The Nonpartisan Leader Newspaper, February 15, 1917, Page 5

I T3 AR Wy e e L SO R e et S e O - The Old Guard “Upin the Air” People’s Initiative Plan Has Put the Senate Out of Business— Fake State-Ownership Bills Passed by Gang think that the senate’'s action on Bill 44, the new constitution, was & defeat for the farmers’ senators and representatives, a peep at the old gang at Bismarck at the present moment would be illuminating. Did you ever see a bunch of “licked” dogs with their tails between their legs, bhuddling together for mutual protec tion and snarling and snapping in toothless and useless hate? Well, that's a picture of the old gang in-the senate that killed “44.” They killed “44”, but they, not the farmer members of the legislature, are the ones who are beaten. The old gang thought that it had killed the Nonpartisan League pro- gram by the vote on “44” and by the process of delay which it is willing to “concede” to the farmers by constitu- tional amendments in the “regular”’ way, taking six years. This was their impression in their feverish glee after the roll was called in the senate on the constitution bill. Now, since the farmers’ men in the legislature propose to initiate by petition of the people a new constitution to carry out the League program, getting it voted upon in the fall of 1918, so that the next legislature can proceed at once with the state-owned projects, these erst- while triumphant senators are a mnicely whipped bunch. LEAGUE DECISION WAS THUNDERBOLT To them the decision of the League caucus last week was a thunderbolt. They thought they could dictate terms on which the farmers are to have state-owned industries — terms that would make for their failure. Now they find that the people, by initiative petitions, are going to do the dictating. The moral state this action by the farmers has left the old guard in is well illustrated by our friend, Repre- sentative Divet of Wahpeton. The Statesman Divet, “shepherd of the people,” according to his estimate of himself, has got such a peeve on that he hates even himself. When a rising vote of thanks was tendered Equity speakers who addressed the joint ses- sion of the legislature during the Equity convention here, “the shepherd” was the only member of the legislature who refused to rise and assent to the motion. Maybe he had cramps—im the head. This same Divet also gave an illus- tration of how much impression the old guard’s lamentations are affecting the farmers’ representatives. Divet in another flow of oratory in the house said he began to believe it was true the Nonpartisan League had a working agreement with the railroads and was in favor of giving the railroads all they wanted. This statement got what it needed—a big laugh. The house burst BISMARCK, Feb. 10.—To those who PA SAYS,THE OLD GANG WILL LET US HAVE | STATE OWNED FLOUR MILLS BY LEVYING A DIRECT TAX ! into a roar of merriment at poor Divet, leaving him standing there like a naughty boy caught eating his mother’s jam. ACTION OF EQUITY SET BACK GANG The indorsement by the Equity con- vention of the initiative plan of getting the amendments the farmers want was also a severe setback to the old guard, as was ‘the Equity’s condemnation of those who opposed House Bill 44.. The gang senators had a sneaking idea that scme dissention could be stirred up among Nonpartisan and Equity mem- bers, and it was let down pretty hard by the convention action. The wisdom of the initiative plan of action, which will enable the people to vote on the necessary constitutional ‘amendments in November next year was forcefully demonstrated when the senate this week finally passed its bills for constitutional amendments “to carry out the people’s will’—the fake bills intended to cover up the senate’s tract on the “44” rollcall. These bills provide for the amendment of the con- stitution to permit flour mills, packing plants and cold-storage plants, but propose to finance them by taxation of the people. This would of course be 1917~ A BOY (F 14: 1997~ OLD_MAN OF 94 I AIN'T SEEN NOTHIN 0F THAT FLOUR MILL,YET! inadvisable. Bond issues to be taken care of by the plants themselves was the League plan. The senate plan would place an onerous ‘tax on the people, intended to make them sick of state-owned plants Then, also, it would be impossible, un- der the constitution tax levy limit, to levy more than a half-mill a year for this purpose, and it would take 15 or 20 years to get enough money to build the plants. When it is seen that this is the best the senate has to offer the wisdom of the initiative plan, to get action within two years, is seen. TWENTY YEARS TO OBTAIN ACTION The process to be gone through with under the senate’s fake bills would be as follows: y (1) Approval by the 1917 legislative assembly of the constitutional amend- ments. ¥ (2) Approval by the 1919 legislative assembly of the constitutional amend- ments. (3) Approval by the people in No- vember, 1920. (4) Levy made by the state board in August, 1921. (5) Tax due December, 1921. ‘ (6) Tax delinquent March 1, 1922. (7) Seventy-five per cent of the tax collected and available June 20, 1922. The net assessed valuation of the state after personal property deduc- tion in 1917 in round numbers will be $348,500,000. Assessed valuation has doubled in twelve years, at the rate of approxi- mately $6,500,000 a year. Allowing a seven million annual increase, the state would get from a one-half mill levy in 1921, $188,250. Only 75 per cent of a tax is cellected and available by June 30, of the year following its levy, so that by June 30, 1922, there would be in round numbers $140,000 available to begin work on a public utility created under ‘a concurrent resolution passed at this time. HOW THEY WANT TO “SATISFY” PEOPLE If it were desired to raise $5,000,000 by the process of a half-mill levy on the valuation of the state, and allowing the rate of increase in the assessed valuation to bhe $7,000,000 annually, it would take about 18 years to secure the five million dollars. And, unless the limitations in the constitution of four mills, upon the