The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-09-30
NEED MORE LAW
SAYS JOHN Lind
CAN'T ASSESS FRANCHISES OF
FOREIGN CORPORATIONS.
would Have Been Possible Under Leg
islation He Urged in 1899 and 1901,
but He Does Not Believe State Can
Assess Outside Companies on That
Basis Under Present Law.

Former Governor John Lind, who in
his messages to two legislatures urged
the passage of law taxing foreign
corporations on a franchise basis, heart
lily approves Of the position taken by
the state board Of equalization. He
tax can be collected under the law as
it stands.
"There is no question about the con-
>stitutional right Of the state to tax
franchises Of any corporation, foreign
or DOMESTIC said MI: Lind to Tn e
FRANCHISE or Intangible pTo pets Of any as
corporation is just as real, and as free
ly recognized by the courts, as the
values of tangible property, real and
personal.
"There is no reason, either, why such
tax should not be collected, as l
said in my messages to the legislature,
tax should be provided for by law.
However, I am willing to go on record
as saying that without new legislation,
the state will be unable to collect such
tax on foreign corporation. I SYM
pathize with the effort, but do not
see how it can succeed. For my part,
I believe it would be much better to
1 islature to grant the necessary author.
ity. It will pay to go more slowly and
get certain results. don It see why
! the law has not been enacted before.
People seemed not to understand the
proposition. :,
"There is authority in the law as it
stands for levying franchise tax on
public service, manufacturing, or, Of
/ whatever character. The present law,
as restated in the Revised Statutes,
chapter II, section As, requires an an
nual statement to the assessor from
: every company and association, ex-
telephone, express, freight line,< sleep
4 ing car and banking corporations,
:, which are taxed under other provi-
i sions. This statement must include the
name and location, the amount OF eaPl-
, tai stock, the amount paid up, the mar
!. ket or actual value Of the shares, and
J the value of real and personal property,
property from the market value Of the
, capital stock, the remainder is to be
) listed as 'bonds or stocks
Needs Another Paragraph.
, nThat is the law, and if enforced
!, all corporations having their sltus II
2 the state would be paying taxes OF
their intangible or franchise +; value Tue
This law, however, fails to cover Tor
eign corporations. To reach them
paragraph should be added, requiring
> similar statement from foreign corpora
tions, and including a statement OF tn
portion of the capital stock represents
b By the business done in this state En-
t Somerville law requires. suGn state
ment for the purpose OF a license taa
e but for a franchise tax it should b
e made every yearg u Without such pre-
vision. I do not see how the state WI
/ be able to tax foreign corporations O.
b ANYTHING but their real estate an
f tangible personal property, as found l
:. various parts of; the state by the al
T Mr.. Lind first preached the fra1
!, chise tax in his inaugural message I
Z the legislature in 1899. He advocate
n the license fee, afterward required b
t the Somerville law, but he also adv!
- Gated a franchise tax on both domest1
and foreign corporations He argue
. that the corporation, being a creatu1
e Of the state, and having had it's power
and privileges conferred fer nX the ye1n
T T supreme court Of the United State
upheld this principle in l43 U. 5. ~
in which the court said: ~
Sustained by Supreme Court.
franchise, as it may, be termed, OF belI
II corporation, is Of great value to !
~ members. and is considered as proper1
or separate and distinct from the proper1
d. which the corporation may acquire. a
q cording to the law Of most of tt
he states, this franchise or privilege
as being a corporation is deemed person
property, and is subject to separa
10 taxation
er In his 1899 message, Governor Lii
tie said: * +. !,
tn 1.-THE state having conferred t
ne franchise-the special value ent,t /
in to the taxes imposed. 1t is one OF T.
he easiest taxes to collect; practically Sc
er enforcing. If a domestic corporate
he refuses to pay, such refusal can be ma
In cause of the forfeiture of its chart
IS In case Of the foreign corporation
they can be denied the process OF Q
E. courts This is the law in New Yo1
The laws of that state upon this su
iect were recently before the suprel
les court of the United States, and we
ep- sustained in the case of Park Da'
-. & Co. VS.. Roberts. What has been So
with reference to domestic corporate
.~ applies with greater force to the mum
Gus foreign corporations doing Lar
r. and lucrative business in this stat
Gus such as the various machine companl
the loan companies, the various trus
and mining companies IN the n0rtne
,eu mart IF Tho State' E#taf%