St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-09-18
TAX PLANS CHANGED.
Some of the Inside Workings
Of the Board Of Equal
iZatiOn.
Telegraph Companies As
sessed on Property In
stead Of Earnings.
The Park Board Makes a
Phalen Move, Beyond
Routine.
Investigation Shows the
Headlight Company to Be
Correct.

A gentleman well posted upon the re-
cent action of the state board OF equal
ization was asked yesterday relative to
the assessment of telegraph and tele-
phone companies in the state and the
values fixed by the state board. In re-
ply he gave the following information:
The Western Union company's return
was S2l4,000, and the state board
raised the valuation of its property in
the state to $4,000 The valuation of
the North American Telegraph compa-
ny's property was fixed at $4,000. The
Northwestern Telephone company is as
sessed OH S300,000, and the Duluth Tele-
phone company at $4,000. The great
est change in the amount of taxes to be
paid by corporation this year occurs
in the case of the Western Union Tele-
graph company. Last year this compa-
ny paid about $1,000 taxes in this state.
Under changes III valuation and method
of taxing it, made by the state board.
the tax required from this company the
ensuing year will be about $4,000. or
more than six times as great. This
change happens in this wise: The as
Sessed valuation on property is raised;
besides this the company was taxed on
iIs gross earnings last year; this year it
is taxed upon the valuation of its tangi-
BILE property. Last year it reported its
gross earnings in the state at $4,000.
This was only on kilograms sent be-
tween points within the state, and did
not include pro rata on kilograms sent
to or received from points outside of the
state. 1t was taxed per cent upon the
gross earnings reported last year. This
year it is taxed q mills upon each dol
lar of valuation. This valuation is not
the real value of the property, but is as
certaIned in the following manner:
Each telegraph wire is valued at S16l
per mile, and the valuation upon each
mile of wire is fixed at 20 per cent of
the S161 per mile of each wire for the
purpose of taxation. The same rate OF
taxation applies to other companies. In
the case of the North American Tele-
graph company the line is valued at the
same price per mile, but the valuation
for taxation purposes is fixed at only 40
per cent of the $161 per mile. The rate
of taxation fixed by the state board was
81 Clio mills last year. This year the
rate was deere ased siX-tenths mills.
The law provides that the state board
may fix the rate of taxation on tele
graph and telephone companies, and
also declares that the rate shall not
be in excess of the average rate
fixed by several counties throughout
the state. The board has not been able
to ascertain the average rate yet, as all
the counties have not reported their
rates, and the rate or 81 mills
was fixed arbitrarily. The probability
is that the average rate throughout the
state will be lower this year than last.
In that case the Western Union Teie-
graph company may contest the assess
ment placed upon its property.
The change in the method of taxation
will increase the taxes of the North
western Telephone Exchange from
about s., 400 to over $4,000.
The changes made by the state board
upon property in Ramsey county were
as follows: The valuation of household
property was increased 10 per cent, the
tools CT manufacturers were increased 5
per cent IN valuation and the valuation
of saloons was raised 20 per cent,