St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-08
LUSK1S SUPPLEMENTAL STATEMENT
TO THE RETRENCHMENT
Committees REPORT
TO THE CIVIC FEDERATION.
VALUATION OF REALTY IN THREE
CITIES 4G.S PER CENT OF
STATE.
sT. PAUL IS ASSESSED TOO HIGH.
Entitled, by Population, to n Read
Justment That Would Reduce
Taxes 100000 Yearly.

the meeting of the Civic Federation
last night, the proceedings were none
the less interesting. Judge Lusk, as
the representative of the federation
on the Parker Investigating commit
tee, was called upon for a report from
that body. He said he had no special
report to make. All the members had
evidently read the report as published,
and that was. all that was necessary.
One thing not touched upon as fully
as it should have been in the report
was the taxation of real estate-the
excessive valuation placed thereon.
Several evils were discovered by the
committee, but not q single instance
where any crooked work was appar-
ent. The whole trouble was the lack
of system for the economical admin
lstration of the city government. The
time has come when there must either
be retrenchment or ruin.
Going back to the subject of the valuation
of property for taxation Judge Lusk said:
1.-The total valuation Of all property in the
state, for taxation purposes, Is 1861. 450, 52S
Of this, the three chief cities furnish the fol-
lowing:
ST: Paul :........ 1923 $40, 7O5
uluth 49,. ............ ....... 49, 378, $40
Total ........ ............ 90. s298, 462, ALI
THE total assessment valuation of real
property in the state is $546 416, 312. That of
the three chief cities is as follows:
St PauI .......... .......-....... $109, 179. 100
nlnheapohs .....- ......... n7,915,O 67
DuluCn ..-...... S5,542, 695
Total ......... ............. ...S2e2. 6S6, 912
considering all property assessed the val
uation in the three chief cities is 1873 per
cent of the whole. Considering real estate
alone the valuation In the three chief cities
is 1877 per cent of the whole. By the state
census Of 1895, the total population of the
state, and that Of the three chief cities, were
respectively as follows:
st, rdui .'..''''........ LAO 292
ninneapons '.'... ...--.--.. 1872 S33
Duiuln ACKNOWLEDGEMENTS. 90 396 1892 521
The percentage of the states population
residing In the three chief cities is rs. 1t
therefore appears that one-fourth of the
states population, living in these towns, are
required to pay practically one-half the en-
tire state taxes. The assessment valuations
per 1nhabitant, Of real estate, In the three
chief cities, are as follows:
Nil aui 49,. $4,000. ........ ........$77S
Duluth 49,. 1000 zoo
IL therefore appears that the resident of
81 raul is taxed on his real estate $167, or 272
per cent, more than the resident of Mime
apolis is on his, and $3.50, or 80 per cent. more
than the resident of Duluth Is on his. We're
che valuations of real estate in st. PauI re-
Vlsed SO as to merely equal per inhabitant
those in Minneapolis the reduction would
amount to more than $23, 900 OO0 At present
rates, the amount of state tax paid on this
valuation is about $4,000. No good reason
Tor emitting to make this reduction occurs 70
your committee
The law controlling market values is the
same with regard to both real and personal
property The relation Of demand and SUD-
ply governs. In city real estate, the supply
Is the area available, and the demand the
population needing to occupy it. Where
areas are similar, is the case with those
OF ST. Paul and Minneapolis, and general con-
dltons OF industry and commerce are like
wise similar, as they are at these two points
1t is hard to see why the true total values of
real estate, in the respective places, are not
In proportion to their respective populations
Since the last assessment of real estate
there has been marked growth, both in pop-
ulatlon and wealth in the state outside-the
large cities. 1t should now be easy to do ST.
Paul the manifest justice of transferring
100000 to the properties outside the three
chief cities. That would be an increase of
only IA per cent in valuations of the latter
Such reduction of valuation in St. Paul
would save property owners here 900 per
year of state taxes. An additional benefit
would be the possibility of readjustment of
values in st. Paul, by which unproductive
and poorly paying properties could be re-
ieved Of some part Of the burden of taxation
on
Judge Lusk then went on to say that
the reason assigned by some property
owners for favoring excessive valua-
tons of real estate was that it gave
the appearance Of greater value when
they came to sell. But they do.
not deceive any one of business ex-
perience in this way continued the
judge. They may deceive some poor
woman who should be protected
against this sort of thing, but they do
not deceive any business man seeking
to invest. Why, only a short time ago
a Philadelphia capitalist came here to
invest $15O,O0O In property, but when he
discovered that the assessed valuation
was nearly one-third higher than the
selling price, he was astounded at such
q thing and refused to invest more
than a mefe trifie. L tell you this ex-
cessive valuation is poor business
sense
Judge Lusk then went on to say that
the people of this city pay $21 a head
taxation, including all kinds of assess
ments. This is three and one-half
times the rate per head it costs to run
the government of the United States,
and over twice as much as the rate for
any other crty in the country. The work
Of this retrenchment committee must be
followed up vigorously to bring about
the desired changes, and when these
changes are made, they will result in
not only a great saving, but a better
,;r,t,,