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| methods orfi ' st-the sye- Ng'- classes;: the form ducers, .. - done;’ mbus ;. 0. stop | : onfa 2 . nd to ; [ built y as rtion. .. 1 fore new i 3 - state already -facing 2 - deficit & that will reach several hundred <, 7" " thousand dollars January' 1 the- state board . of equalization adjourned this week after ordering a reduction in | the assessed valuation of North Dakota ‘amounting to about $30,000,000. This is"a deliberate attempt to wipe . wout about $120,000 of state reyenue in ~order to increase the. financial pro- * blems of the farmers’ administration which takes office next January. It has been evident for some time that the present office holders at the’ state capitol intended to leave affairs in ~pretty much of a mess for the new ad- ‘ministration that will take office as a result of the farmers’ political movement . through the Nonpartisan League. That they would deliberately place a flat re: " duction of 10 per cent on the state tax valuations to further hamper the in-. - <oming officials January 1 came, how- ever; as-a shock and will' complicate ““'greatly the serious financial ‘problems the Frazier administration will have to face. : : JORGENSON AND STEEN . PROPHESY BIG DEFICIT The board of equalization decided on the flat reduction in the valuation after: a stormy session and by a three to two vote. * “‘Governor Hanna, Commissioner. of Agriculture Flint and Attorney Gen- ' eral’ Linde overrode with their votes * State Treasurer Steen and State Auditor Jorgenson, who contended the cut would so 'reduce the state revenue that a huge deficit would result. = Mr. Jorgenson said that by January 1, 1918, after the - first year of the néw administration, the | state deficit would be $400,000 and M3 Steen placed it at $600,000. Despite this the . majority on the board, Hanna, Flint and - Linde, -puf .through their program to cripple thg -farmers’ administration. The deficit in the general fund the coming January, if the valuation had been -left the same, [} had been variously estimated’ at from $150,000 to $350,000. Instead ‘of taking 3 some action to meet this condition so the Frazier administration -could take office with a clean sheet; the board has deliberately wiped $30,000,000 in assess- ed valuation off the slate, to further put the farmers’ administration up against it during the first year it is in office. The board’s action is an order for a 10. per-cent reduction in the assessed value: of all railroad property, town and * ity lots and farm lands. It was made for two' purposes: First, to enable the present administration, already 'utterly discredited-in' North Dakota, to make a'-* claim that it had reduced taxes and thus- go out of office with public favor; sec- ond, to place an' additional 'stumbling block in the way of the new administra-. tion; in the hope of discrediting the farmers’ government. - ; NEWSPAPERS ARE USED TO DECEIVE THE PEOPLE -The first purpose is alrea&y being carried out. - The administration - an- nounced - the ' reductions” in "the 'state newspapers as a great move for lower taxes, without stating that it will re- duce the state revenue to a point where it will not meet the appropriations al- ready made and with which the new ad- ministration will have nothing to do. vernol na, Attorney General and Commissioner Flint took the position: that the réduction should be made. . The efficient handling of the _state’s business during the last twq | trouble for the . (By Leader Staff Correspondent.) i ISMARCK, Sept. 2. — With. the pard of uallzatlon h@-ddibérately tax revenues armers’ admini evenge on t With Bié Deficit Certain, Hanna’s Board ‘Makes General Cut in State Assessments years made possible this action. ~The action of the board was commended gen- erally and it was conceded that the re- duction of the tax load will meet with general favor.” ¢ It therefore becomes evident that the out-going administration intends to use the reduction of the assessment for its own. political purposes. : The second purpose of the reduction— discrediting the incoming farmers’ ad- ministration—the pcliticians hope will be accomplished through failure of the voters to acquaint themselves with the facts. . .They look for the Frazier ad- ministration to become involved in the most serious financial tangles the state has_ever experienced and to use this as an example of the inefficiency of the men the farmers have placed in office. With the expected deficit already big through the foolish financial - management dur- ing the last two administrations, the re- duction in. taxes ordered by the board for the ‘incoming officials. ' It undoubt- edly means that the new administration a year from now will have to increase the assessed valuations materially in order to make up the deficit the present - administration will leave. . The. politi- cians will then cry, “look how the men the farmers have elected are increasing taxes.” They hope this will discredit the farmers’ movement and result in ushering in another era of power for the old gang by making the voters ready to turn the farmers’ men out two years from now. * A : But this plot cannot succeed if the people keep posted on the finances of the state: and understand the difficulties the new administration is going to face, and if they can get fair and untainted news reports after the present. office