The Irish standard., 1899-10-07
GOV. LIMBS BATTLE.
Fight to a Finish for Taxation Reform,
Reform Press Bureau,

keeps ,narcnlnS on.
The great triumph to record is the
successful effort OF Governor Lind to
have the corporations OF the state as
sumo something like their just share OF
the burdens OF taxation.
The two great reforms in taxation
undertaken by Governor Lind. as set
out i'll his message to the last lcgisla-
turc, were the taxation OF corporations,
and the increase OF the gross earnings
tax of railroads. Defeat OF the latter
by the Republican legislature and the
dcep-scatcd Indignation OF The people,
are familiar to all. For the other, the
only hope has lain i'll the State Board
OF Equalization, and to that Governor
Lind addressed himself from the first
Governor Lind, in recommending
corporate taxation in his message, dis
cussed all the phases OF the franchise
tax, and recommended not only that
but the laying OF the proper burdens
upon domestic and foreign corporations
doing business in this state. He showed
how such would be legitimate source
OF revenue, and justified the tax both
on economic grounds and from the
standpoint OF public policy Had the
legislature followed the course marked
out by the governor, the laws OF the
state would have provided for this just
relief OF the people; but the legislature,
having failed to take any action, the
question was whether Governor Lind
could reach it through the board OF
equalization. The supreme court dcci
sion OF April last opened the way for
direct taxation OF franchises, but the
governor was embarrassed from the
TACT that only onc-llalf OF the board OF
equalization was appointed by him, the
other half being hold-ovcr members,
from the even numbered districts, as
being Republicans and OF Republican
appointment, were OF course liable to
stand ior the maintenance Of the system
which has heretofore prevailed Re
suits proved that this was real diff
Guilty. because in the showdown the
Republican members stood pat against
this reform.
There is now time and space Tor only
,hc briclest summary OF the proceed
!ngs in the case. The test case was the
property Of the Twin City Rapid Tran
SIT Company, the Lowry properties, the
acts concerning the taxation OF which.
ii: IIenncpin and Ramsey counties, are
;niuliar to reform readers. Last year
the Minneapolis and St. Paul companies
were assessed about $I,7oo,ooo. For this
year the valuation was increased $780,
ooo evidently as sop that would pre-
vent further raise.
The principle offered by the supreme
court decision referred to, as a way of
reaching franchises, was this: Find the
market value OF the corporations cap
ltal stock and from this deduct the valu-
atoms OF real and personal property, the
balance then being the franchise value.
Governor Lind, who had arranged
that this question should be deferred
by the board OF equalization until his
return from California, receiving the
Thirteenth, applied the principle to the
Rapid Transit company i'll this way:
Its stock is $4,000, 900 common and
S5,oooooo preferred, which was agreed
by the company to have a valuc OF 90
cents on the dollar for the former. but
that OF the latter was found somewhat
oi it was issued Governor Lind, there
lore. conservativcly waived the latter,
and took the common stock only which
would amount to 100000. Taxing
this as other property is generally taxed,
,o-wit, on about orc-third its real value.
Governor Lind asked the board by res
olution to make the Twin City com
pany's valuation $,,.ooo,coo.
The company made the best hgh, pos
siblc and was supported by the Rcpub-
lican side of the board. The matter
went through little less than the gov
crnor proposed being fually made 10
be valuation OF 100000 in Mime
apolis, and $1,25o,ooo in St. Paul total
s.s75oooo. This is. as will be seen.
approximately an increase OF 81 900, 900
over 1898.
AS stated. the reform members oil the
board stood shoulder to shoulder witt,
The governor, with the solitary eXccp-
ton OF Mr.. McKibbin, Of St. Paul. The
governor was ably seconded by the
member from the Tenth district. Hon
Thomas ]. Meighcn. OF Fillmore. and by
the member from the Fourteenth dis
trict, Hon. Richard Glaviii. o. Warren
At this writing the atlitudc OF Tx
Twin City Republican papers is mo-
clear, as there was a marked silence
Only the Tribune Minneapolis, men
toned the political side OF the matter
saying that the action was owing tc
the more Popnlistc members OF tn,
board" 1t also said that the COMPANY
would probably not contest the deci
sion, and made the significant closing
statement that so the matter rests til
next year" Next year, ii the Repub
ylicans win, we will get release" is tn,