thereto, and the progress of the work of the commission, and to furnish the governor from time to time such assistance and information as he may require.

13. To transmit to the governor and to each member of the legislature, thirty days before the meeting of the legislature, the report of the commission, showing all the taxable property in the state, and the value of the same in tabulated form with reconmendations for improvement in the system of taxation in the state, together with such measures as may be formulated for the consideration of the legislature.

14. To assess at their actual value all light, heat, and power companies doing business in the state.

15. To consult and confer with the state board of equalization and to aid them in the discharge of their duties.

16. To exercise and perform such further powers and duties as may be granted to or imposed upon the commission by law.

17. One or more members of the commission shall visit officially, at least one-half of the counties of the state and some county in each judicial district, annually, and every county biennially, for the investigation of the work and methods adopted by the local assessors, county boards of equalization and other tax officials, in the assessment, equalization and taxation of real and personal property.

18. To review the assessments made by the different assessors and as equalized by the county boards of equalization, and to order a re-assessment of property, where the assessment made seems grossly unjust.

19. To require local assessors to place upon the assessment rolls property which may have escaped taxation during the previous six years, and are available and remaining within the taxing jurisdiction.

10. Legal Procedure.-Oaths to witnesses in any matter under the investigation, or consideration of the commission, may be administered by the secretary of the commission, or by any member thereof. In case any witness shall fail to obey any summons to appear before said commission, or shall refuse to testify or answer any material question, or to produce records, books, papers, or documents when required to do so, such failure or refusal shall be reported to the Attorney General, who shall thereupon institute proceedings in the proper district court to compel obedience to any summons or order of the commission, or to punish witnesses for any such neglect or refusal. Any person who shall testify falsely in any material matter under the consideration of the commission shall be guilty of, and punished for perjury.

In the discretion of the commission, officers who serve summons or subpoenas, and witness attending, shall receive like compensation, as officer and witness in the district court.

11. Method of Re-Assessment. Payment of Assessor.-For the purpose of making a re-assessment of property as provided in subsection 18 of section 9 of this act, the tax commission is hereby authorized to appoint such assessor or assessors as may be needed who shall make a re-assessment, of the property, or of the assessment district or districts specified by the commission, in accordance with the provisions of law now governing local assessors, and such assessor shall be allowed for his services the sum of five dollars ($5.00) per day and his necessary expenses to be itemized and sworn to by the party incurring the expenses and approved by the commission, and the tax commission is hereby authorized and empowered to certify the expenses of such re-assessment to the auditor of the county in which such re-assessment has been made, who shall promptly issue his warrant on the county treasurer payable out of the general fund of the county, said fund to be reimbursed out of the moneys due the taxing district in which the re-assessment was made at the next settlement of collection of taxes.

12. Repeal. All acts or parts of acts inconsistent with the provisions of this act are hereby repealed.

13. Constitutionality. In case any of the provisions of this act should be declared unconstitutional that shall not affect the validity of any of the other provisions of this act.

14. Appropriation.-Thére is hereby annually appropriated out of any moneys in the state treasury, not otherwise appropriated. the sum of $3,000.00, or as much thereof as may be needed for the purpose of carrying out the provisions of this act.

15. Emergency. Whereas, the finances of the state will not warrant the full expense to be incurred hereunder, it is hereby provided that this act shall take effect July 1st. 1912, and that the appointments shall not be made until after July 1, 1912, the same to be thereafter confirmed by the senate in the legislative session of 1913.

INTRODUCTION.

The twelfth session of the legislative assembly of the State of North Dakota provided for the creation of a non-partisan tax commission. Thus North Dakota was added to the large group of states which are seeking to improve the operation of their revenue and taxation systems. The fact that our revenue system has broken down at many points and that it has failed to comply with the most fundamental principles in taxation is one that has been recognized by every observer of its operation. That we have reached the point where improvement has become imperative cannot be denied. The constructive reforms that have been accomplished through the instrumentality of tax commissions in other states justify the hope that similar improvements may result through the same channel in North Dakota.

By reason of an emergency clause which was expressed in the last section of the chapter creating a non-partisan tax commission for North Dakota, the act did not become effective until July 1st, 1912. Immediately thereafter Governor John Burke appointed to the commission its present members. The members of the commission qualified and began the discharge of their duties.

Soon after the organization it was thought advisable for the members of the commission to investigate the office organization and methods of two of the tax commissions of sister states. Consequently Commissioners Birdzell and Wallace visited the commissions of Wisconsin and Minnesota respectively, and obtained from these commissions many helpful and practical suggestions.

A number of investigations have been and are being carried on. Some of these are in the initial stages, and some more important investigations are contemplated. The members of the commission appreciate fully the importance of having all of its investigations carefully conducted in order that its conclusions may be worthy the serious attention of the legislature. At the time this report is sent to press the commission has been in office but four months and it is therefore impossible for the report to be as concrete, definite and comprehensive as it should be in order to be of the utmost service. It has been thought better to omit the consideration of matters that could not be fully considered in so short a time than to present at this time results which would at best lack the full confidence of the commission, not to say of those whose confidence is solicited.

While the law creating the commission requires the transmission of a report thirty days before the meeting of the legislature, it contemplates undoubtedly that the report should embrace

activities covering a biennial period. This is, of course, impossible in the case of this report; consequently this report is tendered in the nature of a preliminary report and it contains discussions only of those matters which are of more immediate importance in view of the prospective action of the commission, and we ask for it only the consideration to which it is entitled from such view point.

The commission has had occasion to solicit frequently the co-operation of officials of the various counties and cities, particularly the county auditors and in every instance its requests have met with a generous response. Without the hearty co-operation. of the men in these various offices it would be difficult for the commission to carry on its work. We are, therefore, grateful to them for the help they have so kindly given us.

CHAPTER 1.

ORGANIZATION AND WORK.

Immediately after the appointments of the commissioners became effective they repaired to the state capitol and proceeded to organize as directed by law. Since the organization the commissioners have been in session continuously and have been performing the various duties. which devolve upon them. The results of their work will partially appear in this report, but in this chapter brief mention is made of some of the matters touching the organization and work of the commission that are of passing interest only.

LIBRARY.

Upon its organization the first need of the commission was found to be a library, which would contain, not merely the leading authoritative treaties on economic subjects, but which would contain as well the reports of actual conditions and investigations into the practical working of systems of taxation in other states. The commission undertook to meet this need partly by entering into correspondence with tax commissions and state officials of other states requesting publications to be sent to the commission, under a reciprocal arrangement. The responses were generous and the result is a collection of reports and statistical matter bearing upon the operation of the revenue systems in vogue in the various states which will be of permanent value for reference purposes. In addition to this some works have been purchased in the nature of general treatises on economics, taxation and public finance, and the commission has subscribed for a number of the leading periodicals including The American Political Science Review, The Bulletins of the American Economic Association, The Economic Journal and Moody's Magazine. These Journals contain many valuable discussions of topics of special interest to students of taxation and they will be of inestimable permanent value in the library of the commission.

The commission has been greatly aided by having at hand a rather extensive collection of material on subjects of interest and importance, which matter had already been collected and catalogued under the direct supervision of Mr. I. A. Acker, the legis