St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-02-11
Largest Amount of Lands


as to taxes. The aclS of 1865 and
1870. which provided substituted mode
OF taxation for these roads, the same
having been passed since the adoption
OF the constitution they could not in any
sense be considered contracts, but merely
substituted mode of taxation. and under
section 81, article of the constitution
and under the general principle, that the
legislature had the right, by the proper
method, to change this mode of taxation
at any time. They also show that any
railroad accepting the provisions Of the
IaylOrS Falls act which was passed in
1873 and governs the Duluth u Iron
Range, Wisconsin, Minnesota d Pacific
and others having lesser grants; that
this law having been passed after the
amendment to The constitution i'll 1871,
they take such substituted mode of tax
alton with the express right of amend
ment provided for III said section of the
constitution. So far as the Minneapolis
IL Manitoba is concerned, they show that
whatever the right of substituted mode
of taxation this company possessed
they held under the act OF 1876 and 1881,
in which the Legislature transferred the
right to them: and it having been done
since the adoption of the constitution,
to wit: 1876 and 1881, that it was not
contract in the hands of the st. Paul,
Minneapolis & Manitoba, but a sub
stituted mode of taxation which the
legislature, by the
Consent of the People,
may change in any manner that the
legislature may deem eXpedient. As
before stated, numerous authorities
were cited in which the supreme court
of the United States and of the state OF
Minnesota have repeatedly held that
laws of the character of the ones cited
are not contracts, and may be amended
and changed in the discretion of the
legislature.
Many questions were asked by the
members of the committee relative to
the question as to whether or not it was
double taxation to tax their lands and
their gross earnings at the same time,
all of which were satisfactorily an
SWered. The friends OF the bill showed
by reference TO the decisions of the SUI
preme court that the gross earnings
laws were only intended and could only
be sustained on the theory that the 3
per cent gross earnings should be in
lieu of all taxation and assessments upon
property used for purposes for which
corporations exist, i. e., upon the prop
erty used in or about the operation, con-
Structon or maintenance of the road,
and that all other property not so used
by the railroad companies should pay
taxes by direct tax.
They cited cases in st. Paul where
The Milwaukee road pays direct tux
upon its old depot grounds at foot of
SlDley street which are hot used for
railroad purposes. Also Manitoba rail
road which pays tax upon the Hotel La
fayette, at MinnetOnka; also case in
Todd county, which was acquired 10y
purchase and was not used for the pur-
pose of the corporation. The reasons
why the lands now held by these COM
panieS for speculative purposes, and
are notused for the use of a corporal on
not exempt are given in the declSioL OF
the supreme court, holding that prop
erty not used for railroad purposes is
not included in the 3 per cent gross
earnings tax. inasmuch as they are es-
pecially mentioned in all these gross
earnins laws, and the object Of this bill
is to amend the gross earnings laws so
as TO take them out and
Make Them Taxable
as other lands are taxed, and leave the
gross earnings in as it now is. From
decisions cited it was made evident
that this might be done, as it is entirely
constitutional and safe manner Of tax
alton, and that such changes i'll gross
earnings law is but just to the railroad
| companies. for the reason that all the
railroad companies in this state. with
| out regard to the fact as to whether
| they have land grant or not pay the
| same percentage Oh the gross earnings
as those that have no such grant. and
| that by making these lands taxable
! would place ali the railroad companies
| in the state upon the same footing.
| The hearing was continued until this
afternoon at 2 o'clock, at which time
| John G. Bullitt Jr will be heard on be-
half of the Northern Pacific railroad
and any others who may desire to be
| heard. At which time A. Y. Merrill
will present some facts and statistics
tending to show that the railroads of
this state under the gross earnings law
pay less than their proportionate share
of taxes, and that they pay the less per
| centage upon their gross earnings aud
less rate per mile than do the states of
Iowa and Wisconsin, and that as the
law now stands that in addition to
that hold 100000 acres of land worth
at least S25, 600, 900, which is exempt
! from taxation, and that the proposed
change is only Just and equitable to all
parties concerned. 1t would seem from
the facts and arguments presented that
| there is little doubt that the measure is
entirely constitutional and just and does
not repeal the gross earnings law, and it
| is hoped that it will pass.
In the course of the hearing num-
! Der of questions were asked, the most
| important of which relate to the queS-
ton of the fate of the gross earnings
tax if this bill is passed and the amend
ment adopted.
elf this act is passed. how does it
| affect the present gross earnings law"
asked Senator Tawney.
ut affects it only as to the lands" re-
piled Mr.. Kellogg. but the gross earn
! ings tax will still be permissible. No
railroad comany will object to the 3
per cent tax on gross earnings when
| they would thereby pay less than fifth
of what you and pay. Besides it will
not affect many roads-those built with
out grants Oh those that have disposed
of their grants. These roads have ac-
copied the gross earnings tax when they
have no lands, which goes to show that
the tax is not unreasonable OF they
would object"
Gen. San5orn- Do you admit that the
railroad corporations are now under Oh
legations TO pay the per cent gross
earnings taX-such an Obligation as the
state of Minnesota can enforce?
Mr.. Kellogg do unless they can
show under the original constitution
that it is unreasonable and unjust.
Senator TaWney-That door is open