The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-10-03
HE HITS IT HARD.
GOV. ALTGELD AFTER THE PULL.
MAN COMPANY.
Is a Great Observation-Disclosures OF
Wealth Not Assessed to It
Anywhere.


Times articles on unequal taxation to good
effect, for today he dropped bomb into the
midst of the state board of equaliza ton
which filled that corpora tion-serving body
with CONSERVATION.
Inc governor appeared before the board
at it's session this morning and boldly de-
clared that the Pullman Palace Car Com
pany, of Chicago, has for years been per-
mltted to escape taxation property to
the value of from 100000 to $4,000, OOO
Following the facts and figures heretofore
given by the Times. the governor showed
that while the Pullman Palace Car Com
pany is paying per cent annual dividends
on capitalization Of $50, OOO, OOO it's prop
erty is assessed at less than 81, OOO,O 600; that
1t has accumulated a surplus Of $25, 900 OO0
which, added to the capital stock of $685.
100000, makes SCI 100000. Yet in 1898 the
state board assessed this vast accumulation
| OF corporate wealth at but 81, 695, 500. The
governor asserted that in all sense of Justice
and fairness the Pullman corporation should
be assessed at from 100000 to SIS, 600 OOO
WHAT THE GOVERNOR SAID.
Gov. Altgeld spoke in the following words:
Gentlemen-I have received a great many
complaints from different sections of the
| state concerning the assessments of the
| capital stock of the Pullman Palace Car
| Company, and my attention has been called
| to some facts which l feel it my duty to lay
| before you. In doing this, I wish expressly
70 dlsclaim entirely any desire to interfere
| IN any way with the duties of your board.
Inc law imposes upon you the duty of
| tent1on to the following facts in the belief
| that they may assist you in arriving at a
just assessment and putting end to an
| injustice:
The records in the office of the secretary
| OF state show that the Pullman Palace Car
company has capital stock of $36, O0OO 900.
| Recently George M. Pullman, president of
| the company, testified under oath before a
| commission in Chicago, among other things,
| as follows:
O. What is the present capital stock of
| the Pullman Company?
A. Thirty-six million dollars.
o. Is that capital stock paid in in cash ?
| A. That capital stock is paid in in cash.
| From time to time during the q years of
| its existence the capital stock was en-
| larged in order to meet the general en-
| largement of the plant.
Q. Are the dividends which you pay
based on the whole capital Of $50, 900, 600?
| A. Yes, sir on the whole capital of $36,
0OO OOO
| Q. What are your dividends?
| A. Our dividends are 2 per cent quar-
| terly.
@. For how long?
| A. The company has paid dividends ever
| since it's organization. The dividends for
the first two years were at the rate of 8
| per cent quarterly, and for time after
| that; the dividends were paid for two years
| at S12 per cent per annum, and then from
| that day they have been per cent per an
| mum without any changes.
| Q. Has the company any bonded debt?
| A. 1t has no bonded debt
| =. And in addition to these dividends
| you have accumula ted from $16,OOO0OO to
| $1S0O0,OO0 undivided profits?
A. The undivided profits amount to some
| thing over $25 100000.
| @. In addition to these annual dividends
| you have mentioned, there has also been
| accumulated about s25,OOO,000 of undivided
! profits?
| COMMENT BY THE GOVERNOR.
| This is from Mr.. Pullman himself. Add
ing this $25, 600 600 of surplus to the $36, 000,
| 600 of stock makes SCI, 100000 which the
| stock of the Pullman Palace Car Company
| represents. Again, the market reports for
| a considerable time in the past show that
| the stock of this company has been sell
| ing for cash in the market at a figur5
| which would make the market value OF
| all of the stock amount to over SCI ,OO0,-
| Further, l attach hereto copy of a re-
| port made by this company for the yeal
| ending July 81 1898, to it's stockholders anC
| Poor's manual of railroads. and found or
| page LIS of that authority. In this report
| it is stated that the net earnings of tina
| year were Sc 500, 44S. Out of this they pait
| per cent dividends amounting to $500
| 900 and carried $4,00S,44S to the surplus
which then amounted to $25, 700, 900. That is
| they carried nearly twice as much to the
surplus as they paid in dividends, although
| the dividends were per cent. This wa:
for the year ending July 81, 1893. TIL
| Worlds Fair travel came afterward. L
| the surplus for that year was $4,0O6, AS
the surplus for next year must be very
| large. The report shows that the surplus
| has been upward of 100000 for many
| years, consequently the surplus must nov
| be nearly $30,000,000 The total assets o.
| the company at that time were $61, 791. 643
they must now be considerably larger.
| All this is from the company's owl
| showing So whether you take the state
| ment of Mr.. Pullman the price at which
| the stock was selling in the market The
| statement of the company made a veal
| ago, there is upward of $751; 100000 of prop
| erty represented.
| Under the law personal property follow:
| the residence of the owner and pays take:
| where he resides. This company has no
much real este outside the state of Hi
nois The sleeping cars are personal prop
| erty, and the company is an Illinois
| corporation and has it's main offices in th
| state, it should pay taxes here on all it
| personal property except in cases wher
| 1t is actually shown that it has been lie
| gally taxed elsewhere. The average as
sessment of other property that is assessed
at all in this state is found to be from Q
per cent to Is per cent of it's cash marke
value. Therefore, if the stock of this com
pany were assessed in the same proportion
of it's market value as other property, i
| would make an assessment of from $12,
360, 900 to $3.50 Co., Instead of this it il
assessed at only s., 695, 500 in this state, tn
company having represented to your board
as 1 am informed, that it's property wa
assessed in other states. But it failed t
show where it was taxed and how much.
The auditor of this state has written t
the proper officers Of every state in tn
Union and of the Dominion of Canada in
quiring how much the Pullman Palace Ca
Company was assessed and what taxes
| actually paid in each of those states.
| attach hereto a tabulated statement show
| ing the substance of the letters and tee
| grams received in answer to these inquiries
The letters and kilograms themselves ar
| in the possession Of the auditor and can b
examined by you. Some of the letter
show the taxes actually paid and other
show only the assessment.
| 1t appears from this official correspond
ence that in 16 states the company pays n
taxes at all. In several other states an
in the Dominion of Canada no assessmen
is shown, and if any taxes paid by tn
| company the amount must be very small
In II of the states the total amount @
taxes paid by the Pullman Palace Car Com
pany is only 81, 425. In the remaining seve
states tho actual taxes paid are not piyer