The Nonpartisan Leader Newspaper, February 3, 1916, Page 14

| MICHIGAN GUARANTEED Fire-Fly Spark Plug Sold direct for cash with order at a large saving. Give size wanted when you order. Half doz. lots... One doz. lots... eseeses ---ORDER TODAY--- Henry A. Wilberg Nome, - No. Dak. The Edmore Mercantile Store Wants your business; we also want your good will. Right treatment should get both. We try to be right. Edmore, N.D. " G. B. Smith Auto Repairi Garage "o Guaranteed J. D. Reeves STEELE, DENTIST Dr. Prescott, of Steele Will be in. STEELE, NO. DAK. FEBRUARY and MARCH NO. DAK. Patronize--- P. NORUM General Merchandise When in ; HAMPDEN, NORTH DAKOTA LEAGUE Members Trade with Clyde Mercantile Co. CLYDE, N. D. Dry Goods, Hats, Shoes, Groceries, etc. | YOU always find Satisfaction in buying at the Peoples Trading Co. General Merchandise HANSBORO, -2 NO. DAK. Our established motto is ‘““MORE FOR YOUR MONEY?”’ Michigan Mercantile Co. NO. DAK. Aug. E. Johnson, H. G. iggins, Pres. 5 Cashier ) BALDWIN STATE BANK Baldwin, No. Dak. Capital and Surplus $11,500.00 Karl Klein, G. Helling, Vice Pres. Asst. Cashier IROLF BROS. Tailors of Quality Clethes 7 Bacon Block - N. 4th St. 1 Grand Forks, - N. D. "Let every member of the Nonpar- tisan League ask the merchant whom he patroninzes why he doesn’t adver- tise-in the Leader. Then, if he doesn’t advertise, purchase your:goods from those tradesmen who do. “Why spend money with those who do not aid you §n your work? ] - and usually does. THE NONPARTISAN LEADER law, from the sum of its capital stock, surplus or reserve and undivid- ed profits. The bank therefore re- duced its personal property valuation in Cass county to that extent. The bank does not own its own building and not a cent of the $79,000 valuation represented any Cass county holdings and $34,000 of the $79,000 represent- ed, Minnesota property. Therefore, in Cass county, where the bank does business and where the tax rate is high, it escapes taxation on $79,000 of its personal property valuation. On the $34,000, the value of its real estate in Minnesota, which cut down its Cass coupnty tax to that extent, it paid no taxes at all in North Da- kota. Now the laws of North Dakota prohibit banks having an investment in a banking building equal to more than 30 per .cent of their capital stock and a limited time is given banks to convert into money other real estate which has fallen in the banks’ hands through foreclosuresto protect on mortgages, etc. Despite this, numerous banks are allowed, to hold banking house property in excess of this amount and to subtract it from their personal In other roperty tax is figured. \I:/or?is, {»anks’ are allowed to reducée their taxes through the illegal holding of real estate, held contrary to good banking practice and despite a law intended to promote good banking practice. Casselton Bank’s Case An illustration of this is the First National bank of Casselton, recently closed after being wrecked by its president and cashier, according to charges these bank officers now face in the federal court. The records show this bank reported total capital, surplus and undivided profits of $61,- 058.82 when its 1915 personal prop- erty tax was figured, and it was per- mitted to subtract from this sum a book value investment of $50,000 in banking house. This real estate invest- ment was over twice the legal real estate investment allowed by law to banks. + Another big loophole in the law is the provision allowing banks to be assessed, on the par value of their stock instead of on the market value. True or market value is the theoreti- cal basis on which all other property is assessed, in North Dakota, 25 per cent of true value being used as as- sessed value, but banks escape this system of making valuations. The real value of a bank’s stock may ex- ceed the sum of the par value of the stock, surplus and undivided profits Thousands of dol- lars in taxes are escaped by banks through this provision. -° Reform Measures Faif Efforts to reform the method of taxing banks have failed, so far as the legislature and governor are concern- ed. It was pointed out how the gov- ernor vetoed the attempt to elimin- ate the unconstitutional exemption of 5 g‘er cent the banks were enjoying. In addition to the position the gov- ernor takes in general on bank tax- ation, as shown by his action in that matter, the legislature has consistent- ly failed, or refused to reform the sys- . tem despite vigorous recommedations by the state tax commission. In November, 1912, the tax commis- sion recommended to the governor and legislature that in finding the personal property. valuation of banks the latter be prohibited from sub- tracting an unlimited amount of real estate holdings, pointing out. that other states had recognized the un- fairness of that system. The commis- sion wanted, the amount of real estate subtracted at least limited to the amount of a bank’s legal investment in real estate, so that they would, not profit in the reduction of personal property taxes by illegal investments in real estate. In addition it was sug- gested that it would be far fairer and force banks to pay more nearly a just - proportion of taxesif banks were per- ‘mitted to subtract from the personal property valuation merely the value of the land and, building owned by the banks in which they do business. Lawmakers Do Nothing . It was pointed out other real es- tate held by banks is usually held only temporarily, having been obtained by mortgage foreclosures to protect in- vestments and is liquidated into cash as soon as possible under good, bank- ing practice. Banks generally re- transfer this property before any tax- es are paid on it, or make the pur- chaser pay the taxes, so that under present practice banks esca real estate taxes largely, but at the same time their personal property valua- tion is reduced on the theory their capital is' invested 'in real estate and the personal property valuation should be reduced in an amount equal to the real estate holdings to