The Nonpartisan Leader Newspaper, March 9, 1916, Page 11

TWELVE Lightest of Taxes for Light Plants Did State Board of Equalization Evade the? Recent developments of a sensat- jonal turn indicate that the valua. tions for taxation purposes ef some 16 light and power plants of North Dakota, lowered hy the state board of equalization after the state tax commission had reported values for them, may be illegal and sub’ect to annulment should they be taken into court. Members of the state tax commis- sion charge these valuations were re- duced at a special meeting of the state equalizers after the main meet- ing provided by law had been held, and it is being pointed out that the board may have exceeded its author- ity as laid down by law and inter- preted by the courts, in lowering the valuation of single plants in the various counties when: its authority provides that it may raise or lower valuations only by counties. Were Undertaxed The tax commission employed two engineers to make a physical valua- tion of the 90 or so light and power companies of North Dakota. These valuations were considered in connec- tion with the profits of the companies and franchise value, the commission fixing a valuation for taxation pur- poses based, on 25 per cent of the true value so found. It reporting these valuations the commission said: “We especially call your attention to the %ants at Bismarck, Fargo and Grand Forks, which are grossly un- der assessed by the local authori- ties.” The state board of equalization pro- ceeded to lower the valuations of 16 of the 90 plants, among those lowered being the three plants which the tax commission reported had been grossly under assessed in the past. The proceedings of the board in- dicate that these valuations were not lowered by counties, taking in all the plants in certain counties, but that particular plants in the various coun- ties were singled out and their valu- ation reduced. Thus in Burleigh county the Hughes Electric company. of Bismarck had its valuation-as fix- ved by the state tax commission re- ‘duced greatly, while the Washburn THE NONPARTISAN LEADER 2 Law to Cut Assessments of Certain Power Com- panies? Lignite Coal company, owning anoth- er light and power plant in Burleigh county, did not have the reduction applied to it. In Cass county there are five light and power plants but the valuation of only one was reduced, that of the Union Light & Power Co. of Fargo, which had the franchise part of its valuation found by the tax commis- sion cut from $23,000 to $1000. There are other instances where individual valuations in counties were reduced, the reduction not applying to the en- tire county. Law Quoted Section 2141 of the compiled laws of North Dakota gives the authority of the state board of equalization and the supreme court of the state has stated, the law there set forth as follows, being page 3890, Vol. 18, North Dakota reports: i “The various provisions of our rev- enue laws relative to the review and equalization of assessments for the purpose of taxation....very clearly disclose that the lggislative intent was to adopt a scheme or system whereby the local boards of review, where there are such boards, shall ‘equalize the assessments as between individual taxpayers, the county board of equalization as between_the various assessment districts and the state board of equalization as be- tween the several counties.” Gave Big Reduction 4 Most . of the light and power plant reductions were made for individual companies. The above decision would indicate that reductions or raises by the state board shall be made only in the way of equalization between the various counties as a whole. The tax commission valued the Hughes Electric company at Bismarck at $42,150. The state board reduced this over $8800, then added the gen- eral 20 per cent raise which the board applied alike to all property in the state, so that the valuation as it finally was left was $39,942, ac- N the first of February last, the Equity Cooperative Ex- change paid a cumulative dividend. of 8 per cent on. all capital stock issued up to.August. 1st, 1915. This is the first dividend that has ever been' paid by this corporation. It was all earned from August 1st, 1915, to. December 31st, a period of five months. Our total net profit during this period was: $53,000.00; all made in the handling of about 8,000;000 bushels of grain. Qur paidup capital August Ist was but $42,939.00. This shows behooves the: farmers: to enter this business that f;hey' may obtain the enormous profits to be-derived: therefrom for themselves. The Equity Cooperative Exchange is a farmers” corporation, composed: ‘of farmer stockholders and managed. by a Board of Di- rectors, all of whom are farmers. Its: capital stock draws a. cum- ulative dividend of 8 per cent.and.no more. The balance of the net earnings of the corporation are distributed among its patrons; and the-amount each receives. is-determined by the amount of business transacted. 