Daily capital journal. (Salem, Oregon) 1903-1919, 1919-05-24
DiUisiOn of Funds Under Plans
of County Court Insure
Equal Distribution.

pect that high rate of increase to 90 on
indefinitely, but figured on the ex-
tremely moderate increase Of 10 per
cent per year for the next four years,
five per cent per year thereafter for
the succeeding five years and no in
crease at all for the last five years,
Marion county would receive as its share
Of theoauto tax during the life of its
bond issue something over $4,000,
which would not only iquidate the en-
tire interest but pay off about $225,000
of the bonds as well.
Tax Increase Small.
If the Pierce market roads bill (the
so-called Grange measure) should pass
which seems almost a eertainty-the
county Of Marion will receive as an alb.
solute gift from Multnomah county the
sum Of $4,000 next year, under the pro-
vision that divides over two-thirds Of
Multnomah s share pro rata among the
other counties of the state each year.
With a reasonable increase In the ,aA.
able property Of Multnomah county the
sum Of 100000 should be available to
Marion county during the next l3 years.
But, allowing for the very improbable
contingency of no increase in valuation
at all, Marion s share Of this gift would
be $4,000 for the l3-year period. This,
added to the surplus of $225,000 from.
the motor license fund, would pay OIL
considerably more than half of the en-
tire bond issue, and one mill year of
direct tax for the years l924-33 would
more than pay the balance.
But supposing the Pierce bill should
fail to pass and supposing further that
the taxable valuation of Marion county
should not increase one dollar during
the coming 10 years-even then direct
tax on one and q half mills Or less per
year for the ten-year period beginning
1924 and ending 1888, when added to
the auto tax surplus, would more than
pay off the entire bond issue.
If the Pierce bill, under which the
state collects one mill tax from the
counties for market roads and hands it
back to them, passes il will alone pro-
duce an amount equal to the entire
$s50oOO bond issue during the 10 years
that comprise the life Of the bonds.
Tax Burden Light.
The infitesimal nature Of the burden
on the taxpayer may be gathered from
the fact, even if no part Of the bonds
were paid off by the auto Or state mar
ket roads taxes, and all of the bonds
would have to be retired by direct taxa
tion, the man whose property is assessed
at $4,000 would be taxed only $40 per
year for ten years beginning with the
year 1924, as his share Of the bonds. If
he is a land owner his property woula
gain in value far more than that from
the splendid system of county market
roads here proposed.
BY using the county credit and Dor.
rowing at a low rate of interest half OF
the money needed to build these roads,
we get them in five years instead of ten
and the-owner of the auto, who has
made the paved roads necessary, pays
the interest on the debt wunour a
whimpef In fact, he is glad to DO it.
rotai DeDL sman.
The total amount of the bonded debt
only two per cent of the county s
taxable valuation and really less than
1h per cent of the county real worth
lis 30 small as to render groundless the
fears of those timid souls who think
the voting Of the bonds viii start the
county on the road to the bow-wows.
las a rule, the farmer who pays cash for
9s@ per cent Of what he buys and uses
his credit only to the extent OF $3.50
on the hundred, or who borrows no more
than 5000 on a $4,000 farm, is thought
to be in pretty good circumstances and
q long way from the ragged edge.
As a matter of fact, many a farmer
boads his farm to the government up ~
50 per cent Of its value. in order to
have the advantage Of five per cent
money, obtained through the United
States government, using its credit for
the farmers benefit, and as the borrow
ed money is used to either improve the
farm or to take up the 5 per cent loan
against il. Il is good business at that.
Money Kept in County.
Then why gag at per cent loan
thst is to add TO the value Of all our
farms By eliminating the mud and
chuck holes. 1t would be well TO forget
the dreadful word "b0nds' and simply
realize that the county is giving its
note for Is years at a low rate OF in
terest 50 as to get capital TO build our
market roads in the near future instead
Of the distant future. And a. Marion
county credit is as good as that Of the
state OF government, there Is no reason
why our local capitalists should not buy
the dreadful ebondsn themselves ana
thereby keep all the moHeg At home
the same as Judge BusheY plans to do
By eliminating contractors profits
Il I : = =