The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-02
A HEARING ON TAXES.
Representatives of Four Public Serv.
ice Corporations Will See the
State Equalizing Board.
In Every Case It Is Proposed to In
crease Assessed Valuations
as Returned.

Four great public service corporations
have been cited by the state board OF
equalization to appear tomorrow to SHOW
cause why their assessments should not
be Increased over the figure fixed by the
county board. The present intention of
the state board is to give them all sub
stantial raises.
Three Of the companies are in Minneap-
oils, and If the assessments are raised
material addition will be made to the as
sessed valuation of Hennepin county.
The three street railway companies
owned and operated by the Twin City
Rapid Transit company of New Jersey
are assessed this year at nearly S.. O00,-
900. In Hennepin county over 5000, 900 was
added to the valuation Of the Minneapolis
Street Railway company Of last year.
Ramsey county never raises the st. Paul
City Railway company, but this year
added the sum Of 81 to last years figures.
The Saltwater suburban line was raised
some $4,000 by Washington county. The
valuations Of last year, and the returns
made this year by the county boards,
are as follows:
Last Year. This Year.
M %aS semps S5;s:t Ran s2ees,o ssoosoes
Mi SomppoIK Paul Sub: 's'8'''0 l9'00''
urban Railway Co..: s9.5s5 111,s2e
LOUIS .Yt, iOS,ooA S1,os@,ooA
According to the annual report for 1901,
the Twin City Rapid Transit company,
which operates these systems, has total
capitalization Of $2S,906, 625.03. OF this
S15,010,000 Is common stock, which paid
per cent dividends last year, and $4,000, =
900 Is preferred stock, which paid 7 per
cent. There is a funded debt Of $685.
900, bearing g. and per cent, and
$8,62503 floating debt.
Officials Of the company will claim that
they are only paying a fair tax on their
gross earnings, but on the other hand
State Auditor Dunn, who is the moving
spirit in the proposed raise, insists that
the company should pay on at least 80
per cent of the market value Of its capital
stock. 1t is likely that considerable
raise will be made in the st. Paul City
Railway company, and a slight additional
raise on the Minneapolis Street Railway
company.
The Lighting Companies.
The Minneapolis Gas Light company this
year returned an assessment on capital
stock $100, 900 in excess Of last year. This
was raised $4,000 by the Minneapolis
board and now further raise is proposed
by the state board. Last years assess
ment was 1851, 1867 and the return to the
state board this year is S75l,S60 The COM
pany is capitalized at $8O0,O00, paying 8
per cent on this amount. There Is a dis
position to asses this stock at near its
par value. An analysis of the company
finances, made for Mr.. Dunn, estimates
the actual value Of the stock at double its
face value and places a valuation Of
So, 100, 900 upon the $4,000 900 of per cent
bonds issued by the company.
The Minneapolis General Electric COM
pany paid on $4OO,S19 last year, but was
raised by the county board this year to
$569,930 A further raise Is proposed on
the showing made by Moritz Helm, who
has reviewed the company's finances fol-
the auditor. He reports that the company
has outstanding $1,000 shares Of common
stock, market value $73, or 81, 095, 600
There are $500 shares of preferred at $11O
or $3.50 There are s1,77S,0o Of bonds
quoted at par, making the total capitaliza-
ton Of SO, 693, 900. Mr.. Helm contends thai
the company should pay on 81, 1920, 900, the
value Of it's capital stock.
The st. Paul Gas Light company was
brought up this year to $675,00O, but Mr.
Helm contends that this is not near
| enough. The company has $780, 900 o.
capital stock, which is not on the market
but is owned by the American Light anc
Traction company Of New eJrsey. This
| company exchanged a share of it's pre-
ferred and a share Of common for share
| in the st. Paul company, and on the ,basi!
of the market vaue Of the New Jersey
| cOmpanys Stock the value of the st. Pau
companys capital stock is computed a
81, $4,000 The bonds of the compan!
have a face value Of $4.7O9,0O0 and {
market value of $3.50, 100. Mr.. Helm
holds that this company should pay on it
capital stock, or $1,935,OoO actual value.
Officials and attorneys who appear 70
the company will object to basing values
on capital stock or funded debt. In sup
port Of this system is cited the decision
| Of no wit ~,
which held that the value of a. company
property for purposes Of taxation Nigh
be fairly computed by adding together tn
capital stock and bonded debt.