The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1916-03-17

home in the making of war material
or in the trenches fighting the enemy.
Fer this reason the Strong Man OF
England" viii no longer employ men
in his household, His present chauf-
feur is a Miss Marsh. with whom he is
we'll satisfied.
10 years for not less than $29.340, 900.
True, his figures are based upon
the minimum price Of $40 per acre.
but it is also true that he supposed
1t all sold, regardless of legal and
other difficulties, and regardless of
the fact that much of the land owned
by the state may not sell for $40 per
acre within century. Remembering
that the state is now at liberty to sell
the timber on any of its lands, but
that purchasers are not forthcoming,
1t is safe conclusion that the state
would have to offer its resources at
bargain counter prices to sell them all
within 10 years and that, so sold, they
could not be expected to bring much,
if any, more than the amount assumed.
senator Davis seemed to assume
that none of the interest on amounts
received from this forced sale would
be used for current school expenses
during the 10-year-sale period, for he
states that at the end of the period
our working capital, after adding the
amount on hand in 1913, $500 900,
WOuiu amount TO S54,0l7, 900. He said
We are now entering our eleventh
year with earnings of S3,241,0O0 C
per cent on the assumed working cap
itaD. Now estimating the cost of our
school at two million dollars per an
mum, it leaves us a surplus of 81 PAL
600 which would increase each year
by reason of keeping the annual sur
plus employed. He said further:
We would enter our twenty-first year
with fund of S70,375, 900, our thirty
first year with $93,070,000; our forty
first year with S179.57S,OO0 our sew
enty-first year with $421 ,S36, 900; our
eighty-first year with S64S.7l5.O0O;
and our ninety-second year with $780,
$4,000.
"The interest on these enormous
amoul Is Was expected to pay not only
our state taxes, but county and NUM-
cipal taxes as well. thus making Ida
no an absolutely taxless state. But
why stop with taxes? These magical
figures are now increasing so rapidly
that in a few years more than may be
made to provide for all our public and
private charities, build and furnish
our churches and Libraries, and, over
and above all, return to each taxpayer
something in the nature of a ii dend
on his rights and immunities as a citi-
zen.
These figures, so advanced, seem to
have been generally accepted as cor
rect, and such discussion as | have
seen in our newspapers have related
not TO the economic soundness of the
plan but TO the policy of its adoption.
1T is now time. however, to pune
ture this financial bubble by showing
the extremely erroneous assumption
on which it is based. If you have
never checked these figures, take your
pencil and do so now with me.
Owing to the necessity of amend
ing the constitution, Senator Davis
eleventh year could not possibly be-
gin before January, 1929. 1t will be
noticed that for this eleventh year
he assumed that the total cost of our
schools would be only two million
dollars.
Here is the fatal error lying at the
base of all his calculations, for even
in 1913 the cost Of our schools, as
shown by the report of the tax com
mission, was more than double this
amount to be exact $4.O99,441.57. OF
which amount $3,7O3.O1S.47 were rails
ed by direct taxation and 1896 .423. 10
were derived from interest on the
permanent endowments. Senator Davis
assumed in his calculations that the
cost of our schools would increase
Tor the state as a whole at the rate
of fifty thousand dollars per year
Owing to the rapid increase in our
population, this amount may not be
unreasonable. Assuming this increase
for the years following 1913, the esti-
mate cost of our schools for the veal
1929, the earliest possible eleventh
year of the Davis plan would be, mo-
not S2,OOO,O0O as he assumed. but S4.-
S99,44l.57. After applying his esti
mated income for that year, 1924, 900
In part payment of this sum, we would
have, instead of a surplus of $1,241,
600, as found hv Sanator Davis. al
actual deficit of 1883, 441.57.
THE senator's assumption of a sur
plus was, therefore, fundamentally in
correct, his calculated accumulation
was based on error and was fictitious
but the cost of our schools, due to in
crease in population and other natura
causes, will continue to climb.
by the 'ninety-seventh year our can
ital, instead of being 1890. 913. 900
would still be only $54,O17.O 900. Tn,
earnings, at per cent, would still b,
only sS,241,00, but the expenses of III,
schools Of the state would have reach
ed at his estimated rate Of increase
the enormous sum Of sS.O49.44 81
after applying the income Of 1924.
600 the taxnavara of thnL .iinLnnA L >.