EXPANSION AND DECLINE 193 



posed of the governor, the attorney general, and the commissioner of 

 agriculture, who held their posts ex officio. 2 '* Particularly powerful was the 

 governor, who had full veto power over any act of the commission. 



The League had no intention of levying new taxes to start the new in- 

 dustries. Each industry was expected to finance its own way; the credit 

 of the state was to be used to endorse the industrial bonds of each indus- 

 try authorized to begin operation, the purpose of this credit plan being 

 to provide each industry with money when it was needed. It was main- 

 tained that thousands of small businesses were forced into bankruptcy at 

 this time by the larger concerns not merely because these larger concerns 

 were operated on a sounder basis or were able to operate more safely from 

 the business standpoint, but because the larger organization was a more 

 profitable customer of the bank and hence more likely to receive a loan. 26 



Opposition to the industrial program came from two directions: from 

 former League members who had rebelled against the leadership and 

 policies of the organization, and from the traditional foes of the League. 

 One of the most outspoken foes of the program was Arthur Le Sueur, 

 formerly an adviser to Townley and a League "brain truster." Similar op- 

 position came from W. G. Roylance, another ex-League adviser. 



Le Sueur, in attacking League policies and leadership, outlined the 

 procedure followed in placing the industrial program in operation. Le 

 Sueur and Roylance had gathered "data of state-owned and operated in- 

 dustries from the ends of the earth" and prepared "legislation for carry- 



25. Cooke, "The North Dakota Industrial Program," pp. 19-20. The main provi- 

 sions of the act were as follows: ". . . Manage, operate, control, and govern all utili- 

 ties, industries, enterprises and business projects, now or hereafter established, 

 owned, undertaken, administrated or operated by the State of North Dakota, except 

 those carried on in penal, charitable or educational institutions. To what end it shall 

 have the power, in the exercise of its sound judgment is hereby directed: (a) to de- 

 termine the location of all utilities and industries, (b) to acquire by purchase, lease, 

 or eminent domain all necessary property rights, and to equip, maintain and repair 

 and alter same, (c) to employ a manager and all help for each utility, (d) to remove 

 and discharge all persons when the public interest requires it. (e) to fix the buying 

 price of all things bought and the selling price of things sold, (f) to make rules, 

 regulations, and by-laws for all industries, (g) to procure the necessary funds for 

 such industries, by negotiating the bonds of North Dakota, (h) to conduct investiga- 

 tions on all matters connected with the industries." 



26. Nonpartisan League; Origin, Purpose and Method of Operation, War Pro- 

 gram and Statement o] Principles (n.p., n.d.), p. 16. 



