The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-03-27
SHAFER TALKS
TO KIWANIANS
AT GATE CITY
Address Hailed as Indication
of Issues to Be Met in
Primary Campaign

of Issues to Be Met in
Primary Campaign
Fargo, N. D., March 27.-tP)--
Increased tax levies, increased bond
ed debt and the establishment of a
large number Of rev state depart
ments, boards and commissions are
evidences of an initiation in state
government which has occurred in
North Dakota during the last 10 or
IL years and which have been $50
extensive and so varied in character
as to be little less than revolution
ary," Attorney General George r.
Shafer told members and guests OF
the Fargo Kiwanis club here today.
The speech was the first formal
address by Mr.. Shafer since he was
nominated as the Independent can
,idate for the Republican guberna-
torial nomination. Although in
tended as an academic rather than
n political discussion, it was hailed
in some quarters as an indication Of
the issues which Shafer will meet
in the impending campaign.
Comparing the public cxpendi-
lures and public debt Of the state
with 1915, Shafer said statistics
prove the manner in which govern.
mental functions and expenditures
have increased. Some Of the activl-
ties which have used up tax money
are governmental or quasf-govern-
mental in their character, he said,
md some arc entirely non-govern-
mental "but all are expensive and
have added materially to the tax
burden Of the people," In the nom
governmental class he placed the
Various industrial enterprises
launched as a part Of the Nonparti-
IAN League program.
Taxes in 1915
In 1915, Shafer said. the combined
tax levies Of state and local govern
h,ents was a little over $4,000, 900
and that Of the state government
was $1,6OO,OOO. The population was
$4,000 and the total per capita tax
k24.1O while the state tax per CAPT.
Ia was $2.57.
In 1927, while the population had
Increased only 5000, public ex-
penditures had more than doubled.
Total tax levies had reached $34,-
100000 and the state levy and spe-
cial tax collections were nearly
$8,OOO,OO0. The total per capita
tax was 5000 ard the state tax
~~,oa en- ~
Special taxes collected in 1915
totaled only $4,000. Those collect
ed in 1927 totaled nearly $4,000
600, Shafer said. Among the spe-
cial taxes he listed the income,
gasoline. motor vehicle, cigarette
and other miscellaneous taxes.
Since the state constitution limits
state property taxes to four mills,
which would produce $4,0O0.0OO, the
special taxes demonstrate that tax
limitations in the constitution do
not keep down governmental ex-
penditures SO long as the legisla-
ture may resort to special taxes as
sources Of revenue, he said.
!. In 1915, Shafer said, the bonded
indebtedness Of the state was $685.
600 and of municipalities less than
$4,000, 900. On January /, 1928,
the states bonded indebtedness was
$25, l57 ,OOO.5O Of which $4,000, 0O0
represents an investment in the
state mill and elevator and the
Bank Of North Dakota and the re-
mainder an investment in real es-
tate loans. Tho debt of municipalities
was about $2O,OO0,OO0. The state
debt existing in 1915 has been paid
and if the state had not gone into
the elevator. milling and banking
business the state government now
would be on cash basis, Shafer
said.
Expansion Mainly Responsible
Pointing out that the cost of gov
eminent has gone up as the cost OF
labor and materials have gone up,
the speaker said that the main in
crease is due to expansion of the
states activities. Commenting on
Capitalization in the state govern
ment Of regulatory powers formerly
deemed to be local functions. Shafer
said this tendency "has been very
strong in North Dakota of late. This
urge has been irresistible. Public
opinion has demanded it-legisla-
lures have approved it. Political
reformers have called for it and the
result has been the establishment
and maintenance of many new
boards and commissions, new state
departments, the creation Of new en-
terprises and the extension OF the
powers and functions Of those al
ready existing"
New departments, boards or COM
missions listed by the speaker were
the securities, industrial and guar
anty fund commission: state depart
1nents of health, immigration, mini
mum wage, dairy. highway and mo-
tor vehicle registration; children
welfare and workmen's compensa-
tion bureaus and the veterans serv-
ice commissioner.
In addition, he said, new depart
,nents or divisions have been created
among previously existing depart
nlents. The insurance department
has the state hail. bonding and fire
and tornado funds. The powers OF
the railroad board have been en-
larRed to give it jurisdiction over all
public utility, transportation and
warehouse companies; = state licens-
ing department to supervise pool
and dance halls and places selling
tobacco and soft drinks has been es-
tablished in the attorneys office
together with cigarette licensing
department. Expansion Of educa-
tional, penal and charitable institu-
lions has been phenomenal although
The state has not gained in popula.
\ Ion ID recent years. Shafer said.
Reeord Of Enterprises
Commenting "a the states entry
into ucn-governmental fields, IA
n xave the rscord Of various Industrial
Sntorprises - 3olloW1: Werner
eIeeupery, co1t 10 zoos homo build