The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1913-06-12
COULD ABOLISH TAXES
Banker Points Out Way to Make
Idaho a No-Tax State.

Weiser, June 5.-Senator D. w.
Davis, president of the First National
Bank of American Falls, in an address
before the State Bankers associa-
ton, presented argument showing
that by proper disposition of the
states resources, a fund could be
created, the income from which would
make Idaho a no-tax state inasmuch
as that income would bear all pub
lie expense of every kind. His adj
dress was listened to with marked at
tention because of the startling array
of figures presented by him to es-
tablish his claim.
"0ur government, municipal, coun-
ty and state is costing too much mon
ey per capita. We need five million
people instead of a few thousand that
we now have. The way to get these
people is to see that every citizen is
paying his full and just share of the
cost of administration, but see that
that share is in keeping with what
he has.
At this point [ want to say that
the most important question to come
before the people of this state is the
application of modern business me-
thods to the handling of its resources
We have outgrown our constitution
in this respect. 1t must be amended
so as to permit the most rapid sales
possible, as is consistent with good
bushes, of our state lands. We have
1884, 900 acres unsold. Under the
present law we are allowed to sell 25
sections of 10000 acres per annum.
This amount is only small part of
what is applied for each year At
this rate, it will take us 1873 1-3 years
to dispose of our holdings.
"For arguments sake, l will put
the sale price of our land at the low
average of ter dollars per acre. not
withstanding the fact that the 1884,
900 acres that we have sold prior to
this year, averaged over SIG per acre,
and furthermore when our white pine
timber is sold, it will run well up
into the thousands per quarter sec
ton for it is well known fact that
it is the best body of white pine tim
Der in the world Advertise these
lands thoroughly, hold annual sales,
and we can sell 100000 acres year. |
This would enable us to sell our hold |
ms in 10 years and add three million
yearly to our interest bearing secur-
tiles. This interest we could loan,
thereby increasing our earning power
by this increase in funds. Now, we
have sold our lands at the low aver
age that | have placed on it, and we
have received S29,340,000 in cash and
interest bearing contracts, by loan
ing our earned interest and payments
each year at 6 per cent, our earnings
have been $16,177,00O, which brings
our dormant resources into live
and active asset of $45,517,000. We
will now add to that amount the 49,
100000 which we had on hand when
we started to liquidate our taxes,
bringing our working fund to the
handsome total of $54,017,000. You
will notice. that / have not consider
ed the earnings on the S8,500,000 up
to this time, because that is already
being used in the school fund, and if
taken away would increase our taxes
in proportion to the amount 1t now
pays.
At the close of 90 years the state
would have the enormous sum of
3O,913,000. Four per cent interest J
on this gives us a gross earning pow |;
err of $37 ,236, 000-income enough per
annum to meet all combined needs of
this state forever. If we continue I'M
der the present system, we will never
have more than the sale price re-
ceived for our property. If we adopt
this plan, we will benefit the state
in other ways, as well.
"Let us see what returns we are r
now getting on an acre of land; if it e
is leased we get 71s cents per acre b
for grazing, for agricultural purposes, u
Is cents, but it we sell it, we will get ]
he interest on the purchase price, and f
he taxes on the land, which would q
BRING in from 81 cents to S1.50 per il
acre, depending on the sale price. 2