The Nonpartisan Leader Newspaper, September 14, 1916, Page 7

¢ ot chkmg Latest Actlon of State Board of Equalization Means Double Saving for Them z;‘ by state ISMARCK, Sept. 9.—The. full meaning and effect of the state board of equalization’s act in attempt\ng to cripple the farm- tion which: takes office, in January is now being realized. The™ _hme—up,upomtedontmtheLeader last week, is to reduce taxes for the com- ing year, enabling the present adminis- ° tration to go out of office with the claim that it has saved taxpayers hundreds of thousands of dollars. But flfe state was facing a big deficit wmbefomthmreducmgoftaxesm ordered, and this deficit will now be even greater. The farmers’ -administration wil have to wrestle with- this condition, and that is what the present office holders wanted. They hoped that reducing taxes this year would make it necessary for -the new - administration- to increase taxes greatly next year to meet the deficit left by the Hamna gang. They could then claim that they reduced taxes their last year * administration increased ‘them its first year-in office.’ RAILROAD INFLUENCE MAY HAVE BEEN FACTOR . Railroad influerice is believed to have been a big factor in the action of the present administration in cutting the - valuations. The cut was ordered on railroads, farm lands and city real estate. A 10 per. cent; cut was ordered dn each of these classes of property, REGARD- LESS OF THE FACT THAT THE RAILROAD VALUATIONS, TO PUT -THEM ON THE SAME BASIS AS REAL ESTATE ~ VALUATIONS, SHOULD HAVE BEEN INCREASED. By the action.of the board of equaliza- tion the railroads will pay from $225,000 . to $250,000 less in taxes in North Dakota than they did last year. The board, of course, could not have gotten away with a reduction in railroad taxes ‘without including._ some other property. - It would have been too raw. So farm _ lands were included- and ‘given the same reductions as- railroads, enabling the board to favor the railroads and at the same time make big- talk about saving But -the .point is that the railroad _valuations were reduced about $5,700,000, INSTEAD OF INCREASED $5,000, ‘AS’' THE STATE TAX COMMISSION CAFTER AN EXHAUSTIVE STUDY OF THE : QUESTION, RECOMMENDED: The state tax eommission recommenda- tion, if-heeded by:the board;, woyld have - added $200,000 to railrogd taxes 'this year. Instead,theboudeutfllemilroad office and the new - “Diversify; raise more stock.” is:the ecry of the “better farming” advisers of the farmer. E'wdlstnbnte .traffic over all- seasons of the erfmglltmeseoflutthcfnrmersmxet valuations 85 ,700,000 and reduced their taxes about $230,000 The railroads therefore will save in taxes this ‘year about half a million dollars.out of what they would have paid had the expert advice of the tax commission been followed. It is s:gmfimt, perhaps, that M. T. Sanders, tax commissioner ‘Northern Pacific railway, was in Bis- marck at the time the state board made the reduction. He atumded. most of the. year, sa they can haul it more prefitably. of the. left the same, or, if it was determined to reduce the total valuation in spite of- the expected defieit, farm lands and city real estate should have received.a grenter reduction ‘than the railroads. But the board was determined on wi- ping out.as much revenue as it dared, to put the new ' administration up against it, and it did not even go about making -the reduction on a fair basis. It did the easiest thing—simply put a flat reduction of 10 per cent on everything The tax commission’s figures show railroads to be assessed too low in comparison with other property. Farm lands were raised 28 per cent last year and other property 16 per cent. Instead of undoing the injustice this year the -state board tries to cover its tracks by a flat reduction on everything but personal property, which is merely storing up trouble for the_ future and does not save any taxpayer anythmg. sessions of the:board: and probably wa.s a factor in getting the reduction through. NO ATTEMPT MADE TO RECTIFY INJ USTICE 3 Agamthxsyear,aswasthecaselast fall, the board of equalization went at the business of adjusting valuations® ~without the slightest attempt at dis- tinguishing between classes of property and seeing that each bore its just share. Lastymr—theboardputaflatzoper cent raise on all valuations after: the so-called “equalization” was done. This year it applies a flat reduction-of 10 per “cent to ‘all kinds of property -except personal property.