The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-01-23
Fray WHAT tkW mQURES|
Express Companies Honest
in Giving Reason for
Small Taxes Paid.

Helena, Jan. 21.-(staff Correspond
ence.)-The joint committee from the
senate and house held session this
morning with Representatives of the
Great Northern and. Northern Express
| companies. The meeting was also
attended by Assessor Martien of Lewis
and Clark county, who save the COM
mittee much interesting and pertinent
INFORMATION with regard to the tax
ing of express companies.
The representatives Of the express
companies showed the committee that
they were paying all the taxes de-
manded Of them by law. but admitted
| also that the law as it stood at pres
ent was entirely inadequate and inef-
ficient 1t developed that the North
ern Express company had paid tax
on its franchise to Lewis and Clark
county, but that 1t had paid the money
more as matter of policy than one
OF law. Assessor Martien stated
that he had also attempted to make
the Great Northern Express company
pay tax, but that it had refused and
gone to court with the matter. J. r.
Maher. tax commissioner OF the Great
Northern, stated that the reason why
his company had not paid the tax wits
because you have no law here which
forces us to Fay taxes"
| Some very interesting facts and
| figures were brought out during the
course of the hearing this morning
The main points were that the capital
stock of the Great Northern Express
company is $4.o0O,0OO and that Of the
Northern Express company $4,000. 900;
that the actual physical valuation Of
these companies is in the neighbour
hood of 100000 and that they have
been paying six per cent dividends on
their capital stock. During the ex-
animation of NJ. r. Sanders, tax
commissioner for the Northern FIX
press company. it developed that of
the $62.930.00 paid in taxes in the
various states over one-half was paid
in the state Of Washington alone
where the express companies were
assessed on a basis of five per cent
of their gross earnings.
IF this committee has the purpose
of gouging anybody" said Mr. San
ders. Il would recommend that it go
to Washington in order to, find out
how to accomplish this" He went
on to state that there was more rail-
road building in Montana last year
than in any other state in the Union
and this was due to the fact that this
state had treated the companies fairly
and had not attempted to extort an
exorbitant tax from them.
Mr.. Martien stated that at a meet
ing of the equalization board he had
advocated the raising of the taxes on
railroad lines from approximately
$4,000 mile to $4,000 mile and
while the compromise had finally
been about $4,000, he did not notice
that the companies had quit building
extensions in the state, although they
threatened to take this action at that
time.
l. Parker Veazey, Jr attorney for
the Great Northern at Great Falls, was
the first witness before the committee
and testified that the company was
paying all that it should pay under
the law and that II franchises were to
be taxed the Great Northern Express
company would pay. provided the
same tax were levied on all of the
corporations, and express companies
We're not singled out.
He was followed by Tax Commiss-
Toner NJ. T. Sanders of the Northern
Express company. who testified with
regard to the condition of his COM
pany. Mr.. Sanders showed that the
Northern Express company had paid
s4.056.5s in taxes to the state of
Montana last year ana that $3.43S.65 OF
this amount had been paid in Lewis
and Clark county. During his ex-
animation it was brought out that the
express companies turn over one hall
Of their revenue to the railroad com
pany over which they are operating:
that the railroad company is the only
stakeholder and that there is no d.
rect tax on the money received by the
railroad company from the express
company.
1t was impossible for the committee
to ascertain from any. Of the repre-
sentatives whether the large capita
stock of the various companies was
paid in full or in part. Tax Com
missioner ]. r. Maher of the Great
Northern states that he assumed tho
capital stock to have been paid in full
but that he had no definite knowledge
along this line. Attorney Veazey was
under the impression that the capita
stock of the Great Northern Express
company had been increased in re.
cent years, but he was not certain as
to that and neither were any of thu
other representatives familiar will
this subject.