Grand Rapids Herald-Review Newspaper, August 6, 1913, Page 2

VoL, XXIV. No. 5 Granp Rapips, Irasca County, MINN., WEDNESDAY AUGUST 6, 1913 PANG TALKD ON FINANCES OF TASCA COUNTY Questions Most Everybody is Ask- ing Put to County Auditor by Herald-Review. TAXPAYERS SHOULD READ FIGURES 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. g, what is the finan- cial condition of the county, say August 1, 1913, at which time I be- lie 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 it] relates to the standing of the funds and to the indebtedness of the county. : 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 1, 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 41, 1920—$6,000.00. Road and Bridge, 5 per cent honds, due December 1, 1924 - 000,00, making a total bonded debt | of 41,939.80. “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 rs of $13,500.00, which sum represents loans made on farm jands 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| 1914 $5,000.00 § 16,968.00 § 21,968.00 negotiable securities — $194,662.23,] 1915 5,000.00 16,968.00 21,968.00 This means that if Itasca county |1916 5,000.00 16,968.00 21,968.00 could induce the holders of the/1917 5,000.00 16,968.00 21,968.00 bonds to surrender them for re-| 1918 10,000.00 16,968.00 26,968.00 demption, we could pay every dol-| 1919 10,000.00 16,068.00 26,068.00 lar we owe and have the tidy sum} 1920 20,000.00 15,168.00 35,168.00 cf $46,764.32 in our treasury. 1921 20,000.00 44,268.00 34,268.00 “But this does not represent all | 1922 20,000.00 13,368.00 33,368.00 the cash the county would have, | 1923 20,000.00 12,468.00 32,468.00 because there is some $22,800.00 in | 1924 20,000.00 11,568.00 31,568.00 the mortgage tax collection fund| 1925 20,000.00 7,200.00 27,200.00 which has not been apportioned, | 1926 20,000.00 — 6,300.00 26,300.00 and the county will receive some| 1927 20,000.00 5,400.00 25,400.00 six or seven thousand dollars out of| 1928 20,000.00 4,500.00 24,500.00 that amount as its share of said} 1929 20,000.00 — 3,600.00 — 23,600.00 tax, and as the county treasurer | 1930 20,000.00 2,700.00 22,700.00 js now apportioning those taxes, it} 1931 20,000.00 1,800.00 21,800.00 is absolutely positive that we, 1932 20,000.00 900.00 20,900.00 could pay all our debts, bonded or otherwise, and have $50,000.00 of a surplus.. But as there is no which can be evoked to make the bond holders surrender their bonds, we will have to await the time | payable.” 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 law | ted 1624. This is for the reason any way? What I desire to know is, would the county have ample under the proposed issue of bonds county will receive as its share | of the tax moneys, something in the neighborhood of $85,000. I find that the following sums were expended by the county during the past tones’) ye $ | unty Revenue for year 1910, | 5; 1914, $116,196.36; 1912, $86,96 : | , Road and Bridge, 1910, | year 1911, $52,244.48; | 912, $64,280.25. | ounty Poo: ear 1910, $14,115.65;) r 1914, $17,480.76; year 1912, $16,369.03. County interest, year 1910, $9,- | 897.41; year 19141, $8,640.24; year 2912, $8,640.24. County Incidentals, year $879.61; year 1914, $861.88; year 1912 $1,112.89. County Attorney's Fund, year 1910 59; year 1911, $284.58; year 1912, 1910, | ar 1910 $172,364.99; | for year 1914, $195,708.00; for 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 pparent 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 aj} 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 ances being in such a satisfac- ory 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 will have to pay the imterest un- til we have them all wiped out. s it is we will have to raise a mall amount yearly to pay the uterest. But the proposed issue is made payable $20.000.00 in 1918 and $20,000.00 yearly thereafter 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 thereon, together with the interest upon the present outstanding bonds we would have to raise the follow- ing sums yearly: Year Principal year | Interest Total. “You will notice that there is a substantial drop in the interest af- thati in 1924 the last of the pres- ent outstanding bonds are due and “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 funds left with which to conduct | as compared with those previous the general county, business? “Certainly. Why, inside of three months; that is to say, at the No- vember tax apportionment, years?” “Well, the rate for bonds and interest for several years past are: the 1907, 154 mills; 1908, 1.38 mills; 1909, 1.34 mills; 1910, 1°26 mills; 1911 97 mille; 1912 .80 mills. T! is to say, if a man’s home was assessed for $1,000, he would pay in 1912 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 Itasea 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 bonds and 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, 1.38 mills; im 1924, 1.31 mills; in 1922 1.27 mills; in 1923, 1.24 mills; in 1924 1.06 mills; in 1925, 1.01 mills: in 1926, 1.00 mill; in 