Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-09
HOW TAX MONEY is
WASTED

a ports, the state of Montana is
nearly a million dollars worse in
debt than it was when Gov. Dixon
took hold of the state house and
state expenses. The salary roll
has been greatly increased we are
creditably informed. and every dol
lar available has been scratched
together to pay for the Conley
prosecution. The next legislature
will find all funds exhausted.
One of the ways in which state
tax money has been wasted is by
the issuance of a large part of the
five millions of dollars Of educa-
tional bonds voted by the people
long before the money was
needed. That five million was
supposed to meet the needs of our
higher educational institutions for
new buildings for the next ten
years, but almost as soon as they
were available a large proportion
of the whole amount was sold and
are now drawing interest, though
not yet needed for construction
work. The following charges are
set forth by the Democratic State
Committee in a communication just
received by them, and headed
How Gov. Dixon caused the loss
of $4,000 to taxpayers in one
year."
Amount of educational bonds au-
thorized by people at election OF
1920, $5,ooo,ooo.
Amount sold to June 80, 1922,
S3,2eo,5oo.
Amount used for buildings and
repairs as authorized by people,
S~se6,o35.56.
Amount unused, but on which
people have been paying S IL per
cent interest, $2,433.464.44.
Interest charges on bonds sold
in excess of requirements (S2,,
433,4e4.44, at S IL per cent?,
$133,s4o.54.
Interest received from $l,5le.-
1886 invested in state warrants
at 4 per cent interest, seo,7ei.o4.
Interest received from banks or
remaining 1913, ess.4s at 2 IL pei
cent interest, S~1s,273.76.
Total annual interest earned or
basis of condition as shown BY
state treausrer June 80, 1922
$7e,oe4.So.
Annual loss to the taxpayers o.
Montana by reason OF over-issu'
of bonds, S~54,775.74.
Fifty-four thansond, seven hun
bred seventy-five dollars-ss4,'
775.oo-is the direct loss to thu
people of Montana for n year a
a result of the way Governor
Joseph M. Dixon has handled thu
$4,000, ooo.o issue of educationa
bonds authorized by the voters tws
years ago for the purpose OF erect
ing new buildings at the highe'
educational institutions.
According to the records in tn
office of State Treasurer ]. w
Walker, s3,2oo,soo of these bond
had been sold when he closed tn
fiscal year, June so, 1922.
Up to the same date onl.
Sse6.o35.6 had been used for tn
erection of buildings or repair
contemplated in the building pro
gram at the university and relates
institutions. This leaves a balanc'
on hand of S2,433,464.44, on whicl
the state is paying and has BEEF
paying for practically a year S l.
per cent interest.
The bonds were sold by tn
board of examiners on the insist
ence of Governor Dixon. Both tn
attorney general and the secre
tay of state opposed selling sue
a large amount of the bonds taste
than the money could be used. bu
the governor insisted and the re
suit is a net loss to the state TO
the year just ended of $~S4,775.7'
The interest charge on the "
433,464.44, which the state treas
urer shows as on hand, has bee
Sl33.s4o.54. This is q drain whic
could have been prevented had tn
bonds been sold only as needed
even in blocks of $5o0,0oo at
time.
Of the S2,433,464.44 on hand
a result of the oversale of educs
tional bonds, S1,sle,775.e6 was If
vested in general fund warrants
the state of Montana on June 81
1922, and $el3,6ss.4s was distrit
uted among various banks in tn
state. 1t draws 2 IL per cent II
terest, the rate fixed by statute o