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

E. A. Merrill Contends That
New Law Would Drive
Capital Away.
The Senate, After a Brief
Session, Hears Duluth's
Deputation.

a school for the study of taxation. All
day sessions were held by both house and
senate committees to-day. Nearly all
the members attended and great interest
was displayed.
This was bankers day in the house,
where the the greatest interest semes to
prevail E. A. Merrill of Minneapolis,
and H. P. Upham of st. Paul, consumed
the morning session. Each made a
short address,, and each was in turn
placed upon the grtdiron by relentless
members of the committee who piled them
with all sorts of questions. Messrs. JAG
OLSON and j. A. Peterson, the leading sup
porters Of the bill. took the lead in the
operation.
twin city bankers acquitted themselves
with honor, and were quite match for
their adroit cross examiners.
Mr. Merrill dwelt principally upon the
injustice done to depositors in banks,
whose income would be practically wiped
out by assessments at full valuation. Mr..
Upham presented as an alternative the in
come tax, which he favored as a substi-
tute for personal property taxation. Both
urged that all legislation be deferred I'M
til the passage of constitutional amend
ments.
In the senate, which is a day behind the
house, the morning was spent. on vessel
taxation.
Indications are that the majority Of the
house committee is opposed to enacting
the bill at this session. Messrs. Hurd
/; Rich, Washburn, Ward, Barteau and Fer
ris are understood to be in line for this
program. Friends ofsthe tax bill expect
E! this element to come up as soon as the
hearings are finished with motion to re-
| fer the bill back to the house with the
recomm endation that its consideration be
postponed until the next session.
| Whether this passes or not, the fgh1
| will be transfelfe.,i 10 che floor OF The
| house as soon as tcesreport is made. Her.
the friends of the bill think the outlook il
| best for its passage in some form OF
other.
| A significant move was made this morn
ing by Mr.. Laybourn, of Duluth. Jus
| before adjournment resolution was Of
fered by'Mr. Sweet, of Henenpin. inyitin;
the members of the tax commission to b.
present at the committee hearings. MI
Laybourn gave notice of debate, and unde
the rules the resolution went over unit
tomorrow.
Asked as to the reason for his action
Mr. T.oIr "a IN
I am not able to say to-day. That viii
come out whenever the resolution come
up for debate.''
| A Duluth Labor Protest
The committee got down to work a
1910 and first heard from labor repre-
sentatives of Duluth and St. Paul.
Gordon O'Neill, for the Duluth Trade
and Labor assembly, stated the positio
of that body. 1t opposes the reduced eS
emption on personal property, the listin
OF personal property at it's full value, tn
taxation of grain in elevators, ad We
loren taxation of vessels and the taxa
ton of bank deposits. Taxation of graf
? in elevators, he said, would operate
stop elevators from receiving grain duh
=, =, ing the closed season.
3 John Gieske, representing the st. Pa
l Trades and Labor council spoke on
against the reduced exemption.
+ Banking Interests Heard.
d E. A. Merrill, president of the Mil
nesota Loan and Trust company, a.
peared as the representative of Mimi
apolis banks and trust companies. M
Merrill, in opening, said he was not o.
posed to proper legislation, nor was
in sympathy with the tax dodger. He di
, however, want bill enacted which wou
at least be acceptable to the tax con
misssioners themselves.
Il Mr.. Merrill based his remarks, whit
were typewriter, on the report of tt
tax commission, and quoted from that r
port in various places where the cor
mission complained of constitutional lir
d itations, which made it impossible
8 frame such a law as they desired II
q commission, he said, had been given,
# practically impossible task
q Two wrongs do not make one rigt
: : Mr.. Merrill continued The suggest,
e to enact a drastic law in order to arou
e the people by making them feel its blu
: den, and so secure the passage of CO
= stitutional amendments, did not appe
to him. Banking property was alrea
/ the most heavily taxed interest in II
,. state. The banks did not complain, al
,r their objection to the new law was bas
/ on the interests of their patrons. Tax
s ton of savings banks deposits won
= confscate the income >of $12,0O0,OOO depo
e tied in the savings banks of Minneapoli
y These deposits could be exempted, Who'll
. or in part, by proper constitution
: amendment. In New Hampshire such d
posits are taxed one half of i per Ger
: and a large revenue actually derive
!, Such a law would be impossible. und
e our present constitution, and this is
r strong argument for amending It,
Eject on Money Supply.
He called attention to the low rates
o interest now obtaining in Minnesota TT
= was made possible by large supply
3 money. The proposed law would dri
g capital from the state and increase int
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