The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-09-30

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erty throughout the state is this year
being assessed at SO per. cent of its true
value, the committee determined that
the equitable valuation to be placed
upon the Twin City companys $751;
100000 of stock would be 100000 and
the report, as affecting that property,
was SO framed.
Then, at the conference referred to,
a question was raised as to the Justice
of taxing the preferred stock, which
the company represented to be properly
of the character of liability, or. in 9TH
er words, a mortgage upon the property
OF the company instead of an asset. At
torney General Douglas, after further
consideration of, this proposition, de-
clded in favor of the position taken by
the company, and held the preferred
stock to be not properly assessable, on
the ground that it represents a direct
Indebtedness, and an incumberance up
on the company's property. Mr.. Doug
las cited numerous authorities in sup
port of this ruling.
lVerson Disagrees With Douglas.
s. G. Iverson,. state auditor, took a
contrary view from that of the attor-
ney general, basing his argument upon
the statute which says that all stocks
~~ DN~@00
Ing an assessment, which does not ex-
cept preferred stock or bonds. He
argued that the preferred stock of this
company, instead Of being in fact a liza
Dlllty, represents more taxable value
than any other portion of the COM
pany's stock, because 1t is issued with
specific conditions which entitle it to a
specific share of the earnings of the
company. The legislature, he said, had
provided that the valuation of fran
ch1ses should be determined through
the market value of the stock of the
corporation in question and this COM
pany, in its returns to the financial
world, has placed it's total assets at
$33,000,00
Mr.. Iverson said further, that the
company is earning 100000 annually
above its expenses, and that he believ-
ed to represent fair income on $33,-
OOO,OO0- He argued that those facts, set
forth by the company itself, should be
considered in making the assessment
and he protested against the elinina-
ton OF the preferred stock from the
assessment p
The question was discussed at some
length in the conference, and Mr..
Douglas declared very positively that
in his opinion the preferred stock
should not be taxed, but still some of
the country members of the committee
were disinclined to fall in with his
view.
Agree on $s,25o,ooo.
The revised report, as presented to
the board in open session at %. m.
after the noon recess, placed the as
sessment of the Twin Citv RAND
Transit company upon it's properties
in Ramsey, Hennepin and Washington
counties at $S,25O,00O, and with that
amendment it was announced by
Chairman Cooley as the unanimous re-
port of the-eommittee.
In the afternoon representatives of
the various corporations embraced in
the report Of the committee were heard,
but as far as results were concerned they
might as well have remained away. for
the report as presented by the commit
tee, was adopted by the unanimous
vote of the board
Mum Makes His Plea.
M. D. Mum, representing the Twin
City companys interests, including the
Duluth street railway, was first to pre-
sent his argument and said in sub
stance:
Last year our company paid $156. coo
in taxes to the state and you now de-
sire to increase that 100000. You
would do this after the two local
boards. who are most directly concern
ed, have got through with their as
sessment of our property and have fixed
it at what they consider to be just and
equitable. Those boards receive 90 go
of the taxes we pay and the state but
1-30, and still the state board proposes
to raise us, although every million OF
increase means but $1,000 to the state
Il do not know what has caused this
feeling on the part of the committee
that the street railway comNanies
should be assessed more this year by
100000 than last. Our stock is near