The Bismarck Tribune Newspaper, January 9, 1929, Page 9

f plus within the fund, such surplus accrued flat tax levy. The surplus within the fund now having reached the limit set by law, namely four million dollars, no further flat tax needs to be levied for such pu B fo pose ‘and, therefore, such flat tax is discontinued. It is very en- couraging to know that the Department is on a very firm / foundation and will in the future Le abie to all its obli- gations p and without any interest c! s either to the t or to the farmers who have suffered the Josses and éntitled to indemnity for same. \ An institation “ rl ee of Naf EE dese yA partment natural! a great many ficult problems solve. The most difficult one to overcome arises from the fact that mortgages take advantage of the fact that in many instances mortgage liens are su; rr to the hail indemnity taxes. In such event the courts have held that general taxes. may be pee without the inclusion of the hail indemnity tax. ‘The Hail Fund is thus deprived of a great many thousal vires Re indemnity tax every year which it morally is en- A ie Gea eatlihully a oot en to or problem, hold it wow elp mai iy juce amount lost if institutions of the nature of the Bank of orth Da- kota co-operated to the extent of paying hail indemnity taxes even though its mortgage was superior to such tax. Since lands taken on foreclosure of mortgage are later resold for a price covering at least the actual cost to the institution, no one would be loser. This is perhaps a problem for the In- pi Commission, and it is hoped careful consideration given. aor te ener fil to, the, people of, the 80 8 successful ie State ay cennive from the Legislature the fullest measure of co-operation. THE BANK OF NORTH DAKOTA The healthy public sentiment regarding the bank is one of the best assets the bank has. Total footings in the state- Seo me Ree eet ee lara or an vast in the Bank voluntarily by de- 4 of the confid st Bank since it opened for business July 28, 191: $100,000 that was turred over to the State Treasury, now to $1,149,000, which is better than fifty-seven per cent or six per cent per annum for nine and one-half years, in- cluding the period of voi dopabeminge when banks or any other kind of business institutions are not expected to show their best earnings. However, while the Bank has earned through its operations better than six cent for nine and one-half years, that does not show fully the vast benefit the Bank has been sate Saree ante Dakota. A saving to the mortgagors of arow! o and one-quarter per cent per, an- num on nearly $30,000,000 in farm loans apie through the bank and the saving on the vast volume of other farm loans on which a better rate of interest has been obtained by’ the Looted? ue eae of the veers rite the Bank of hice ota, which savit repeats itself from year to year dur- ing the life of the fan, has been made available to North Dakota citizens. There will be some losses but they will be sho dette as compared with the vast earnings and the splendid services rendered and to be rendered. Funds deposited by treasurers in local banks prior to the organization of the Bank of North Dakota which banks have now closed and from which the Bank of North Dakota was never able to withdraw the deposit placed therein by these treasurers, will result in some loss. The amounts thereof cannot be definitely ascertained until after the receiver has wound up the affairs of these banks and ur.til after it is determined to what extent the Depositors Guaranty Fund will be able to ve aad depositors. These losses when ascertained will have to be charged off. They are not, how- ever, the result of the operations of the Bank but are the re- sult of local banks being unable to pay deposits placed there- in by treasurers of public funds. soundness of the Bank is accepted as a fact flee people. Criticism of its opera- tions is not heard and if this healthy, public sentiment con- tinues the Bank is bound to continue in successful operation. THE STATE MILL AND ELEVATOR Great interest has been manifested in the relations of the Governor to the State Mill and Elevator and it seems proper to give that matter consideration. The State Mill and Ele- vator is not a new thing. The people have been discussing it- and legislatures have mn taking action thereon at almost each session during the past 36 years. The first bill to create a terminal elevator to be owned by the State was enacted by the Legislative Assembly of 1893 and of course there had been considerable discussion of the subject prior to that time, otherwise the Legislative Assembly would not have then ta- ken action thereon. The need for a State owned terminal elevator was keenly felt. Away back through all that long time ‘several constitutional amendments were adopted from time to time, finally culminating in the erection of a ter- mindl