The Bismarck Tribune

Killdeer. N. D., Sept. 8.(P)-John Moses, Democratic candidate for governor, was on record Tuesday against elimination of the tax levy for state purposes by use of the sales tax surplus.

In a speech Sunday at Oakdale. 17 miles northwest of here, Moses attacked the proposal of Governor Welford to "do away" with the tax levy for all state purposes during the coming year and to use the proceeds of the sales tax to pay the expenses of operating the state government.

"Any diversion of sales tax funds for the purpose of creating property tax exemptions upon such a scale would be a betrayal of the people of the state," he declared.

Moses asserted the voters approved the sales tax upon the "representation" that the funds derived from that tax would be used "solely" for relief, for old age assistance and for support of the schools.

Claims Majority Opposed

"The Democratic party and the great majority of the people of the state of North Dakota," he claimed, "are unalterably opposed to the principle of a sales tax. The attitude of the Democratic party upon this question has always been clearly stated, and the people of this state demonstrated their position when they overwhelmingly defeated the 1933 sales tax upon a referendum vote."

"The 1935 sales tax was adopted by the legislature as an emergency measure to meet the extraordinary demands that depression and drouth had placed upon the state.

"The proceeds of the tax were to be used for relief, old age assistance and to guarantee to every child of this state the benefits of a free public school education.

'Violation of Pledge'

"When this law was referred the governor and his advisors gave their solemn pledge to the voters that the money raised would be used for these purposes and for these purposes alone and the people. believing and trusting that the pledge would be kept, approved the law.

"The governor and the board of equalization now propose to violate that pledge and to grant a blanket exemption, insofar as state taxes are concerned, to all property owners, including the railroads and other public utilities, banks and insurance companies and absentee land owners, and to throw the burden of the cost of state government upon the already overloaded backs of consumers.

"Assuming that one-third of the farm land of the state is owned by non-residents, property of an assessed value in excess of $400,000,000 belonging to persons and corporations who do not pay a penny of sales tax would be relieved of making any contributions whatever to support of the state government."

"The governor states there is a surplus in the sales tax fund which will not be needed for the care of the needy and the support of the schools, at the same time the state welfare board is cutting down upon its contributions to the counties, and the governor, himself, is demanding more and more assistance from the federal government.

"If such a surplus does exist," Moses said, "I demand the governor keep good the pledge he made and keep this trust fund intact so the next legislature may make proper disposition of it for the benefit of the consumers to whom this money rightfully belongs."