Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1883-02-17

TORY, SATURDAY EVE
and must be depended on to foster the
business by which they are to be sus-
tanned.
The men who put their money into
this property had faith in the growth and
prosperity OF this conntry. They are still
strong in this faith, as their actions show,
although up to this time, for obvious
reasons, the property has yielded them
no returns. The Gust Of maintaining and
operating these roads has, without any
doubt, exceeded the sum they haze
earned, and the interests on the bonds
issued to pay for their construction has
had to be paid from other sources.
But while the stockholders have real.
lied no returns from their investment
thus far, the territory Of Dakota has
claimed and received, in the form of .
tax, it's pro rata share Of what the prop.
erty has earned in gross amount.
The public is thus doubly benefited,
for while the railroads are the direct
means of developing the resources of the
territory, and of vastly increasing the
amount OF property which can be taxed
for the support Of the territorial and
municipal governments, they are also
compelled to pay their full share of the
common expense by percentage tax on
all the business which they do, and which
they are now doing at far from profit
to their owners.
It is an open question whether the ter.
ritory could not we'll afford, under the
existing circumstances, to exempt this
class of property from all taxation for
Q term of years, or at least until its earn.
ings exceeded the operating expenses
and the interest on its construction
bonds.
If, however. this taxation is to be con-
timed, the present method Of imposing
it is the most equitable form which can
be devised.
The value of the property to its own
ers depends on what it can earn over and
above its expenses. while to the public it
is of incalculable benefit even though its
operation involves loss to the proprie.
tors. That method, then, by which the
public is permitted to share with the
owners in the income from the property
is the nearest approach possible to
equity.
If the earnings are large, the people,
in addition to enjoying all the convent
ences and advantages of the railroad, re-
ceive proportionately large amount of
public revenue in the percentage tax,
while if for cause beyond control, the
business of the roads should happen to
be dull, the community still enjoys the
full benefit of railroad facilities but
shares with the owners in reduction of
revenue.
There is no measure Of the taxable
value of property so fair to all parties
concerned, as its capacity to earn rev
enue.
Especially is this true when applied
to such property as new railroad, bull
and operated in new country. Such {
property has no specific present value
and it's prospective value can only be de
the developments of coming years.
taxation would have even an approxima'
basis the income which can be derived
from the property.
Dakota has every reason. certainly, tt
l oO cuPAOACly obOAoANA WILL ACA RlCo0A
railroad law, which went into effect fou
years ago, after due deliberation and up
on an elaborate examination OF the sub
| ject in all its phases. At that time th,
various railroads in the territory wer,
with committees of the legislative as
equitable tax, were prepared to give as
/ tI,ns <,et t1arAGku kr.1 I,
conferred upon this people. in the shap
left no room for doubt or divided opin
ton as would make it possible for th
conceived plans for tho development {
Dakota.
An act was agreed to and became 9 la
taxing the railroads 2per cent OF the
gross earnings for term of five year
the rate to be increased TO 8 per Ger
after that period, the said tax to be ,
lieu of any other taxation whatever.
!, 1t has been since the passage Of I'll
] present law, and under its operation, thu
) the railroad development of Dakota ht
begun in earnest, and that the railroad
have more than redeemed their pledge
made four years ago, admits of no que
tion.
While the great gain to the countl
, has been, of course, the excellent facil
ties which the railroads have afforde
new comers and the public in genera
, the revenue derived from the tax is /
: no means inconsiderable. and Is rapid
3 on the increase.
81 In 1881 the roads paid the territol
e $4,000 on the their earnings for 18S
! and in 1882, on their earnings for l8S
! they paid the territory $S5O0O. The ia
, for 1883 on the earnings for 1882 wi
/. show further increase, aud in 1SS
by the provisions OF the law, the tax wi
! he increased to . per cent of gross earl
, ings of the railroads, whose mileage or
! business must show q rapid increal
from year to year. In very few yea
the amount realized from the tax wi
exceed 100000, aud will become pr
4 litic source of revenue.
Manifestlv it would be unwise-tl
height of folly, in tact-for Dakota
seek to alter an existing state OF atfai
that rebounds SO greatly to her own a,
/ vantage. There ere those. it may b
I who ma y honestly think that the ro
e road should be taxed the same as ar
: other class of property, bat it is doub
|, full if they have devoted much of ar
b thought to the matter.
J. It would surely seem that a moment
: serious reflection should be sufficient
g convince any unpreirdiced person bo
as to the fact that common tax wou
be an unjust and unequal burden il
g posed on the railroads, and that leglsl
}. tion OF 80 inimical nature would INN
d diately check railroad construction, al
orrast tho tida Of imu, orntiOn as nnkhi,