Grand Rapids Herald-Review Newspaper, August 6, 1913, Page 1

VoL, XXIV. No. 5 OPANG TALKS share | 1909, 1.34 mills; 1910, 4°26 mills; 1911] future as an agricultural section is 97 mille; 1912 80 mills. That is to] beyond question. And, as I said be- say, if a man’s home was assessed | fore, progress is wealth, and wealth for $1,000, he would pay in 1912] means increased valuation in the county will receive as its of the tax moneys, something in the neighborhood of $85,000. I find that. ON FINANCES OF ITASCA COUNT Questions Most Everybody is Ask-| year 1911, $17,480.76; year 1912, ing Put to County Auditor by Herald-Review. TAXPAYERS SHOULD READ FIGURES County’s Financial Condition Dis- cussed—Figures Show What Bond Issue will Require of Property Owners. The proposed bond issue of $300,000 by Itasca county is very naturally attracting the close at- tention and investigation of the county’s taxpayers. The Herald- Review has undertaken, through the medium of an interview with Auditor Spang, to answer the perti- nent’ questions that are naturally being asked us by the men whose votes are to either authorize the purposed issue or reject it. It has been the aim of this paper to present the facts im such a manner as to enable every voter to act intelligently in casting his ballot. “Mr. Spang, what is the finan~ cial condition of the county, say August 1, 1913, at which time I be- lieve you make report to the pub- lic Examiner of the financial con- dition of all funds?” “Well, while it is true that we make monthly reports upon the receipts and disbursements of the county, but I presume you desire! a statement of the financial con- dition of the county, both as relates to the standing of the funds and to the indebtedness of the county. a The bonded indebtedness of the , county is: County jail, 6 per cent bonds due October 1, 1914—$24,938.00. Court House, 6 per cent bonds, due September 1, 1915—$8,000.00. County Funding, 6 percent bonds due September 11, 1915—$28,000.00. bonds, due January 1, 1915— County Funding, 5 1-2 per cent $50,000.00. Road and Bridge, 5 per cent bonds due December 4, 1920—$6,000.00. Road and Bridge, 5 per cent honds, due December 1, 1924—$25,- 000.00, making a total bonded debt of $141,939.80. “From the report made to the Public Examiner I find the county has cash on hand, in its own funds $161,303.12, and also mortgage loans which are due and payable within five years of $13,500.00, which sum represents loans made on farm lands by the county out of its Bond Redemption Fund, and also securities coming from the adjust- ment of the A. A. Kremer matters, totalling $13,900.00, mak- ing the total available cash and negotiable securities $194,662.23. This means that if Itasca county could induce the holders of the bonds to surrender them for re- demption, we could pay every dol- lar we owe and have. the tidy sum cf $46,764.32 in our treasury. “But this does not represent all the cash the county would have, because there is some $22,800.00 in the mortgage tax collection fund which has not been apportioned, and the county will receive some six or seven thousand dollars out of} that amount as its share of said tax, and as the county treasurer is now apportioning those taxes, it is absolutely positive that we could pay all our debts, bonded or otherwise, and have $50,000.00 of a surplus.. But as there is no law which can be evoked to make the bone holders surrender their bonds, we will have to await the time when they become due before the can be retired. “Now, Mr. Spang, if those bonds could be retired would the finan- ces of the county be crippled in any way? What I desire to know is, would the county have ample funds left with which to conduct the general county, business? “Certainly. Why, inside of three months; that is to say, at the No- vember tax apportionment, the it} the following sums were expended -by the county during the past three | years: County Revenue for year 1940, | $86,968.96; 1911, $116,196.36; 1912, | $85,557.09. County Road and Bridge, 1940, | $57,719.07; year 1911, $52,244.18; | & year 1912, $64,280.25. County Poor, year 1910, $14,115.65; $16,369.03. County interest, year 1910, 90,- | 897.114; year 1914, $8,640.24; year 2912, $8,640.24. County Incidentals, year 1910, $879.61; year 1911, $861.88; year 1912 $1,112.89. County Attorney’s Fund, year 1910 $784.59; year 1911, $284.58; year 1912, | $3905.70. Total for year 1910 $172,364.99; for year 1914, $195,708.00; for year 1913, $176,865.20. “It will be seen