The Nonpartisan Leader Newspaper, March 1, 1920, Page 3

In the interest g of a square deal for the farmers Nonpartigin Rader A magazine that dares to print the truth Official Magazine of @he National Nonpartisan League - VOL. 10, NO. 9 MINNEAPOLIS, MINNESOTA, MARCH 1, 1920 WHOLE NUMBER 232 State Industries Put on Paying Basis SlX Months’ Report Shows Excellent Financial Condition, Despite Campaign to Interfere With Bond Sales. Bismarck Bureau, Nonpartisan Leader. REVIOUS articles in the Leader have told of the benefits that the North Dakota program have brought to the people of the state. Farmers are sell- ing their wheat at higher prices at the Drake mill; they are getting hail insurance at 40 per cent of previous rates; they are getting real estate loans at 6 per cent, as compared with a previous average rate of 8.7 per cent; work- ers of the state are protected against accidents; a state-wide home building program has been out- lined. . "But what about the cost of this? Opponents of the League, unable to attack what North Dakota is doing in any other way, have raised the questien of expense. What about it? The report of the state industrial commission covering the first six months of operation answers _this question. The report shows that although two of the biggest enterprises in the industrial pro- gram — the terminal elevator and * flour mill at Grand Forks and the home building campaign—have both been delayed by the so-called “42 “taxnayers’” ‘suit®in the United - Stc s courts and thus represent ex- penses instead of gains, the indus- trial program as a whole has more than broken even. The Bank of North Dakota, after deducting all expenses and deprecia- tion on furniture and fixtures, shows a net profit for the period July 28 to December 31, 1919, of $45,078.45. DRAKE MILL MAKING GOOD ALL AROUND . The Drake mill, from August 20, to December 31, 1919, shows a mnet profit on milling operations of $2,- 748.23, and is entitled to an addi- tional profit of $38,56565.56 on advances in value of wheat and :sacking purchased in large quantities to cover future operations. The- mill and elevator association has assumed preliminary expenses connected with the Grand Forks mills and other enterprises, not con- nected with the Drake mill, of $8,- 784.51. -When the Grand Forks proj- ect is in operation its profits, added to those of the Drake mill, will, of course;-more than take care of this ! item. The home building association, which will be unable to sell its bonds until - July 1, shows expenditures, aside from those in connection; with its first house, of $4,117.33. The house remains the property of the - state and its value more than covers its own cost. The expenses of the industrial commission itself, -which oversees the operation of . all industries, amounted to. $4,261.82 for the full six months’ period. Any one can see at a glance that- the profits of the Bank of North Da- kota and of the Drake mill, for the period of less than six months during D dehyde, at the capitol. made a - profits by experience. get instruction rapidly. And Frazier, as a farmer, knows he’ll reap the kind of stuff he sews. the public need he looks upon as wholesome seed, but schemes inspired by graft and greed appear to him like tumble weed. And the political :deadbeat is like the ‘stinking smut” in wheat. And Frazier knows they can’t abide political formal- ‘he fed the pigs and cow. an honest farmer governor. which they weré in operation, far more than coun- terbalanced the temporary expenses of the other industries not yet put in full operation. The aim of the industrial commission, of course, is not to amass a profit, but merely to operate the industries at cost, giving the people the benefit of the saving. In this connection it is pointed out that the Drake mill, while planned merely as an experiment, has paid farmers an average of 12 cents a bushel 12ore for their grain than elevators in the vicinity and-has sold the mill feeds at-a price $5 below the product of private mills. If all the wheat of North Dakota could go through the Drake mill it would mean an annual saving of $12,000,000. The Bank of North Dakota, besides saving an average of 2% per cent on farm loans that it handles, acts as a clearing house for more than 600 banks, effecting wvast savings in exchange, fulfills the' functions of a reserve bank, thus making gen- eral credit more easily available, and is able to sus- tain state “departments during the eight months’ = LYNN J. FRAZIER The Farmer Governor 0O YOU suppose a farmer might fill a big state office right? I mean a man who tills the land himself and not at second hand. Well, while you’re waiting to decide, I'm free to say the thing’s been tried. Dakota farmers searched the state to. find a name to head the slate; At last the N. P. leaguer boys decided Frazier was their choice. In one smooth line, to tell it all, Lynn landed And from that lucky day to this he’ s hardly For why? He uses common sense and A farm’s the place, we’ll all agree, to single miss. which he has liberally applied. His enemies did all they could to down him, but he sure made good. A farmer, he knows how to guard from his ‘chicken yard and understands just gray wolves from eating up his sheep. He’s made some laws to smooth the way for those who raise the grain and hay, but not for parasites that prey. He favors raising hogs and steers but frowns on feeding profiteers. Thus Frazier earned a worthy fame and made himself an honored name. And yet he’s just as common now as when And that is why we’re cheering for PAGE THREE C. H. PERRINE Billings, Mont. Hence, laws that meet iuch polecats ow to keep \period each year between the beginning of expendi- : tures and receipt of tax money. The report of the industrial commission created a furore in political circles when it was made pub- lic.- Frank E. Packard, an assistant to Attorney General Langer, attempted to attack the report be- cause coupons due on bank capital bonds were placed among the bank’s assets. F. W. Cathro, director general of the bank, came back at Packard promptly and exposed that law- yer’s ignorance of the law. “Mr. Packard advises us as to the ‘proper method for running the bank,” said Cathro. “However ex- cellent his advice may be, we are compelled to fol- low the law rather than é\'lr. Packard’s suggestion.” Mr. Cathro then quoted section 5 of the industrial . commission law, requiring the state treasurer to pay coupons due, and asked how it was possible, under the law, to consider interest due the bank as ., anything but-an asset. Mr. Cathro continued: “Mr. Packard says if this interest were paid by the bank it would have shown a deficit of $641.19. If this really did exist it would con- stitute a tremendous victory for the .bank. How many business institu- tions earn a profit their first six months ? APPROPRIATION OF " STATE IS REPAID “But. Mr. Packard has chosen to overlook certain facts. The bank has during less than six months earned and set aside $23,954.10 to repay the state for the appropriation used for the establishment of the bank. Mr. Packard has also ignored the fact that “we have during that period charged off for depreciation for fur- ‘niture and fixtures the sum of $2,444.30. “But even though Mr. Packard has chosen to overlook these -items and to insist upon the bank’s payment of the interest upon the bonds, if he had studied the bank’s last statement for February 4, 1920, he would have - found these items: “Surplus ........o... $40,000.00 “Undivided profits from last year .... 5,5622.67 “Net profits his year 10,622.12 “These items amount to $56,184.79. The six months’ bond interest due December 31 amounts to $50,000. For the period January 1 to Febru- ary 4 an additional $4,500 or there- abouts would be due. There is money enough ‘in the bank in the shape of profits after the $23,054.10 refund on the appropriation has been made and the depreciation fund kept up to pay all interest due to date and still leave a considerable profit.” Mr. Cathro’s analysis completely flattened Packard’s attack. The finan- cial statement included in the report, as a matter of fact, was prepared by auditors of an independent concern, the Equitable Audit company of Min- . neapolis, and is a conservative docu- ment in its manner of setting forth the profits of state institutions. By v