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

cities should have the greater part of the
benefit. since the city property owners
gave the franchise free.
Mr. Mum replied that it was generally
conceded that tax of per cent on the
gross earnings of corporations was fair.
The city railway company had within the
past three years expended $500,OOO on the
streets of St. Paul and Minneapolis for
improvements that did not benefit the
company at all. The street railway COM
pany carried passengers for half a cent
mile, while the steam railway charged
cents per mile. Street railway passen-
gers in the Twin Cities could ride nine
teen miles for 10 cents. The electric rail-
ways were the salvation of the travelling
public. The street railway company had
paid we'll for it's franchises The trans
formation of the Se1By cable to trolley
line represented $SQ00,9OO spent tn the pub
lie behalf. .e~..,,- .. --e,- ~.
Mr. McKibbin said that because num-
Der of business men got together and
with foresight invested in a business
which afterward turned out to be profit
able, that was no reason why they should
be taxed out of existence.
Mr. Mcmillan said he did not mean
to be unfair, but the franchises were val
liable and should be taxed.
Gov. Lind offered a resolution fixing
the value of the company's capital stock
in each city at 81 800, 000 or s., 000, 900 in
all. He had reached these figures by
finding the face value Of the stock at
900, placing it's actual or market
value at 60 cents on the dollar, which
would make it S9,O0O000. Divide this sum
by three in order to reach the rate at
which other property in the state was ap-
proXimately assessed, and the result was
So, COX, 000 He suggested this as a method
by which the capital stock of the COM
pany might be assessed. and the fran
chise reached through the capital stock.
This would increase the assessment Of
the company S6f9,0099lG 5d5 So E5l g.
Mr. Meighen moved to adopt the gov
errors resolution.
Mr.. Cooley thought the increase made
the tax of the company out of all proper
ton to other property in the state. An
increase of $250, 900 would be ample, and
it should be made under item q.
Messrs. Glavin and Meighen strongly
protested against the statement that the
assessment of the company was higher
than farm property.
Mr.. Glavin produced financial state
ment in which he claimed the net earn
ings of the company for the past year
were shown to be 81, 900. If that was
5 per cent on the capital stock of the
company, it meant that the capital en-
pI0yed was not less tnan SZUUvU,UUU, ana
the proposed valuation of S3,O00000 was
altogether too low.
Mr.. Mum protested that the interest
on the bonds had not been deducted from
the net earnings as quoted by MIR. Glavin.
That would reduce the value of the net
earnings to the stockholders to $55O,O0O or
100000.
Auditor Dunn moved that the assess
ment of the company be raised under
item 81 by $3.50, 600 in Minneapolis and $780,,
600 in st. Paul, or 100000 in all. That
would make the assessment $S00,00O more
than last year.
Gov Lind, for the purpose of bringing
the matter to a vote, consented to the
amendment
Those opposed to the change favored
motion to adjourn at this time, which
was lost on a tie vote, in which the Re-
publicans were lined up solidly for adj
journment, save that Mr.. Peck voted
with the appointees of Gov. Lind. One
of these, however, Joseph McKibbin, of
Ramsey, voted with the Republicans.
Gov Lind then pressed his resolution as
amended, and 1t was adopted without a
dissenting vote.