The Nonpartisan Leader Newspaper, February 3, 1916, Page 8

© planted in that lob EIGHT E. G. Patterson, owner and man- ager of the McKenize hotel at Bis- marck, is chairman of the board.of county commissioners of Burleigh county, in which Bismarck is situat- ed. According to a statement of the third assistant postmaster general at Washington,®*D. C., the Palladium, a weekly raper published at Bis- marck, is owned solely by Mr. Pat- terson, the paper having reported to the postoffice department on Oc- tober 1, 1915, that Mr. Patterson was the sole owner. SN Last month, sitting at Bismarek, the board of commissioners of Bur- leigh county, with Mr. Patterson’s vote, awarded the contract for the 1916 county printing to the Palla- dium., NAlis . As chairmna of the board of coun- 4ty commissioners Mr. Patterson is . member of the purchasing committee of the county. Section 9829, compiled North Dakota, reads as follows: . Law is Strict “Every public officer being author- ized to sell or lease any property or make any contract in his official ca- pacity who voluntarily becomes in- terested individually: in ‘such sale, lease or contract, directly or indi- rectly, is guilty of a misdemanor.” The facts above stated are closely related to another set of facts evi- denced, by the records of Burleigh county and the files of the Palla- dium. On November 18, 1915, the Palladium, owned by Mr. Patterson, said: - “One of Mr. Patterson’s well-known characteristics is absolute loyalty to his friends, an illustration of this be- ing the name given to his splendid new hotel—the McKenzie—named in honor of a man with whom he has been closely associated for more than 30 years—Hon. Alexander McKenzie.” McKenzie State Boss If Alexander McKenzie needs an introduction to the people of North Dakota a friendly biographer of his, W. B. Hennessy, furnishes it in a history of North Dakota, which is part of the files of the State Histor- ical society at Bismarck This bio- graphy says: “The massive figure of Alexander McKenzie........ has dominated the destinies of the state at crucial times; it has been potent in the mak- ing of men and measures........ He was called the Warwick of North Dakota, or its boss, according to the point of view of the individual. He was credited, whether with justice or not, with guiding the political destinies of the state.” Alexander McKenzie. is no longer a resident of North Dakota. He lives at St. Paul, but from there his in- fluence is still potent. He appears in the state at critical political times, for instance during gsessions of the legislature,.and today, as in the past, itis a matter of great political inter- est and significance in North Dakota to know the candidates Boss McKen- zie is supporting and the measures he . is favorable to. Books Show Facts This is the man, then, that E. G. Patterson’s paper states is “closely associated” with Mr. Patterson. - This connection, agmitted by Mr. Patter- son in his paper, is important in view of things standing: out on the records of Burleigh counti. Mr. Patterson has been a county commissioner for 10 years. He has been city commissioner of Bismarck and for several years chairman of the Burleigh county republican central committee. For years his wife was postmistress of Bismarck, being sup- only recently when the democrats ascended to power at Washington, D. C. During the time Mr. Patterson has been county commissioner and active in politics Alexander McKenzie has owned the Bismarck Water Supply comfian{ and considerable real estate in Burleigh county. Mr. Patterson as’_county commissioner, county rec- ords show, has n active in at- tempts to keep the taxes of the Bis- marck Water Supply company down, including an attempt to reduce. the company’s taxes by an illegal resolu- tion of the board of commissioners The facts in the latter case are in- teresting. g Got Tax Reduced .In 1909 the valuation of the water company for taxation purposes was placed at $45,262 and 1910 at $36,000. The company refused to pay taxes for these years. On December 4, 1911, with Mr. Patterson voting for it, a resolution was adopted by the board of county commissioners to re- duce the valuation for 1909 to $30,- 000 and for 1910 to $25,000 and to accept taxes from the company for those years on that basis, with 7 per - cent interest added for delinquency. Under this 'compromise the com- laws of - -uations of property for , THE NONPARTISAN LEADER McKenzie Property Interests “Protected” Records Show Political Boss Had Taxes Reduced and Offi- cials Failed To Sell His Land For Delinquent Tax While Farmers and Other Taxpayers Lost Their Real Estate In Burleigh County. ' pany for 1909 would pay $1605 taxes instead of $2237.09 and for 1910 would pay $1571 taxes instead of $1926. Tfle legal penalty and inter- est would have been from 15 to 27 per cent. The compromise penalty was 7 per cent. - not legally alter taxes, and_ it at- tempted to take in prior years, which is forbidden by law.’ ; Punished for Action - At this time C. R. Kositzky was, county treasurer. Mr. Kositzky knew The law of North Dakota provides that the county commissioners can sit as a board of equalization only in July and can raise and lower val- taxation only at that time. and that taxes for wvg P Y the law and that the attempt to lower the water company’s tax was illegal. As treasurer he refused to accept the water company’s taxes on the reduced basis authorized by Mr. Patterson and his associates on the Hand of Boss Rests Heavy on Public Officers The politics of North Dakota for over 30 years have been dominated by one man, a man who, at the height .of his power, could have had any office in the gift of the people of.the state but who preferred the power and profit that came to one pulling the strings behind the scenes. This man—Alexander McKenzie—is not now a resident of the state, but he still stands high in the coun- sels of a branch of his party and from his headquarters in Minnesota to a great extent - still makes his in- fluence- felt in North Dakota politics. In the accompanying article the Leader exposes some of the intimate workings of this man’s power in one of the counties of the state—Burleigh county. Here, the facts from the records show, his hand has rested heavy on public officials, enabling him to secure immunities as a taxpayer which other taxpayers did not enjoy.. The records. show .many. successful attempts of his friends - and henchmen in office to reduce his taxes and prevent sale of his property for delinquent taxes. The records show attempts of his friends to secure him immunities by illegal methods and how, sometimes, honest public officials stood in the way allowing these immunities, only to be “punished” when pressure-on them failed to “line them up.” Further still, the public records which the Leader produces in the accompanying article indicate the exis- tence of a “little boss” in Burleigh county, working for the “big boss” and helping him to attain his ends. ~ The little boss has irons in the fire of his own and is proud to be known as being “closely associated” with the big boss. The little boss is active in local politics and holds a public office. As a public official this little boss this month voted to give a fat printing countract to a paper of which the postoffice records show he is the sole owner. The Leader quotes a law of North Dakota which makes it a-misdemeanor for a public official to be interested in a contract which, as a public official, he is authorized to make. This law has not been enforced against this public official. Whether it is applicable to him or not the reader can judge from the facts produced from public records in the accompanying article. the current year only can be raised or . lowered—prior years can not be taken into consideration. “The com- - promise of the water company taxes, with Mr. Patterson’s vote, was made in December, when the board could board. 'This was in December, 1911, On Jaunary 5, 1912, Mr. Patterson and the board’ brought on Mr, Kositzky. They voted: to cut of the county treasurer's clerk, who with the deputy treasurer constitut~ " unpaid taxes. business. - '$297.70 for ~the taxes ressure to bear ed the treasurer’s entire office force. And they voted to reduce the salary of Mr. Kositzky’s deputy from $75 to $65 per month. This was what Mr. Kositzky got for refusing to recog- nize an illegal reduction of Boss Me~ .. Kenzie’s taxes, voted for and pushed by Chairman Patterson of the county * commissioners,- who was “closely as- sociated”, in his own paper’s: words, _ with the big boss. Mr. Kositzky caused the sheriff of the county to levy on the water .works for the full amount of the de- linquent taxes and the plant was ad- vertised under the law for sale for The company secured an injunction against the sale being carried out. Right hére is one of the most significant parts of the whole Knew Act lllegal This injunction, it would naturally be supposed, would be based on the . " fact that the county commissioners - ‘had ordered the taxes reduced and . that the treasurer had refused to re- duce them, attempting to sell “the lant. for the full amount of taxes due: his was not the case. The injunction - was not based on the county commis- sioners’ resolution. It was based on the technical plea that the state tax levy for those years was illegal. The company’s lawyers did, not have the “face” to cite in court what it was erfectly evident. was an illegal reso- E:,tion of the commissioners. Now, during all the time these tax- es were delinquent, McKenzie’s water plant was supplying water to the court house and collecting bills for water regularly from the county. Al law long existant provided that coun- ties might apply money due from the county to any person or corporation on the, taxes of that person or cor- ration, if the latter had become de- inquent on tax payments. Accord- ingly, on August 11, 1911, Treasurer Kositzky applied a county warrant for water amounting to $6696.18, due the company and authorized by the county commissioners, on the delin- quent taxes of the company of 1910. Again on December 30, 1912, he ap- plied a warrant due the comgpany amounting to $928.:4. & Court Backs Kositzky In due time the supreme court rendered a decision in the injunction case of the water company involving the taxes of the two years for which the commissioners had sought to make an illegal compromise. The decision fully sustained County Treasurer Kositzky and George E. Wallace of the state tax commission, who argued the case against the company. Ac- _E. G. Patterson, county commis« sioner, owner of McKenzie hotel and a weekly newspaper, which states he is' “closely associated” with Alexan- der McKenzie. _—mmm——— e —————— 7 cordingly on July 381, 1915, after the decision,- the company paid the- full amount of its taxes for 1909, amount- ing to $2237.09, and interest and pen- alty for delinquency amounting to $154359. At the same time it paid the balance due on the taxes of 1910, after the credit for water furnished the county had been subtracted, the balance being $872.98. 2 As a result of Mr. Kositzky’s re- fusal to carry out the attempted il- - ‘legal compromise, the county collect- ed, including interest and penaltfi; ; of 19 and $3780.68° for the taxes of 1909. Had the comPromise ‘been. ‘ac+ cepted ‘the sums’ collected; with. the . compromise penalty, would have been approximately half of what was ae- tually collected. 7 ReUiel . .. -~ Boss’ Hand Seen Thé records of Burleigh county. diss close further facts in conncetion with Mr, Patterson “and Alexander | « b2 " »i » ¥ .