St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-01-10
How the Law Is Ignored
The Railroad Commits
sioner's Opinions.
Consideration Of Legislation
to Get Tax Money Out
Of the Corporations.
Several Suits Brought by Ele-
vator Companies Against
the Farmers.
SpeclaI TO the Globe.

Special TO the Globe.
JAMESTOWN, n. D., Jan. S.-Ghe eX-
hausted condition of the state treasury
has again called attention to the fact
that large amount of taxation is an
nually evaded by the elevator COM
panies. The law is ignored, and has
been for years, and still the legislature
permits it. Something must be done in
raising revenues to pay expenses, and
these elevator companies should be
looked to for their just share. Railroad
Commissioner Bartlett, who was in the
city yesterday, expressed himself freely
on this matter to an Alert man. He. in
connection with the other members of
the board. have been considering legiS-
lation that will be able to get some tax
money out of elevator corporations. As
it is at present, these companies virtu-
ally go scott free. their little sums paid
for taxes not bearing any proportion to
the business done, profits made or
to what others pay. BY the success
full working of their schemes their
property is practically exempt from
taxation. An instance in point will
show how the thing is done. The North
ern Pacific Elevator company have at
present six law suits pending against
the farmers of La Moure county.
These cases have just been transferred
from this term of the district court in
this county to La Moure county and
will shortly come up for hearing.
THE SUITS
are brought by the corporation against
the county commissioners for assessing
wheat in store at grain elevators of the
company at the stations of La sMoure,
Grand Rapids, Dickey, Medbury, Ber~
lin and Verona. The same company is
also engaged in resisting taxation in
Stutsman county. and has sued the
county commissioners. The only basis
for their suit is the subterfuge that the
company are merchants, the same as
dealers in dry goods, groceries, etc,
and under the law should be assessed as
merchants OIL May l. April
1 is by law the date of the
assessors visit and assessment of the
grain in store in public warehouses
and the date that farmers are aSseSsep
and upon which they pay their taxes.
But the elevators have year after year
rushed their grain TO Duluth or Mime
apOliS or elsewhere between April and
May l. and give the county officials the
grand laugh. Whenever any grain is
caught by the assessor and taxes levied
on same, the company resiStS its collec-
ton and sues the people of the county.
The only way TO get any taXOut of them
seems to be in taxing the elevators di-
rect certain sum III the shape of a
license. A bill to this effect has been
introduced by Representative LutZ, of
Stutsman county, and has been re-
ported back with recommendation
that it do pass. Ii requires each ele-
vatOr To procure a license in the mod
crate sum of $50, and the proceeds
thereof are payable into the state treas
ury. This tax would furnish the
EMPTY TREASURY
about S15,000 of just and reasonable tax
alton. Some well-informed members
are not satisfied with letting these cor
porations off so easy, but insist that the
license be made 500 instead of $50. AS
most of the elevators are situated on
the right of way, and thereby exempt,
and, as the companies have little or
nothing for the assessor May l and
refuse to pay when assessed April l. the
license of 500 each elevator is not con-
sidered unreasonable or unfair. The
extent to which the state authorities
have been ignored is seen in the refusal
of these corporations to pay the small
tax of 500 required of every licensed
elevator. In not single instance. says
Commissioner Bartlett, has even this
been paid: and not enough has been
contributed by the companies to pay
quired to be kept in each elevator,
which grain has been procured
from authorities in Minnesota.
for which this state is yet indebted.
There are about 800 licensed elevators
in North Dakota and about 800 unli-
censed warehouses and private eleva-
tors. Some of these are of the largest
capacity and do the most of the bust
ness at many points. OF course they
follow in the wake of the licensed houses
in the matter of escaping taXat-
ion, and while exercising every
PRIVILEGE OF BUYING
and selling where there is profit
to be had, yet claim they do not store
grain for compensation, and conse-
quently are not taxable. All of the
Christian Bows elevators are classified
as unlicensed houses. Commissioner
Bartlett is in favot of the Lutz bill in
the absence of any scheme to
compel the elevators TO nay their
reasonable share of taxation. He
also thinks it would be to the great
advantage of the railroads if they
would encourage for a time farmers to
ship in private cars. This plan is ob.
noXious to both the railroad and the
farmer, and under any fair treatment
on the part of the elevator corporations
would seldom or never be resorted to.
Farmers are not unwilling to give g
reasonable commission TO elevators fol-
handling the wheat, but the Shylocb
tendencies SO long exhibited whenever
there is a chance for success have made
the farmer wary of approaching The
smooth-spoken elevator buver-the only
one this year in most of the towns
Commissioner Bartlett would also make
the license liable to be taken away
from any house where there were well
grounded reasons to believe that illega
methods were being exercised in grad
ing and in other devices said to be fire
quently employed. This power givel
to the railroad commission could be O
great advantage in adjusting com
plants and act as fine for contempt O
the law.