St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-25

| 1t is possible that the hatred OF chicago
is strong enough to blind the people to
the other fact, but it is certainly to be
hoped that better judgment will assert
| itself.
| RAILROAD LAND TAXATION.
The GLOBE has given to the argu-
mentS for and against the taxation Of
the land grants of the railway compa-
MES an attention all theLmore careful
because it shared at first the apprehen
| sion that it would repeal in effect the
gross earnings tax, il not directly. then
| by permitting the companies to with
| draw their assent to the substituted
method of taxation, leaving them sub
| jecJ to taxation on the assessed value of
their property. 1t shared to some ex
| tent the suspicion that this was really
covert move Of the railway companies
to rid themselves of paying the gross
earnings tax.
1t is this fear still entertained by some
of the senators which will endanger the
| passage of the house bill through the
senate. The GLOBE is of the opinion
that it is without foundation. Its in
yeStigation has removed its own appre-
| tensions, and it does not hesitate to
urge the passage of the bill by the sem
ate, both on grounds of justice to the
| counties in which these untaXed lands
| lie and for the removal of what is seri-
| GUS discrimination III the taxation Of the
| roads the mSelveS.
| The arguments for the measure lie on
the surface, and appeal to the sense of
| fairness and justice. In comparing the
| counties now interested and those which
| have borne the burden of land eXemp-
| tons. it is we'll to consider that the
| older grants were of limited extent as
| compared with those under which these
lands are held. The old grants began
| with each alternate section for six miles
| OH each side of the road. Settlements
| preceded or rapidly followed the loca-
| ton of the lines, and the grants we're
| extended to ten miles. Later deficiency
| limits were extended to twenty miles.
| The grants to the roads now holding
| lands were much more generous, and
| cover very much larger areas, with re-
| suting heavier burden On the settlers
| in these counties.
1t is not for the interest of the state to
| have these tracts held out of settlement
| and paying no part of the general bur
den. Every settler adds by his pro-
ductive labor to the wealth, the devel-
| opment and the Importance of the state.
| The roads will also be benefited, but
| their policy has always been a most mar
| row and illiberal one, in holding lands
| that cost them nothing at prices which
| drove settlers to the cheaper lands of
| the West. Settlers have added to the
value OF the railroad lands that I'M
unearned increment which came from
| their settlement and occupation of adj
Joining government lands. The roads
even took advantage of the munificence
of Providence in sending the marvel
Gus crop of 81 to order general adj
| vance OF prices. If they will absorb
the value they do not create they
should share the burdens of the men
who do create it.
The arguments made by the attorneys
for the roads who appeared before the
committee and opposed the bill are all
met and answered in the well-consld-
cred brief of Mr.. KELLOGG. The
argument that the exemptions in the
| charters are iuviolable contracts is I'M
| tenable. 1t may we'll be doubted, in view
! Of the later decisions, and especially
| that of the supreme court of the United
| States in the Chicago lake front case,
| holding that state cannot grant irrev-
ocably the property of the people,
whether absolute exemption for term
would be upheld. The vitality Of the
state is bound up in it's right to tax, and
| it surrenders its life when it gives it up.
Mr.. BULLITT, representing the North
| ern Pacific, says that the road will re-
| fuse to pay gross earnings tax on their
traffic originating outside the state and
| ending in ir, or beginning in the state
| and terminating out of it, ii the eXemp-
! ton of its lands Is taken from it. This,
| he says, will reduce the income to few
thousand dollars. There are two an
| sWers to this position. The constitution
requires that all taxation shall be equal.
| The gross earnings tax has been upheld
| by our supreme court on the ground
that it is substituted method OF taxa
| ton of values, the legislature having
| considered that a gross earnings tax
| was equivalent to tax OH the property
valuation. There are several roads hav-
ing no grant. either having had none or
having disposed of it. They pay tax
| on their gross earnings. Manifestly,
as to these roads the exemption of
| i've and a half million acres of lands
owned by some of the roads, produces
UNEQUAL taxation within the meaning of
the constitution. The lands produce
| nothing which goes into the gross earn
| ings of the roads: when sold the pro-
| ceeds are devoted to special purposes,
and are not included in the gross earn
ings of the road for taxation. Another
answer is that the roads will do no such
a thing. They Will neither care nor
dare to do it. They will not care to do
| it because it will not be for their inter-
est to do it; the tax on their property
valuation would be much greater, to say
nothing of the expense of watching the
local tax conditions. They will not dare
| to because it would arouse public re-
sentiment which would find expression
in unpalatable legislation. They will do
| just what the roads without lands are
doing; they will pay the tax as now on
their gross earnings, whether earned in
state or Interstate commerce, and thank
their stars that they ale getting off SO
easily.
| s. S. BROWN, surveyor general of logs,
| naturally protests against the bill which
| proposes to put him on a beggarly S., 900