The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-09-28

tuition IN the state Included
Discussion About What Should Be
Considered Taxable Assets
County Realty Going Up.
In spite Of protests and arguments
from prominent bankers the state
board Of equalization yesterday adj
hered to it's rule to compute a bank s
taxable valuation by adding real es-
tate and undivided surplus to It's capt.
tai, and divide the whole by two to ar
rive at an estimate of so per cent of it's
entire assets for taxation, and 1t yes
terday increased the assessments of
nine st. Paul and six Minneapolis
banks from to $50 per cent. They
also raised the assessments of more
than a hundred banks in the cities and
towns in Minnesota.
The subject Of bank taxation was the
special order for the day, and when
the board met in the morning there
were a number of bank officers on hand
who desired a hearing.
E. G. Stringer, who represented the
st. Paul National bank was the first
to be recognized. His bank was now
assessed for $4,000, and the board pro-
posed to increase it to 1923, 224. Mr..
Stringer asked the board to deduct
has paid taxes.
Every banker knows" he said, that
no bank forecloses a mortgage until
there is no possibility Of it's being re-
| deemed. We ask that $16S,000 be de-
| Quoted from the capital stock of the
bank.
THE law provides that the surplus
| shall be added to the capital stock.
! There is no surplus here, but profit Of
| $4,000 On May l, 1898. the capital
! stock of the St Paul National bank
was worth about so cents on the dollar;
| 100000 Of stock is worth but $3.50 900,
and on $16S,000 of that the bank is pay
| ing taxes, so that there remains but
| $19S, 600 that is legally liable to assess
ment. The bank desires to pay upon
every cent Of property it owns. but it
| asks you not to assess it beyond it's
value
1--WE are willing to leave it at $216.-
600, but we do ask that it be not raised.
During the past four years the bank
| has paid taxes to the state to the
amount of $4,000; to its stockholders
! only $4,000, so that the bank has paid
| taxes in excess of dividends to the
| amount of $4,000"
PRESIDENT UPFAM TALKS.
President H. P. Upham, of the First
National bank next spoke in behalf of
/ lHe institution:
II understand" he said, that you in
| tend to raise our valuation 38 per cent
! / understand you take our statement to
the comptroller of the currency, which
shows undivided profits to the amount
| CT SAG, 694
This statement is made in accordance
with the rules which necessitate mas
sing of a number OF items under the
head of undivided profits If we are
required to pay taxes on that sum we
can show a much less profit The as
sessment of our property at so per cent
Of its value is fully one-third higher
than other property in the state. When
our capital and surplus are added and
divided in half we are paying fully
one-t.''f Ian any other
class of taxpayers in the community
Il don't think you have any idea of
the crushing burden of taxa ton in the
cities of st. Paul and Minneapolis The
! history Of the state during the past four
years has been a succession of broken
banks. Banks should be encouraged to
do business, and not be taxed out of all
proportion to their means We are
! paying our full share of taxes, and !
ask that the returns made by the as
SCISSORS of st. Paul, made under oath
be not disturbed If you increase it we
shall not be able to stand it.
PRESIDENT MONFORTS PROTEST.
D. A Monfort, president of the Sec
ond National bank, said:
at seems to me that 1t is a matter
of public policy that strong banks
should be fostered; that everything that
can be done should be done to enable
them to stand any strain that may
be put upon them. The matter of un-
divided profits is largely one of book
keeping. 1t may represent an actual
or an uncertain value. There must be
! something more or less that would
cause the bank to realize less than its
| books show. There should be a fund
for emergencies which can be drawn
upon without depicting the reserve
fund which is provided for by law.
Il am informed that you intend to
raise the assessment Of the Second
| National bank 100 per cent It will be
a great injustice if you do this We
hold $275,000 of United States bonds
which are not assessabIe. We claim
| that $4,000 of real estate should be
deducted Our surplus and undivided
profits are no greater than they were
| two years ago"
Vice President George Powers, of the
Merchants National bank, protested
against the proposed increase Of $685.
! 349 in the assessment of that institu-
ton.
HENNEPIN'S ASSESSMENT.
Mr.. Sprague said the Hennepin coun-
ty banks are assessed $3,1S7, 900 and the
bankers are satisfied, while Ramsey
county banks pay only on $1,977, 600
I'VE ought to raise the assessment
in this county 20 per cent" he said.
but we decided to treat each bank
| separately"
Mr.. Haven said he thought II fair
to take undivided profits and surplus
as the same and assess the whole at
9O per cent instead of 60 per cent. The
law requires them to carry 20 per cent
oL surplus; and the stock is supposed
TO De Kept up to par value, and. if the
STOCK is not worth par it is because
the oank carries worthless securities.
| WOULD BE UNJUST.
President Arne L. Alness: of the
scandinavian bank, said he thought #
would be an injustice to increase that
! banks assessment from $4,000 to $40
1885, and he hoped the board would
deal leniently with it.
j. z. Ware, of the ST Anthony Falls
National Bank of Minneapolis. said the
pank assessment had been raised. but
! ne could not understand WHY The
| bank carries $50. 900 of real estate anS
III audltlon to that there is SIS. 900 more
OF real property.
PRESIDENT Emerson, OF the Northern
| Exchange bank said the assessment
| oI MS bank had been raised AS nor
| cent and he considered that exorbita NJ
! - y. Jensen, of the State Rank ~
ot' Paul, said his bank had nut S10 o0o
t!I real estate, Which had been taken
from the surplus account. and he 6id