5 2 The Exchange affords - the farmersan oppertunity of marketing their grain . cooperatively, enabling them to do on the terminal- grain markets what they have dene through: their elevators in the local markets, namely. to: hetter the prices.on grain. In this way the farmers: can help themselves; by eensigning their grain to the E that there is money in the grain commission business, and that it g &* 3 Equity Cooperative Exchange at either -St. Paul, Minnesota, or Superior, Wisconsin. The time to: do that is now. Tax Board Rebelsat Farcical Figures cording te State Auditor €. O. Jor- genson, secretary of the state board. Hughes: is Senator E. B BHughes of the Hughes: Elee- tric company is state senator from Burleigh ceunty and his activities in the senate im- connection with board of equalization and tax come- mission matters is of interest. He was 3. member of the state affairs committee which reported faverably senate hill 261 by Heckle, a bill to abolish the tax commissioin, father- ed by Governor Hanna, member of the board of equalization. This bill in varieus ways would have enhanced the powers of the board of equalization. It created one tax commissioner to replace the present commisgion of three, and of course would have eliminated the members of the tax commission between whom and the board of equalization there is- mueh feeling, the hoard generally overridging the: commission’s recom- mendations. Hughes, in addition to being on the committee which ap- proved the anti-tax commission bifl, voted for its passage. It passed the senate but lost out in the house. Here is the suiry of 'g‘ amazing series of aets hy- the state beard of equaliza-: tion, acts that demand in- ‘vestigation by the taxpay- ers of the state. Read how a few lighting cempanies have got reduc- tions of individual assess- ments from a board whese duty is merely te equalize values as. between eounties. Notice the charge of the tax commissien that tfinle whele proceeding was: il- legal. : Notice also the aetivity of Semator Hughes of the Hughes Electric Company. Eater Hughes’ company comes be- fore the board of equalization and gets its assessment reduced, tax commissioni recommendations heing gnon 3 Other light and power plant valu- ations singled out by the state board for reductions, while other plants in the same ecounties were allowed to stand valued as fixed by the tax com- mission: were: Union Light & Power Co., Farge; Mandan Electric company, Mandan; Hu%xes & Dieters, Dickinson; Consumers” Power company, Minot. QUOTES LEADER'S TAX PLAN The Slope. County News of Febru- ary 24 quotes in full on.its front page, the vecent editorial of the Non- partisan Leader, relative to the single ‘tax question, in . which the Leader points out that “single tax” in the sense in which the League is using it, means that farmers shall not be penal- ized in higher taxes for the improve- ments they make, and that lands held for speculative purposes shall be taxed the same as improved lands. STATE FAIR A good racing program with $5000 in prizes, and a strong line of carnival attractions were decided -upon at a meeting of the directors of the North -Dakota State Fair in Fargo last week, as features of the-fair to be held here, July 22-27. Representatives of some well known carnivat companies were present and set forth schedules of their attractions, but no contracts were made, although it is expected that contracts wil be signed in a short time. The association, heretofore known as the Short Ship circuit, and which will be known in future as the North Dakota and Minnesota Racing asso-~ ciation, elected W. C. Lycan of Crooks- ton president; Don V. Moore of Grand Forks, vice president; and Charles Nash of Fargo, secretary and treasurer. The application of Warren: for mem- bership in the association was not granted on account of a conflict in dates with Valley City, already a member. Track events decided upon are the: 2:30, 2:22, 2:18, 2:15, 2:12 and 2:09 pace, the purse in: each instance being $500. e D Parmers meetings have been called for the following places: and dates to discuss the cooperative marketing of farm products, all farmers who are interested in better marketing are requested: to come to these meetings and bring their neighbors with them. A, representative of the Equity Coeperative Exchange will be present. o ‘All metings are called for 1 o’clock p. m. IN NORTH DAKOTA Deisem I.?riday, March 10 Plaza Wednesday, March: 15: Fingal Saturday, March 1t Medberry Wedn’d’y, March 15 Urbana Saturday, March 11 Edmore Thutscfay, March: 16 Alfred Saturday, March 11 Sanish- Thursday, March 16 Berthold Monday, March 13 = Keane Friday, March. 17 Edgeley . Monday, March 13 Max Monday, March 20: Wiliston Tuesday, March. 14 Ryder Wednesday, March: 22 Makoti Tuesday, March 14 Douglas Thursday, March 23 Franklin Tuesday, March 14 Garrison Saturday, March 25 : IN MONTANA .Malta.,' Friday, March: 10: Nassau Monday, March 13 Glasgow: Fairview: Saturday, March 11 Lambert Wednesday, March 15 Monday, March 13 Antelope - Friday, March. 17