The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-09-29

Gov. Lind won a distinct victory yes
terday in the state board of equalization
in the passage of q resolution laying
down for the future method of taxing
corporations in this state the plan de-
clared by the supreme court in its decis-
ion Of April last the only lawful method
to pursue. p
Consequently Auditor Dunn will
next year notify county and local assess
ors to list corporations as provided in
section 1920, Revised Statutes Of 1894,
which provides that in assessing the stock
Of corporations return shall be made only
on the difference between the sum OF the
real and personal property assessments
of the corporationaand q lair valuation Of
it's capital stock. HOGS
The, fight came up over the assessment
on the street. railway companies In st.
Paul, Minneapolis and Duluth, but Gov.
Lind insists that it is the principle he
is fighting for, rather than seeking to
mulct these companies, and the board mas
cited the gas and electric light companies
to appear this morning to show cause Why
they should not come under the same
rule.
Today ought to be busy day, as the
Western Union Telegraph company has
also asked for a hearing. claiming that
it's assessment is excessive, and the board
has set that for today also.
There was a long fight over the street
railway assessment, finally resulting in
the stock of the company in st. Paul be-
ing fixed at $1,250000 and that in Mime
apolis at $l,500OCO, making a total OF
s., Isl, 900, which is 100000 more than the
assessment made by the local boards, an
increase of 100000 in st. Paul and $3OO,ONO
in Minneapolis. 1t is an increase of $780,
goo over last years assessment
Gov. Lind insisted that the capital
stock and the real and personal property
of the company should be assessed, and
the assessment on the real and personal
property deducted from the sum Of the
three, and the remainder fixed as the
value of the capital stock Tor purposes
of taxation
Auditor Dunn and Mr.. Cooley held to
the theory that the increase in the as
sessnent should be made upon item q,
which would reach the tangible property
of the company and remove any danger
of the assessment being knocked out.
NJ D. Mum thought that if an increase
was to be made, it should be made upon
the property as listed. The company had
made it's return to the assessors prior to
the decision of the supreme court, follow
ing the ruling of the board last year. Ii
any basis was established by the board,
it should be something upon which the
companies could count as u permanent
basis upon which to make their returns
in future The company intended to make
it's returns next year in accordance with
the decision handed down by the supreme
court, but it could not undertake to make
I'D in two or three hours return under
a new system. A deduction of the debts
of a corporation from the value of its cap
ital stock might work an injustice to the
state. For instance. where a company had
issued bonds to an amount equal to its
capital stock the debt would wipe out
the assessed valuation.
But on the other hand, there was the
danger of. going too far in the other di-
rection and doing the corporation an in
Justice. His company had no intention
of avoiding dollar of equitable tax, and
did not propose to contest an increase, If
it was reasonable. But other companies
were preparing to contest the tax.
In reply to questions Mr.. Mum said
W
company's stock was on the market, and
he did not know what its value would
prove to be IL offered for sale. The COM
pany had S15,OOO,O 900 of common stock and
S5,6OO,OOO of preferred stock. Not all of
the latter was issued. The assessment Of
the company could be increased a reason
able amount on items concerning which
there was no controversy, and if it was
a reasonable increase there would be no
contest on the part of the company He
thought the common stock worth perhaps
go cents and the preferred $1.35, or there
abouts. The company was already taxed
Is per cent more than In 1898. and an other
addition of 10 per cent would surely be
all.
Mr.. Mcmillan spoke of the valuable
franchise owned by the company. and said
it was the general opinion in the cities
that this should be taxed. and that the