assessed valuation of property for state purposes is re- moved no more than one-half mill could be levied, as 3% mills will not support the state government. Under such an arrangement the people would be almost two decades in securing the capital to put into effect the utilities desired. The old guard senators say they want to carry out the program of the people, but it is almost certain that the people of the state do not want to wait two decades, so the bills areal- most sure to receive their death blow in the house. The Nonpartisans do not propose to wait to carry out the pro- gram so they will initiate important features of House Bill 44 as amend- ments to the present constitution, so as to enable the carrying out of the League pregram and allow the people to vote on these measures next year. BOND ISSUE ONLY SAFE METHOD Further than this the Nonpartisans do not propose to build these utilities by direct tax on the people as these bills propose. The League plans to build these utili- ties by the issuing of bonds and paying the bonds from the profits of the utili- ties. If money were borrowed at 4 per cent interest by the state and the plants established, a return of 9 per cent upon the capital would more than wipe out the entire indebtedness in the time which it would take to secure the revenue under the arrangement in the two bills passed by the senate today. A Nice Little Plan to “Help” the Farmers Senator McGray Introduces Series of Very Funny Bills Providing for the State to Build Elevators and Then Sell Them By Ralph L. Harmon, Leader Staff Correspondent SMARCK, Feb. 12.—0ld gang B senators sprung a red hot sur- prise in the senate late Saturday afternoon in the McGray series of terminal elevator bills, designed, as Equity and League men declare, to set these two organizations at sword’s points, and let Big Business grab the bone while the farmers fight. As a re- sult of this series of bills it is rumored that the senate may recall Senate Bill 84, purporting to provide a fund of . $300,000 for the erection of a state- owned terminal elevator at Fargo. Senator McGray’'s bills are 262, 263 and 264, and they form a connected series, the plan of which, in a word, is’ for North Dakota to build a $200,000 terminal wherever the board of di- rectors of the Iquity Co-operative ex- change decides, and then turn it over by sale to the Equity. The fact is, of course, that the Equity convention at Bismarck repudiated any such plan in two ways: first, by a resolution strong- ly backing the strict state-owner- ship program permitted in the con- stitution which House Bill 44, de- feated by the senate, would have submitted to the people; second, by passing a resolution making it the sense of the convention that the Equity co-operative packing plant at Fargo should be turned over to the state, to be run as a state in- dustry as soon as the state consti- tution is amended to permit state ownership. That, in the opinion of both League and Equity men here, doesn’t look as though the rank and file of the Equity forces, which adopted these resolutions, is against state-ownership and "will lend support to any plan like Mc- Gray’s. WOULD ABOLISH THE ELEVATOR FUND Senate Bill 262 provides an appro- priation of $200,000 for building an elevator and authorizes the formation of a commission to carry out and make effective the provisions of 264, and it, as well as the others, carries the emergency clause. Z Senate Bill 263 abolishes the termin- al elevator fund, which now 'has a credit of $67,000, and directs the state treasurer forthwith to turn this over into the general fund of the state. Senate Bill 264 provides that the governor shall appoint the president and those of the present directors of the Equity Co-operative exchange who live in North Dakota, as a commission to enter into a contract with the state for the building of a terminal elevator “within or without the state,” the loca- tion of which shall be fixed by such commission:at a cost of not to exceed $250,000.” Fifty thousand dollars of this total must be raised by the Equity through the sale of its stock to primary market elevators in North Dakota, and unless it raises $50,000 and sells some of its stock to 50 different elevators the provi- sions of the act shall not become ef- fective. The other $200,000 is to be paid by the state out of the general fund, and the governor is authorized to instruct the auditor to draw his war- rant for this sum and turn it over to the commission. EQUITY TO PAY STATE MONEY BACK The commission goes ahead and builds. this elevator. Sixty days after it is built it must make a complete re- port to the governor of what it did with the money, giving in detail all the facts. To secure the state, the com- mission must give a bond for $50,000 jointly or severally to the state. The state is to be subsequently re- imbursed for its outlay by repayments on the installment plan, the balance to draw 3 péF cent until paid. The first payment of $10,000 is to be made two years after the contract for construc- tion is entered into between the state and the commission, and $10,000 is to be repaid each year thereafter. STRIKING CONTRAST WITH FORMER VIEW The howling comedy of the whole affair is brought to a climax in the emergency clause to Senate Bill 264, and this clause ought to be read in con- nection with the solemn proposals of all the old gang senators up to this time, that the state ought to go slowly, and the people ought to be given time for “thoughtful consideration.” The people who have voted for state-owner- ship, get no chance to consider this proposition. It is a little closet af- fair among old gang senators, who think they can kill two birds with one stone: first, treate dissention between the Nonpartisan League, which pro- poses state ownership and operation, with the blacking of the people of the state, and the Equity, which is now operatiny a co- onerative ~ terminal elevator; and secondly, to befog the people with another pretense that they are trying to do-something for the “dear farmers.” (Continued on page 16) 4 gy ) FIVE