elevator at Grand Forks, inning in 1919 and com- pleted in 1923, Tie law enacted in 1919 providing for the erection of a State owned mill and elevator placed the enterprise under the management and control of the Industrial Commission. In 1923 the law was amended transferring the management * and control from the Industrial Commission to the Governor. me people think that the operation of a State owned mill and elevator is not a governmental function. However, the language of the Federal Courts, District and Supreme, leging that when the people of ‘the State undertake such ac- tivities as include the operations of a State mill and elevator “that such action is within the province of the people and thereby such action makes the operation of the State mill and Elevator a governmental function. With all due respect ~ for the opinion of those individuals who claim that the oper- ation of the State mili and elevator is not a governmental function, we have on the other hand the, voice of the people who have by their votes determined that in this case the operation of the State mill and elevator shall be a govern- mental function, which determination is affirmed by the st courts in the land. While fae. prove who believe that the operation of the State mill elevator ought not to be a ntal func- ns, that: these Institutions are now a fixture and that they- belong to the State and that they are entitled to the support and sustenance that is afforded to any State In- stitution. Approaching the question irom that direction the question arises and St has neces, been ened: as to whether the Gov- ernor 8 remain in cl management oper- ation of the State Mill levator. - urely agricultural State our greatest loss has oc- wh the of an orderly marketing system. ed Peneeaat seni ioe, lene 60,CRE. Bagman Ean he re. benefit to practically all of our peonle sad af i i _ Grand Forks, The North Dakota Terminal embrares the North Dakota Terminal Exchange, which is a private cor- poration organized and beginning operation in 1926, unler the laws of the state of North Dakota. It has 27 members Gog. of grain dealers and has its offices at the North Dakota Terminal. The North Dakota Terminal Elevaror, which is the atate owned elevator and a federal warehouse, is also embraced in this definition. Then we have tle North Dakota State Laboratory and the Loomis Labératory located in the city of Grand Forks and devoted to the testing of protein and gluten content; the state owned mill and other private mills, elevators and warehouses used in the handling of grain. From this statement you will see that quite ex- tensive milling and grain merchandising ihterests have been developed at the North Dakota Terminal, not all of which are state owned. The definite success and future outlook of the North Da- kota Terminal at Grand Forks has aroused great interest in other cities of the state, and it is altogether probable that efforts will be made within a very short time to establish other terminals within the state. Z ORDERLY MARKETING The State Mill has afforded great benefits through demon- strating the value of North Dakota wheat, and therein lies the great value of the State mill to the citizens of the State, consumers and producers alike. That angle of the situation has been pretty well taken care of through the State mill. The other angle, however, is woefully lacking, in that there is not adequate storage facilities within the state. More storage, either public or private, is necessary to orderly mark- eting. This Legislative ‘Assembly should enact measures to provide an increase in storage facilities in the state. It seems reasonable that grain shippers along the Northern Pacific Railroad, main line attd branches, and also along the south branches of the Soo Line, should be afforded storage facilities equal to the facilities now afforded at Grand Forks to ship- rs along the Great Northern and along the northern ranches of the Soo Line. Control of our marketing must be accomplished either by state or federal action, or by a nearly perfect farmers’ co- ei organization assisted by state and federal laws. Canadian government has ae) eee this, But an essential part of a ba theta for orderly marketing requires provisions for ample storage facilities, which if not fur- nished Le private interests ought to be furnished, at least in » by the state. In an effort to bring about orderly marketing and the control of markets by the producers, I wish to strongly rec- ommend to this Assembly the farm storage features embodied in Senate Bill No. 47 of the 18th Legistative Assembly (1923). . That bill, introduced by Senator Hamilton, embodies all main features of a workable farm storage |i Other. notably Iowa and Nebraska, have placed similar legislation on their statute books, but those laws were seriously lacking in some respects whith made them