The northwestern bulletin-appeal., 1924-09-27

sue, until the interest alone necsssi-
tates large tax levy. Other states have
had the same experience. In Iowa the
percentage Of Increase In ten years
has been 329, In Michigan sos. II the
tendency OF the last decade continues
during the life Of the present genera
tion our posterity win face q burden
that will present the alternative Of
conhscation or reputation.
The remedy is to compel the genera
ton that creates Indebtedness to dis
charge II. Enact legislation that will
make null and void bonds, issued for
any purpose except refundment OF
carry with them q definite tax levy
running over the period OF the bonds
sufficient at the expiration OF that
period to discharge those bonds.
II 10 said that the total public fndebt-
edness of the American people at the
present time is $40. .000. .oo0. 900. and the
wealth of America has been estimated
at S250, 0,c00. .000, 900. II appears, there
fore, that our public Indebtedness 10
1s per cent OF the national wealth.
We must set our faces resolutely
against proposals that will necessitate
large increases OF bonded indebted
ness. The so-called Farmer-Labor
party and its candidates are com
mitted to public ownership of trans
portation, including stockyards, large
abattoirs, grain elevators, terminal
warehouses, OF principal natural re-
sources, such as coal. oil, natural gas,
mineral deposits. large water powers
and large commercial timber tracts"
Il 10 impossible even to estimate the
result on public Indebtedness Of the
adoption Of this program in its entire
ty, for there are no satisfactory sta
tistics available as to the physical
value Of the property used in all these
industries. We can. however, estimate
the result of the adoption Of rela-
lively small part Of the program-that
part which contemplates government
ownership Of railroads.
II the government were to acquire
the railroads, II would have to buy and
pay for them, for We have o constitu-
tional provision that private property
cannot be taken over for public use
without Just compensation. That pro
vision We dare not abrogate, because II
the government could condscate Q ran
road II could likewise confscate farms,
shops and homes.
What would Il have to pay for ne
railroadsf Admittedly Il would not
have TO pay for "watered stock or
good VIII, but II would have to pay
the actual value Of an physical prop
srty used IN transportation. What 10
that valuef One valuation has been
made. Az result Of that val
uation Il was ascertained that the
physical value Of the railroad prop
critics Of this country In 1915 was &16.-
00.oo0.000. Since that time several
billions Of dollais have been added,
and Il has been estimated that the
value today IL $22.000, ,000, 900. To be
safe. let us put Il at $4,000, 100000.
That 10 9 per cent Of $3.50. 900. .ooo. 900,
the estimated national wealth. Bonds
would have to be isued to provide the
money. and these bonds would consti-
tute first lien on all the property In
America, for the interest thereon
would be collectible a. taxes, and
taxes take precedence over any mort
gage or other lien. Your share, Min
nesota farmer. II you own Q $4,000
farm, would be $4,000. Would you
willingly appear before Q notary pub
lie to sign and acknowledge Q $4,000
mortgage on your farm In order 70
furnish the money with which to make
o doubtful experiment In public
ownership of railroadsf Would you
give anybody O power OF attorney to
execute such mortgage for you? You
would not. But that 10 just what the
candidates Of the so-called FarmerLa-
Dor party ask you to do when they ask
you 10 vote for them.
And they are asking you, not only
to give them such power OF attorney.
but to consent to q doubling Of the
state tax ON your farm. At the present
time the state of Minnesota derives
SS,500,000 O year from q tax on the
gross earnings o. railroad companies.
II the railroads became government
property, the state would lose that
revenue, ior Il would be futile for the
government to tax its own instrumen-
tality. The revenue thus lost would
have to be made MP by an additional
levy on all other property in the state.
An additional one-mill levy would raise
up the $500, 900 of lost revenue, there
WOuiu nave W Do iupOpcu oh SVoAy
farm and every other piece Of prop
erty in Minnesota practically four
mills in additional taxes. The average
state tax rate during the past decade
has been only q little over four mills.
Therefore, Minnesota farmer, when
the candidates of the so-called Farmer
Labor party ask you to vote for them,
they not only ask you to put $4,000
mortgage on your farm but to consent
to q doubling of the state tax-rate
thereon, not only for the next year, or
the next decade, but for all time to
come.
And let It be noted. that however
disastrous government ownership OF
railroads would be, II would be rela-
lively harmless compared with the
adoption of the entire public owner.
ship program Of the so-called Farmer
Labor party.
It win undoubtedly be contended BY
advocates Of the public ownership idea
that the publicly-owned enterprises
would return to the government sums
adequate to compensate for loss OF
taxes and to pay the interest on bonds.
There is no basis for such conten-
ton II we may Judge from the expert
- xho ., al hnr{nw afafo NJ N0pth