The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-12-24
Arguments Made by President
Wallace of North Dakota
Club.
FAvoR1Na PROPOSITION
Have Been Sent Out to the
Commercial Clubs What
johnson Says.

0COI6C E' WdAAoCcs pEcSAucuI VI lnc
State Association Of Commercial clubs
of the state of North Dakota, has pre-
pared a letter which he has sent out
to all of the commercial clubs of the
state Of North Dakota relative to as
sessing real and personal property of
the state. President Wallace has CIV
en- this subject close study and a
thorough investigation, having visited
many of the cities and towns where
commercial organizations are located,
and he outlines in the letter to the
clubs several good features to be fol-
lowed out. It is stated by Mr.. Wal
lace that the rate of taxation at the
present time in many of the cities of
the state and the fact that many of
these cities are now up to and beyond
the debt limit, is drawback to their
growth and has stunted the growth of
many Of the cities because capital,
after learning the high rate of taxa
ton and the financial conditions of
the cities, are prevented from coming
to this state to invest. He also re-
quests that efforts be made to en-
force the law in this state which pro-
vides that all property, real and per-
sonal, shall be assessed at its full
value for the purpose of taxation, and
not assessed at about one-third or
fourth of its true value, as is in
vogue throughout the state. His let
ter to the commercial clubs, which
he asks to assist him in the fight, is
as follows:
To the Commercial clubs of North
Dakota: We have law in this state
which provides that all property, real
and personal, shall be assessed at its
full value for the purpose of taxa
ton. This law has never been en-
forced, but instead, property has been
assessed at about third or a fourth
Of its true value, and differs in differ
ent parts of the state. This is adj
verse to the interests of the entire
state, and a matter which should be
remedied. In cities this false valua-
ton is felt more than in the country.
Public improvements make it neces-
sary for a progressive city to levy
a heavier tax than is levied in the
country. Waterworks must be pur-
chased or maintained: the city must
be provided with lights and efficient
police force and fire department must
be ready to meet all emergencies;
cities must pay a small portion of
sewer and paving assessments-all of
ORC {,H f11
ment of every city.
At the time the present law was
passed requiring property to be as
sessed at its full value, it is presumed
that the law makers considered it nec-
essary, and expected it would be COM
piled with.
In my home city we are purchasing
a system of waterworks and are in
need of paving. If this law were en-
forced it would allow the city to raise
more. than enough revenue to relieve
the situation. This is also the expert
ence of nearly every city in the state.
The law allows cities to levy 20 mills
on the assessed valuation, and should
greater rate be established, portion
of the tax, at least, could be avoided,
even though based on a false under
value. Take a concrete example. The
present assessed valuation of Wahpe-
ton is 100000. This city needs t.
raise about $4,000 for various pur-
poses, including a yearly payment of
$4,000 on the waterworks plant. At
20 mills on the dollar the city can
levy a tax not exceeding $4,000,
which is $1,000 short of the amount
actually needed. The property is as
sessed at about one-third of its ac-
tual value, making the real value
$1,SOO,O0O, the true basis required by
law. Upon this basis the city of
Wahpeton could levy tax amounting
to $4,000, or nearly twice as much
as needed.
The debt limit is based also on the
assessed valuation of the property.
Nearly every city in the state at some
time desires to take up it's outstand-
ing warrants and issue bonds because
of the difference in the rate of inter-
est. Whenever bonds are sought to
be floated to take up excessive debts,
the eastern markets invariably refuse
to purchase them. This would be OBJ