- Last year it was proved ‘to the board by:the tax commis- sion and other expert advice that the mlroads were grossly underassessed in comparisen with other property, and the ‘tax commission again year RECOMMENDED AN INCREASE IN RAILROAD VALUATIONS, BUT DID NOT 'RECOMMEND AN INCREASE /'IN FARM LANDS. Yet the board reduges both railroad and farm lands. Not the slightest attempt is made to adjust the burdens. The two: classes of property are left = relatively = with- the same assessment, both subject to the same decrease, whereas tafl.roads should “have been _increased and fa.rm ‘lands .but persona.l property, ‘without regard to the fact that railroads were assessed too ‘low -in - comparison w1th other property. FARM LANDS INCREASED | MORE THAN OTHER PROPERTY Lastyearthenetresultoftheequal- Jzation of state valuations and the 20 per cent raise put on all property was to ma'easefannlandsZSpereentmvaln- ation, so that they would pay 28 per cent more taxes than they formerly paid, «and-to.increase all other property 16 per cent. ~Railroads were increased only 24 Pper cent.” This year the reduction of 10 per cent, while heralded as a great boon - to farmers by the old gang papers, does not rectify the injustice done to farm lands a year ago. . Had"a wise financial policy by the present administration made-a reduction in taxes advisable without leaving the next administration with debts; the reduction should have taken' into con- sideration the relative assessments: of . various . classes of ‘property, and some attempt - should - have been made to' rechfythem;ushceofputhngsmper cent increase on farm lands & year ago .when all other property was increased only 16 per ‘cent. But a flat. reduction in assessed valuations does not take into consideration the relative burdens borne ° The railroads have spent some monrey spreading that dectrine, because i The railroads have given advice freely, but have denied such substantial help feed and material for farm improvements at. reasonable prices. Dlsmmmatmn against Neorth Da.kota has been made tions which have always listened sympathetically to the pleas of railroad ol!iclals. The picture is of a blooded stock herd in the Red Rived v by different classes of property. The sanme discrepancy still exists as existed last year when farm lands were increased 28 perscent and all other property only, 16 per cent. . TREASURER. STEEN BRANDS BOARD’S ACT “ROTTEN” In the discussion preceding the em oftheboardofequabmhononr ing the valuations, State Auditor Jorgh enson expressed himself very vehemently, about leaving the treasury of the state empty with ‘a large amount of unpaid bills on hand. He did not believe.if right, although he was going out of oflice, that he’ should assist in puttw the incoming administration into a hole State Treasurer John Steen; also % member of the board; characterized thy whole proceedure as “rotten.” In thg final vote Governor Hanna voted with Attomey General Lihde and Commigs sioner of "Agriculture Flint and reduction was carried, three to Jorgenson and Steen voting against it. How the old gang views this plot 4 discredit the new administration by leaws ing it without enough money to rux next year is shown by the accounts of the matter in the papers that have been fighting the Nonpartisan League and have fought for the politicians agains§ the farmers. The ~ Bismarck D:& Tribune says editorially under the . * tion “Commendable Work”: “Governor Hanna, with the assistaneg of ‘Attorney General Linde and Commig« sioner Flint, won the approval of a largé body of taxpayers, in reducing thy value of property. Conditiong this. year prompted this action lam The reduction, however, was possible because of the efficient adminw istration of the state’s affairs' under theg direction of. Governor L. B. Hanna, Regardless of political considerations, hq has applied himself-to systematizing: the finances of the state. In this he hag _been: ably assisted by his varim associates. “Governor Hanna has applied his skill as a business man toward gathering up the loose ends and now the taxpa; will enjoy the results- in a ma reduction: of taxes.” THE COLORED. STORIES IN OLD GANG PAPERS ‘Of course the Bismarck Tn'bune hay had nothing to say about the deficit the new adnfinmh-ahonwxflbelefththz about the real purpose of this attempt the present ‘administration to curry, (Continued on page 18) .”th ‘controlled organs of the present admlmstratlon says* “Govemor Hanna has applied his skill os a business man toward gathering up the loose ends and -now f taxes.” The factis Hanna has SPENT }FOR HIS ADMINISTRATIO »AND WILL LEAVE A DEFICIT B ~ results in a material reduction the taxpayers will enjoy the ALL THE MONEY RAISED : EI-IIND HlM -'The reduction i in T e S i