The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-09-29
FRANCHISE TAX
FOR THE TRUSTS
III.
State Board Going After Standard
Oil, Beef Trust and Other
Corporations.
ATTORNEY GENERAL
WANTS TO TEST IT
Assessor Is Ordered to Add Fran
chise Value of Swift & Co.
to Their Assessment.

The state board of equalization will
attempt to tax the Standard Oil com
pany, the International Harvester COM
pany, the beef corporations and other
trusts doing business in Minnesota, on
franchise basis.
Instead Of taxing these companies
on the trifing amount of personal prop
effort will be made to reach their in
tangible value:
The Somerville law requires foreign
corporations doing business in the state
to pay a license fee for the privilege,
or franchise. They are required to state
the total amount Of their capital stock,
and the proportion employed in doing
their Minnesota business.
Young, on which the board Is acting,
is that this capital stock, after deduct
ing the value of the tangible property,
may be assessed as franchise.
The Standard Oil company, among
others, was cited to appear at 8 pm.
today before the board, but die. not
turn under the Somerville law states it's
capital stock at 81 200, 900. and the pro-
portion used in Minnesota is declared
to be $4,000.
The Manual of Statistics for 1905
states that the Standard Oil company
has issued $98,358,000 Of stock in 800
shares. It has paid as high as $4s
dividends on each share. In 1904 it
paid $50. On this basis the actual value
100000. Taking the companY's word
for the proportion used in Minnesota
| it's franchise here would be assessed in
the vicinity of $45, 100000. At present
/ the company pays only a nominal sum
on real estate and the equipment of its
), Offices and tank stations.
Swift Tackled First.
The board made a beginning in its
momentous step this morning, when or
motion Of T. J. Meighen, the assessor
of South st. Paul was instructed te
ascertain the value Of the Minnesota
Il franchise of Swift & Co., and add it tt
the tax rolls as omitted property.
F. B. Kellogg, attorney for the com
Il pany, declared that the state had nc
more right to assess the franchise OIL
Swift & Co., than to assess a home man
ufacturing corporation on that basis
Der Of the board, favored the motion
and said the question might as well b,
!, determined in court one time as an
other. The motion was carried withou
opposition.
i Other packers were summoned to ap
: pear this afternoon, also the America
| Linseed Oil company. Summons wa
! issued today to the International Har
r vester company to appear at pm
t Saturday. The Hamm Brewing com
. pany Of st. Paul was also cited to ap
. pear at that time.
2 Warm Dialogue Today.
Swift & Co. have capital stock O.
4 $25 ,00o,o 900, and certify the proportion
!, used in Minnesota as only 100000
L It is claimed that this amount i
: nearer 100000. George L. Lytle
r the former mayor Of South st. Pau
s declares the company's machiner,
alone is worth $450,OO0. He made
morning, and was answered by F.. T
Kellogg and General M. D. Flower fo
}, the stockyards company. High word
:, were banded by Lyle and Flower, an
:, the former charged that Swift 6 CT
r had sent Manager Bangs away so h
the boards questions No appearance
;, was made for the packing COMPANY
! and the board permitted the so pc
5 cent raise on it's tangible property al
s sessment to stand. It then took tn
. action calling for a franchise asses.
ment. A great legal battle will doubt
: less be fought over this case, whic
s will determine the state g right to ia
franchises Of foreign corporations.