1927, 96 mills; in 1928, .92 mills; in 192 89 mills; im 1930, .86 mills; and in 4931, .81 mills. This means for ‘the mext 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- riy, as against 80 cents of the present year. “Now, Mr. Spang, I see you say it is absurd to suppose the valua- tion of Itasea 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 beeame known in the farming world, and assuredly the progress of the past few years argues for the future. I believe that no,better way can possibly be undertaken to Luild up a great farming section than by the*system of building a net work of roads throughout the county. Itasea county is in her in- faney 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 future as anagricultural sc: ‘om is beyond question. And, as I said be- fore, progress is wealth, and wealth means increased valuation in the 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 the Sax.” ; “Mr. Spang, if the county grows in wealth, then you would have to revise your table or statistics.” “Yes, Mr. Kiley, I have given you the absolute worst. side of the tax question. Why, if we can get our county opened up with a system of roads that give outlet to allsec- tions of the county, I honestly be- lieve {eat in five years from now our county taxes will be reduced instead of increased. I have every conticence that we are going to gro idly—every indication now pol {t way. Look at the prices that “is being aid for state ands at our monthly sales. Does not that argue that our property is Levoming more valuable? And, siuee you are asking me a number ot Questions, ic! me ask you one. Ii we do not expect to grow into aw weallk‘cr courty. why raise any mouey ter roads on a small or large! scale?” “New, Mr. Spaug, 1 agree witb you on that question, but let me trouble you again. Supposing ine bond issue is favored by the elect- orate, and there is raised $300,000 for tne 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 ceriain 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 wou!d ‘Le as absurd as to say we can také“the amount now*in our bonds and interest funds, which has been raised to pay off our bonded in- debtedness, and expend it in the Luilding 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 than the roads specified in the election notices.” “Mr. Kiley, that is a ridiculous assertion. The County 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 spetific road upon that road.” “But, Mr. Spang, for the sake of argument, let us suppose the Coun- ty Board did make attempt to convert the money to other use than that for which it was voted, what then?” “Mr. Kiley, as I have said be- fore, such a contingency 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 to draw a warrant against that money except for the purpose for which it was voted; and, hence, until each road is completed and accepted by the State Highway Commissioners’ engineers, the amount apportioned for each road, as set forth in the election bal- lots, would not be converted to any other fund.” “Now, Mr. Spang, let me ask you the following question: ‘under whose supervision will these roads be built?’ ” “Under Chapter 235, General Law! of 1913, commonly called the ‘Boly Dunn Road Law,’ contracts of this nature and all the preliminary ‘vork leading up to the letting of the contracts are under the con- trol of the engineering depart-/} ment of the State Highway Com- mission. That department of the state will have absolute control of all the work upon these roads un- til they are finished.” “Now, in conclusion, Mr. Spang— What provision will be made for the maintenance of these roads Two Dollars a Year MGUIRE TELLS THE STORY OF Hid SUCCESS | Grand Rapids Experiment Farm Sup- erintendent is Written Up by “Country Gentleman.” THE HUMBLE COW AS STARTER Philadelphia Writer Comes to Grand Rapids to Learn How Agricul- ture is Made to Pay in Northern Minnesota. A. J. MeGuire, superintendent of the Minnesota experiment station at Grand Rapids, is the subject of a most eulogistic article in The ; Country Gentleman of July 26, un- der the caption “Pathfinder for {the Poor Man’s Farm. The Crodk- ed cow-path is a straight road to profits.” The authGér of the article jis Forrest Crissey, and he deals with: Mr. MeGuire’s methods in de- veloping cut-over lands so that they will pay the farmer from the start. The article is reproduced here, and follows: “The Minnesota experiment sta- pen found itself with a lanky young Irishman on its hands whose individual architecture didn’t seem to fit into the subdued landscape about the college grounds. He look- 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- Le done. I Believe it is the best ' periment—but if anybody could policy to put section men oa these exact blood from a turnip or crops roads, giving them a fair mileage/from a timbered Sahara, McGuire to look after. This policy has ap-|was the man for the job. pealed to the County Board ‘in| “And McGuire was as pleased to the past, and it is very possible 'go up into