unworkable, There is no serious reason why such legislation cannot be enacted by this emcee assembly and made entirely workable and prac- cal. The great value of farm storage legislation would be to relieve the necessity for costly storage facilities at terminals. Such legislation would also establish in the minds of farm- ers that there was a surplus of grain on hand and that acre- age should be curtailed. This would all tend to create better farming methods and would interest every farmer in control- ing his own market. GRAIN STORAGE FINANCE I wish to strongly recomménd to you the following plan for financing grain storage. From the national government as well as statesmen from all over this nation has come the challenge to the egricultural people of the Northwest that the only solution for the present day agricultural depression is that farmers must learn to help themselves. While such statements sound reasonable and simple, yet history teaches us that whenever the agricultural people have attempted to assist themselves in solving their problems, they have met with strenuous opposition, sufficient to quell any such move- ment. The one and paramount thing which is necessary for the farmer to help himself is finance. In this one particular the farmers of North Dakota are especially handicapped. They must rely upon finances furnished them by outside sources, which places such a burden upon the farmers that it frus- trates any attempt to solve their economic problems. The first step, then, in any solution of agricultural prob- lems of North Dakota is that of providing adequate and cheap money for use to those who till the soil. The pro, which we are encouraging calls for adequate storage fac ties on the farm, in the local elevators and at the state t minals, in order that the surplus crop may be taken off the market, and that the products of the farm may be marketed in a reasonable and orderly manner, To do this requires money. We have upon our statute books a law known as the “Grain Tax Law.” As it has been administered in the past it is of very little value. I, therefore, recommend that the pres- ent grain tax law be repealed and that in place thereof this legislature pass a Grain Sales Tax Law, placing a sales tax of five mills upon every bushel of grain of whatever nature, Hind ont description that may be sold in the state of North akota. This tax is ons of administration and is paid by the pro- ducers of the grain in the state. Such a tax of five mills on each bushel would in the course of an average year in North Dakota produce a fund of approximately $700,000. The tax so collected by the elevators from the vendors of grain should be directed into the state treasury and set aside by legisla- tive enactment as a special fund to be known as the “Farm- ers’ Marketing Fund.” This fund should not be used for any general purpose of the state, but for the purpose of furnish- ing money so that the farmers might borrow upon their stor- age tickets at the lowest rate of interest, which under this plan should not be more than three per cent . _in addition to furnishing money for loans upon storage tickets, it would also be used to make loans to farmers’ co- operative elevator companies with which to build local stor- age elevators and also, if the needs demanded, to erect further state terminal elevators. The combined purpose of such stor- age facilities would be to handle all of the grain in the state of North Dakota. This money should be placed in the Bank of North Dakota Without interest, and the Bank of North Dakota in making loans to individual farmets and to farmers’ co-operative ele- vator companies, or for the purpose of erecting state ter- minal elevators, would be permitted to charge only sufficient to take care of the actual cost of handling the money. This fund should be in charge of a committee designated by the legislature. 'y means of this fund growing to tremendous proportions, as it will within a few years, farmers would in truth and in fact become able to help themselves, and would become finan- ial independent in taking care of their own marketing pro! 5 No one may criticize such a tax but the farmer who sells is .. The greatest handicap in the past which the farm- ers have had in solving their own problems has been the op- postion and agitation by those who have very little if any interest in the farmers pecbiers in North. Dakota. FARM PROBLEM The farm problem is the most serious problem that con- fronts the nation atsthe present time, and it is necessary for us to adopt proper methods to stabilize marketing. ever in a nation the farmer and middle class pros- per, the nation at large prospers. Whenever these two classes are economically unsound the nation suffers. We are going through a process of agricultural evolution. and larger investments are continually needed in agri- cultural