Grand Forks daily herald. (Grand Forks, N.D.) 1914-1916, 1914-10-13
TAX COMMISSION
PROBING RECORDS
Get Intangible Prop
erty Placed on Assess
ment Rolls of State.
KOSITZKY HERE
TO BEGIN WORK
Returns in all Counties have
Been Inadequate in
Former Years.

Former Years.
An investigation Of the records of
Grand Forks county, with a view to
placing on the assessment rolls O
large amount of intangible property,
which a heretofore escaped taxa-
ton. was commenced today by c. r.
kositzky, secretary Of the state tax
commission.
MIR. Kositzky expects to be busy
with this work for the next week.
Similar Investigations will be made
by the commission in other parts of
h state in the effort to get all of the
g property on the rolls.
Mr.. kositzky today. has grave
doubts as to the economic justice of
levying the general property tax rate
upon certain intangibles, it is the law
Of h state and they have no choice
In the matter unless the constitution
Is amended and the legislature enacts
classification laws which will place
a lighter burden upon money! and
credits.
an enormous quantity of this
class of property is escaping taxation
cannot be questioned. Last year UNI
der franchises and patents, n
credits. bonds and shares OF capital
stock, $864,023 a listed for assess
ment. In addition there were $685.
IN all intangibles to the amount of
s4,7S7,747 assessed. That this is not
greatly in excess of one per cent of
that class of property in the state
cannot be seriously questioned. For
instance, the 1913 report of the COM
missioner of internal revenue places
the capital stock of corporations or
QQ ni1n6 lYn6aN tho l4r,- - kLs- .xx-
tne stock of which is a~ssessable here,
at ~$66,OO1,522, and the funded debt
or these corporations at s25,537, 06O.
Bank stock is included in the sixty
million Of capital stock and much of
n twenty-five million of funded debt
may be owned outside of the state.
The surplus and undivided profits of
posted In banks $92,012. LOG. In 1910
the United States census found the
farm mortgages on farms actually
owned by the operators at $47,
bS7; this brings the total of these
intangibles up to 36,595. S44.
This very large figure does not in
clude promissory notes. book ac-
counts chattel mortgages, city real
estate mortgages. real estate mort
cages on land not owned by the &C
tual operators. moneys not in banks
and many other forms Of intangible
property. There can be little cues
ton but that the intangible property
OF this state is in xce Of five hum
dred million dollars.
From this amount should be de-
Quoted the real and personal property
Of corporations. which being taxed
otherwise Ia deducted from the capt.
tai stock of such corporations; also
the Indebtedness (Which is absolutely
wrong.) must be deducted from the
capital stock of corporations, but aft
er making all possible deductions 1t
seems clear that the actual value of
a~ssessable intangibles of the state
would be In excess of three hundred
and twenty million dollars. Applying
a rs per cent Of the ratio of assessed
to actual value We get eighty million
dollars, n applying the average tax
rate OF the state we get in excess Of
three million dollars.
The tax commission does not ex-
pect to do What no other taxing au-
namely place all intangibles on the
lax roll. but we do intend to make
an earnest effort in that direction
and expect to secure many millions
Of dollars.
ut is simply astonishing the ease
With which this class Of property
escapes taxation. Take for instance
SAnSoAiSoSiou ANO. 10 Oh the assessment
rolls. Moneys other than those Of
banks, bankers and brokers' In 1913
n moneys on deposit in the banks
was in excess of ninety-two million
dollars, while there was $22S,768
found by the assessors under this
item. At statehood in 1890 this item
was $317,731. so that it has actually
decreased % per cent in a quarter Of
a century. On the other hand moneys
in banks has increased from $4,O22.-
1858 in 1890 to $92,012,1 LOG in 1913,
or 2,199 per cent. It does not speak
e for our tax system that while
the moneys listed for taxation de.
creased % per cent in rs years., the
moneys on deposit in banks increased
2,199 per cent.
Take the moneys listed for taxa
ton In counties n compare It with
the moneys on deposit in banks: Cass
county had on deposit in 1913, S.
950,144, while the assessor found SOL
220, or eight-tenths of one per cent.
When it is remembered that money
In n does not represent all OF the
moneys in Cass county except those
of banks, bankers and brokers, It will
be seer hat this class Of property
Is escaping taxation almost altoreth.
er.
I'm 1913 there was on deposit in
the banks Of Morton county $3,112,-
725 and there was listed for taxation
under this item-nothing. 1t all es-
capped. I'M 1913 there was on deposit
in h banks Of Pembina county more
than two and one-quarter millions Of
dollars, and yet not q single dollar
was returned for taxation; in Stark
county there Was on deposit $2,622..
422 and no returns made of moneys
for taxation: In Dunn county there
was on deposit in 1913 about 1925, 900
and no return made for taxation; in
Golden Valley county about 100000
on deposit in banks and no return
made for taxation: in Renville county
there was approximately one million
dollars on deposit and no returns
made for taxation: In 1913 there was
on deposit in Burleigh county 1885,
PIT and the princely sum Of $3.50 re-
turned for assessment. Cass county
leads all other counties in the return
of moneys and credits. Grand Forks
returned but 5000. while Dunn.
Golden Valley, Morton, Pembina, Rem.
VILE and Stark made no returns.
I'm 1913 while the internal revenue
commission found the capital stock
Of domestic corporations in North Da-
kota to exceed sixty-six million dol
lars there were but $47.459 returned
under this item for taxation.
Credits other than those Of banks
were assessed in 1913 at $434,844; the
shares Of capital stock Of foreign cor
porations was 369,086, while fran:
chises, annuities, royalties and patents
were valued at $73.779.
1T can readily be Q that intanRi-
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