The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-10

the subject. Not only so, but the methods
in vogue in this country are wide apart
FROM those in force in the most advanced
European states relating to like classes
of property. ANY system of taxation pre-
scribed for transportation or transmits
sion companies which depends in part upon
interstate earnings or upon valuations OF
property situate without the state contri-
burjng to such earnings, is at best I'M
satisfactory, and will continue SO until
those earnins:: and valuations are ascer-
tanned and apTOc.ioreu to the, several
states by federal authority. 1t is i'm
practicable TO" {; State TO ascertain, sucn
facts by inyest.gat;. Is conducted Dy It's
owns agents. 1t tl.1 efore depends largely
and often wholly upon the reports OF the
respective companies whose property is TIC
be taxed. Without impugning the accu-
racy of such reports, it is obvious that NO
state should be wholly, or to large ex-
tent, dependent upon them. A single IN
stance suffices for purposes of illustration
An express company, engaged in a grea;
variety Of business, many features OF
which are quite distinct from that of ex-
pressing commodities, whose operations
are extended over great part OF thi'
country and into foreign countries, pre-
sents SO complicated a subject that any
state which undertakes. thorough invests
cation for purposes of taxation would in
CuI du cApCuSC SIcdIly III SACSoS VI duJ
reasonable tax which it might justly i'm
pose. The same difficulties, although less
marked, would be confronted in similar
Investigations of other Interstate cOm-
panies. A federal body, like department.
of commerce, authorized to fully investi-
gate all quasi public companies engaged
in interstate business, and prepared to do
so by suitable agencies, would be able
by annual investigation to furnish all the
St GtpG without n hem rpli ia hla
and sufficient data for taxation purposes.
IT is a subject of such pressing Importance
that the legislature of this state and other
states should memorabilia congress to
adopt at the earliest practicable moment
the necessary legislation, either of the
character above suggested, or otherwise.
We adopted, in the early history of the
state, the policy of taxing railroad COM
panies upon their gross earnings. It is
entirely a commendable policy so far as
simplicity and expense of administration
are concerned; but few will claim for it
equality and uniformity either as between
the property so employed and the great
mass of other property in the state, or be-
tween the properties of the several rail-
road companies. We now refer to it
merely to emphasize the improperly of
extending that method of taxation, under
existing conditions, to other classes of
public service corporations. 1t is de-
sirab1e and just that quasi public COM
panies be taxed by the same rule. Re-
CARELESS of the question of power, it did
not appear to the commission that the
reasons urged in support of the demand
that certain other companies be taxed by
the gross earnings method were ade-
quate. 49, --s
So far as the commission had power to
provide for the taxation of such COM
panies, it has endeavored to apply to them
an impartial rule.
= In framing the provisions of the bill to
the classes of companies above named,
the commission has been guided to a great
which have been reviewed and sustained
by the supreme court of the United
States.
AS the primary step in the assessment
of corporations, exhaustive reports will
be exacted by the bill to be enforced by
stringent provisions. The various topics,
as to which the companies must make re-
port, are industriously set forth in Title
of the bill. Furthermore, additional in
formation may be required of any com
pany by the tax commission and other
officers whenever the same may be deemed
necessary in arriving at the value of Its
property.
/. Banks and Trust Companies-Banks
and trust companies are treated by the
same provisions, as their business is sc
closely allied in many respects The pro-
visions of the, existing law, having proved
efficient in the taxation of banks, they
have been adopted by the commission
without material change.
2. Building and Loan Associations
Although the commission was strongly
urged by prominent citizens to relieve
building and loan associations from taxa
ton, save as to a slight extent, it did not
feel authorized, under the constitution
to adopt such a course.
However benefcent the local society
may be and whatever the relationship be-
tween the corporation and the member
the constitution requires, as the courts
hold, the taxation of whatever property
it may possess, and the bill. makes pro-
visions accordingly.
g. Street Railway ompanies.-Repre
sentatives of street railway companies
earnestly recommended the taxation O.
their property by what is known as the
gross earnings method. While concedine
that such a method would not conform tc
our present constitution, the commission
was urged to make recommendation to the
legislature for the submission of a law
to the electors of the state, so amending
the constitution as to make that method
of taxation valid. The commission is not
however, disposed to recommend any
changes in the constitution applicable
only to single claim or subject. Its
views in this connection will be found
quite fully explained in Chapter XIV. Of
this report. =.
Street railway companies are to be sub,
ject to an ad Valorem assessment anl
taxed accordingly. But for the better
guidance of the assessor, each compan!
is required to make detailed statemen
of all it's property, real and personal
From the report made and individual in
vestigation, the assessor is to ascertain
and fix the value of the tangible persona
property and of the franchises of tn.
company.
Where the properties of such a compan,
are wholly within a single taxing district
the statement so required is to be made
to the assessor therein; where they ar,
situate in more than one district in
county the statement is to be made t.
the county auditor; and where they ar,
situate within more than one county, thu
statement is to be made to the county au
ditor.
In framing its provisions with referenc,
to street railway companies the commits
sion took into account the fact that the,
not only operate their lines within sin
gle city, but are rapidly extending then
into suburban territory and even across
counties. Provision is therefore made TO
the ascertainment of the valuation of tn
entire system of the company and TIL
apportionment upon mileage basis o
that valuation to the taxing districts il
which the property is situated. Wher
the property is situated in more than on
taxing district in a county, it is made tn
duty of the county auditor to apportiol
the valuation among such districts; blu
| where the property is situated in two o
more counties, it is then made the dut
of the state board Of review to make sucl
apportionment.
Upon such apportionment being made
the amount thereof so apportioned viii
be assessed in the same manner as othe