production. Scientific methods are replacing the old _ erude methods of grain and livestock production, and modern plicated hinery is replacing the crude machinery upon the farms of the pre-war pein. In this process of evolu- tion great numbers of our ers will be financially crushed while others with greater financial resources and more execu- tive ability will succeed. Undoubtedly in the future we shall be al produce greater volume at lower cost. If to tals eapid hange Eee ie tang plate witha sary sel rapid ¢ staking p! out vel serious consequences to himself and his dependents. In af farm home as we know it today, the it that has made our country the greatest nation in the hi of the world, is in grave danger of destruction. It is the mission of the state and nation to use every reasonable méthod to stablize production and mareating so that the American farmer may be able to adjust himself to these rap- id) pithy Fd neighbor on the north, the culture deal 2 oe and Se ssiadhoe sr that 3 1 encouragement 8 to our American farmers by our state or na- from our state v 2 -= 2 hhh AAAAAAAAAAAAAAAMAAAAAAAAbabdr bs PAA aAA AAA Atti taf 4 wwwwwvvvWwuewvrv VV ARR AAAAARASZSAAAAAL ARE MD DLS serve the guneral goed as well, ar a b> threa canred vy nublie ownership. However, our comalicated civ’ S+‘ien demands more and more complicated government, This p-torally {nvelves public ownership atid public control ot vest enterprises, Modern ee vernment is compelled to riot public cwnership to some degree. Ax a modern, pro- gressive people we ehould nat be constantly quarreling over Principe wnen there 18 no principle involved. GONCLUSION As American citizens we recognize the right of the major- ity to rule. We also recognize the rights of the minority, but obstructive and destructive tactics aimed against the major- ity’s right to rule are rot within the province of the minor. ity’s rights. As the minority we can maintain our political dignity and self-respect without resorting to destructive .r obstructive tactics, One af the moet seriocs features noticeable in the destruc- tive tactics hes-tefore practiced in our state legislative as- sembly has been playing politics with the the ‘various governmenta! departments and tions. There can be no excuse for any ta-tics In this legislative assemb‘y. Mr. Shafer, as the lead of the adm des steve the Toyal co-operation of Besse Som in the State in promoting the general welfare of our state. We may diff atrenuousiy on mattera of poll prin es ec Sera “chould be nota bet sod ook wil tt | ere shou nothing 4 without,any sacrifice of either s acigie or rights fie min- ity. onty. APPRECIATION OF OUR BLESSINGS Our praise and thankfulness are due to Almighty God in that during the past two years no o devastation has affected our State, but we have <i mitted to enjoy those things that add to the health, peace-and happiness 6f the citizens of a great Commonwealth, VvwvvvvvVvw wvyvvw7% eee You Will Want to Read the - North Dakota State Legislative News The Tribune will bring to your home each day the exact news of this leg- « . istative assembly. It Is to Your Interest To keep daily informed on legislative matters, to learn through the Tri- bune’s Special Staff of Capitol News Gatherers the daily happenings and watch the trend of events as they work out by those to whom you have dele- gated these important tasks. An Offer for Immediate Acceptance Here is an offer by which you can secure The Tribune’s daily news of the North Dakota Legislature, the World’s important events through The Tri- bune leased wires of the Associated Press, the daily market reports, the following comics daily: The daily Gumps, Freckles anc His Friends, Mom’n Pop, Salesman Sam, Boots and Her Buddies, Our Boarding House and Out Our Way. In addition to these you get an 8-page comic section every Sat- urday of the Sunday Gumps, Harold Teen, Smithy, Winnie Winkle, Moon Mullins, Little Orphan Annie, Kids, and Gasoline Alley. oes VeNEUOAQUOECVONOUOCOCUUDUGEANOUUUUECVONECUOUOEREEELUOUUCANEOCUUUEEAN@aeeeeuaouoneeeavuceceevUauannaaea ceca neacueacanerenaeees enn " Fill out and mail the blank below subscription you desire. 1 year (in North Dakota) ....'.$5.00; 6 months (in North Dakota ) .. 2.50; 83months (in North Dakota) ... 1.25; enclosing the amount as listed for by carrier in Bismarck. .......$7.20 by carrier in Bismarck, 6 mos. . 3.60 by carrier in Bismarck, 3 mos. . 1.80 SUBSCRIPTION BLANK The Bismarck Tribune, Bismarck, N. D. Enclosed find.......for which send me the Daily Tribune for foc cc cece ccc cee eee ewe ereseeeeeesivssescserseeereresecesemeseseeee NDING 6 ooo cbs coc aib easiness ’o estiote sos oees fs setietee Gales semceeeneee Postoffice Address .........cseseesseseees State. .. coer ores ore, PLEASE WRITA PLAINLY TO AVOID MISTARES Cut Out This Coupon—Fill in and Mail to me * o¢ The Bismarck a zae2ae