Willmar tribune., 1899-10-04
cAnFlELD COM nc MT.

cAnFlElD COMMENT.
RI. :5,,ss..> >:*| Reform Press Burean.
| E.s- ST. PAUL. Oct. 3, 1880.
The course of reform in Minnesota
keeps marching on. ~ %.-s..ss.A.
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
ont in his message to the last legisla-
ture, were the taxation Of corporations,
and the increase of the gross earnings
tau of railroads. Defeat of the latter
by the Republican legislature and the
deep seated indignation Of the people,
are familiar to all. For the other, the
only hope has lain in the State Board of
Equalization, and to that Governor
Lind addressed himself from tho first.
Governor Lind, in recommending cor
porate 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 q 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 de-
cision of April last opened the way for
direct taxation of franchises. but the
governor was embarrassed from the
fact that only one-half of the board Of
equalization was appointed by him, the
other half being hold-over members,
from the even numbered districts, as
being Republicans and of Republican
appointment, were of course liable to
stand for the maintenance of the system
which has heretofore prevailed. Re-
suits proved that this was a real diff
Guilty, because in the showdown the
Republican members stood pat against
this reform.
There is now time and space for only
the briefest summary of the proceed
ings in the case. The test case was the
property of the Twin City Rapid Tran
sit company, the Lowry properties, the
facts concerning the tax alton of which,
in Hennepin and Ramsey counties, are
familiar to reform readers. Last year
the Minneapolis and St. Paul companies
were assessed about $1,70o, 900. For
this year the valuation was increased
$3.50, 900, evidently as sop that would
prevent further raise.
The principle offered by the s,apreme
court decision referred to, as a way of
reaching franchises, was this: Find
the Nd arket value of the corporations
capi' al stock and from this deduct the
val nations of zeal and PERSONAL prop
er 1y, the balance then being the fran
Mise value.
Governor Lind, who had arranged
that this question should be deferred
by the board of equalization un-
til his return from California, receiving
the Thirteenth, applied the principle to
the Rapid Transit company in this way:
It's stock is $15. 900 common and
s., ,000, 900 preferred, which was agreed
by the company to have a value .of 60
cents on the 81 for the former, but that
of the latter was found somewhat COM
plicated, since it was denied that all
of it was issued. Governor Lind,
therefore, conservatively waived the
latter, and took the commo n
stock only which would amount
to 100000. Taxing this rs other
is generally taxed, to-wit,
on about one-third it's real value,
Governor Lind asked the board by res
to make the Twin City COM
pany's valuation s., ,00O, 600
The company made the best fight pos
sible, and was supported by the Repub-
lican side of the hoard. The matter
went through little less than the gov
ernor proposed. being fins lily made to be
valus ton of $1,50O,U in Mime.
apoAls' anu 81 ,SoU,OUO IN st. Paul, total
F., 1000. This is, as " ill be seen, ap-
proxln ately an increase of $1,000, 600
over IL SO.
As 81 ;ated, the reform members of the
board stood shoulder to shoulder with
The go vernon, with the , solitary excep-
hon of Mr.. McKibbin Of st. Paul. The
cover aor was ably 80 ,onded by the
nem' yer from the Tenth district, Hon.
rhon las J. Meighen of + ilmore, and by
he I lember from the F ourteenth dis
met Hon. Richard Gla, 5in of Warren.
A.; this writing the !, attitude of the
rw IN City Republican papers is not
LEI II, as there was q . larked silence.
3n ~ The Tribane, Min neapolis, men,
10 ned the political side, of the matter,
q ylng that the action was owing to
@ more Populistic m embers of the
oard: It also said tina t the company