The herald-advance. (Milbank, S.D.) 1890-1922, 1909-01-15

Gov. Crawford. the retiring governor,
deals at some length with the finances
Of the state and urges the necessity
for economy. He says:
In a young and rapidly growing
commonwealth like South dakota. each
succeeding session OF the legislature
IL pressed hard by the representatives
Of its institutions n the growing
demands of its officers, as well as by
the needs of its people, for increased
appropriations. Two years ago the
legislature. in response to insistent
and jealous appeals. based In most
:ases upon actual merit, increased the
appropriations considerably above
those made during the four years
preceding.
To provide for the payment OF the
general appropriation for ordinary cur
rent expenses Of the state adhministra-
ton. the state board levied a state
lax Of 2 mills in each Of the years
1907 and 1908. and also levied an ad-
1itional mill in 1907 and an addition
Al mill in 1908 to provide for defcien-
,ies in revenues; and in 19O7-as d.
-ected by the legislature-it levied IA
mills for the installation of a Irvine
plant at the penitentiary, making the
total levy Of state taxes for 1870, ~
mills, and for 1908, 3 mills. While the
above appropriations were reasonapls
necessary. and the state appears TO
nave received full value for the money
expended, the end Of the fiscal year..
Tune 80, 1908, shows an increased de-
acit which must be provided for by a
deficiency levy in 1909, and IT Is the
luty Of this legislature to firmly hold
the appropriations within q limit that
sill enable the state to keep its ex-
penditures within it's income. ana pay
It's, outstanding warrants.
Nhoto pIino fha fact THAI Inc
constitution has placed a firm limit
upon the ewes which may be made
for state revenues, II nOtWltnstahu-
ing the fact that only two years 9
liberal appropriations were maze Ior
new buildings for the institutions, the
reports submitted to the governor Tor
the biennial period now ending, sho"
a list of new demands which the con-
dition of the state finances makes IL
imperative to postpone. we callhot
and we must not undertake 10 90 al!
these things at once. The heaus U,
the several educational ana penal anu
charitable Institutions including inc
soldiers home and the boards OF con-
troll, recommend special appropriations
amounting in the aggregate 10 more
than a million dollars, not lncluoing
the mounts recommended by the
state capitol commission as necessary
TO enable it to complete the erection.
furnishing and equipping OF the halt
completed building.
The governor reviews the work that
has been accomplished in the puliulns
of the new state capitol. Contracts
have been entered into for So4O.ooZ LOT
the erection of the building and $3S,0O0
for heating and plumbing. Construc-
ton work has progressed satisfactory
and will be completed by Jan. /, 1917.
For additional work in furnishing the
building and landscaping he grounds
etc, 1904, 900 will be needed.
Under the law passed by the legls-
,atura of 1907, relating to the assess
ment and taxation of the property OF
railway, telegraph. telephone, express
and sleeping car companies, the state
board OF assessment has peen aple 10
procure much additional Information
regarding the value of property OF
ALWAYS and other public service cor
porations in the state, and &c assess
the terminal and structures OF ran
way companies situated WITHIN the
limits of incorporated cities and towns.
The law has proven to be a most ex-
eollent one.
While the constitution contemplates
that all taxable property shall be as
sessed at it's full cash value, 1t IS no
toriously true that local assessors as
sess it at from one-f1fth to one-thlrd
of its actual cash value. and this as
ssssment is eQualized on that basis
by the city and county boards or
equalization. In performing its du-
ties as a state board of equalization
the state board is limited by lew as
to he extent to which it may raise
the aggregate valuation OF the tax
able property Of the state. The state
board, when 1t comes to assess the
property Of the railroads, express,
sleeping car. telegraph and telephone
companies. must apply the same aver
age ratio to true value that is applied
to the assessment Of other property,
because section 2 of Article ri. OF
the constitution declares that the rules
prescribed by the legislature for the
appraisement and assessment OF
property in the general law must be
such that every person and rpora
tion shall pay a al in proportion to
the value of his, her or its property"
In attempting to comply with the
spirit Of this declaration of the con-
stitution, the state board aimed, in
assessing corporate property and in
eQualizing the assessment of other
property. to apply a rule by which. so
far as ascertainable. all classes of
property would be assessed at one
third of the full value.
The general results are, however,
far from satisfactory. Owing to the
incomplete and often misleading char
acter of the returns made and the
uAAA CltdOlllNy Vi l I0NAoh ACSClScu
injustice Is frequently lone to in
dividual owners by the action of the
state board. A very large amount OF
property Is not returned at all and
consequently escapes all the burdens
OF taxation.
Millions Of dollars deposited in the
banks or loaned out on interest bear
ing securities are not listed by the
assessor and cannot be reached by
the state board.
The revenue law of South Dakota
does not furnish q remedy for these
slaring defects. I heartily agree with
the outgoing state treasurer in the ad-
vocacy Of a law creating a non-parti-
san. appotntive tax commission. The
proposed amendment to the constitu-
ton. submitted to the voters by the
last legislature n rejected by them.
had in view a change in the organic
law which would permit a graduated
or progressive tax upon Incomes and
inherita aces and contained some excel
lent provisions. The fatal defect in It.
and the n which undoubtedly caused
it, defeat. was the proposed removal
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