The Minneapolis journal., 1905-09-30

This was public service corporation
day before the state board of equaliza-
tion:: Street railway and lighting com
were cited to appear to show cause why
their assessments should not be in
creased, but their arguments availed
little. Action in making the increases
noted above was unanimous and was
taken in executive session. A quarter
of a million increase was also made in
the st. Paul Gas compan!y's assess
ment, the revised figure being $l,25O,-
900. The Duluth street railway assess
ment was unchanged.
The entire membership of the board
attended the hearing. Governor John
A. johnson, State Auditor s. G. Iverson
and Attorney General E. T. Young were
all present, setting together, and tax
ing an active part in the discussion.
G. G.. Goodrich and M: D. Mum ap-
pcared for the street railway company.
Pierce Butler represented the st. Paul
Gas company, and J. O. P. Wheelwright
was on hand to look after the interests
of the Minneapolis Gas Light company;
L. Mendenhall appeared for the Duluth
Street Railway company and A. M.
Robertson for the Minneapolis General
Electric company.
SS0SS-19oS
NJ. D. Mum opened the proceedings
with an argument for the Twin City
Rapid Transit company. He declared
| raised 500 per cent since 1899. It was
| assessed high in comparison with other
property and paid one-sixth the per-
sonal property tax of Ramsey county
He said that under the present assess
ment they were paying more than under
| the proposed 9 per cent gross earnings
! tax.
Questioned as to the privileges the
company enjoyed, Mr.. Mum said it
did not have an assured monopoly Of
the streets Of either city, but would
only; have, it as long as it gave SUI
perior service. 25> =s....s.sss.ss.ess4 W
# e$Auditor Iversnn asXed whether
the par value Of the bonds and stocks
lwere not fair idea of the value Of
the property. Mr.. Mum replied that it
| was not, because it. took into account
a possible future value. The company,
if sold today, would not bring such an
| amount. Governor johnson asked if the
value of stocks and bonds, based on
/ dividends and interest paid, would not
/ be fair value for taxation. Mr..
Mum replied that it would not, because
it would be assuming the final redemb-
tion Of the bonds. Attorney General
Young and Mr.. Mum went into an ar
gument as to whether the bonds should
be regarded as indicating the value
of the property, as we'll as the stock.
stock.
Mr.. Mum agreed in reply to a ques-
tion put by +. J. Meighen, that the
present earning capacity Of the prop
erty, together with it's future posi-
bilities, fixed it's value. Mr.. Meighen
brought out that the net earnings Of
| the system last year were $2,000,000.
On a per cent basis, he claimed, the
total value of the property is $4O,.
100000.
Duluth s Advancement Slow.
L. Mendenhall of Duluth made q
statement for the street railway com
and reorganization. he declared thai thai
the present assessment of 100000 was
too high under the circumstances. H.
said Duluth was advancing, but slowly
and that the promise Of growth whicl
would have helped lift their debt ha,
not been fulfilled. That indebtedness
amounts to about $2.66o.o9o: The stoel
preferred stock Of the Duluth -Superio
Traction company, which pays 4 pc
cent, is loan to the Duluth Street Raj
way company. The personal property o
| the company, at the usual ratio, shoul
be $275,OOO, but has been returned a
$325,O00. The local board has adde
$l50,000 as value of stock, which ha
never paid dividend.
/ Pierce Butler appeared for the st
Paul Gas company, the operating com
pany Of the Edison Electric Light com
pany, arguing against an increase il
its assessment. He declared that thei
new franchise was of low value, an,
most liberal to the public, requiring
5 per cent gross earnings tax and dolla
gas.
The committee on public service COZ
porations reported early today on tn
! valuation of the telegraph companies
I The Western Union was fixed at 81 900
. 900, and the North American at $lO0
000 the same figures as set for sex
y eral years past The Western Unio
: has contested this assessment sine
s 1899, but under the recent decision Q
! the supreme court, will no longer OF
!; pose it.
!. GOULD WILL DUPLICATE