the stump country as that the County Board and, theif he were being sent to the Court MOTION PICTURES OF LAND CLEARING Fred D. Sherman Takes Views of Operations Necessary to Pre- pare for the Plow. The first motion pictures of laud clearing operaticns in northern Mirnescta were taken at Grand Rapids, Monday affe.noon. This is a part of the program of Fred D. Sherinan, immigration commis- sicrer, in his attempt to adver- tise this section of the state. the Northern ‘Pacific; J. K. Flynn wf 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- tails necessary to get the land ready 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 is the 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 clearirg by the different methods most commonly employ- ed; the cleared tract; the growing grains, grasces, 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 Will show whet the country is, —— : perdi nuke satel sek PERRET Sos INTENTIONAL DUPLICATE EXPOSURE Mr. Sherman was accompanied ly) M D.E. Willard, lard commissicner of|experimental farm are completed d 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- nvorably impressed with the agri- cultural conditions in evidence on every and about Grand Rapids. When the films taken at the 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- peared in pyramid headlines: “Deer River-Northome Is the Only One of Proposed Highways Concern- ing Which Any Doubt Exists.” The statement was not made as the writer intended and was altogteher misleading. There is no more doult) 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 State Highway Commission’ will'of St. James! McGuire wanted to pursue this policy in the rip+keep | do something for the state—some- of the roads.” oS \)|thing real and practical—and if ~~ , he could show how to convert cut- BUTTER BUSINESS over pine land into paying farms eae that would certainly be something am substantial. Wasn’t a full third of RAPIDLY INCREASING Minnesota just that sort of land? mee — — and hardness of the task appealed to him. Besides Reports. for First Two Weeks of this idea of helping to show’ the July Show Very Satis- 'poor man how to take cheap land fa Cain. land make it pay without fighting ctory \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 to the conclusion that the pounds shipped out, and 1204 Ibs.'average settler on cut-over pine used by patrons. There were 833 lands generally began at the wrong quarts of milk sold at retail, and}erd 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- %6 cents for butter fat in milk; | ed at it this way: 81 cents for special cream, and| “The two main problems that 83 cents for first cream. The av-|every new settler on the cut-over erage of butter fat in all milk re-'pine lands faces are: First, getting pital ee ee ee tee eee equality with the other purpos- ed roads. Had Left the County. Judge of Probate Webster, made a trp to Keewatin, Monday, to in- vestigate the merits of a petition sent ‘him relative to a mother’s pension for a widow living in that vill Upon his arrival he found the woman and her children had moved to Hibbing: F : ceived was 4.3 per cent—8 points, or 22 per cent above the require- ments of the state law. This is a fine showing for Itasca county | cows and pastures. Those receiv- ing over $15 for their product for the first half of July were: J.D. Hinegardner, $28.80; C. A. Buell, $16.69; Niel Mullens, $45.35; Hooli- than & Peterson, $77.75; N. C. X. farm, $44.04; George Heinzelman, $23.18; Arthur Ranger, $21.80; Vic- tor Ericson, $18.02; D. Lippert, $22.- 51; John Johnson, $22.80; Niel Me- Kinley, $16.36; Big Fork Mercantile Company, $30.90; William Poppe, $2149; The butter milk trade of the creamery is becoming an im- portant item, shipments of 100 and 150 gallons at a time being made to Virginia and Hibbing. fLast week E. N. Remer closed a deal for the sale of a four-hun- dred-acre farm county near Amboy for $30,000. The same amount of money invested in Itasea county real estate will bring a living—and a litthe more, if pos- sible—from his place right from the start; second, building up the fertility of the soil so that it will o better by ‘him each year The ‘average settler seems to think that the whole problem of get- ting on is focused into the ques- tion: “How many acres can I clear and put under the plow?” “It has been drilled into me that that the surest and quickest way ‘to build up the fertility of soil was to keep livestcck on it Now a cow cam go round a stump, buta plow has. never acquired the habit {of stump-dodging. By going over acre after acre of that cut-over land I saw that there was quite a crop of grass between the stump, It was some native clover. It was not fancy pasturage by any means, but there was enough gvass to give a limited suimber of cows ample in Blue Earth srazing. +“So I made up my mind that the right way to begin was to make the uncleared land pay from the far greater returns, Mr.’ Remer|start and to build up its fertility. figures. sole est TEE SRE mes 4