The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-03-03
BILLS PASSED BY SIXTEENTH GENERAL
ASSEMBLY ALREADY SIGNED OR READY
FOR SIGNATURE OF GOVERNOR FRAZIER

TVn I
The adjournment of the Sixteenth
legislative assembly leaves North Da
kota with new constitution, with
revolutionized system of taxation ant
program of industrial democracy
which, unless repudiated by the people
through the medium of a referendum
election, must radically change the
plan of state government under whlcf
North Dakota has operated for three
decades. The whole number of law:
passed by the 10th assembly was com
paratively small. Their effect, how
ever, promises to be greater than the
acts of any previous Legislature.
Industrial Democracy
In the establishment of an industrial
democracy we find the constitution
amended to permit unlimited state
ownership of utilities, enterprises anc
industries, to be financed without stint
through the issuance of state securl
ties which form first mortgage upor
every dollars worth Of property in the
state. The payment of the interest
and income on the $17,OOO,OOO issues
already authorized is assured through
provisions for an annual tax levy tt
make up any deficit in the earnings
of the utilities which they are to ii.
nance. An interest and sinking func
of $1,10O,0O0 per annum wi II be re:
quired to retire these bonds in 81
years.
The legislature has provided for q
vast distributing and marketing sys-
tenn which shall have it's headquarters
in this state, but which may establish
branches in any other state or in for
eiRn countries, under the name of the
State Mill & Elevator association
Primarily, the purpose Of this associa-
ton, financed by 100000 bond
issue, is to establish terminal elevators
and flour mills within the state, but it
is not limited to this enterprise, vast
US that alone may be.
The Bank of North Dakota, a most
radical departure in public financing,
becomes under the law which creates
it q center for the banking interests
of the state, repository for all public
funds, fiscal agent for all state enter
prises, reserve agent for 700 state
banks. Capitalized at 100000, pro-
viding for by state bond issue, It's
resources will, it is estimated, range
from $75,OOO,O0O to $15O,00O,OOO. The
bank, together with other enterprises
in which the state is about to embark
is placed in control of an industrial
commission to be composed of two
farmers and lawyer, none of whom
has had any experience in finance or
industry.
Through the Bank of North Dakota
will be conducted the states farm
loan operations, financed by a $l0,-
100000 bond issue. The bank will
also be repository for the funds of the
State Home Building association,
which is to conduct building and
loan business on a statewide scale
and to include in it's operations the
purchase and sale Of farms as we'll as
city homes. All of these measures, to-
gether with the bill creating the. in
dustrial, commission which is to man
age the states various enterprises,
carried emergency clauses, exception
the case Of the home building asso-
citation, and the acts, having been
signed by the governor, now are in
effect. e,7 mn nm :, ponds
Three bills passed by the Sixteenth
assembly pledge the states credit to
the amount Of $17,000,0O0, SIC, 1000, 900
for rural credits; $5,OOO,00O for the
state mill and elevator association,
1900, 600 TO rthe Bank of North Da-
kota. All of these issues will pay six
percent interest and will run not to
exceed 30 years. There is no provi-
sion that the mill and elevator and
Bank Of North Dakota bonds sell at
par. A clause to this effect was in
corporated in the rural credits bill.
These bonds are secured by every
dollars worth of property in the state.
Provision is made for the creation of
an interest and sinking fund from the
earnings of the enterprises financed.
If these earnings fall short, the deficit
will be spread upon the tax rolls. An
average fund of $l,1OO,0OO per annum
will be required to pay the interest
and retire these bonds in 80 years.
The issuance and sale of these securi-
tbs is to be regulated by the industrial
commission. Any or all of these bonds,
including its own, may be purchased
by the Eank of North Dakota with it's
deposits, public funds on deposit in
this institution being held to be avail
able resources"
M Revenue Measures =.
The Sixteenth assembly devoted
much of its attention to revenue meas
ures, which include an income tax ex-
pected to yield 100000 per annum ;
q corporation excise tax, relied upon
to earn 5000, 900; a gross sales tax on
oil, estimated by the tax commission
to be worth $450,0O0 per annum; a re-
-vised inheritance tax law, expected to
increase receipts from this source to
100000 per annum; a moneys and
credits tax estimated at $50, 900; re-
vised motor vehicle tax, expected to
yield $48O,O00; a flat tax of three
cents per acre for the hail insurance
fund, estimated at 100000, and a
sinking fund for the retirement of
state bonds an da quarter-mill tax for
the soldiers, conservatively estimated
at q combined total Of $1,00O,00O.
The one important piece of tax leg