The Nonpartisan Leader Newspaper, May 18, 1916, Page 19

Sy 14 ! the experiment of listi By Leader Staff Correspondent property. If it is successful in get- ting assessors o ‘carry out its instruc- fions wealthy persons, ‘corporations and others whose property is mostly represented by money and credit wiil Pay a much fairer share of the taexs than heretofore. . The tax commission finds that in 1890 North Dakota assessed $2,533;- 200 vgorth of moneys and credits, but that in 1915, after the wealth of the state had increased a hundred-fold, only $359,831 of this class -of property was found by the assessors, while $300,000,000 to $400,000,000 of it es- ca taxes. The state has never collected 'as big a tax for moneys and credits as it did the first year of state- hood. The amount of this property returned by assessors has decreased year by year till now it is only a drop in the bucket. . The law has always provided that moneys and credits should bear the _Bame tax as other property. The average tax levy in the state last year was 42.3 mills and if the law was en- forced, or could be enforced, it would mean a tax of 4% per cent on all money and all evidences of debt, such as mortgages, notes, etc. At 25 per cent of the true value it would be a tax of about 1 per cent. WHY THE ASSESSORS REFUSE TO ACT What has been the reason for this steadfast refusal of the assessors and boards of equalization to enforce the jaw in regard to taxing moneys and credits? The tax commission says the reason is that the tax is confisca- Assessors and other officials re- fuse to try to collect a tax which ex- perience of other states and other mations proves drives money into hid- ing or out of the state. In the case of credits such as mortgages it simply means that the money lender adds the tax to the costs of making the loan and gets.it back from the borrower by added interest or by some other means. This is the explanation of the tax commission. Profiting by the experience of other nations and states the tax commis- sion decided the best way was to put a small tax on moneys and credits, and to this end an amendment to the constitution was adopted in 1914 by the people, providing that taxes need not be equal on all classes of property. Hitherto moneys and credits had to bear the same tax as other property, but this amendment provided that the legislature could classify property ;and make the taxes equal only in the classes. The 1915 legislature passed an act taxing money and credits at 2 mills on the dollar, but enemies of the bill. in the legislature, as the supreme court afterwards held, pur- posely amended the law so that it was unconstitutional and it was later knocked out by the conrt. As this law could not be made ef- fective for the 1916 assessment, the state tax commission decided to try " moneys and credits on the tax schedule at 5 per . cent, or one-twentieth, of its actual value, instead of at 25 per cent, or one-guarter, of its value, as other property is listed. In this way money and credits could be taxed at about the same rate as it was propo_seq to tax them in the bill 'which was killed by maneuvering in the legislature. Assessors this year were instructed to list all the money and credits they could find, but to list them at one- twentieth of their value, so that they would bear about one-fifth of the tax: other prope bears. How success- ful this will be remains to be seen. If properly enforced by the assessors it will put $15,000,000 to $20,000,000 0] do SE0NNe that has h];therto been exempt from taxation. The tax commission has made the &liowing statgfinent in re- money and credit: i ‘GIVES THE FIGURES \ SINCE STATE BEGAN l‘l‘gi;_ee shfioogo we have h:g a law : ; bichies tr b4 "“Z‘u money and credits with- R ;i_n the state the same as other proper+ oW 1t is a notorious fact that " 1908, $763,303; ~and all kinds e How Money Escapes Taxation Revenue State Gets is Drop in Bucket; Propose New Way to Collect Tax statehood this law has been virtually ignored. Occasionally the unsophis- ticated—the ‘widow or the orphan— have inadvertently given in here and there in the state money and credits for taxation. “Beginning with 1890 we find that all the money and credits, that is, money on hand or in the bank, book accounts, notes and all evidences of wealth of this description ‘which was assessed for taxation was $2,5383,200: in 1891 it was $1,174,117; in 1892 it was $1,002,656; in 1893, $1,049,463;. in 1894, $937,640; in 1895, $847,202; in 1896, $593,120; in 1897, $725,5622; in 1898, $834,608; in 1899, $1,055,129; in 1900, $765,444; in 1901, $563,211; in 1902, $802,073; in 1903, $720,956; in 1904, $788,897; in 1 63,666; in 1906, $626,145; in 1907, $731,505; in in 1909, $879,713; in 1910, $944,688; in 1911, $759,121; in 1912, $734,665; in 1913, $663,401; in 1914, $867,164 and im 1915 but $359,831. “There has been no time since state- hood that the moneys of the state on deposit in banks have not greatly ex- ceeded this assessment for moneys of credits. Last year, for instance, when we had an assess- ment on this kind of property of but $359,831, the bank depesits showed on December 31, 1915, for both state and national banks in $125,142,885.03. In addition to this there must have been a considerable sum.of money assessable which was not in the banks. Of all this vast amount of money the assessors of this state only found $186,265. “Can there be any serious discus- sion that 3 law which has been in force for twenty-six years and which has shown such results has absolutely broken down? We started statehood with money and credits assessed at more than two and one-half million dollars and after twenty-six years they have dwindled down to $359,831. While the wealth of the state has un- doubtedly increased many timgs over and over, yet the assessment of money and credits is about one-seventh now what it was twenty-six years ago. FAILED TO GET VALUE ON ROLLS “In our instructions to assessors on April 1st, 1915, we discussed this sub- ject and urged the assessors to get this property upon the tax lists; in our instructions of April 1, 1914, under the head of “Property Escaping Tax- ation” we showed that about two- fifths of the property in the state is escaping taxation and that it is almost altogether of this class;that is money and credits; in our instructions to as- sessors of April 17, 1913, attention was called to this class of property and an endeavor made to secure the cooperation of assessors throughout the state in getting it upon the tax rolls. It goes without saying that we have utterly failed. The farmer and the common people of this state Editor Nonpartisan Leader: Leader in the oth from cover to cover—~ROSCO: .....,.....0....’