The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-10-20
FACTS0N PLAN
ARE NECESSARY,
OPPONENT SAYS
II Bond Issue Passes, II Will
Become Part of State Con.
stitution
VOLV ES $5O,OO0,0O0
Many Who Are MisinfOrmcd
Are Liable to Vote In Favor
of Proposal
VOLV ES $5O,O00,00o

ried on in North Dakota to defeat
the proposed $4,000, 900 closed state
hank bond issue was made here to-
day by Wesley G. Mcdowell, Marion
N. D., second vice president Of the
State Taxpayers association.
The bond issue will be defeated by
a large majority at the November 6
election if the public educates itself
as to the workings of the proposed
law, Mr.. Mcdowell declared.
He quoted the cases Of many
farmers and businessmen in various
cities and towns throughout the
state, who when questioned. had in
dictated intentions of voting for the
proposed issue. When further ques-
TONED regarding the issue, he said,
it developed that little was known of
the proposal except in . general
way, and after an explanation of the
various angles of the issue, they had
declared they would vote to defeat
the plan.
Mcdowell stressed the point that
the bond issue would become a part
of the constitution and that the leg
islature will not be able to modify
it. Many voters have expressed in
difference regarding the issue, he
said. Under the wording of the bill,
however, if it is carried at the next
election, the proposal will become a
part of the state constitution.
The bond issue is not for $780,
100000 as is commonly supposed, he
said. but over the period Of the aver
age 20 year bonds, the amount will
total more than $50, 900. Also,
the issue does not apply to banks
that will close in the future Or those
closed prior to 1919, but to those
only that closed during the time the
guaranty law was in operation and
up to May /, 1923.
The plan is to issue bonds to the
amount Of $25, OOO, 900 over q per-
iod Of 10, 20 and 30 years, which at
five per cent will draw interest to-
falling more than the principal.
It is shown by bank report figures,
he continued, that 40 per cent, in
round figures, will be paid depositors
in closed state banks without pass.
ing the bond issue. Under the work
tngs Of the guaranty fund law, all
depositors Of under $40 will be paid,
regardless of whether or not the
bond issue is passed, and additional
payments Of probably 10 per cent
will be paid as soon as the fund is
large enough.
The original plan Of the guaranty
fund, he explained, was to pay all
Eepositors Of closed banks when the
Institutions became unable to meet
their obligations.
For 4 short time after the law
went into effect in 1919, payments
were made Immediately. When a
large number Of banks closed. the
fund was depleted and payments
we're held up. At present, money
rom the fund is being paid deposi.
Tors in sums as large as the fund
will permit, and additional payments
will be made from time to time.
The guaranty law was never
meant to pay out money other than
fhat collected by assessments upon
tate banks" Mcdowell declared
The law would make the tax payer
pay Z debt he does not owe. The
farmers pay 70 per cent of all taxes
u the state, and it is easy to see
THO will pay the biggest part of the
cost Of this bond issue. The farm.
tfs will pay 435,OOO,OOO. No part
pf the money raised by the issue will
lslp pay the farmer or town bust.
pessrfAn for his losses.
"Fofty per cent Of the bond Is.
que will 20 to outsiders who de.
posted money because Of a high
f1ts IT interest, and they will nay iit
tax6s to apply on this bond issue.
Spectators will make millions o.
loll4rs If this bond issue is carried.
Figures show, he declared, thai
IN assessment Of five per ccrt OF
NE assessed valuation Of all tn,
property within the state will be re
tuired to pay the bond issue and In
tere0t, II It Is carried.
At this rate, Bufleigh county vii
pay approximately 81 1885, on it,
(ssess4d valuation Of $21,750, 200
pick1Y county, assessed 1t NOR,
han ~ 100000, will pay more thai
purl1fyh county. Taking the figure
\ = smaller scale, the owner Of /,
ponte Ass1ss1d for $4,000 will pa,
more than $3.50. ThA taxation TO-
b average family will Be Abou
HOO, taking an $50 per capita taxa
en Tor the average family Of fiv'
trsens.