The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1919-04-08
iBy United Press.

ed by the last legislature, dominated
by the Nonpartisan league, Is under
referendum fire. League leaders,
some of them favor the referendum,
insist today that the voters are back
of the league program and the state
referendum will approve all the acts
that are essential to the nonpartisan
plan.
The referendum petitions were
chiefly ciculated by the Independent
Voters association of which Theo-
dore Nelson Is secretary. Nelson mas
charged that the Nonpartisan
leaguers have asked their members
not to sign these petitions. This In
turn is denied. The battle between
the league and Its foes Is raging as
bitterly as during the last election.
The chief measures involved IN
the referendum petitions are:
Creation of state Industrial COM
mission, with authority over the
handling Of a $10,0Q0,000 bond issue
for farm loans.
Creation of the state bank OF
North Dakota.
Creation of a state terminal eleya-
tor and -four mill project, with $5,-
100000 capital.
The entire Nonpartisan league
program centers in these three mea-
sures. The industrial commission
with departments now under organ
tzation-is composed Of Governor
Lynn J. Frazier, Attorney General
William Hangar, and Agricultural
and Labor Commissioner John N.
Hagan.
More power for state development
Is held by this commission than was
ever before allotted. to any political
body in the history of the country.
All three members of the commission
are elective and subject to recall.
They will conduct and manage. all
state-owned industries, enterprises
and business projects, now or here
after established by law. They make
rules and regulations for all state
industries, appoint all employees, fix
their bonds and salaries.
Already the basic institution Of all
state-owned and operated institu-
tiorls Ia under Organization by the
commission-the state-owned and
operated bank. It. will become a
center for all banking interests OF
the state, repository for all public
funds, fiscal agent for all state en-
terpriseS, may be reserve agent for
700 State banks, and Is capitalized
for $2,OO0,000, provided by state
bond issue. Its resources will, 1t Is
estimated, range from $75,000,OOO
to $3.50, 100000.
Through the bank will be conduct
ed the states new farm loan asso-
ciation-6nanced by a $10,OOO,000
bond issue There's $4,000 loan
limit for establishing farm homes
and a $4,000 loan limit for building
city homes under the home building
association provisions.
>'dProbably the next big, step OF the
industrial commission will be organ
ization and construction of state
owned and operated elevators and
flour mills. They can be erected
not only within the state, but at any
point the commission thinks a ter
minal elevator Is necessary to the
interests of the farmers.
To Finance Projects.
TO finance these projects, a bill
was passed authorizing the issuance
OF 317,000,000 worth of bonds. The
authorization was divided to give
$10,600,O00 for rural credits financ-
ing; $2.000.D00 for the state bank
and S5,000,Q00> for mills and eleva'
tors. The bonds must be retired with
in 80 years. Payment Of the Interest
and income on the $17,OO0,00O au'
thorlzations Is guaranteed through
provision for an annual tax levy tC
make up any deficit in the earnings
of the utilities which they are tc
finance. An interest and sinking
fund of s1.100,0O0 per annum will
be required to retire the bonds In 80
years.
The state mill and elevator admin
istration will not be limited to opera
tion of mills and elevators, but may
establish other marketing facilities
for farm products. Not more than
$1,000,O00 Of the 100000 author
ization Is expected to be launch ed
this year, nonpartisan leaders say
but within a few years If things
60 we'll with the project, the state
will have the biggest commercial and
producing organizations in the
world"
Taxation measures passed by the
legislature, some of them more ex-
tensive than. any in existence in
other states. included an income tax
to yield 100000 per annum; a
corporation excise tax. expected to
earn 100000; q gross sales oil tax,
estimated to be worth $450,000 a
year; revised Inheritance tax law
expected to bring in 100000 addi-
tional annually; moneys and cred
it's tax, estimated good for 100000;
revised motor vehicle tax, worth
$4S0,000; fiat tax Of cents per
acre for a state hail insurance fund,
good for 100000, and a sinking
and interest fund for retirement of
state bonds.
Property valuations on all classes
were boosted over a quarter of a
billion dollars, but the levy for state
purposes was not changed.
Abolish State Board.
Regulatory measures Of the legis-
lature brought about abolition Of the
state board Of control, state board
Of regents and board Of education,
but grouped all these departments
under one commission, to be made up
of five persons, three appointed by
the governor. The body would con-
troll all public schools as we'll as
penal and charitable institutions.
The bill did everything but eliminate