.‘..O...'..C...lQ..OQ....... North Dakota- ‘WHEN THE LEADER COMES. I just want to tell you“that the Leader is the all important parcel to look for when the mail carrier makes his rounds in our neighborhood, and I want to suggest a cartoon for some S future issue taken from an:actual occurence. My ‘neighbor, Everett Bunker, was found milking the cow with one hand while he held the ader i er.. Another eafs his dinner with one hand on the day ee000 oooo.oopo,'o‘oooo_o_oo_oc'ooooooooo 9000000000000000000 elect the assessors, the boards of re- view and the boards of equalization. They have steadfastly not only re- fused to list this property but in almost evi instance in the state they drop; it from the assessment rolls when the assessment was made by the tax commission. In other words, officials elected by the people of the state have with one accord re- fused to enforce the law requiring money and credits to be assessed as other property. There can be no ques- tion but that this property aggregates from three to four hundred million dollars, and we find that it has never been assessed at more than two and one-quarter million dollars.. “Where there is such a steadfast refusal on the-part of all the people to enforce a law, there must be some reason for it. This reason is not far to seek. The average rate of taxa- tion for all purposes in this state last year was 423 mills, If all the moneys in bank and on hand, book acounts, notes, etc.,, were assessed at their actual value the tax would be about 4% per cent, which would mean confiscation. If it were assessed at 25 per cent of its actual walue the ‘assessment would be one per cent.. If a note or a mortgage or a book account was assessed at one per cent it would promptly be added to the interest rate, the price of goods, ete., and the consumer, which means the great mass of the people, would have to pay this increased tax. This is the reason why the law has never been enforced. WOULD DRIVE CASH TO OLD STOCKINGS / “Incidently there is another reason so far as moneys are concerned. The moment that you place a heavy tax burden upon money it either goes into hiding or leaves the state. Suppose a one per cent tax was placed on all the moneys in-the banks, that is on the actual amount ~of money. It would all be withdrawn. There would be no money in the banks to carry on the business of the business man, the farmer, or any other class of people. Money loaners would re- fuse to bring their money into the state. S “European _countries, outside of Switzerland, have long since given over their attempt to assess moneys and credits-as other pro A “This idea was first tried out in this country in the city of Baltimere and is known in America as the Baltimore plan. It has spread from Maryland to many other states including Minne- sota and Iowa. Minnesota levies a three mill tax on the actual value of moneys and ‘credits while Towa levies a five mill tax. In 1914 the state of Iowa realized from its tax on money and credits a revenue of approximate- ly $1,750,000, while North Dakota did not secure.to exceed $30,000. Will any one pretend to say that Iowa has sixty times as large an amount of earlier in the _read it BEIGHLE, S through teuléi‘em what a zog.tgl’l‘nmhe is and how he is beaug g{eeeived by join- mg the e, Can fhe old gang newspapers farmer wha ; hé“wqts ‘hetter than the farmer can get it for himself through the League? them using columns of space to what i \ money and credits as North Dakots when the population is less than four times as great? Most certainly nots The difficalty is with the system and not the people. I presume the peopla of North Dakota are quite as ready and willing to give in their money and credits for taxation as the people of Towa. . “Utterly discouraged in their ate tempts to get this class of property upon the tax rolls the tax commission resorted to a lower valuation. After recommendations to the legislatura and the governor and after instruce tions to the assessors, boards of re« view and boards of equalization and after an endeavor to secure a legal statute from the Ilegislature they simply took the bull by the horns and decided upon the experiment of puts ting it on at onetwentieth of itg actual value. “This proposition was adopted unanimously by the county auditors of the state, a large number of the county commissioners and the “state board of equalization in session im Bismarck during the past winter.” PERTH HOSPITAL DR. THOR MOELLER Physician and :Surgeon Perth - - North Dakota GARNAAS BROS. Incorporated GENERAL MERCHANDISE and FARM MACHINERY SHEYENNE and OBERON, N. D. Ladles Wear, Dry Goods, Hats and Capa, Clothing, Shoes, Beds, Bedding. Gents’ Furnishings, Crockery, Groceries and Belle Flour, Paints, Varnishes. C. EVENSEN GENERAL DEPARTMENTS SHEYENNE N. D. C. BJERKE & COMPANY Hardware, Implements, Furni- ture, Undertaking, Drugs and Stationery, Baldwin Pianos and Columbia Phonographs. All kinds of seeds at reasonable prices. CONWAY N. D. V. E. BEAUDRY Steam and Hot Water Heating, Plumbing and Electrical Work. We make a specialty of electric lighting systems for country homes, 'm e New Rockford North Dakota Kodak Films Developed and Printed. - All Work Guaranteed Camera Supplies L. P. WELLER New Rockford, N. D. W. C. RATHBUN . Practical Plumbing, Steam and Hot " Water Heating New Rockford, N. D. 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-