The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-03-10
$250,OO0 TAX
PAYMENT BILL
VETOED TODAY
Governor Says Bank Of North
Dakota Is Able to Take Care
of Tax Certificates

Vetocs Of two bills which were bit
terly fought by Nonpartisans at the
recent session Of the legislature
were announced by Governor Sorlie
today.
They were II. B. 252, appropriating
$250,000 for a revolving fund to pay
holders Of tax certificates issued
against land on which the Bank of
North Dakota has forecloscd mort
cages and II. b. 202, which would
have required the state treasurer to
keep in separate accounts money to
be used in retiring and paying in
terest on state bonds.
The veto of the revolving appro-
priation bill will make it necessary
for the Bank of North Dakota to ad-
vance the money to protect the
states interest in land on which it
has loaned money.
In vetoing the appropriation bill
the executive said: This bill pro-
vides for the appropriation Of $780,
600 to pay individuals who may hold
tax certificates against land fore
closed on by the bank of North Da-
kota.
up to the present time the Bank
of North Dakota has taken care of
such tax certificates and as 4 sound
business proposition there is no rea-
son why the bank should not be able
to take care Of the estimated 100000
more. 1t has already taken care of
100000.
Appropriation Unnecessary
"The appropriation is entirely I'M
necessary. The Bank of North Da-
kota has several million dollars on
deposit outside the state at the pres
ent time, drawing one and one-half
per cent interest. The tax receipts
on force losures will not draw less
than six per cent. 1t is high time
we commenced to use our own money
at home instead of sending it outside
the state to be used in developing
other sections of the country rather
than North Dakota. | therefore veto
this bill"
The veto message on House Bill
2O2 follows: This bill attempts to
set up Il procedure to be followed by
the state treasurer as trustee of the
state Of North Dakota in the hand
ling of foreclosures upon lands upon
which the Bank of North Dakota has
taken Il mortgage through its farm
loan department.
THE law now in effect provides
for comprehensive and full pro
ccdure for the state treasurer as
well as the state board of cqualiza-
ton. and this bill is unnecessary and
supcrfluous. 1t attempts by legsla-
tive enactment to establish that
there is a deficit in the real estate
bond interest fund.
1T also provides that the state
board of equalization, which is COM
posed of five state officials, shall be
tn bs nj nj ha nd ~
trial commission in making levies for
real estate bond sinking and inter
est fund. The state board of equali-
cation is fully competent to take
care of this situation and it is poor
policy to make one board of five Of
ficials sublec to the mandatory con-
troll of another board of three Of
ficials: especially so when two mem
bers of the industrial commission are
also members of the board Of equali-
cation.
Serves No Real Need
This bill also provides that tax
Ievies may be made against the peo-
pie Of this state without any reason
or necessity for such levies. This is
contrary to sound public policy. The
laws now in effect relating to the
Bank Of North Dakota and the farm
IodH department provide all the ma
chinery necessary. This bill serves
no real purpose and is therefore un-
necessary"
Although no mention of the fact is
made in the veto message it was
pointed out by other officials that
the bill also makes provision for in
creasing the limit Of farm loan bonds
which may be issued to $4,000, 900.
The maximum permitted under the
present laws is $4,000 900. More
than $23,000,O00 already have been
issued.
Commenting on the governors veto
Of the revolving fund bill, Attorney
General George +. Shafcr, IA member
Of the industrial commission, point
cd out that the tax receipts obtained
by the bank will draw no interest at
all and that the bank will get no
return on the money advanced by it..
From that standpoint, he said. it is
not "sound business proposition
in that it is not loan but an ex-
penditure of money by the bank on
behalf of the state. The only way in
which the bank can be reimbursed