The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-09-28
BLUNDER COSTS
$1,000 IN TAXES
Street Railway Paid on 1887, 975
Less Assessment Than Board
Intended.
REAL ESTATE RETURN
WAS MADE TOO HIGH
Power House Wrongly Listed
Franchise Assessment Was
Therefore Scaled.

"Somebody's blunder' deprived the
city of Minneapolis, Hennepin county
and the state of Minnesota Of $11 ,0S0.56
in taxes for the year 1904.
The Twin City Rapid Transit COM
pany was the beneficiary. The state
board of equalization intended to assess
the company in Minneapolis on a basis
on $4,267,54 The difference, at the
rate of 1856 mills, would have come to
$11.0S0.56.
When sitting last year, the state
board asked County Auditor Hugh
Scott for a statement of all assessments
On public service corporations. The
sheet sent in, signed by L. A. Condit,
deputy, gave the real estate valuation
of the company at $626,405: This
shared in the general increase OF per
cent on Minneapolis real estate, bring
ing it up to 1861 1925.
The tax records show that the COM
pany paid on real estate valuation OF
only $269,750. The difference, $780,
975, represents the value of the water.
power plant at the dam, which was not
owned by the street railway company,
but by the st. Anthony Falls Water
Power company. The tax on this prop
company's taxes were reduced to that
extent, thru the erroneous statement
made to the state board.
The board desired to assess the street
railway at practically the same as 1903.
It added about $54, 1000 to the Ramsey
county assessment, and was ready to
make some reduction in Hennepin, which
amount arrived at was 81 ,655, SIT. The
Feal-estate valuation before the board
was 1861 ,725. This was subtracted from
the total, and the difference, $3,997 1872,
was left for the personal property as
sessment. This was spread on the
books.
Clerk Finds Discrepancy.
A few days ago State Auditor liver.
son discovered that the Hennepin total
for the street railway company was
lower than decided on by the board
He sent Frank Pracna, a clerk, to inves
tigate. He found the discrepancy in
planned on the ground that the power
house at the dam had been wrongly
listed, and that the tax was paid by the
other corporation. H. -,
That did not alter the fact that the
street railway had escaped paying 81,
600 in taxes that the state board in
tended it to pay. The facts We're re
became very Hsore.D The circumstance
is thought to have something to do will
the board g intention to raise assess
ments this year. ~
State Auditor Iverson says: ct d.
not believe the mistake was intentiona
on the part Of anyone. It was unfor
tunate, of course, as it deprived tn
state and locality of a considerable sun
in taxes. AS far as the state board wa
concerned, it acted in good faith o.
the figures in it's hands, and I do no
believe there was any intention to de
ceive on the part of local authorities
The mistake has been made, it is to
late to correct 1t, and that is all Their
is to ito
Local officials Statement.
asked regarding the case, said: "Whil
I do not know just what property
owned or is not owned by the stree
railway company, do know that thi
particular piece was assessed. [ under
stand that the street railway compan
is part owner, at least, of this PROF
erty. I have also understood that tn
made thru the Minneapolis Mill con
pany, which is also part owner. I d
not know what the amount of the stree
railway companY's interest is. All m
office has to do is to fix the valuatio
and the amount Of the assessment
County Auditor Hugh r. Scott ais
disclaimed any particular knowledge
the affair. ''We have no list of pro
erty owners,' he said. eve place O.
posite the sworn property returns of ta
PAYERS the amounts for which the pro
erty is assessed In q list that is kel
in the office to show the property hol
ings of the various, corporations in IL
city, the particular property is listed /
the st. Anthony Falls Water Pow
company, and not by the street railws
company.