The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-28
ARE READY TO FIGHT
ONE CLAUSE OF TAX
CODE
ORGANIZATION IS PERFECTED
Assert 1t Will Force Terminal EIe-
vatOrs Out OF business, Rob
Producer and Send
Grain Elsewhere.

The grain interests of Minnesota will put
up a strong fight against the grain tax
alton clause in the new bill. They are
now thoroughly organized and ready to
begin a systematic campaign in their
own behalf. A complete circular
win be issued at once for distribution
throughout the state. The circular VIII
contain the following statement submit
ted by the Duluth grain men:
In considering the proposed tax bill
so far as 1t AFFECTS grain, it is taken for
granted tnat it is not intended to in
Jure any interest Of the state, or any
locality. ana Wnen it can be shown
that the proposed changes do affect
disast1ously t4le great INDUSTRY of grain
producing, we take it for granted that
our legislators viii not hesitate to make
changes to avoid this. So far as the
elevator interests are concerned at Min
nesota S only lake port, it can be said
that the great bulk Of the grain goes
through the elevators at the one charge
of one-half cent per bushel and if the
proposed plan for assessing ana taxing
gram In terminal elevators becomes 4
law, it will force the terminal elevators
at Duluth out of business from the close
OF navigation until after April l follow
ing, as the tax on grain in store would
amount to more than the storage re-
ceived on grain taken in during the WIN
ter, and the large number of laboringmen
in the employ of the elevator companies
would have to look for work elsewhere.
Help to Wisconsin.
Elevator companies with warehouses
in Wisconsin could pay from to 3 cents
per bushel more for grain than could
companies having terminal houses In
this city. At the present time these ele-
Vators contain a large amount Of grain
bought before there was any intlmation
of a tax being imposed, and no allow
ance has been made Tor such a tax, and
II 1t is now imposed it would not only
wipe out all the earnings, but cause a
heavy loss The rates for doing this
business had to be fixed last September,
and they We're so fixed, and the elevator
companies cannot change them The law
requires all elevator companies to publish
their rates fer tho year Sud fixes Sept.
l as date Of such publication.
Heretofore the elevator companies have
worked for and secured large quantities
Of grain from Washington and Oregon
and from the Southwest the latter trib-
utary to the Chicago market). This has
only been done by making the very low
est possible rates, and it would be use
less to try to do any of the business
under the proposed law, to pay the taxes
on grain IN store, being not collertible
from owner of grain, as it is impossible
to tell who the owner OF the grain is on
April l. The party presenting the ware
house receipt for shipment after that
date may have had no interest whatever
in it on April l.
1t costs the elevator companies Of Du-
luth about $1,000 per day for operating
expenses insurance and taxes a large
proportion of this is paid for labor There
IS also paid by these companies about
sou, O0O per year in premiums to the in
surance agents of Duluth on grain in
store in it's warehouses, besides about
80, VoO per year in premiums on insurance
covering it's elevators and warehouses.
Every buShel of grain stored in terminal
elevators Is in transit, a large proper
ton of 1t coming from other states than
Minnesota, and is only waiting for snip
ment on the opening of navigation None
OF the grain in store is consumed here d
1t simply passes through Duluth on it's
way to Eastern markets. The terminal
elevator companies, as a rule. do not buy
grain and hold it for a profit; it is sold
as soon as purchased, simply to make a
small handling charge, consequently any
advance IN price would be of no benefit
to them: They cannot pay out for taxes
more than they receive for handling
the grain and continue to do business
Again, we would call especial attention
to this one point, if this tax is imposed.
Il must come directly out of the producer
for no buyer of grain can afford to paw
sides.
A farmer having 5000 bushels wheat to
SELL say, Dec. 1, wires to Duluth or Min
neapolis to sell that amount. The party
who buys it knows it will have to re
main in store till navigation opens about
May l, and consequently will have 10
pay a tax. Suppose the market is IS
cents, the tax as at present would re
about "a cents per bushel he deducts
this tax from the market price of IS
cents for his grain, which otherwise
would be 70 cents. 1t must never he
lost sight of that every fraction of a
cent added to the cost of the grain
he 80,
its way to the consumer wherever he
may be, whether in the way of freight
elevator charges. insurance or taxes,
comes out of the producer, and not Jut
of the buyer.
Must Ship Elsewhere.
His only other alternative is to ship
his grain to some point out of the state
OF Minnesota. where no such tax exists
and where the state can have no super
vision of the inspection and weighing
and where the exchange on which the
trade is made, and the buyer also, is be-
yond the reach and control of the laws
of Minnesota. If our own merchants
and grain dealers are to be brought ;nto
such competition with other dealers In
other states exempt from this tax there
can be only one result-disaster We be-
lleve the grain producers and our leeis-
latorS will think twice before thew place
the inspection and grading of their grain
under the control of foreign corpora tons
and force their own citizens out of bust
ness. II IT is stated that our great
milling interest cannot be moved out
of the state, that may be true. but they
cannot make flour in competition with
millers in other states. where no such
tax is imposed on the wheat It, there
fore, resolves itself to this: Shall Min
nesota handle her own grain and that
Of adjoining states. as al present. within
its own borders and under it's own con-
troll, where the interest Of it's own citi-
Zens, whether producers or Dealers can
be carefully guarded, or shall 1t drive
all such business beyond its borders. and
thus enable people of other states to do
with Minnesota products what its own
citizens cannot do.
Minnesota has one large lake mort
where under the fostering care of its
laws, has been built up great grain
market; mere the producer can ship his
grain to elevators operating under Min
nesota laws; have it INSPECTED under a
system of state control that has given
his wheat a high market value the world
over; have it weighed under Minnesota
laws; have his warehouse receipts reg
1stered under Minnesota laws: have it
sold by commission men under bonds to
the state of Minnesota to give lust &C.
counting to his principal Now. all this
proposed tax must come out of the pro
Queer or else he will be forced to shin
his produce beyond the limits Of the
state, where no such handcaps exist.
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