holders step out. © RIS PRESENT OFFICIALS WILL FIX INCOME FOR NEXT YEAR ° The important facts about the first years administration by the farmers af the state capitol are these: The first six months the new officials will be working in order to make ministration. This has hat a big deficit management of makes the situation almost desperate FIVE under APPROPRIATIONS FOR CUR- RENT EXPENSES ALREADY MADE AND WITH WHICH THE NEW AD- MINISTRATION HAD NOTHING TO DO; and the state during all of 1917 will have to depend on AN INCOME FROM TAXATION MADE THIS FALL BY : THE PRESENT ADMINISTRA- TION. So the Frazier administration will face financial conditions: during 1917 that were not of its making. This comes about as follows: The legislature appropriates for a_two-year-period (a biennium) ‘and its appropriations run 1 The Staté Capitol at Bismarck for the fiscal years beginning July 1. Thus, the legislature -which’ met in Jan- uary, 1915, appropriated for the two years beginning July 1, 1915, and ending July 1, 1917.. The money to be spent by ‘the new administration for the first six months of its existence, therefore, was appropriated by the 1915 legislature and the new- government will have nothing say about how big or how little it will be. - The legislature that meets next -January will “appropriate for the two years beginning July 1, 1917. Now the money to meet . appropria- tions of the legislature is raised by tax- ation, fees, forfeitures and fines—mostly by taxation. - But taxes. are :levied for ¢ calendar years. Thus the tax of 1915 was levied by the state board of equal- ization in the fall of 1915 and it be- came available to meet the appropria- tions provided for the year 1916. This fall the board of equalization will levy a tax, the 1916 tax, and it will be to meet expenditures made during the whole of 1917.- - Therefore the money the new admin-~ istration will spend during the first year it is in office ‘will be provided by the present administration and ' the new administration will have nothing to say about how big or how little the tax revenue will be. ' It follows that the new administration will have to be in office a whole year before the state’s finances are completely under its control ' In the meantime the farmers’ government will be working .on a financial plan devised by its predecessor. And that is the rub. JORGENSON REFUSES FACTS ABOUT STATE DEFICIT It was admitted before the reduction just ordered by everybody familiar with the state’ government, ‘except perhaps ~some of the present office holders them- selves, that there would be 'a deficit January 1 in the general fund—that is, not enough money to meet current ex- . penses of government. Chairman Pack- and of the state tax commission estim- ated ‘that’ thig deficit would be at least e Farmers 3850,000. Others put it at mbre and others- at less. Mr. Packdrd estimated . this deficit would reach over half a mil- lion before the taxes for the mew year " begin coming ‘in in any. great quantity’ next March. Of course, what actual shortage the farmers’ administration will have to face can only be estimated, and State Auditor Jorgenson is in the best position to make an estimate. = Auditor Jorgenson, however, refused . this week to make public a report of the probable state of the general fund January ]. He has compiled such a report, by hif own admission, and it is' understood ‘it .dis« cussed a serious impending condition. It was made before the board reduced the assessment. A specific request was made on him to .furnish this informa- tion for the benefit of readers of the Leader, but Mr. Jorgenson declined. He said his report:was for the state board of equalization, then in session, and they had not considered it yet and hence he would not ‘make it public. 7 . However, Mr. Jorgenson could not very well refuse to furnish specific in- formation about income and expendit-- ures of the general fund during the last two years, together with information concerning the ‘tax levy and appropria- tions and the present balance in the fund. With this information an estim- ate of the condition of the general fund January 1, when the new government comes in, and the probable financial condition during 1917 can be figured, and the result is startling. GENERAL FUND CAN NOT MEET DRAINS UPON IT The general fund is the fund out of which all current expenses- of govern- ment are paid.” On August 1 it had a bal- ance unexpended - of - $391,255.62. and the first of the year and the total resources of the fund between now -and January 1 are obtained. During Aug- ust September, October and December last year the general fund had a miscel- laneous income of $208,494.95 and a tax income of $155,528. ; During these same months this year the income of the general fund will be much less, because last fall crops were good and taxes paid up quickly by farm- ers and those other ‘businesses whose prosperity-depends on the farmers. This year the wheat crop is a failure and col- lections this fall and winter will-be the poorest in 'years. - However, making 'a conservativé estimate by making the figures -as’ big' as possible, the income this fall and winter of the general fund can not exceed $290,000 from taxes and thiscellaneous \collections. This - will give the ‘general fund = total ' resources, with'the balance now on hand. of. $681,~ - Add - - .to this the expected income between now { o