Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1909-02-04
FAX C0!M!'1'!|1||||Si55|tjN
SUBMITS REPORT
APPROVES PLAN OF ExEMPTiNG
TAX ON LOGS WHEN CUT.
Twenty-Seven Billion Feet Of Stump.
age Stands Present Levy on Rail-
roads Gross Earnings
~ Inadequate

st: Paul, Feb. 2.-Standing timber
In Minnesota pays taxes running all
the way from per cent to so cents
q thousand feet, and an average rate
Of about Is cents a thousand, accord
ing to the Investigations of the state
tax commission The annual report
Of the commission finds that, as COM
pared with other property, timber
pays a low rate of tax, but because
Of the need of encouraging conserva-
ton rather than destruction Of the
forests, the commission gives quail
flied approval of thefit Uofr. iouetao
flied approval to the plan of exempt
ing standing timber entirely, and plac.
ing a tax on the logs when cut, like
the proposed tonnage tax on iron ore.
Special Investigation of timber tax
alton has been made in the last year
by the commission, and its, findings
are OF, considerable interest. The com
mission urges that logs be taxed here
after II. the counties where they are
cut, instead OF where they are deliver
ed at the min 1t finds that 80 100000
600 feet of timber have been cut in
Minnesota In the last twenty.seven
years. "'1Fa'AA it:@14 ., a,4tuoa.-a u ..
AS to the; amount of stumpage now
standing, the commission makes an
estimate OF ,,27,000,0OO,0O0 feet. The
census bureau in 1905 made an esti-
mate Of s ,373, 100000 feet, but the con-
gressional committee last summer
adopted a detailed estimate by Gen.
eral G. G. Andrews, state forestry COM
missioner, placing the total at 20
s68, 902 900 feet. The tax commission
had reassessment made in Becker
county, which showed the Andrews
estimate to be low, raising it from
S4,700,o00 to 147,000,0OO. Based on
this the commission raises the An.
drews estimate, and finds that about
one-third, or 9,000,00O,OO0 feet yet
standing in the state, is pine timber.
The report sets value on logs.
Taking stumpage prices Of $4.65
thousand, for ten years ago, the COM
mission adds $3.50 for taxes, $2.37 for
interest compounded, and $3.50 for the
cost of logging, making $13.02 thous-
and which owners must get for their
logs to come out with profit of 6
per cent. 3, .s
"The data so far obtained" says the
report, Indicates that timber lands
are assessed at less value than other
real estate. If the assessment of tim
Der lands must continue to be made
under the existing law, the enforce
ment Of the law will necessitate ma
terial increase in the assessment. The
present assessment results in heavy
tax; it may readily be supposed that
an increase Of assessment at local tax
rates will bring to bear a burden that
the lumber industry may have diff
Guilty in meeting. There is, however,
no option in the matter"
The tax commission concludes that
the present per cent gross earnings
tax on railroads "does not meet all
the requirements of equal taxation
It does not suggest Y rate OF in
crease, but gives tables to compare
railroad taxes with those of other
real estate. The 1908 tax charged to-
the roads was $3,509,546.97. s.,'' Il
With regard to public service cor.
rorations, the commission says it is,
now at work securing Information,
with the expectation Of recommend
ing proper rates that will make possi-
BILE fair and equitable taxation of such
companies on a gross earnings basis
The chapter on taxation of corpora
lions gives review Of the new meth
DDS tried in various states, and from
them all presents system possible