The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-02-03
BILL TO DROP
FLAT HAIL TAX
is APPROVED
Continued from mage ons)


operation of the fund.
Casts Doubt on Bureau Management
r. +. Swendseid, Mountrail county,
pointed out that the law provides for
dropping the flat tax when the $4,-
100000 mark is reached and charged
that the bill casts doubt on the in
tegrity Of the hail department man.
agemcnt which is charged with ad-
ministering the law. On that basis,
he said, the proposed law is un-
necessary since the purpose it seeks
to accomplish already is provided for.
ID. l.. Peters, Pierce county, said
Traynor's figures had not been dis
puted by the hail department man
agement when it appeared before the
insurance committee and expressed
belief that the hail department could
drop the flat tax and still function
splendidly.
William Watt. Cass county, re-
piled to statements by Swcndseid
that the hail department has saved
farmers $26,000,O0O during the last
seven years, declaring that it has
he had paid in several hundred dol
lars for it's support. The hail de-
partment opposes cutting off the tax
now and will continue to do so, he
charged, regardless of how much it
accumulates as a balance.
Trying to Cripple Bureau
). II. DurKnart, Ward county, Non
partisan floor leader, accused the
Independents of continually trying
to cripple or kill the state hail de-
partment since it was instituted in
1919" A large part of the assets of
the fund will never be collected, he
said, because of supreme court de-
cision which declares that it does not
have the same status as other taxes
with regard to precedence over mort
cages. No private insurance company
does business with such a small bal
ance as the state department, he
said.
The majority had no trouble in
placing the measure on the calendar
and it's passage today is expected.
vote against it and indicated that if
it passes both houses they will send
delegation to the governor asking
him to veto it.
Attacking House Bill 80, following
a favorable report by the banking
committee, Mrs. Minnie D. Craig,
Benson county, said it was designed
ostensibly to protect depositors in
banks but that it's real purpose is to
permit banks. to dodge taxes. The
bill provides that banks shall set
aside one-half of their net earnings
as surplus until the surplus fund
equals their capital. The surplus
would be tax free. Mrs. Craig con-
tended that the biggest result of the
bill would be to excuse all but few
banks from paying taxes on capital
stock. The inevitable result, she
said, would be to shift more of the
tax burden to the farmer "who al
ready is carrying more then his full
share"
A. w. Fowler. Cass county, defend
ed the bill. pointing out that it was
recommend by the governor. state
banking department and guaranty
fund commission. One trouble with
the banking situation, he said, is that
vestment by stockholders than should
be the case. The bill creates an ~ad-
ditional investment for the stockhold-
ers and may make bank stock harder
to sell but it also protects the dcpos-
litors by providing more assets with
which to meet the banks obligations,
he insisted. Resort may be had to
the surplus fund when necessary and
the result will be that depositors will
be more certain of getting their mon
ey. Another factor, he said, is that
stockholders, because Of their greater
investment, will be forced to take
greater interest in the banks affairs.
A. O. Brown, Adams county, chair
man of the banking committee, ex-
planned that it Is . companion bill
OF H.fB. 81 which provides q sliding
scale to limit the maximum amount
which q bank may loan TO any person
or corporation. As the surplus in
creases the percentage Of the capital
and surplus which may be loaned to
any one person or firm becomes
smaller. -
Claims It sWeuld Raise Taxes !.
J. H. McCays Sioux county, said he
opposed it because it "would raise the
farmers taxes" and William Watt,
Cass county, said that banks are taxes
too heavily now and ''are considered
fair game for all sorts Of schemes"
If more consideration were paid to
the welfare Of the banks, he said, the
state would be better off.
The report was adopted despite q
scattering Of opposing votes.
I Another fight resulted when the
: Committed on highways and bridges
4 recommended amendment Of BILL
appropriating $685. for . bridge
over the Little Missouri river in Mc-i
Kessie county. A minority recon-
u :as d sass.' "a )
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