The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-14
Minnesota Legislature
THE TAX BILLS DAY
It's Friends Expound Its Merits to
House Committee.
THE FRANCHISE TAX FEATURES
Messrs, Childs and Ives Call Atten.
ton to Position of Public Serv-
Ice Corporations.

the house committee. TheSe were II. W.
Childs and Gideon S. Ives of the tax COM
mission, and State Auditor Dunn.
The last two maddea point that was ap-
preciated, when in speaking OF the iran
chise tax features, they remarked tnae
there seemed to be no opposition to them.
The public service corporations hao not
appeared to object, and apparently mad
no objection to this part Of the law: They
did seriously object, however, to the way
the poor farmer was made to suffer.
Three hours Of the afternoon session
was taken up by Messrs. Ives and Dunn.
Gov. Ives Position.
Governor Ives explained that the pres
ent law of Minnesota was almost the
same as that of Ohio, except that In ONO
the inquisitorial features were added, ana
professional ferrets were paid ~ per cent
for bringing out hidden property.
In this state it has come to be regarded
as all right to cheat the state If you 90
not have to swear to it. Men say they
cannot afford to list all their property
when their neighbors do not. The new
y law makes their neighbors comply. The
moral effect of the present law is bad.
The change made in the new law is IN
providing a penalty, not for the honest
man, but for the tax dodger
Speaking of the effect Of the bill on
various interests, Governor Ives dismissed
the public service corporations with the
statement given above. He then took up
the argument sent out in circular form
against the bill, telling how the bill would
affect the different interests.
Valuation of Farm Property.
In reply to them he said that as to the
valuation of farm property there was no
change in the present law. 1t was the
same with the merchant, whose stock is
value.
THE petitions" said Governor Ives,
"come in here on one printed form. They
do not ask you to oppose the bill, but to
postpone 1t for one year. The speaker
here read the letter sent out by the
bankers association, and declared 1t a
sample of the method used to influence
the legislature.
He said that he would favor the exemp-
ton of household furniture to the value
of 5000, if permitted by constitution. The
feeling for the poor man which had come
to the surface, he said, came from a
higher source
The farmer might have to pay little
larger share of the state tax under the
new law, said Governor Ives, but as prac-
tically all the tax was local it would make
no material difference.
Michigan's Experience.
He showed that the proportionate in
crease under the new law in Mlchlgan
was five times as great for personal prop
erty as for real estate, and that the in
crease bore more heavily on the cities.
This was due to the efforts made to reach
property in the cities that had not been
reached before. The commission believed
that the new Minnesota law would reach
certain corporate interests and add great
1y to the income of the state.
An attorney for one Of these corpora
tions, he said, appeared before the COM
mission and presented bill for their tax
alton. This he said, would result in their
paying $4,000 a year instead Of $500, but
that would be agreeable to the company.
The commission decided that this corpor-
alton should be taxed as other property.
And now this attorney says that under
the new law the company would have to
pay 100000 year.
Merchants say that the full valuation
of their property would make it hard for
them to compete with other towns. II
this were true, the towns, and not the
assessor, should determine what relief
they should get.
At the full valuation, Governor Ives
said, banks would not pay as heavy taxes
as they do now, owing to the reduction in
rates.
Machinery of the Law.
Governor Ives justified the abolition of
the town boards of review the ground
that they had seldom done anything, and
explained the workings of the county
board of review. He also defended the
change from a state board of equalization
TO a permanent TAX COMMISSION, ana eA-
planned in detail the real estate provi-
sons.
The State Auditor Speaks.
Mr. Dunn said he would not put "a straw
in the way of the passage OF the hill. He
did not exactly agree with some things in
the report.
'"To he frank" he said, II mean the
constitutional amendments. I believe
in explicitly saying in the constitution
what shall be exempted.
Ct would favor an amendment placing a
1-per-cent license on real estate mort
cages, and exemEting them otherwise. I
would like to see an amendment placing
a $3.50 exemption on household furniture.
The $500 exemption amounts to more than
that does. and does not do as much good.
would also exempt $500 deposits in all
banks. These little bank deposits are
what result in the ownership of homes by
men. Such an exemption would encour-
age thrift 1t would be protection to
banks and good public policy
Mr.. Dunn said that he had heard Mr..
Purdy explode the California plan of as
sessing mortgages, and agreed with him
on that point. 1t was the only thing the
New York man did say that he Endorsed,
however. ...~.
IT hope you will pass the BILL" he went
on "Give it a chance at this session.
There is no use to talk about postponing
it till constitutional amendments car be
can devise that Will satisfy some of the
people who are kicking on this bill.
."This Income Tax
''Now about this inc ONE tax. It is ia
yored mostly by those who think 1t would
make them pay less taxes. If that is
true then 1t would not raise revenue
enough. T think it Is a good thing, bu.
in limited way.
.Different interests have come to you
asking for protection. They want you to
fix it so they can compete with business
interests of other states That is a dan
gerous policy, for there is no telling
where to stop it. II grain in an elevator
at Luverne is taxed. it ought also to be
taxed in Minneapolis or Duluth, if not in
transit.
Il admit the bill is drastic and inquis-
itorial in some of its features, but it
will he administered conservatively and
that word means good Geal sometimes.
The real estate features alone are worth
this extra session. Then the section
about corporations ought to be adopted"
''There is no opposition to that said
Mr.. Jacobson, facetiously.
mo; I haven't heard of any. I have
been thinking I would have to come up
and speak for the corporations. Nobody
else seems to care anything about them.
They are all interested in the poor man.
In reply to question, Mr.. Dunn said
that under the present system a large
share of real estate escaped paying its
lust proportion of taxes. Under the new
law = man was pretty likely to lose his
land, if he failed to pay taxes. This
would not as rule burden the poor man.
It was the speculator who lodged his
taxes, or failed to pay and bid the land