The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-03
Lower Levy Under New Law.
A DUAL VIEWPOINT
j. w. Shadewald Thinks Present
Grain Tax on Right Basis.

The present system Of taxation of grain
at terminal elevators is the correct one,
according to ]. w. Shadewald, who was
for several. years a deputy assessor in
Minneapolis, and who is also we'll versed
In the grain trade. Moreover, In his
opinion the proposed tax law would drive
the grain business out Of Minneapolis and
Duluth to other states.
Mr.. Shadswald was appointed a special
assessor in 1896 to look after logs, lum-
Der and grain, commodities that up to
that time had been largely escaping tax
alton. 1t was agreed at the assessors
office that there should be assessed on
$1,75O.000 Mr.. Shadewald took the mat
ter up with a committee Of the grain
men and 1t was agreed that this amount
should be placed on the assessors books
under the item Of credits, and in order
that the assessor should have no trouble
In getting this amount, the Elevator men
made themselves liable for the tax, de-
spite the fact that they did not own the
grain. They have kept their agreement
to the letter since that date. Speaking of
the effect of the proposed law he says:
I believe that the proposed tax bill would
drive every terminal elevator company out of
business in Minneapolis and Duluth. To
illustrate how it would work if the grain were
assessed against each individual owner: The
elevator men would give the name of the
person owning the grain and if the person
lived in some other state we would assess
his grain full value and the same would
be placed the tax books in Hennepin
county. This grain is loaded out of the ele-
vator during the summer months and shipped
out OF the state. Six months after that the
tax becomes due. The treasurer sends notice
to the person owing the tax but we find in
nearly every taxes due on grain against
non-residents never paid and there is
H.
books forever. Under the present system
the elevator men pay the tax so assessed
against the grain in store thereby causing less
expense to the county than in where
the grain is assessed against non-residents.
1t is about two years ago that the state
board Of equalization undertook to raise the
elevators SO 1-3 per cent upon information
received that all elevators were assessed at
$3.50, 900, when in fact the amount was nearly
$3,OOO,OOO. prepared correct statement and
appeared before the. state board and when
they learned the facts they agreed that if
anything the elevators were assessed too high
compared with other property and they voted
to lower them to place them in line with
other property. I prove that there are
elevators now assessed for more than double
what it would cost to build then, but the
owners keep on paying taxes on the amount
levied.
/ believe that all manufacturing plants
SNoulu De 1aVOraDly COnSlQered. l FOUND IN
all my experience, as assessor, that there is
only one class OF property that escapes taxa
ton and that Is goods owned by foreign
corporations that carry goods in public ware
houses, such as sugar owned by the trust. I
spent considerable time in hunting up this
property. | found thousands Of barrels in
store that they were paying storage charges
on and was liable for taxation. but when we
placed it on the tax books they employed
an attorney to fight the matter in the courts
and in every case they were successful in
getting rid OF paying their tax although they
keep large stocks in store and need fire pro-
lection and use the streets in cartng the same
for delivery. l believe that with the system
now in force, with good, competent men to
list the property, much be accomplished.
In regard to taxing balances in banks:
wish to say that the grain men. have listed
their bank balances with me the first day of
May. l always insisted on seeing their books
as to their balance. l believe that if banks
are required to give balance of customer to
the assessor it will drive the money out OF
the banks and cause all kinds Of trouble. The
country banks will draw their balance from
our city banks and the business firms that
now make returns their balances will de-
post their money in eastern banks and we
get