The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-09-28
TAX THEIR CAPITAL
CORPORATIONS SHOULD BE LAW
FULLY ASSESSED, URGES
GOV. LIND
STREET RAILWAY PROBLEM

1t Gave the State Board OF Equnliza-
ton Hard Nut to Crack, ana
the Question VIII Not Be Settled
Until the Meeting This Morning
Elevator and Eating House As
scssments Raised.
Before the state board of equalization
yesterday Gov. Lind urged that corpora
lions be assessed according to the law.
When the governor appeared before the
board it soon developed that he was not
to speak about taxing franchises, but
rather capital stock. The governor said
that tie supreme court had held that
franchises could not be directly taxed,
but in decision April 20 last it had de-
fined the one legal method of taxing cor
porations IN Minnesota That was to as
sess their real and personal property
and deduct these assessments from a
fair valuation of the capital stock.
lie was not attacking any special cor
poration or corporations, but desired to
have the board establish clean-cut
method of dealing with corporations &C
cording to law. The whole taXatio sys-
tenn Of the state was III bad shape es-
pecially tr respect to corporations The
board should take steps to set an exam
pie and establish a precedent for local
boards and assessors to follow. The gov
ernor expressed great prise that there
was no return of Twin City Rapid Transit
stock except 100000 for the MINNEAPOLIS
company. He thought it was the duty of
the board to take cogniZance of this fail
ure to list capital stock and possibly in
struct the attorney general to issue eta
lions tc representatives of the two COM
panies.
The gas and electric light companies be-
ing mentioned, it developed that the law
has not been complied with, assessors
and boards of equalization having treated
corporations as they did individuals.
Gov. Lind suggested that the board
take the returns made by the assessors
on tho street railway and gas companies.
and an estimate Of the capital stock and
deduct the sum Of the realty and per-
sonal assessme nts.
Auditor Dunn questioned whether the
board could insert an assessment where
none had been returned, its duty being
TO raise and lower assessments, but not
to impose them. The governor REPLIED
that If a return was incomplete it was
part OF the work of the board to make it
complete, and that there was no doubt
that the board had the power to do so.
From a statement by the auditor II
appeared that the street railway compa-
MES of the Twin Cities are now assessed
at $LSu0,0O0 on their personal property
and the real estate assessment brings the
value up to about $2250,000. The local as
SCISSOR in Hennepin raised the Minneapo-
lis company $150,000 this year, while the
St Paul company was raised $4,000 The
company makes returns on 200 cars in St
Paul and 500 in Minneapolis.
The street railway company was repre-
sented by Vice President c. G.. Go )drtch
and M. D. Mum. The latter urged that
the company's return was as fair as could
be made under present laws.
The state at present had no intelligent
system of taxation. The old law Of 1863
had given the state a system sadly out OF
joint. The decision of the supreme court
which had knocked out a portion Of the
latter tax law and left part Of it on the
books as valid, had left the state in po-
sition where it was practically impossible
to levy a fair tax upon corporations. The
company had done the best that could
be done in making a fair return and
asked only that which It felt certain Of
receiving in return at the hands of the
board-fair treatment The company had
determined not to contest in the courts
this year, and If the board saw lit to
raise the assessment $3.50, 900 it would be
paid.
Auditor Dunn thought the assessment
of the companies should bear some rela-
ton to the earning power of their prop
erty, whether the assessment was equal
to the face value of the capital stock or
more.
Mr.. Mum explained that the returns
submitted by the city railway company
of St. Paul and Minneapolis would yield
tax equal to per cent on the gross
earnings. That was the same as the rail-
road companies paid, and he considered
it fair.
Auditor Dunn did not believe fran
chises could be taxed under present laws.
The legislature should be asked to change
them. The cOmpany's assessment should
be raised, but the board should also go
after something Notwithstanding that
would hold, and could not be escaped.
He preferred a tax under item q, which
includes all other properties, than those
mentioned in the first 26 items.
Gov. Lind, continuing, said:
'It is astonishing that no return of
capital stock has been made in the case
Of the street railway company. 1t seems
to me that the, stock should have been
returned at a fair valuation. There are
other corporations, such as boom COM
panies, that are in the same situation.
It was finally decided, at the govern
or's suggestion, to take up the matter
this morning at 10 o'clock.
It is stated that the assessment of the
city railways will probably be increased
by $3.50 600.
A number Of changes were made in
classification 25, which includes saloons,
eating houses, billiard halls and the like.
Raises were ordered in the following
counties: Aitkin, 10 per cent; Big Stone,
:. Chisago. 50; Grow Wing, 10; Dakota,
*: Douglas, 10; Goodhue, 20; Grant, ~;
Hennepin, 25; Hubbard 20; Kaadfyohi, 50;
Lac oui Parle, 80; LIE Suetr, 66 2-3; Lin
coin. 10; Lyon, e; Marshall, 25; Martin,
q: Mile Laos, 100; Murray, Is; Olmsted,
f06, Pine. 60; Pipestone, 60; Ramsey 60;
Redwood. ID; Rice, 10; Rock, 40; Scott,
10: stearns, 10; Todd, Is; Waseca, 20;
washington, %; Wiljdn, IS; Wfnora' SOU.
elevators and warehouses on railroad
RIGHTS Of way were also raised IN many
counties. as follows: Douglas, 10; Grant,
<. LYON. ); Mcleod, 10; Morrison, .; Nor
man, s: otter Tail, 10; Polk, 20; Red
lake. Is; Scott, So; Sibley, 10; Waseca, IL;
Watonwan, 10.
No changes were made in schedule u,
the miscellaneous classification Of all
property not included in the previous 70
classiications.