New-York tribune., 1919-04-05
Concerning the Nonpartisan League
The Business State
Varied Ramifcations of the
North Dakofa Experiment
By Kenneth Macgowan

of 81 per cent to about per cent, quite
apart from the effect of the club that the
state holds over the private banks.
Another bill related to the banking and
bonding acts provides for home building
by the state at cost. Upon the payment of
~ per cent of the price of the finished
house, the state will see to its erection and
turn it over on long term payments to its
future owner
Another state industry started bv the
Legislature is coal mining. A large part
of the western end of North Dakota is
heavily underl&d with Ignite, curious
half-carbonized fuel, harder than peat, more
hpNl than soft coal and containing about
oo per cent moisture. At present it is only
partially developed. A few of the towns
are lighted and heated by Ignite and most
farmers IN the neighborhood of deposits
use 1T IN their stoves. The weight of the
moisture is against its use at distance.
The mining bill provides for further ex
pertinent in the drying and briquetting of
Ignite and the making of gas from its
by-products, along lines already worked out
at state educational institutional Of the
industrial bills, this is the least Immediate
Long and Short HauIs
The Legislature has taken number of
steps to protect it's state industries from un-
fair competition at the hands of monopolies
Its railroad regulation bill will insure
fair rates on mill and packing house prod
ucts to eastern points. The principal pur-
pose of this legislation, however, was to
end the vicious situation by which rail-
road rates between points in North Dakota
have been higher than for longer hauls out
of the state. This has penalized the North
Dakota farmer and North Dakota industry
and worked the advantage of milling, bank
ing and railroad interests in the Twin
Cities.
Another law which will protect the state
industries, as we'll the farmers in gen.
eral prohibits price cutting in favored
sections of the state Prices can only vary
by the difference in actual transportation
costs.
The Legislature passed a new public util
tiles measure providing for the fixing of
rates in future the basis of actual money
investment, excluding franchise rights or
unearned increment from the valuation.
Hybrid Taxation
Partly to back the programme of state
industries, but also to carry out some
league ideas as to social Justice" the
Legislature reorganized the tax system of
the state. Most of added expenses of the
state Will be borne Immediately by the
bond issues of about S17O0O,OOO author
ized. But the tax return will be increased
about 20 per cent to cover interests CHARGES
etc.
There are two principal angles to North
paKotas tax reform. One is the institu
tlon OF mild form of the single tax. The
o'her IS the reclassifcation of property
taxed. In addition there are various now
income, corporation and inheritance taxes
theoretically the league leaders undonh+-
edly stand for thoroughgoinp SINGLE toy
There are indications that they tried r.
put 1t into force, but that the farmers
feared that it would mean the natiora,;u.
tlon of land, and baked. At anv ra+o
the results has been a hybrid form rnaon
winch the farmer is exempted from nav
ing taxes on mprovements-rood s;nrIo
TAX doctrlne-but the city dweller occnnv-
ihs property above minimum of 50 5Oo
IS taxed on all improvements in the oood
ola way. League apologists saw this 10
because the exemption of farm ;rrrov.
ments has been long agifated oncst;o,
IN North Dakota, while the citv dwe,,er
has always lodged any experiment with
'"e single tax. League opponents say that
'''e LAX piii' like many of the other league
measures Is class legislation, albeit for
a class that forms S5 per cent of the pop
ufatlon. Certainly one purpose is to strike