The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-22

Charged With Il Debt of $4,000
or More for the Current Years
Taxes--Figures Are Presented
to Show the Reason for the
Verdict.
Judge Bum yesterday filed decis-
Ion in district court in the action
brought by County Treasurer Edmund
against the st. Paul Trust company
to enforce the payment of personal
property taxes for the year 1897 in the
face of return made by the company
that 1t owned no personal property.
The decision fixes the assessed valua-
ton at $95,67S.52 and the county is
awarded judgment for $2,047.52 on that
basis.
After the company had made it's re-
turn, the board Of equalization, on ex-
animation of the financial statement of
the concern, fixed the assessment at
Sill, 900. Then the state board raised
the valuation to $119,334, and the board
of abatement took a hand and made
reduction to $S6650. The cut, how
ever, failed to receive the approval of
the state auditor.
Judge Bum holds that the action
of the state board of equalization in
raising the valuation to $119,000 was
unwarranted and arbitrary. Further
mere, it is said that the return made
by the trust company to the assessor.
was defective, erroneous and untrue,
In that 1t did not state the value of the
personal property owned by the COM
pany nor the amount of it's indebted
ness.
The court finds that on May l, 1897,
the trust company owned personal
property as follows: Mortgages upon
real estate Of face value of $110,S43.39;
one certificate of Indebtedness of 81 COO;
bills receivable $500. IS; office furniture
and vaults, $4,000; cash in office and
banks, $37, 310.92, Of which $27,09704 be-
longed to estates and was held in
trust; trusts and personal accounts of
the value of $53, 634.20. The indebted
ness of the company at this time
amounted to $117,110.09, which con-
sisted Of amounts owed by it to it's
clients depositors, trust estates and
trusts.
On this showing the court holds that
the company is entitled to have the
assessment corrected so as to make the
amount $95,67S.52. and judgment is or
dered for the city treasurer in the
sum of $2,047.52, being the amount
which the company must pay on it's
personal property for the year 1897.
In the decision, the court says:
trust company is that the mortgages owned by
the company not subject to taxation.
Counsels claim is that these mortgages and
indeed all the personal property of the COM
pany, belonged to the capital stock and
are not taxable as personal property. This
claim is founded upon the idea that the cap
ital stock is taxed, and that the tax the
property which makes up the capital would be
double taxation. But the capital stock of this
class Of corporations is not taxed.
1t is only when the value of the stock eX-
ceeds the total amount of the taxable prop
erty OF the corporation and It's Indebtedness
that the difference must be listed for taxation
and taxed stocks and bonds under subdi-
vision g. section 1924.
If there Is no difference" OF if the value
of the property exceeds the value of the
stock, as in this case there is no tax upon
any part of the stock.
The result in this case may seem a hard
ship to the company for the reason that
1t will result in its paying a greater amount
of taxes for the year 1897, than other corpora
lions in proportion to the property owned.
This is, however, no defense.
The company should not be compelled to
pay the penalty accrued for the nonpayment
of taxes. The amount of the tax levied was
excessive the company was not obliged to
pay the full amount and could not legally
pay a portion until it determined what
the correct amount was