdensome, but I be- lieve our citizens generally, in view of the use to which it is to be put, will cheerfully pay it. Hail Insurance Zoning The State Hail insurance should be continued, but arrangements should be made ‘to, in some manner, divide the state into districts, each district to pay its just insurance rate. Our Rural Credits hgve been God-send to this agricultural sec- tion during this deflation period, and should be continued and made effective in every way possible. The State Grain Grading and Dockage law is now in the hands of the supreme court of the United a States. Unless this law is favorably reported, some other law should be passed covering the same ground and put in such shape that it will become constitutional. Also, in connection with this, there should be a law passed to put our Terminal Elevator in shape so that state warehouse receipts will become negotiable instruments sim- ilar to the national warehouse re- ceipts. During the past several years our state has had a very large amount of adverse advertising. Our trou- bles, which have been real enough (though they have not been as bad 4s those of sonie other agricultural communities), have been misrepre- sented and exaggerated. The idea that North Dakota has been and is in a deplorable condition has been sold to the country at large, and the damage which this has dene in dollars and cents as well as in cre- dit and standing, it is impossible to estimate. The injury is without question so great that as’ a business community we ‘must take remedial meastres to spread the truth. Our state is a “Land of Sunshine and Flowers,” a veritable “Horn of Plenty,” a “Bread Basket of the World.” No other state in the Un- ion can match -our fertile-acres and level, rich, loam land. No other state can produce so valuable crops as ours, with as little effort; we have no stumps to pull, no stones to pile. Our gang plows two, three, four, five, six, and seyen plows wide, throughout most of the length and breadth of our state, can turn over a whole 640-acre tract from highway to highway without care or atten- tion other than such as is necessary, at the end of each mile upon the turn. Our cattle and sheep excel all but a very few and none are better. Our butter has an inter- national reputation. None can equal the flour produced <in our own State Mill from our own hard wheat. That product is unfque in its super- excellence. .We grow the best po- tatoes and garden vegetables grown anywhere in the world. Our bees pres e 25 per cent more honey per ive than can be produced elsewhere. We have more hours of concentrated sunshine in the growing season than in any state to the south of us. We are coming into our own estate in the production of corn and, hogs. Our citizens are, upon the who! more literate of higher intelli gence than those of our neighboring states. Our climate {s more -invig- forating than-in the softer south. Phe Assembly by New Chief Executive beauty and ‘social charms of our la- dies are growing from year to year, so that now old Virginia and Ken- tucky may vainly look to their laur- els. Our young men grow tall and vigorous. The cold iron of the north is inherent in their makeup. They have the pep, the vigor, the stam- ina and the bull-dog stick-to-it-ive- which comes to them in the air they breath. The north has produced the conquering na- Nature and in our fair state ducing superior types of ¢ who are now going forth and will contimue to go forth, into the busi- ness and professional world con- qvering and to conquer. Loyalty to State We are blessed with everything that is necessary to make up the greatest of states. Let us no long- er hide our light under a bushel. Let us forget politics and factions and pull together, “All for one and One for all,” and let us advertise our advantages as aa ideal home state to the world at large, that other progressive people may come and throw in their lot with us. + To this end I recommend the cs- tablishment of a Radio Broadcasting station under state management at Bismarck, as an advertising medium for our Immigration department. Through it let us from day to day, without ceasing, send forth the glad tidings telling of the cheapness of our lands and the excellence of op- portunities to the thousands of radio fans all over the country. Properly handled, this will be a great advertising value, and the cost will not be large. In conclusion, I am not in’ favor of any additional experiments along the line of state ownership of imdus- tries at this time. We have our State Mill and Elevator, so far, I am informed, a money-losing ven- ture. I consider it an asset of .in- calculable value to the state, and am firmly convinced that if I may have a free hand in controlling the business management of this indus- try it tan and will be made to pay cash dividends to the state; while, if a proper terminal market is estab- lished at Grand Forks, as I am sat- isfied can be done, when the project is properly handled, the great cash premium to which our wheat is en- titled by reason of its hardness and its superior gluten content, will be paid to the men who have grown it, instead of being paid as is now the !general rule, to the middlemen liv- ing at the present wheat terminals to the South and the East. State Bank Help Our state bank is an instrument of great potency and value in the es- tablishment of our financial inde- pendence as a state. I consider it the greatest forward step of the decade along political-economic lines. It has drawn much criticism and will continue so to do, for it threat- ens in time to make us economically independent of the eastern money markets. I believe our bankers, who generally were at first much opposed to its operation, in the light of the cavalier treatment they received from the eastern mioney men during our financial troubles, have come to something of an ap- preciation of what a properly hand- led State Bank may mean to them and to the state. 