The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-08
GRAIN MEN ARE HEARD
Vigorous Protest Against Taxing the
Grain in Elevators

Grain in Elevators.
Before the house committee late yes
terday afternoon S. A.. Harris of the Ma
tionai Bank of Commerce made a plea
for the business interests. of the state.
He said that they were unalterably op
posed to the new law. The situation, he
said, seemed to; be the views of profess
sional men opposed to the views of bust
ness men. He read letter from Law
son Purdy of New York, secretary of the
tax reform association, and a leading
authority on the theory of taxation. NJ.
Purdy said that he should oppose the
amendment of the present tax law of
Minnesota under the present constitution.
He said that the more drastic law was
made under such constitution the more
disastrous it would prove. Mr.. Purdy is
and Mr.. Harris expressed the hope that
all members of the legislature wiuld be
able to hear him.
M. ]. Forbes Of Duluth opened the ar
gument for the grain men, representing
the Consolidated Elevator Company.
Mr. Forbes protested on the ground
that grain in Duluth elevators is merely
for storage, and the elevator man only
expects to make half cent bushel on
it.. The tax would be paid by some one
else, naturally the producer.
Ward Ames of Duluth, for the Duluth
would wipe out that organization, which
is as essential to the grain business as
banks to the handling of money.
Mr.. Peterson asked Mr.. Ames if wheat
owned In an elevator May l should not
pay taxes. Mr.. Ames replied that he
could not imagine wheat being owned by
the elevator man. It was simply stored,
and every bushel was sold somewhere else
as soon as received. -@
A. D. Thompson of Duluth said that if
| the bill were passed and enforced, he
should have to move his business to an
| other state. He would be able to buy
grain cheaper in this way, and the tax
1 of or cents bushel would have to
come off the price paid for Minnesota
grain.
! A discussion arose as to whether grain
in line elevators and in farmers gra-
| naries was taxed. Mr.. Washburn said
members had Informed him that in the
| country districts no attempt was made
| to list farmers wheat. Mr. Jacobson dis
puted the fact.
/ George Spencer of Duluth said the law
would be hardship to the grain inter
| ests Of that market, which last year han
died 40,000,000 bushels of wheat and
beyond the reach Of Minnesota inspection,
and into the hands of commission men
not under Minnesota laws.
| jacobson Cross-Examines.
I How long have you been in the grain
business in Minnesota" asked Mr.. Jacob
| son.
"About, twenty years"
Before we had state inspection OF
grain
Yes
] when the farmers demanded state In
| spection, did not you grain men come be-
| fore the legislature and protest that it
] ,,o,,l1 ri Of h1,o an
! the grain to other states?
| 81 Gid not"
! 'When the Grindeland law was passed
requiring grain commission men to take
! out licenses and submit to state regula-
/ ton, did you not make the same cry?"
! mo; l never did"
! We'll, I have a very distinct recCllec-
4 tion that some of you did
Captain Alex McDougall, speaking from
l his knowledge Of the business at the head
| of the lakes. said that Minnesota grain
would all find storage in West Superior
under the new law. The 70 per cent OF
grain that comes to Duluth from other
states would go by the numerous other
I routes.
! c.. M. Harrington, of Minneapolis, rep
| resenting the Van Dusen Harrington Ele-
! vator company, read carefully prepared
paper. He stated that due to the -four
i mills Minneapolis had become the great
4 primary market of the world, handling
/ last year $4,000, 900 bushels of wheat. The
i mills make the price and Canadian wheat
receives &c to Sc less than that coming to
the Minneapolis market.
Means Double Taxation. us
.casse- first objection of Minneapolis grain
menEto the bill is that it means double
! taxation. The aoital stock Of elevator
companies is Invested in the plants They
/ borrow the money to buy the grain. The
money is borrowed from local banks and
individuals. Notes held by individuals
1 are taxed
Grain men. like wholesalers, are Obliged
! to meet Interstate competition. Mr.. Har-
rington predicted that with the new law
the rate OF taxation would not be re-
duced, and with taxation at Its full value