that for 1914 the expenditures were the highest of the three years, and inasmuch as one-half of the current year has gone, and inasmuch as by far the heavier expenditures occurs in the first half of each year, it becomes apparent that something less than $90,000.00 will be required to com- plete the present year’s county business; and I have no hesitancy in saying that it will require a sum considerably less than that amount. Thus, even if we are put to extraordinary expenses, by court proceedures or otherwise, we could not only retire all our indebtedness, but commence the ensuing year with in the neighborhood of $50,- 000.00 of a balance. “Well, Mr. Spang, thé county’s finances being in such a satisfac- ‘tory condition, is it not a fact that the money which has been levied for the paying of the in- terest on the bonded indebtedness and the money that has heretofore been raised for the creation of the sinking fund to provide for the payment of these bonds, can new almost entirely be -devetedfor the same purposes in connection with the proposed bond issue? “Yes, in the main, that is a correct deduction. But, inasmuch as the present bonds cannot be paid until they fall due, or until the owners elect to allow the coun- ty to retire them, naturally we j will have to pay the interest un- j til we have them all wiped out. s it is we will have to raise a small amount yearly to pay the interest. But the proposed issue is made payable $20,000.00 im 1918 and $20,000.00 yearly thereafter j until the last. payment in 1932, and to answer your question in- telligently I will have to give you some figuresI have compiled, bas- ing all my deductions upon the absurd proposition that the as- sessed valuation of the county will remain the same as it is now dur- ing the entire period these bonds will run, that is, until 1932. Now, 1 have taken $25,591,755 as the permanent valuation of the coun- ty, and find that to pay these proposed bonds and the interest | mills: in 1926, 1.00 mill; thereon, together with the interest upon the present outstanding bonds we would have to raise the follow- ing sums yearly: Ycar Principal Interest Total. 1914 $5,000.00 $ 16,968.00 $ 21,968.00 1915 5,000.00 16.968.00 214,968.00 j 1916 5,000.00 16,968.00 21,968.00 41917 5,000.00 16,968.00 21,968.00 1918 10,000.00 16,968.00 26,968.00 1919 10,000.00 16,068.00 26,068.00 1920 20,000.00 15,168.00 35,168.00 1 20,000.00 414,268.00 34,268.00 1922 20,000.00 13,368.00 33,368.00 1923 20,000.00 12,468.00 32,468.00 11924 20,000.00 41,568.00 31,568.00 1925 20,000.00 7,200.00 27,200.00 1926 20,000.00 6,300.00 26,300.00 1927 20,000.00 5,400.00 25,400.00 1928 20,000.00 4,500.00 24,500.00 11929 20,000.00 3,600.00 23,600.00 1930 20,000.00 2,700.00 22,700.00 1931 20,000.00 1,800.00 24,800.00 1932 20,000.00 900.00 20,900.00 “You will notice that there is a substantial drop in the interest af- ted 1924. This is for the reason thati in 1924 the last of the pres- ent outstanding bonds are due and | payable.” “Now, Mr. Spang, those figures may not convey to our readers the matter as clearly as we would like to present it, and we desire that you give us some comparative fig- ures as to what tax rates would be under the proposed issue of bonds as compared with those previous years?” “Well, the rate for bonds and interest for several years past are: 1907, 1.54 mills; 1908, 1.38 mills; 80 cents taxes for the bonds and interest funds of the county. Now, if the proposed bond issue is con- summated, and if the absurd prop- osition is taken that the value of Itasca county will not increase during the life of these proposed bonds, then in 1913 tax year, which taxes are payable in 1914, the rates will be for bondsand interest pur- poses .86 mills; in 1914 .86 mills; in 1915, .86 mills; in 1916 .86 mills; im 1917 1.06 mills; in 1918 1.02 mills; in 1919 1.34 mills; in 1920, 4.38 mills; im 1921, 1.31 mills; in 1922 1.27 mills; in 1923, 1.24 mills; in 1924 1.06 mills; in 1925, 1.04 in 1927, 96 mills; in 1928, .92 mills; in 1929, 89 mills; im 1930, 86 mills; andin 4931, .81 mills. This means for the next four years the rate for such purposes will be the same, re- quiring a contribution of 86 cents for every $1,000 valuation of prop- erly, as against 80 cents of the present year. “Now, Mr. Spang, I see you say it is absurd to suppose the valua- tion of Itasca county will remain at the present valuation—$25,591,- 755. Why is this absurd?” “Why, the natural development of the county is bound to increase the taxable property. We have within the past few years seen the value of lands increased from nine- teen millions of dollars to its present value of over twenty-five millions. Good roads must of nec- essity mean progress, and progress must mean wealth. Why, it is only a few years ago that Itasca coun- ty became known in the farming world, and assuredly the progress of the past few years argues for the future. I believe that nobetter way can possibly be undertaken to build up a great farming section than by the*system of building a net work of roads throughout the county. Itasca county is in her in- fancy in farming. Yesterday we had a wealth in- timber; .