The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-07-19
TAX OF $l,5OO.
Building and Loan Assn Cannot
Stand Ii.
Will Have TO Go Out of Business or Re-
organize Unless the County Board
Gives Relief.

The meeting of the borrowers and
investors in the Mankato Mutual
Building and Loan association at the
city hall Saturday evening was well
attended.
President Pass explained that the
meeting had been called to see what
steps should be taken in view of the
action of the assessor and council in
placing heavy assessed valuation up
on the association for purposes of tax
alton He said that the taxes would
be 81, 500, which would be a heavy
handicap upon the association, which
has to compete with banks and indi-
viduals who pay no taxes. Owing to
the abundance of money and low rates
of interest, the directors have been
talking over the proposition to reduce
the rate of interest charged from seven
to six per cent, which is the rate
charged on long loans by banks. On
top of this, the assessor puts valua-
tion on the association that seems to
make it impossible for it to do bust
ness. 1t takes one per cent to pay ex-
penses, and investors threaten to with
draw if their returns are made any
smaller. A local banker stated that
very little of the money deposited in
the banks is listed for taxation, and
the depositors cannot be blamed when
people from outside do not pay on the
money which they loan in the city.
Our present tax laws offer premium
on tax lodging. If everybody paid,
there would be no fault found.
DR.. NJ B. Wood thought that if
other building and loan associations
are not taxed this should not be.
Mr.. Pass suggested that the associ-
alton meet with the county board and
try to have it take the association
from the list, or reduce it to the for
mer figure.
Dr. Wood suggested that several of
the smaller associations in the state
combine and test the law under which
the local one has been listed.
Mr.. Pass said shat there is mis-
understanding on the part of a good
many people as to our local associa-
tion. There is difference in the plans
followed by different associations.
The local one is wholly mutual and
does business about the same as saw
ings banks, which cannot be taxed.
The stockholders are the same as de-
positors. Other associations do bust
ness On different plan, and this ought
to be taken into, consideration in max
ing plans.
M. o. Sundt said that if the associa-
tion is taxed 81, 500 it will have to go
out of business. Thus far the taxes
have been about $40. The association
has been carefully managed and very
few losses have been incurred, yet
there is not enough surplus on hand
to pay such heavy tax and it will
hdNC W SOkhC OuU VI IIO W lhC
deposi tors. Some of the latter may
withdraw and force the association to
quit business. They can make more
than five per cent with their money
The association is the same
as savings bank, and many widows,
boys and girls have small amounts in
vested in it. The president and direc-
tors give their time free, receiving no
pay. The association has been of
great benefit to the city having BEEN
the means of building or re1nodeling
800 to 1, 600 houses, as the borrowers
could not have secured the money else
where.
D. V. Williams said that these,
houses are now on the tax roll, yield
ing large tax.
Mr.. Surdt said that there are people
in Mankato who do not know what
the association has done. To, tax 1t
heavily looks like spite against the as
ISOLATION or individuals, in it, and the
public should know it.
Philip Mueller, Dan, Coughlan and
others made remarks along the same
line.
A motion was carried, providing for
the appointment of committee to az
range with the county board for a
meeting with the association while the
board is in session this week as a
board of equalization, Geo. Pass, M.
o. Sundt, Dr. M. B. Wood, E. F. Scar
ing and Thomas Hughes were named
as the committee.
A resolution was offered instruct
ing the directors to, prepare a plan to
reorganize as savings bank in case
the association is forced out of bust
ness by the heavy tax proposed to be
levied.
This was laid on the table until
after the county board has had a
chance to act on the matter, and the
meeting adjourned
The committee appeared before the
board this afternoon and presented its
request that time for meeting be
fixed. This was agreed to and Thurs
day at 2 p. m. was agreed upon in case
that no adjourned meeting is held. If
an adjourned meeting is held, the
matter will come up then.
In the meantime, a statement as to
tho nnnnhor Of honsos th of have haen