The Minneapolis journal., 1901-09-28
Mr. Munn,s statement.


to $4,75O,0OO.
Mr.. Munn's Statement.
President Betcher asked Mr.. Mum to
make statement. He said that the COM
mittee had given the matter careful con-
sideration, and while he was not salts
fed with it's decision, he would abide by
1t. He went further, saying:
II you fix the valuation as the COMMITTEES
recommends ! shall advise my company to
pay it without controversy. Further, l will
recommend that the company pay last year $
tax, which is now in controversy.
Reviewing the assessments of the past
ten years, Mr.. Mum showed that the COM
pany had paid a tax constantly increas-
ing from $51, 144 in 1892, to $4,000 last
year, though the gross earnings last year
were only $4,000 more than in 1892. The
tax last year, when gross earnings
amounted to $2,8S9, 900, was about AZ per
cent on gross earnings, while railroads
pay only per cent. On the basis pro-
posed, the company would this year pay
about 4A per cent on gross earnings.
President Betcher asked Mr.. Mum what,
in his opinion, would be fair gross earn
ings tax on a street railway company.
Mr.. Mum replied:
That varies with the density and the
amount of population. In cities like st. Paul
and Minneapolis per cent would be a fair
tax. 1t has been urged that street railway
companies, which acquire right OF way free,
should pay a higher gross earnings tax than
steam railways. The cost of maintaining the
right OF way streets is twice what it ID
for steam railway. In the last year or two
we have had to pay out immense sums for
paving.
Next year we are going to request both
cities to pave all streets Immediately which
need it, where our tracks are laid. The ex-
pense will be tremendous, but we want to
get it out of the way. We will relay all
those tracks with solid joint rails, and in all
1t will cost US s., 500, 600.
President Betcher remarked that if rail-
road taxation is raised to 4 per cent,
street railways should pay s. Said Mr..
Mum:
That cannot go into effect for three years
yet. Perhaps by that time per cent would
be fair rate for us. 1t is not now. It is
remarkable that SO much has been loaned on
our property. 1t never would have been done
except for Mr. Lowry's personal guarantee
Had our taxes been one e per cent basis In
1893 we would have gone into the hands Ct
receiver.
Our tax this year, on the valuation YOU
propose, will be about $135, ,O00
Your own statement shows the prop-
erty to be worth $31, 200, ,00O,' said Mr..
Betcher.
Mr.. Mum replied:
We have tried to give our property as high
valuation as possible, but we do not claim
that as its present value. We claim its pros
poets are such as to warrant the belief that
when the bonds mature it will be worth that
figure.
The license tax to the city of Mime
apolis, Mr.. Mum said, was $25 per car or
about $1,000 a year.
State Auditor Dunn said he would like to
see the Ramsey county assessment brought
up to last year, also that of Washington
county, but he would acquiesce in the de-
clsion of the committee. He presented a
resolution drawn In proper form. It was
carried by unanimous vote.
Gas Light COmpany's Tax.
Mr. Dunn then presented a resolution
raising the valuation of the Minneapolis
Gas company from $6O3,1 to $500 900.
w. H. Levings, secretary of the com
pany, protesting against the raise. denied
the statement that he had failed to make
return, and declared that he had vol
UNFAIRLY returned an assessment 500, 900
higher than last year. Without giving
him hearing, Assessor Fort put it up
to $1,000,000. The company went before
the county board and got 1t reduced. but
they left 1t $4,000 higher than the re-
turn. He declared that II Mr.. Dunn's
resolution went through, and the Henne-
pin county levy was fixed at cents, the
company would pay this year gross earn
ing's tax amounting to 45S per cent
The company estimates its gross income
this year at $540, 900. Mr.. Leving admitted
that the 100000 capital stock paid per
cent dividends, and that 1t also paid 6
per cent On $2,9OO,OO0 of bonds This,
he said, came under the same rule as that
of the street railway company, and did
not represent the actual value Of the
plant. Replying to questions, Mr.. Levings
said the stock was not for sale. 1t Is all
owned by Harvey Brown and the Rand
heirs. Auditor Dunn asked him to place
a value on the stock He replied:
President Brown offered to sell his shares
to his nephews for rs cents on the dollar
when he was thinking of leaving Minneapolis.
The stock is not on the market, at any
price, now.
Auditor Dunn and Mr.. Levings got into
heated argument over a comparison
with the st. Paul Gas company, whose
stock is quoted on the market. Mr..
Leyings insisted that he was keeping
faith with the board, and deserved a bet
ter reward. The company is trying al
ways to keep down the price of gas to the
consumer.
The board adjourned for lunch without