St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-02-22
TAXING CORPORATIONS.

There are two bills before the legiS-
laturc in reference to the taxation of
the property of telegraph and telephone
companies and kindred corporations.
One of these has been introduced into
the senate by Mr.. LEAVIrT and the other
into the house by Mr.. CURRIER. Mr..
LEAYITr'S bill is the broader in its
nature, and provides for the submission
to the people of a constitutional amend
ment under which the legislature may,
il 1t thinks best, levy tax upon the
gross earnings Of such companies. and
also upon the gross earnings OF sleep
ing, parlor and drawing room car COM
pauieS whose cars run i'll this state, OF
express companies aud of foreign and
domestic insurance companies. The
proposed amendment also provides that
ut the legislative pleasure, in lieu of
such tax on the gross earnings of such
companies, an annual license lee may
be imposed Oh them.
Mr.. CURRIERS' bill provides for the
repeal of the present law taxing tele-
graph and telephone companies which
was passed in 1887, and for practical
restoration of the law of 1881. Under
the old system, telegraph and telephone
companies were required to make
statement to the state auditor of their
property, and the state board of equaliZa-
ton on the basis of this, assessed it at its
true value, and imposed tax at rate
per cent equitable considering the gen
eral average of tax rates i'll the different
counties in the state. This law was re-
pealed in 1887, and tax of , per cent
per annum OIL the gross earnings of
such companies was substituted Tor it.
Mr.. CURRIER proposes by his meas
ure, as has been said, TO put things back
where they were.
Both of these bills are good and ought
TO pass. The present law is unc0nSti-
tutional, and has been submitted to only
because it has been profitable to the
companies. In 1883. when the old law
was in force. the Western Union Tele-
graph company paid taxes to the amount
of $500, which increased with success
Siye years with the extension of their
lines, until in 1856 it paid $1,000 into the
state treasury. In 1887, when the present
earnings, the Western Union Telegraph
cOmpany'S tax payment fell at once to
Sl,SG0, and has since remained in the
immediate neighbOrhO0d of this figure.
or few hundred dollars more. Ii the
percentage of gross income to be paid
should be increased by the legislature.
the companies would fight the law and
successfully resist its enforcement.
Under the circumstances. even if the
gross earnings system is the best, it can
not be properly applied without the
sanction of constitutional amendment.
The GLOBE thinks that this should be
secured on the same principle that 1t
advocated the submission of Senator
IEAVITT'S income tax amendment to
the people. 1t is not indorSing the
measures which may be enacted under
their permission, but in general in these
tax complications the hands of the legis-
iature should be unshackled by artificial
restrictions.
1t viii be some time, however, before
a law securing an adequate return from
such companies by q tax on their gross
earnings can be enacted, and mean
while at least something ought to be
done to make them bear their full pro-
portion of the states expenses. Mr..
CURRIERS' plan accompliShes this, and
ought to be, and will be. enacted. The
figures which we have given contain the
only argument WEIGH need be presented
IN support of this position. 1t is a
CHASTITY farce that the Western Union
Telegraph company, which fills our
streets with unsighty poles for the
transaction of its business, and which
enjoys the most exclusive of monopo-
les within cur borders, should contrib
Ate no more than paltry $4,000 year