St. Paul daily globe., 1893-02-16

the gross earnings system. Whether all
the roads prefer it i am not here to say.
But when we consider the source from
when the bill comes and the people
who are pushing it. the query naturally
arises as to whether some of the rail-
roads are not behind it.
Mr.. Builitt called attention to the
fact that the land holdings OF the roads
are fast decreasing. Tie predicted that
the gross earnings tax would be de-
creased if thiS-bil passes, from $500. GOO
will not nearly be made up from the
taxed land. He said there should be Il
method of eQuitably distributing to The
counties interested in railroad prop
erty taxation Of the gross earnings,
and suggested the following basis:
Forty per cent to the counties through
which tie road runs. distributed ac-
cordng TO their mileage; AZ per cent to
the counties in which the lands are sit.
uaJed, according to acres, and 90 per
cent to the state.
Mr.. Buliitt was followed by Attor-
nty Dunn, of the st. Paul Il Duluth.
who held that the gross earning law is
aperpetual contract by which the state
agrees to accept 5 per cent on the gross
earnings of the st. Paul u Duluth. in
lieu of all other taxes. He referred to
and denied the claim that the st. Paul
y Duluth is holding lanl at high fig
ure to get the benefit OF rises in prices,
and said they, OIL the contrary, are using
the lands in the construction of the
road and are selling them as fast as pos
sible, spending S30,0O0 annually in the
sale and advertisement for sale of their
lands.
MI Kellogg in his closing argument
replied to some of the points of the rail
road attorneys. He wished to correct
the statement of his position by the
gentlemen arguing against the bill.
He does not base his claim OH the un-
cOnStitutionaity of the gross earnings
law. but on the claim that those laws
are both amendabe and repealable.
Gross earnings taxation is not in any
sense an exemption; it is merely a sub
stltuted method OF direct taxation,
amendable or repealable when, i'll the
wisdom of the legislature. it is in con-
tilct with the provision OF the constitu-
Just and reasonable.
Mr.. Kellogg closed by referring
to the injustice to counties that
large tracts of land should be
exempted from taxation. The county
attorneys of number of cOun-
ties interested were present and told of
the feeling of the injustice of present
conditions among the people who by the
exemption of railroad lands are prac.
tlcally forced to submit to double taxa
ton.
Senator Allen said in reference to the
lnsluuation that the railroads are behind
the bill that the citizens of the counties
Interested have gone down in their
pockets and employed Mr.. Kellogg to
present tie matter to the committee.
The committee voted 10 close the hear
ing and adjourned without action on the
bill. The committee is very evenly di-
vided Oh the bill, but will probably give
it favorable report.
Some Figures That Talk.
j. n. Mari, of Aitkin county, has
some figures which he wished to sub
nit, but owing to the latenesS OF the
senate committee, he did not have time.
These figures, he maintains. 90 to show
that the railroads do not desire repeal
OF The gross earnings law, for the rea-
son that they are paying much less
under the present system than they
otherwise would. His figures are as
follows:
Assessed valuation, exclusive of
railroad property, i'll the state. S5SS, ,S20,2l5
Value of ali railroad property in
the state. e.................. ..... 233, ,0OO, 900
Taxes collected. 1899. ........... l., 1O7. Al
Gross earnings from railroads,
1891 707, 1857