-teday our iron mines represent the great portion of our wealth. But in the very early tomorrow the wealth that we had with our for- ests, the wealth of our mines, will be a mere trifle as compared with the great wealth of our farms, and I answer ‘yes’ it is absolutely ab- surd. Itasca county is going for- ward; and with the great markets that her iron mines affords, her county, and increased valuation means lower rates of taxation. Surely, it is a truism that the greater number we have to divide the taxes among, the smaller will grow our individual proportion of thé Sax.” “Mr. Spang, if the county grows in wealth, then you would have to revise your table or statistics.” “Wes, Mr. Kiley, I have given you the absolute worst. side of the tax question. Why, if we can get our coumty opened up with a system of roads that give outlet to all sec- tions of the county, I honestly be- lieve fhat in five years from now our county taxes will be reduced instead of increased. I have every idence that we are going to pidly—every indication now t way. Look at the prices s being aid for state lands at our monthly sales. Does not that argue that our property is Lecoming more valuable? And, sinée you are asking me a number ot Questions, ict me ask you one. It we do not expect to grow into u Wealtk‘cr courty, why raise any mouty for roads on a small or large! scale?” “New, Mr, Spaug, 1 agree with you’ on that question, but let me trouBle you again. Supposing the bond issue is favored by the elect- orate, and there is raised $300,000 for the building of roads in the county, upon what roads will that mouey be expended?” “Mr. Kiley, when the voters vote upon ‘he question, they vote to ex- pend certain specified “amounts upon certain specified roads, and the money must be expended in ‘he identical sum voted to be ex- pended upon each identical road. The money derived from the bonds will not belong to the general road and bridge fund of the county but to certain specific road funds. Why,|to expend it otherwise would Le Ef absurd as to say we can take amount now*in our bonds and interest funds, which has been raised to pay off our bonded in- debtedness, and expend it in the building of roads. Yes, sir; the money will be expended in the exact sum voted for each’ specified road.” “But, Mr. Spang, the Herald-Re- view has heard it said that the county commissioners might ‘use the money for roads other assertion. The Counfy Commis- sioners have, to my knowledge, ex- pended considerable time in formu lating the trunk line road system they now ask the people to vate for or against, and any such bug- aboo as that is extremely absurd. They propose to expend every dol- lar apportioned to each spevific road upon that. road.” 5 “But, Mr. Spang, for the sake of Grand Rapids Experiment Farm Sup- argument, let us suppose the Coun-| — erintendent is Written ty Board did make attempt to % is Wi Up by convert the money to other use ‘Country Gentleman. than that for which it was voted, what then?” “Mr. Kiley, as I have said be- fore, such) a confingency will not arise; it is absolutely absurd. But to answer your question directly, I have no ‘hesitancy in saying that I would. have no legal right THE HUMBLE COW AS STARTER Philadelphia Writer Comes to Grand to draw a warrant against that pids Learn . money except for the purpose for Ra - How Agricul- which it was voted; and, hence, ture is Made to Pay in until each road is completed and Northern Minnesota. accepted by the State Highway Commissioners’ engineers, the amount apportioned for each road, as set forth in the election bal-j A. J. McGuire, superintendent of lots, would not be converted to any|the Minnesota experiment station other fund.” at Grand Rapids, is the subject “Now, Mr. Spang, let me ask you, of a most eulogistic article in The the following question: ‘under | Country Gentleman of July 26, un- whose supervision will these roads der the caption “Pathfinder for be built?’ ” .|the Poor Man's Farm. The Crodk- “Under Chapter 235, General Law |ed cow-path is a straight road to of 1913, commonly called the ‘Boly profits.” The author of the article Dunn Road Law,’ contracts of this'is Forrest Crissey, and he deals nature and all the preliminary | with Mr. MeGuire’s methods in de- ‘work leading up to the letting; veloping cut-over lands so that of the contracts are under the con-|they will pay the farmer from the trol of the engineering depart-|start. The article is reproduced ment of the State Highway Pike and follows: mission. That department of the} “The Minnesota experiment sta- state will have absolute control of;tion found itself with a lanky all the work upon these roads un- | young Trishman on its hands whose til they are finished.” individual architecture didn't seem “Now, in conclusion, Mr. Spang—jto fit into the subdued landscape What provision will be made for | about the college grounds. He look- the maintenance of These roads ed to be built for sterner things. after they are built.?” So when he developed an interest “Well, Mr. Kiley, you knowthat in the problem of conquering the that is entirely out of my hands, ‘cut-over pine lands he was told to and I can only-give ~you“my-indi-go and see what he could do.Not ~~ vidual opinion as to what ought to! that much was expected of the ex- te done. I Believe it is the best 'periment—but if anybody could policy to put section men ga these exact blood from a turnip or crops roads, giving them a fair mileage|/from a timbered Sahara, McGuire to look. after. This policy bas ap-| was the man for the job. pealed to the County Board ‘in}] “And McGuire was as pleased to MOTION PICTURES OF LAND CLEARING Fred D. Sherman Takes Views of Operations Necessary to Pre- pare for the Plow. The first motion pictures of land clearing operatiens in northern Mirhescta were taken at Grand Rapids, Monday affexnoon. This is a part of the program of Fred D. Sherinan, immigration commis- siorer, in his attempt to adver- tise this section of the state. Mr. Sherman was accompanied ly D.E. Willard, land commissicner of the Northern ‘Pacific; J. K. Flynn pf Supericr and E. F. Savoit, a motion picture operator. The pictures were taken at the North Central Experimental sta- tion, where the party was enter- tained by A. J. McGuire. How to blast stumps with dynamite, how the explosive is handled, clearing with stump pullers, and all the de- teils necessary to get the land veady for the plow were shown. The party left for Hibbing, Tuesday, where views will be ta- ken of operations at the open pit mines. Duluth isthe next point to ke visited. There pictures of the ore trains coming in, loading boats at the docks and their departure through the canal will be taken The plan of Commissioner Sher- man is to show the actual condi- ticrs in this section as they re- late to agricultural development. Iard clearing by the different methods most commonly employ- ed; the cleared tract; the growing grains, grasses, vegetables, fruits, ets., produced therefrom; will be thrown upon the canvass through- out the southern and_ eastern states when the next advertising expedition is undertaken. To il- lustrate conditions in Northern Minnesota, the views secured in Itasca County will be largely used. Cultivated fields beside the cut- over tracts that are being cleared Wil! show what the country is, Bt end what it can be made to yield. Mining operations close at hand, empléying thousands of working men, the cities of Duluth and Su- pericr, with their vast industrial enterprises and population, shows the market close at hand for the precucts of the farm. The plan is an excellent one, and Mr. Sher- man is to be commended) for his enterprise and executive ability, as head of the immigration depart- ment of the state. The commissioner and the gen- tlemen with him were very fa- worably impressed with the agri- cultural conditions .in evidence on every and about Grand Rapids. When the films taken at the experimental farm are completed they will be shown at the Gem theater in Grand Rapids HEADLINES THAT — MIS-STATED FACT In the last issue of the Herald- Review the following words ap- River-Northome Is the Only One of Proposed Highways Concern- ing Which Any Doubt Exists.” The statement was not made as the about the construction of the Deer- River--Northome road than there is of any of the roads speci- fied in the official