The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-03-07
EQUITY MEASURE
. IS FIRST To GET
/. GOVERNOR $ AXE
President Johnson and Other
Leaders Had Been Instru-
mental in Compromise
STANDS OUT FOR BONDS
IN LIEU OF TAXATION
Eschews Direct Tax Proposition
Also Contends Flour Mill
Is Imperative


Senate Bill "a, providing for the
construction Of terminal elevator
and appropriating 100000 to be ex
pended for this purpose by commits
sion to be named by the governor, is
the first bill passed by the Fifteenth
legislative assembly to fall under the
executive axe.
Governor Frazier exercised his veto
power in Staying this measure at {
o'clock last night, and in so doing he
set back for another two years al
least the realization of the North La
kota farmers ambition for state
owned terminal elevator.
The governors action was not un
expected Townley, H. B. Wood
Lemke and other league leaders have
been in conference with the governor
during the week. 1t was rather anti
cipated that 'S4" would never would
procure gubernatorial approval.
Was Equity Measure.
Senate Bill "a was drafted along
lines proposed by President J. M. An
derson of the Equity exchange, Pres
ident NJ P. Johnson of the North Da
kota Society of Equity and other lead
ers of this great cooperative associa'
ton who were here for the annual
convention early in February. Equity
influence was instrumental in bring.
ing about compromise between the
senate and the house in the closing
hours of the session, when it became
apparent that the league majority in
the house was intent on killing the
bill. The governors action in veto
ing "84" will, local Equity members
fear, tend to still further broaden the
rift between the league and the
Equity and hasten the day when the
differences between the two organiza
tions must sGtflminate in a "show
down." 'a;~ 'hh1HH ,'l7'"2., (:
President Anderson pleaded for a
100000 terminal elevator at st. Paul
to be built by the Estate and leased to
the Equity exchange, which he guar:
anteed would pay eight per cent on
the investment, or sufficient to pay
interest on the bonds, and a fair
amount each year toward a sinking
fund. He did not feel, as Governor
Frazier states, that the sum suggest,
ed would be too small to provide ter
minal facilities which would enable
the exchange to become a factor In
the Twin Cities markets. Three hun
dred thousand, President Anderson as
sured the senate committee when "S4
was under consideration, would build
a 500,0O0-bushel elevator, and would
give the Equity. an opportunity to
prove it's theories of cooperative mar
keting. .-
The Governors Statement.
The governor, this morning, gave to
the press his veto message, which fol-
lows: ..
ITO the Honorable Secretary of State:
II file herewith Senate Bill "a, an
act to provide for the creating of a
commission, the selection of loca-
tion, erection, leasing, operating, rent
ing or sellin, one or more terminal
elevators, either within or outside the
State of North Dakota, and making an
appropriation therefor, without my ap'
proval for the following reasons:
First. This act provides for the
building Of an elevator or elevators
by direct taxation. feel that the
taxes are high enough and in view OF
the condition of the states finances
and the financial condition of the peo.
pie, an increase of the taxes is unwar-
ranted and undesirable.
Cites CIV E3ond Issues
"Our state permits cities to issue
bonds for improvements such as sew
ers, water works, paving, electric
light plants, etc. This method has
proven to be the correct principle and
has given general satisfaction. l be.
lieve the state sheuld follow the same
principle in the building of terminal
elevators or other state-Owned pro.
jects for the benefit of the farmers
who pay the greater part of the states
taxes and produce most of its wealth.
Second. l believe q state-owned
terminal elevator without state-own.
ed flour mill to grind the wheat into
-four and demonstrate its true milling
value, thus showing the wide differ
ence in the price received by the far.
mers for wheat and the price paid by
the public for flour. would be fail
ure. Such an elevator in this state
without a mill would be of no value
unless it were large enough to handle
or control all the North Dakota crop.
In fact, 100000 would not even fin
ance such an elevator if it were al
ready built.
Against Foreign Elevator.
Third. This act provides that the
elevator may be built outside the
state. am satisfied that the people
of North Dakota would take no pride
in building such institution in anoth-
or state, especially in a state where
the grain gamblers still control the
marketing and influence legislation
in their favor. Should the elevator
be built outside the state, It would
(Coofinue1 O FaGe t0aFl