escape double taxation. . . : These recommendations apparently fell on deaf ears. Nothing was done :ll)gl ;he governor or legislature in In’ August, 1914, the tax commission repeated these recommendations in a ' report to the legislature and govern- or. In this report the commission said : 7 “The privilege of reducing the val- ue of the stock of a bank for assess- ment purposes by the full amount of the net investment in real estate readily lends itself to abuse and be- comes a fertile source of dissatisfac- tion.” Other progressive ideas on bank assessment were proposed. But this report like the one.two years prior has been ignored. The 1915 legisla- ture took no action. Changes Tax Plan (Continued from page 3) ° Auditor Jorgenson in agreeing to this plan was first the fact that the whole schedule was almost sure to be knock- ed out in the courts and second that the state tax commission would pro- test and take it to court if the board of equalization tried itself to frame instructions to the county auditors. The tax commission holds that it onl has authority to instruct assesors an auditors, the board merely having equalization powers. So the board of equalization, which originally approved the schedule and sought to instruct auditors regarding it, has submitted to amending the meaning of the various classifications and to let the tax commission do the instructing of auditors and assessors. In addition the convention decided to continue throughout the state the present plan of assessing property-at 25 per cent of its true value, ex- cept moneys and, credits, which will be valued at 5 per cent. The conven- tion also set in motion a plan of closer cooperation between the state board of equalization and the various county auditors, whereby the state board will let county auditors and boards of equalization know before hand. how big valuations will be ex- pected in various counties, so local authorities can meet the demand be- fore hand and not have to revamp valuations afterwards. N. P. Dictagraph (Continued from page 9) Crafty calmly, motioning to the seat. ‘Sub_sat down again. “I don’t know that that is what this paper is driving at. I am just hoping that it is. If there is realH{ such an organization as is reported, that would be the capital way to meet it. It has been done before. You know these fool farmers always fall for flattery. You can swat ’em’ over the head one day and they’ll. forget it the next day.” Wants the Machine : He began to gather up the letters and papers and stuff them into his, desk. Sub watched him admiringly, almost worshipfully. : ; Crafty leaned over the desk, his. big form looming large above the’ smug form of the little boss. . Crafty pointed his fat finger. under’ the. short nose of Sub and impressively- - said: “An’ moreover, Sub, if there is. such an organization in this state: ’ the thing for us to do is to get con- trol of it. If -it’s a good machine for them it will be a good machine for us. We want that machine, Sub,: an’ by the eternal we’re goin’ to have it. Now you watch me, Sub, just watch me.” 4 “I'm watching you,” said Sub, as he arose and took a fresh cigar from the open box on the desk. — _ The two bossess shook hands and beamed, at each other and the little boss left the room as he remarked, “Good luck, Craft, and when you need me just whistle” ABOUT OUR ADVERTISERS | The Leader is beginning to be | agpreciated by local and foreign I advertisers as an, advertising med- ium that brings them results, and | they can only be made to see that if the readers of the Leader will | make it their dutg'uvghen purchas- ing goods to purc! fram adver- tisers in these columns and then tell them that is the reason you you do buy from them. If the merchant whom you patronize does not advertise in the Leader as him why, and then tell him that hereafter you are going to ‘buy from those who patronize your pa- per. Here is a splendid way for every farmer to aid the Leader to be a better and stronger paper, and they should wnly patronize their friends. If the = merchant doesn’t want to advertise in your paper he does not want your busi- ness, and the merchant who does, why sliowfhim you appli;aciz.:)te his | support of your paper uyin .from him. ' Let us have tl¥e plg(ligge of every. farmer and his family on ‘this. Leader is your paper ‘| ‘'and odvocates your cause, an you should pledge yourself to patronize l those who advertise in its columns. Try. it and see the:results. | k Save Your Gasoline A Gas Pre-Heater Does It and Costs $2.50 If purchased before Feb. 10th Two Cham- i@ Pion X Spark ¥ Plugs & Ford Gas Preheater, Post Paid, for For Buick 25, $3.00 For Maxwell 25, $3.00 Post Paid ‘They are absolutely guarantéed to give you % more Mileage per gal- lon of gasoline. Your Money promptly refunded if you are not satisfied. Qut of the hundreds sold we have yet to receive the first letter asking us to refund the money. Write for any information. Satisfaction or money back. F. COOPER MFG. CO: New Rockford, N. D. Shaaa sl st 2 L L S The Farmers and Merchants Bank of New Rockford, N. D. A Home Institution Capital and Surplus of $30,000 Largest Deposits of any Bank in Eddy County. Does a General Banking, ~ Farm Loan and Insur- . ance Business A N N3 | 'V. E. BEAUDRY ‘Steam and Hot Water Heating - Plumbing and Gas Fitting | NEW ROCKFORD - - N.D. ‘W. C. RATHBUN Practical - Plumbing, Steam and Hot Water Heating NEW ROCKFORD - N.D. “PHOTOSof YOU”’ BUILDINGS OR ANIMALS Patronize Your Home Photographer L. P. WELLER New Rockferd, - North Dakota BUFF ORP. COCKERELS After culling I find I have about 20’ : g b left. $3.00 per single bird. 2 for $5. 3 or more at $2. Write for Pprices on hatchin, g eggs. - JOHN A. WINBERG, Eldrige, N. D S Farmers Cash Store Arena, N. D. M. N. REIDER, Prop. The Store of Quality and Low' Price You will always éet a squaré deal if - " you trade with 'CHICAGO CASH STORE (:}‘:,]!d[ I’J‘;;]’J‘j{.,' :[:tl‘:tn 2 -.l D : ; d. K. Edelman, Pres. and Mgr. .GENERAL MERCHANDISE = ; Egeland and Rock Lake - N.Dak,