3 It is a-comparatively simple’ mat- ter to make the bank show a profit ‘on the balance sheet at the end of each year. I can hardly see how it can be efficiently operated and not do so. The bank, should, however, stand for much more than this. When times of financial stress come to us, such as we are now passing through, the State Bank should stant in a much closer relation to the people than that of a mere mon- ey-making agency. It should be rea- dy to help to the full limit in a spirit of friendly assistance any properly operated and sound bank, which, by reason of panicy condi- tions may be embarrassed for ready money. If such aid has been possi- ble in the past, many banks in the state now in the hands of the re- ceiver could have weathered the storm and much loss might have been saved to our citizens. It is the business of the state bank to take no ‘foolish risks, but to be ready to assist in so far as it may, any sound state enterprise with which it is permitted by law to have business relations. So far as I am aware, as at present operated, our State Bank is a mere money-making institution. If that is all it stands for there is no excuse for its’ existance. I propose to so operate the Bank that it shall menace no one and no business, but shall stand like a wall of rock behind the financial agen- cies and the banks of the state; and I believe, in addition to doing this, it can be made to pay its way and show a profit, at all times. That it shall stand for Service; seryice to the state and its citizens and a bal- resides y 4 Lieptenant-Governor, who presided at today's joint sessiam 6¢ the lature for the inaugu ation of Gov. lier eee WALTER MADDOCK ance sheet that will show only reasonable profit. Needs Help I cannot do this alone. I must have the help of the législature, the officials of the state, our citizens fn general and particularly our state banks and bankers. I ask for such assistance and will greatly ap- preciate constructive criticism in al public matters. I desire to give the state a real business administration, managed by those who have them- selves been successful. If the busi- ness affairs of the state aro well taken care of, the people who are really the stockholders will know and appreciate and I care little for the good or bad opirion of those who make politics a profession. Let us forget our factional dit- ferences and our personel disputes which have grown out of bitter par- tisan fights. Let us stand together for our state, its institutions, its citizens and its products, Let those who have knocked the state in the past turn over and wake up. Divid- ed we have ‘made many fatiure united we may step forward into the limelight of success. Let us all co- operate for oyr good, blessed state and sell our ideas to others, instead of having other people sell theirs to us. Nestos, in Message, Reviews Work of Administration a their doors (Continueg from page 1) from Bank of North Da kota, discounts, e Depreciation Operating gain 16,17: 34,497.44 58,037. last three items, however, is subject to audit. This indicates a total interest lo: of more than $533,484.24, and a total operating loss of about $151,306.74. “L had expected that with the ex- perience of 1923 and with a perfected and efficiently functioning organiza- tion inside and outside of the mill, we would have been able to make slightly more than operating expen- ses in 1924, but present indications are that the final figures for the year will indicate a small operating lo: although I am glad to note the oper- ating gain of $58,027.07 for the past five months, “With the preliminary work done, the organization may now be simpli- fied by the consolidation of some positions’ and thus méke possible a reduction in expenses, It ought not to be difficult therefore, in the com- ing years to make at least operating expenses. I have contended and ful- ly believe that by exercising care and using good business judgment the mill will pay operating expenses and in all probability a small addi- tional amount to apply on interest. For the purpose of insuring such re- sults for 1925, the Bank of North Da- kota has gone the very limit this fall in providing money with which to purchase milling wheat so as to avoid the larger premiums that unquestion ably will be exacted in the spring and summer, This amount has varied greatly, reaching at one time $749,- 176.52. Wishes Mill May Pay “I am glad to know that my suc- cessor believes that he can make the mill pay. He will have my very best wishes in his effort to do so, To make it pay will mean that in addi- tion to earning operating expenses, which should not be difficult now when the milling, office, and sales force has been fully organized and a market for our flour well developed, he will also have to make enough more to pay about a third of a mil- lion per year in interest, taxes and depreciation. No business man—my successor is a business man—would begin to claim profits until these charges have all been met. While I have not believed it was possible to make the mill a paying institution in this, the only proper sense of the term, I am anxiously awaiting, as 1 am sure every other citizen is, the results of the administration of thi institution by my successor in the hope that he may be able to do so. showing ‘ministration nor Nestos tory ministration good busine. conserve fairs as nine ba He pledged himself without reserva- tion, to put the mill on a_ paying basis; that means to meet from its earnings all the charges I have enu- merated and to make it a real. asset to the people of this state. He has laid upon himself a task from which more timid souls might well shrink. We may be assured that Re will spare no effort to show a profit, If he successfully performs this Herculean labor, he will be entitled to all glory. Every good citizen will wish him God speed. May he make it pay greatly.” Bank of N. D. In discussing the Bank of North Dakota, Mr. Nestos said: “When we took charge of the Bank of North Dakota we discovertd that there had been deposited by the former administration in yarious banks of the state amounts ranging from a few dollars up to about $442,- 000, and aggregating $3,996,807. Ap. parently $ost of the banks so fav- ored were among the weakest and most inefficiently managed banks in the state, The money so loaned and redeposited belonged to the tax- payers. They were intended to be used to run the state and local gov- ernment, state institutions, and as a revolving fund for mill arfd elevator construction and the farm loan bus- iness. We found that a large num- ber of these banks had closed al- ready with $1,590,986.20 of these tax monéys tied up in them. Most of the others were in shaky condition and upon investigation we became Satisfied that if an immediate pay- ment were demanded not only would we secure but little, but that ‘they would be constrained ‘to close their doors, while if given time most of them would have ea fair chance of working out of their difficulties. So We concluded that the wiser policy was to nurse them along and give |‘ receiver, them a chance to répay these funds and to pay them gradually, as cropé and conditions permitted. During. our administration, under the man- aivement of C, R. Green; we have col lected $1,580,908.52° of this ‘amount, leaving only $213,016,74in- the. open: er it wi the banks, receivership holding the same become frozen be readily ava so badly needed, the fifty banks. arrangement i WEDNESDAY, JANUARY R. A. NESTOS banks, but with $2,125,940.96 still in| the banks that were November 23, 1921, or that were too, far gone to be able to recover and were therefore constrained to close of which amount $1,406,998.86 is in the form of Re- ceivers proofs of claim. During the recall again in the cam promised the people that we would not permit any more tax moneys to in the banks; \ our policy would be to keep these funds where they would at all times lable for the purposes intended; to wit, to keep the depart- ments of state and state institutions open and serving the people, and so as a revolving fund for the mill | and elevator at Grand Forks, and for the making of farm loans, then This promise we have kept faithfully, and restrained! all selfish endeavors that sought to} *° deflect us from this obviously wise, sound and honorable course.” ince, Farm Loan Business | With regard to the farm loan bus-|Ameno, Sheridan. he said that the present ad-| Ass ministration had made loans without political fa ier administration, only $189,225) is now outstanding in interest and! foreclosure proceedings started on only ‘seven loans, Closed Banks | In telling the history of the ad- closed banks, Gover- of The administration of closed banks} s always difficult, and seldom sat-} The only thing any ad- is to exercise s judgment in the hand-| ling of the affairs; curtail expenses, | assets, and collections, can do make collate time. very’ advai these interésted:in the closed before | campaign aigns of 1922, we or, charging| McK that such favor was shown by the| , Clerk of appropriations, Com. John preceding administration. On December 5, he said, there still 58,402 of delinquent interest | Lynn, Emmons. outstanding on old loans. ure sales have been had on 191 of/Herman Hardt, Logan. these and sheriff's deed -secured in| 64 cases aggregating 22,180 and sheriff’s certificate in 127 addi-! tional cases aggrefrating 36,890 acres. | Bottineau; The principal sum involved in the!Miss Gina Morkrud, Nelson. foreclosures is $867,700. He added that although 6,274 loans| were made by the present tration, as compared to d wind up the af-| efficiently, and speedily as possible, took office, those banks were handl- ed by individual receivers; recci ten dollars a day each, Of the fifty i s closed, nine had re even receivers and nine special deputies were in charge of! I found that. dur- ing 1921 the cost of doing business had been greater than the receipts and that the former method was so inefficient and so expensive that it resulted in gross waste of the assets of the closed banks, sel immediately to ascertain wheth- possible to bring the re- ceivership of all the® banks which were closed undér one head, or at least under two or three, but dis- covered that under the law then ex- isting this was not possible. best that could be done was to group We therefore fairly satisfactory grouping system, | making nine groups with from fou: to seven banks in each, . By this method we saved about $76,000, an-| tion of large losses suffered by’ two nually in expenses and greatly in-| banking institutions in creased the efficiency of the receiv-| which came about through alleged ership system, Neverthaess, it was not all that I had hoped to accom- plish and so in 1923 we enacted a law which permitted the grouping of all| grand jury which: convenes at the the banks under one receiver with the result that expenses have been greatly reduced and efficiency in-| creased. The expenses, for instance, of the 129 banks that first closed, during a period of fourteen months under the old system, were $42,175.