The Saint Paul globe., 1897-09-21
STATE BOARD OF EQUALIZATION
REDUCES THE BASIS FOR
THEIR ASSESSMENT
FROM 55 TO so PER CENT
OF THE INVESTED CAPITAL, IN
CLUDING SURPLUS AND UNDI-
VIDED PROFITS.
Is Heard by the Board, and 1t Grants
the Boon Sought
For.


For.
The state board of equalization yes
terday decided to make still further
change in the method of assessing the
banks of the state, and will base the
assessments on so instead Of 55 per
cent of the invested capital. The bank
ing committee of the board was wait
ed upon yesterday by a delegation of
Minneapolis bankers, headed by J. F.
r. Foss, of the Nicollet National bank,
who acted as spokesman for the COM
mittee. Mr.. Foss pointed out that only
one bank in his city did not pass it's
July dividend, and suggested that
the board inquire whether or rot in
equalitjes of taxation might not be the
cause of this. Using the Chicago fig
ures as basis of comparison, he show
ed how the banks of this state were in
a predicament similar to that from
which the Taxpayers league had en-
deavored to relieve the Chicago banks.
Mr.. Foss said:
'"The total capital of the Chicago
banks is $50, ,519. 600, the total surplus
ard undivided profits $19, ,255,O45. making
total Of invested capital of $51 ia, 045
The total assessed valuation of this
capital, according to the Chicago basis,
is $5,2S4,70O, or about 10 per cent of the
invested capital. On this valuation
there is levied by the assessor total
taxes amounting to $5S3,847.
'On the Minnesota basis, using the
same totals for purposes of COMPARE
son, the assessed valuation on the SOL
774,045 capital at 60 per cent, which
has been the basis of reckoning in this
state, would be $3f ,O64,427. On this
there would be collected levy of %
mills, which would amount to $714,491
or $230,634 in excess of the amount col
lected in Chicago on the present basis
there. The Chicago bankers are COM
planning, and are using every influence
to have more uniform assessment
upon all classes of property, whether
invested in bank stock or real estate.
But even on the basis that exists
in Chicago the Chicago banks have
large deposits and lend money at low
rates Of interest, thereby aiding the
business men of Chicago while the
Minneapolis banks having nearly so per
cent higher taxes to pay, are obliged to
charge higher rates of interest, and
even then do a less profitable business
as is shown by the failure of over half
of the banks that were in existence
four years ago and the consequent loss
to depositors and stockholders alike
1 believe that during the past four
years the dividends, paid. by Mime
apOlis banks is less than the amount
paid for taxes The.law says that bank
stock shall be valued at no higher rate
than other monied properties, yet it is
fact beyond dispute, that no other
firms or corporations are assessed any
where nearly as high for taxes as the
banks. .-
ITO take an example, 81 600 worth
Of improved real estate, bringing an
income is assessed at from one-fourth
to one-third of its actual value, or at
from $250,0O0 to $300,000, which at %
mills produces $5,750 or $500. The
same amount invested in bank stock is
valued at 60 per cent Of the actual
value, or at 5000, 600, on which a tax of
% mills produces a tax of $13,S00.
IF an allowance were made in the
valuation of bank capital and profits
| for the possible losses on the invested
| assets, and this were deducted from
the taxable capital, it would bring the
taxes paid by the respective taxpayers
| holding different kinds of properties to
a more uniform scale.
During the past four years heavy
losses have been sustained by the
banking interests of the state and
Twin Cities, and it would appear to be
simple Justice that this should be
| taken into consideration, and that a
! deduction of at least 10 per cent of the
| face of the invested assets should be
! made from the taxable capital of the
! banks before levying the tax. In other
words, it would be justice to the banks
and to the people who have saved their
money and invested it in bank stocks,
! in view of the serious losses and in
| some cases impairment of capital, if a
| deduction should be made which would
in some measure afford relief, as has
| been done in other lines of business.
| The 60 per cent basis of valuation de-
| cided upon when banks We're doing a
| larger and more profitable business, is
not just at this time, when, through
the business losses of the community,
| the banks have also suffered heavily
The committee reported the result of
| lnG cOnIe1eHce 10 lH6e DOdTQ, winch
yesterday afternoon decided to reduce
the basis to so per cent, practically a
sixth below the rates of previous years.
The board also agreed on the follow
ing valuations of personal property
! items:
Horses, year old, IS to $40: 1896, So to $40.
Horses, 2 years old, s14 to SIG; 1896, S14 to
$16. Horses, years old and over, $25 to s2S;
1896 $25 to SIS. Cattle, 1 year, $5 to s6; 1895,
$3.50 to So. Cattle, 2 years, SIS. to SO; 1896,
$3.50 to S.. Cattle. years and over 81;
Work oxen, SIT to $40; 1896, s15 to SIS. Sheep,
81 to $1.25; 1896, 81 to s1.25 Hogs, 81 to $3.50;
1885, 81 to $3.50. Wagons and carriages, $40
and over; 1896, $40 to SIS and over Sewing
and knitting machines, Sc to 81; 1896, Sc to
| 81. Watches and clocks So and over; 1896,
So and over Melodeons and organs, s15 and
over; 1896, SIS and over. Pianos, $40 and
! over; 1896, $50 and over.
TO CURE A COLD IN ONE DAY
Take Laxative Brono Quinine Tablets. All
| druggists refund money if it fails to cure, 25c.