St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-12-09
MINNESOTA FINANCES.
Synopsis Of State Auditor Braden's
Forthcoming Report,
Discussing the Funds, Methods Of Assess
ment, with Tables Showing the Rev
enue and Disbursements.

/
all estimated receipts from taxes and in adj
dition $1,000 received from revenue
loans Of 1888. The estimates for the year
ending July 81, 1885, show Il d.Geit Of
S31, 900. II will be necessary 10 make some
provision for the overdraft during the year
ending July 81, 1856. The proper method
viii be 10 consolidate the state institution
fund with the revenue fund. The former
fund is derived from taxes paid by railroads
IL the consolidation is made the state will
soon be in a condition to take up all out
standing text book warrants, amounting 10
about $39, 7S5. So. The present rate Of one
mill state tax will probably be sufficient TO
meet anticipated expenses. The annual
charge upon the state institution fund has
been permanently increased by the provi-
sion requiring an amount sufficient to pay
the interest on the railroad adjustment bonds
to be set apart annually.
This requires about 800, 900 per aunum.
The estimsted receipts for three years show q
surplus sufficient 10 warrant a transfer TO the
( revenue fund OF sum sufficient TO meet the
annual overdraft on that fund. The auditor
| favors the consolidation OF the two funds
| There are orders outstaud ding against the text
book fund Of $50, 7S5.6S. The statutes ap-
propriate $50, 600 for a revolving fund, which
is intended 10 be self-supporiing through
| payments by counties. This is not the case
as some counties are tariy In making par
ment. and owing TO the unusual pressure on
! the revenue fund, the state has not been In
condition to fully comply with the require
ments of the law. The law should be
amended making payments due the state
compulsory on the part Of counties ordering
books. II the funds are consolidated as sug-
| gested, these difficulties will be largely OBJ
Waited. The s3l, 507O6 received from the
! internal improvement fund in 1852 has all
been expended in payment OF appropriations
| for bridges. The amount due for 1888 mas
not been received. Reports Of bridges con-
structed in 1888 have been received sufficient
70 exhaust all, or nearly all due. Appropri-
atoms for bridges we're made by the last leg
iSlature for two years.
Many bridges were built in 1888, bat
money not being available, the contractors
are still awaiting amounts due. These difficult
! ties may be avoided in the future by divid-
ing the bridge appropriation, making part
| payable "a 1856 and the remainder In 1857.
/ The permanent school fund has now an ac-
emulation of So, 255. 632. So The sales OF
school lands for 1888 and spring sales Of
1884 amounted to liz, 5S4 acres al the aver
| age price OF s. so per acre. The entire sales
| for all years amount TO COS, 145 acres at an
average OF 5000 per acre. The original
/ grant embraced one-eighteeuth part Of the
state, or about 5000, 900 acres TO this will be
added one-half the proceeds Of swamp lands
which may become the states property after
| grants have been filed. The ultimate aecu-
mutation OF this fund is likely 10 reach SIS
/ 600, 900 or 100000 The payments OF
! principal, excluding that required at sales.
on all classes OF lands from Dec. l, 1852, to
July 81, 1854, was S432. 497. 80, and sO9
/ no
mends the repeal of the law providing for
double interest on land purchases not paid
on June l and the provision for abatement
| of the penalty and would have
the law amended by making
/ the interest - per cent. on interest
not paid June 1. This will more effectually
| protect the state and be more satisfactory to
| all concerned. The permanent university
fund now represents an accumulation OF
! 5000, 7SS 80. The entire grant subject 10
| sales FOR this fund amount 10 log, 353 acres
with $4,000 acres yet to be approved to the
state. This fund will eventually amount 10
about 100000. The statute provides no
method for giving q railway right OF way
over university lands, this should be pro-
vided for and the law made retroactive. The
internal improvement land fund now
amounts to 81, 800, 605.71 aud 224, s4S acres
have been sold at an average OF $3.50 per
acre, leaving ga, SIS acres unsold. The IL
terest is used in paying interest on Mime
! sofa - adjustment bonds and the fund will
| be used in paying these bonds when they
mature. The board Of investment, consist
ing OF the governor, treasurer, auditor. pres
ident of university, regents and chief justice
! held meetings on Aug. %, 1883, Oct %,
! 1888, Dec. IL, 1883, and March 90, 1884.
and voted at the respective meetings: to sell
$4,000 government 6s, al premium of 81 4
| per cent and invest the proceeds in Miane-
sofa adjustments; TO sell 1901 900 Mis-
souri, 6s aud invest in Minnesota AS: to
! purchase ITO ~ adjustments, excnang-
ing therefor Missouri 6s at 90
! per cent. premium; 10 sell 3SI Missouri
6s and invest in Minnesota AIS on United
States bonds. The net gain to the state by
these transfers amounts TO over sos, 900. A
/ judcious investment OF the trust funds has
| become a difficult problem. The law might
be amended, permitting loans TO school dis
tricts and counties for erection OF school
/ and county buildings only. Let the issue be
! long time 5 per cent. bonds limiting the
amount TO 3 or 5 per cent. Of the assessed val
uation.
The efficiency of the law for the collection
of taxes is attested by the promptness at
tending their payment Our methods Of as
! sessment cannot be as heartily commended
The constitution provides that all the taxes
levied shall be nearly as equal as may be.
and such property shall have a cash valua-
ton aud be eoualized and uniform through
out the state" The fundamental principles
to be kept in view in making assessments
/ are hrst how 10 get all the
! property listed; second, how to obtain
fair and equitable valuation. Property
divides itself into two classes-vislble prop
erty, as lands, live stock, machinery, mer-
chandise, ETC.; invisible property, as stocks,
bonds, money, etc. The former may be cas-
| lily listed and the difficulty, therefore, is with
| the latter class. A correct assessment Of
the invisible property would add many mil
| lions 10 the tax list and reduce the unjust
burden now resting on the visible property
Of the state.
The difficulties attending assessments are
| great They are enumerated as follows: Re-
fusal on the part Of the owner 10 properly
list his property; want Of knowledge regard
ing its value on the part of the officer, and
reluctance as to what may be considered a
censorious inquiry concerning private af-
fairs, are the stumbling blocks that lie in the
Way. A thorough assessment is not induisi-
torial, and the disclosing Of private affairs is
not the real objection, but desire 10 avoid
taxation lies at the bottom.
The law permitting deductions of debts
from credits is radically wrong to prove
which several examples are given. Nothing
is more easy than 70 create debts for the
| purpose OF evading assessments. and IL is
through this door of deductions that vast
amount OF property escapes its fair propor-
ton OF taxation. The scheming, adroit, I'M
scrupulous man who unfairly reduces his
assessments, arbitrarily assesses his more