bond notice. It should have been stated that the engineer had not yet made his fi- nal report. The survey has been made, however, and all the neces- sary steps taken with relation to this road. It stands on an. exact equality with the other purpos- ed ds. | | Had Left the County. Juilge of Probate Webster, made a tr to Keewatin, Monday, to in- vestigate the merits of a petition sent ‘him relative to a mother's|county near Amboy for $30,000. The| “So I made up my mind that the on for a widow living in that|same amount of mon Upon his arrival he found] Itasca county real pen the woman and her clifldren had owed to Hibbing, = es oer peared in pyramid headlines: “Deer writer intended and was altogteher|the first half of July were: J.D. misleading. There is no more doult) Hinegardner, $28.80; C. A. Buell, the past, and it is very possible 'go up into the stump country as that the County Board and,, the if he were being sent to the Court State Highway Commission" will’ of St. James! McGuire wanted to pursue this policy in the upkeep ! do something for the state—some- of the roads.” \ thing real and practical—and if ee he could show how to convert cut- BUTTER BUSINESS over pine land into paying farms Nake that would certainly be something y substantial. Wasn't a full third of RAPIDLY INCGREASIN Minnesota ‘just that sort of land? a bigness and hardness .of the Tae F588 task appealed to him. Begides Reports. for First Two Weeks: of this idea of helping to ae the July Show Very Satis- 'poor man how to take cheap land f Gain aN ‘and make it pay without fighting actory . through a period of semi-starva- In spite of the heat and the ‘flies,tion before getting the little farm the volume of business transacted | on a productive basis got “right at the Itasca Creamery during the | next to his big Irish heart.In the first two weeks of July was*about |! jo that was given him he saw equal to that done during the pre-| opportunity, not banishment, and vious period. Nearly 27,000.pounds| he went to it with a will. | butter was manufactured, 840.be-| After looking over the ground he ing sold here in the village,.794,came ta the conclusion that the pounds shipped out, and 1204 Ibs,|average seltler on cut-over pine used by patrons. There were 833, lands generally began at the wrong quarts of milk-sold at retail, and! end of the task by starting on 1191 quarts at wholesale. |The/the basis that the amount of land average price received by the ‘he could clear, plow and put into ereamery for butter was 25 cents|crops was the measure and the and the prices paid producers was limit of activities. McGuire look- 26 cents for butter fat in milk; /ed at it this way: 81 cents for special cream, and|' “The two main problems that 33 cents for first cream. Thé av-|every new settler on the cut-over erage of butter fat in all milk re-'pine lands faces are: First, getting ceived was 4.3 per cent—8 points, !a living—and a litthe more, if pos- or 22 per cent above the require-|sible—from his place right from ments of the state law. This/the start; second, building up the is a fine showing for Itasca county | fertility of the soil so that it will cows and pastures. Those receiv- €o better by ‘him each year The > ing over $15 for their product for |average settler seems to think - that the whole problem of get- Ee ting on is focused into the ques- ; tion: “How many acres can I 3 clear and put under the plow?” ES farm, $44.04; George Heinzelman,| “It has been drilled into me that 3 $23.48; Arthur Ranger, $21.80; Vic-|that the surest and quickest way tor Ericson, $18.02; D. Lippert, $22,-| to build up the fertility of soil was 51; John Johnson, $22.80; Niel Mc-|to keep livestcck on it Now a Kinley, $16.36; Big Fork Mercantile|cow cam go round a stump, buta Company, $30.90; William Poppe, | plow has. never acquired the habit $2149; The butter milk trade of|of stump-dodging. By going over the creamery is becoming an im- acre after acre of that cut-over portant item, shipments of 100|land I saw that there was quite a and 150 gallons at a time being crop of grass between the stump, made to Virginia and Hibbing. It was some native clover. It was a not fancy pasturage by any means, fLast week E. N, Remer ‘closed ut there was enough gvass to give a deal for the sale of a fourshun-| limited swnber of cows ample dred-acre farm in Blue Earth srazing. $16.69; Niel Mullens, $45.35; Hooli- chan & Peterson, $77.75; N. C. X. invested in| Tight way to begin was will bring|the uncleared land pay.