St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-12
SENATE JUDICIARY
Discusses Taxation of Railro ad
Lands and Telephone Compa-

Discusses Taxation of Railro ad
Lands and Telephone Compa-
MES.
Hon. d. S. Morgan. of Minneapolis,
appeared before the senate judiciary
committee at o'clock in the afternoon
as the attorney of the telephone COM
pany to protest against the Leavitt
bill, amending the constitution prOvid-
ing for tax of 5 per cent on the gross
earnings of sleeping car, express and
telephone companies, etc. MIR. Morgan
argued that the measure is species of
class legislation, for the reason that
it singles out certain industries
and institutions. while gas. water
and such companies are exempt
from the operation OF the act. Mr.. Nor
gan proceeded at length to give the
general earnings of the company, and
in cOntradistinctiOn he arrayed the eX-
penses of his clients. The company
does not own patent, he urged, and
royalties have to be paid for the use of
every instrument. He explained that
the original patent will expire soon. but
he doubted if this will give any relief to
the telephone company, for the reason
that the patent referred to was to cover
and imperfect that it was almost USE
less. Improvements have been made
from time to time. and each has been
seauentially patented, until the present
system appears in almost perfect form.
Consequently 1t is difficult to make any
reliable estimate of the probable ex-
tinction of the monopoly. Mr.. Morgan
continued at length, showing the
amount of taxes paid by the company,
and the effect that the act would have If
passed in its present form.
A. Y. Merrill, of Minneapolis, fol-
lowed in debate upon the merits of
the provision for taxing railway lands,
etc. He pointed TO the vast sweep of
lands owned by the Northern Pacific,
stretch thirty miles wide across the
northern part of the state. In addition
to this comes the swamp lands. He
stated that there are 100000 acres of
land untaXed, and that the effect is to
that portion of the state in which these
untaxed lands lie. Mr.. Merrill quoted
from the reports of the state railway
commission to show that the railway
companies are taxed much below
an equitable amount, but, he urged, the
Injustice is especially to the northern,
part of the state. The forthcoming re-
port of the railway commissioners gives
a comparative statement Of the taxes
paid in Minnesota. Iowa and Wiscon-
sim In 1891 the roads in Minnesota
were taxed at rate of % $40 mills per
mile; in Iowa the rate was % $40 mills,
and in Wisconsin it was So Ito mills
The gross amount per mile In Mime
sofa was $1,000; i'll Wisconsin, $2O3.6O.
and in Iowa, S203.6O. Then Mr.. Merrill
proceeded to show that in Iowa and
Wisconsin there are no such railroad
| land grants as in this state.
Il understand" interrupted Senator
grants lie it is impossible to levy taxes
sufficient to meet the current needs of
the counties"
THAT is true" replied Mr.. Merrill.
at is particularly true in Wilkin coun-
ty. We have issued bonds to meet float
ing Indebtedness, and we cannot meet
the expenses of the county,"
John w. Bullltt, attorney for the
Northern Pacific road. was the next
speaker. He entered into an exhaust
i've discussion of the legal phases of
the bill, and he argued that the effect
will be to destroy the present gross
earnings system of taxation, and he
.hen proceeded to declare that the
gross earnings is the only correct and
equitable theory of taxation. The valid
ity of the gross earnings law was diIated
upon, in answer to the propositions sub
mitted to the committee Oh the previous
day.
The day was nearly consumed, and
Mr.. Bullitt asked for further time, and
the committee adjourned until $50 Mon
day afternoon. when the attorneys for
other roads will submit arguments mr.
briefs.