The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-07
FINANCIERS
TALK TAXES

Continued From First Pare.
est rates. Ohio's drastic law had not
added to valuations, but had driven mil
lions Of dollars to other states.
Trust companies, continued Mr.. Merrill,
existed to preserve what more active in
situations created. During the first year
of the panic his company sent $1,000, 900
from Minnesota to other states, and this
movement continued for four or five years,
but has now ceased.
Trust companies did not object to taxa
tion Of themselves. but to taxation Of
drive it elsewhere, where it could not
be reached, or, if reached, would not
be taxed at it's full value. l-T
The effects Of the fear Of the proposed
law were already beginning to- be felt.
Trust funds on their way here were re-
turned to an eastern state, and another
fund was invested in government bonds.
Others We're converting their deposits into
gold, presumably to place in safe deposit
vaults. -.
To the objection that time would be
required for passing constitutional
amendments, Mr.. Merrill replied that time
was also required to educate the people
to the new proposition and arrive at a
just system. Minnesota's prosperity had
been attained under the present law and
and the disorder of the business interests
Of the state.
Savings and Capital.
J. A. Peterson asked Mr.. Merrill where
the most savings were invested, in the
savings banks or in the small farms and
homes of the state. .... .-<... ,
Mr.. Merrill replied that all savings were
capital, and deposits in savings banks
we're small savings.
do you contend, said Mr.. Peterson,
that the man who has put his money in
a savings bank has done as much for the
state as the man who put his money in
a farm or a house and lot?'
IF both have been equally Industrious
and saving, yes. I do not ask you at this
time to exempt savings, but to amend the
DONE" ..~..,.- s...s:, "a. .... .,-,. 81 j.
I'm the meantime" said Mr.. Peterson.
would it not be just to equalize the bur-
dens little?'' -
"The tax commission say replied Mr..
Merrill, that it cannot be done under
oru present constitutions" >,zs
Mr.. Peterson called attention to Penn
sylvania. where the rate was decreased
by a new tax law from 4 to IA per cent,
and to Wisconsin,, where the rate de-
creased from to 1.25 per cent. He quot
ed the tax commission as predicting a
trebled valuation in Minnesota.
Mr.. Merrill, in return, quoted Michigan,
where the new law only increased the
valuation 30 per cent, and to Ohio, where
there was no increase. He doubted the
correctness of the commissions estimate.
Mr.. Jacobson next took Mr.. Merrill in
hand, and asked him why he took the
COMMISSIONS word on one matter and
that, the question OF an increase was one
of judgment, in which he felt bound to
disagree with the commission:
''Would you favor constitutional con-
vention?" asked Mr.. Jacobson.
Eyes If that is the best way"
"Ther, the association you represent
has changed front. Two, four and six
Gears ago it opposed at our sessions bills
creating a constitutional convention"
$50 far as I am concerned, there has
been no change Mr.. Merrill replied.
Mr.. Kelly asked Mr. Merrill whether he
would favor a special election to vote on
the constitutional amendment. He replied
that in his judgment plenty Of time should
be taken. 1t was wrong to go at such
an important question In haste.
Mr.. Burns undertook to pin Mr.. Merrill
to a statement that he favored the equal
taxation of all property. In reply he
called attention to the $40 exemption,
which favors the poor, and declared his
belief that small holders should bear. a
less per cent OF, the burden. Small saw
ings are thereby encouraged.
Mr.. Washburn claimed that Mr.. Mer-
rill's position had been misrepresented by
Mr.. Peterson in his cross examination
Il think the gentleman is capable Of
taking care Of himself" said Mr.. jacob
son.
Well, the gentleman happens to be one
Of my constituents, and do not propose
to see him misrepresented regardless Of
Mr.. Jacobson or anyone else. Mr.. Mer-
rill's position is that he does not favor
any legislation under the present consti-
tuition.
Income Tax Suggested.
Henry P. Upham, president of the First
National bank OF ST. Paul. followed Mr..
Merrill. J. w Lusk. who was to have