St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-09-13
Strange Manner in Which the
Word Railroad Crept Into
q Measure.
1t Left the Senate One Way
and Landed in the House
Quite Different.
A Determined Effort to Secure
the Repeal Of the Gross
Earnings Tax.
The Peoples Burdens will Be
Doubled if This Amend
ment Is Sanctioned.

ing great deal of attention to the sec
ond OF the two constitutional amend
ments that are to be voted upon by the
voters of the state at the coming cleo
ton. These articles have been widely
quoted throughout the state. principally
in Democratic and Independent papers,
and have done vast amount of good.
Ihelr appearance seems to have effect
ually shut up the literary bureau that
started out to advise the people to vote
Yes" on this, as we'll as the amend
ment directed at local legislation.
Inns second amendment has been
Killed and the credit for the feat be-
longs III great measure to Hon. John
Y. Wise. The subject is so important
that no voter should fail to urge the
matter upon the attention of his friends
and neighbors. Eternal vigilance is
the price of liberty" is an old saying,
and eternal vigilance has been shown
TO be necessary In this state to prevent
the repeal OF the law providing for
tax Oh the gross earnings of railroad
corporations. In recent issue of the
review several interesting matters
showing the corrupt manner in which
the word railroad crept into this bill are
set forth. This article, which shows the
means reSorted to two years ago to
again get this old "Woodchuck'' before
the people, follows:
Inc Democratic state platform adopted
at Minneapolis Aug. 3 calls upon the
electors OF this state to defeat the pro-
posed constitutional amendment known
as chapter Of the General Laws of
1881, and for the best of reasons. This
act (also known as Senate File 124 was
introduced by Senator Leavitt. and has
nc 4.
original terms, and as passed by the
senate, reads as follows:
A Dill 'For an act proposing an amend
ment TO section three 80 of article nine 90
OF the constitution of the state of Minnesota.
authorizing taxation of the gross earnings
OF sleeping, drawing room and paror car
companies, telegraph and telephone compa-
mes, express companies apd insurance COM
panies. or in lieu of such iaN authorizing q
Incense Zee or tax on either or any such COM
panies.
Be it Enacted by the Legislature of the State
OF Minnesota:
Section l. The following amendment to
section three (3) OF article nine (9) of the
constitution OF the state Of Minnesota is
hereby proposed to the people of said state
Tor their approval or rejection, that is to say:
10 add ut the end OF said section the follow
ing words:
And there may be levied and collected
annually TAX upon the gross earnings of all
sleeping. pnllor and dining room car compa-
Mes, or owners, whose cars run in or into
this state; on all telegraph or telephone COM
pan1es or owners whose lines are in or eX-
tend into this state, aud all express compa-
MES or owners, doing business in this state:
on all foreign insurance companies doing
business i'll this state; on all domestic insur-
aDce companies of this state, or on either or
any of such companies
OF IN lieu OF such tax on the gross earn
ings of such companies, or either or any of
them an annual license fee or tax may be
imposed on them, or any or either of them"
(Sect1ons two and three provide for the
time OF voting and form of ballot.)
1t Will be seen from this that the
original bill, which passed the senate,
did not contain the word railroad"
had no reference to railroad companies
(see Senate journal, pages 102, IA, 147,
209, 210. 229 and 24D, but when the bill
was first reported in the house of repre-
sentatives the world railroad" APP
peared where it now stands in the title
(see House Journal. page 28D; it will
not be claimed that it crept there by az
cident; the journals show that it was
fraudulently interpolated, and is so far
reaching in its consequences as to aim
at, and If ratified by the people will
result in the destruction of the
gross earning tax on railroads. But
TO proceed a little further with the
history Of this act; on the last day of
the session when all was noise and con-
fusion, the bill was reported back to the
senate under the title: "a bill for AN
act relating to taxation of mines, with
all amendment in which the concur
renee of the senate is aSKed'' SENATE
Journal, page 1889. which amendment
added at the end of the foregoing bill
the following.
ssEaiLroaGs' IEferpOlated
'But no tax upon the gross earnings
of any corporation shall be construed
TO prevent the taxation, by law, of any
real estate owned by said corporations
not used in the business of the same,
and there may be levied and collected
in lieu of other taxation on mining
property, a specific tax upon the
product of all mines in the state,
but no such tax shall be con-
strued to prevent the taxation by law of
any real estate belonging to the owners
of such mine not used in the business of
mining or i'll connection herewith"
This amendment. which, we think,
ought to have been defeated, was con-
cured in by the senate, but the senate
was not requested to concur in any
amendment inserting the word railroad,
as we understand it.
Why should the word railroad be in
mission from the senate to the house?
Why not have the word inserted in the
regular way by amendment? We shall
understand the reason and at whose
instance it was inserted when we
stop to consider its effect, and
to do this it is necessary to
bear in mind the provisions in Sec
ton 50 of article 9 of the state consti
tuition, which reads as follows: ANY
law providing for the repeal or amend
ment of any law or laws heretofore or
hereafter enacted, which provides that
any railroad company now existing in
this state, or operating its road therein,
or which may be hereafter organized,
shall. in lieu of all other taxes and
assessments upon their real estate.
roads, rolling stock, and other personal
property, at and during the time and
periods therein specified, pay into the
treasury of this state certain percent
age therein mentioned of the gross earn
ings of such railroad companies now ex-
listing or hereafter organized, shall be-
fore the same shall take effect and be in
force, be submitted to vote of the
people of the state. and be adopted and
ratified by majority of the electors of
the state voting at the election at which
the same shall be submitted to Them"
Stf1ctly ffOnlDIIeu.
This section of the constitution pro-
hibits the legislature from providing
any method of taxing the property of
railroad companies other than by per-
centage on their gross earnings. The
state and territorial legislatures passed
numerous special charters and general
acts. providing in every instance that
railroads should, in lieu of all other tax
alton on their property, pay into the
state treasury percentage on their
gross earnings, a condition which said
companies earnestly sought and gladly
accepted; these the courts have uni
fOrmly held constitutional and valid
contracts between the state and the va
rious companies; and while said section
80 of article of the constitution stands
unmodified, neither the legislature nor
the railroad companies can violate the
contracts. State vs.. Winona & st. Peter
Railroad Company, 81 m. 3l5. County
of Stevens vs.. st. Paul, MINNEAPOLIS q