- 66 per month, while during a similar period under a single receivership these expenses have been cut to $15, 824.95 per month and the force em- ployed reduced from 175 to 6: total expenses for legal aid in man-| aging the affairs of all the closed banks of the state during the single stem has been less than the cost during a similar per- iod under the! Frazier administration for just three of the small banks in the Slope country. reported to the Receiver by the close of the year is $1,875,375.62. After lengthy negotiations the re- ceiver and banking board were al- so able to arrange with the holders of the collateral of these banks, where there had been fore- closure of such collateraj, té return the balance after paying the amount due them’ and the expenses, to the It was very important to secure such an arrangement in, anti- ¢ipation of the greatly increased col- lections of this fall and winter. The. fair to the banks I sought coun- Total collections 7, 1925 closed banks and will save them hun- dreds of thousands of dollars. “The - present * system is efficient and economical. ince it is unlikely that the administration of the clos- ed banks can be terminated by July 1, 19267 when the system ends under the present law, I would suggest that, you so amend the law as to continu: two years.” Asks Cooperation The work of J. M. Devine, C missioner 2jof Immigration; W. bi4 Black, state engineer, the Children’ |temore of the state health depart! | ment was praised. While urging econom: Governor cautioned against econom in school affairs which would hurt the cause of education. In closing he said . “In your labors as a legislative body, in the acts of the new admin- \ istration and in the efforts of all { zens to promote welfare of the state and prosperity and happiness | of our people, may Divine Providence through whose help and guidance alone whatever success has been ac- |hieved in the past, was made possi- ble, give wisdom and strength for every task and continue its protest- ing care of our beloved state.” EMPLOYES OF . | HOUSE NAMED - FOR SESSION The complete list of e dictated by the Nonpartisan league caucus and formally approved by strictly factional lines in the house that sesterday, is as follows: at’ Chief Clerk, J. C. Miller, neau. First Assistant Chief Clerk, How- d Thomas, Burleigh. Second Assistant chief clerk, J. P. hnson, Walsh. nrolling and engro Mrs. E. 0. Bailey, Assistant enrolling clerk, Georgi- ‘anna Brohness, Renville. Sgt. at Arms, Fred Keitzman, Nel- n. Bill clerk, R. W. Frazier, Divide. | Bill room clerk, custédian, R. Lar- ‘son, Ward. Clerk and mailing ployees as and Botti- ing cleri, clerk, Jacovo tant, C. Hanson, Barnes. J. H. Messenger and postmaster, Sioux. | Maddock, Benson. Clerk of judiciary com., Harry Foreclos-| Doorkeeper and asst. Sgt.-at-Arms, Bill messenger and clerk, Frank Stewart, Sargent. Stenographers: chief, R. R. Smith Mrs, Ulsrud, McHenry; ari Desk Reporter, Margaret Sheehan, Burleigh. adminis-| Pages and messenger: Therod 755 by the}Young, Griggs; Elwin Doyle, Mc- Kenzie; John Scheerer, Grant; Joba Berg. clephone messenger, John Stade heim. Proof reader, H. R. Long. Janitor, N. W. Shommer. Doorkeeper, Nick Helbing, ‘Morton. Clerk of state affairs com., Lou Arnold, Mountrail. Asks Dakota ©, Senators Vote Against Bill North Dakota Senators and Rep-, resentatives in Congress were asked by Stats Examiner Gilbert Seming- json, in a telegram, to oppose the McVedden:Pepper bill pending in Congress. ‘the chief objection to the bill offered by the National As- sociation of Supervisers of State Banks of which Mr. Semingson is a member, he said, is that it provides no state bank shall be admitted to the federal reserve system -unless it gives up branches outside the city ox head office of the bank. The bill establishes discrimination against state -banks, he asserts, and for this reason is opposed ‘by -him, although it has no immediate appli- cation: to North ; Dakota. Jourgen Olson Faces Charges In Wisconsin Madison, Wis. Jan. 7.—Investiga- have been settlements; economically When I ng ‘open- The planned aj Wisconsin, | fraudulent transactions of Jourgei Olson, Minot, N. D., ‘financier, wi |be undertaken by a United States federal building here on Jan. 18, it was learned yesterday. The alleged fraudulent deals will total close to $1,000,000, it w: ported. Respite the fact that the transac- tions are almost three years old, the matter only recently. was called to the attention of federal authorit in Minot, it was reported, In view of the fact that two of the banks which suffered heavy losses are 10- cated in western Wisconsin, United States District Attorney W.; B. Dougherty, in Madison was asked to present the case to the federal jury here. One bank near Madison| lost ap- roximately $75,000, mt. Dougherty aid. Y Olson is under arrest: Olson ig alleged to have sold cer- tificates of deposits from his banks to small banks throughout Wiscon- sin and Michigan. Cashiers of his bank. signed them, ‘but it is allege, the certificates never were enter upon the books of his own banks ac- cording to. Dougherty. i The! closed One of the oldest of European supetstitions is that animals assume the power of speech at Christmas time. ~~ %g o a Jispones, ot Lei- , uses a bait of. paste instead: of water. and at the} ntageous to, issets of the A sue cester, E: the present system for an -additiona/ tl Code Commission, and#Dr. A. A, Whit the retiring Te./ 4