St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-03-02

ldIIndy COInpdUltS HdfG 6HLeESQ lULO
contrat to pay 3 per cent upon gross
earnings of the roads in lieu of all other
taxation. and no matter what the at
torney generals opinion is. it appeared
to the senior senator from Ramsey that
the two systems cannot stand together.
Should the corporations go into court
with the plea that it is eXOrbitant taXa<
ton, and that the earnings of the com.
panieS cannot stand up under the bur-
den, it is a question what answer the
courts will make. The state is
Receiving 81, 600, 900 Year
under the present method, and Mr.. San
born opposed the thought of any course
that may possibly leopardiZe the same.
lie would consent. however, to grant
relief to the counties that are suffering
from the exemption act, and he argued
that the other sections Of the state are
wealthy enough to extend the needed
aid. These were his reasons for opp0s-
ing the bill. Senator John Day Smith
presented the statistics from the state
auditors office, showing the increase in
the amount received by the state in that
length of time, and he argued that
should the increase keep like pace The
coming twelve years it will noun
up to nearly S3,O00.000 year. Ii
insisted that the supreme court hat
given decision that the gross earnings
is tax in lieu of all other taxes, and he
knew that if the act passes the railroads
will refuse to pay the gross earnings
tax, because the state has insisted upon
ali ad valorem tax. He made savage
remark concerning the Weyerhauser
lumber institution, whereat Senator
Keller sprang to his feet to defend his
fellow-cOuntryman from attacks upon
IN nf 70 lTr
hauser." lie cried. sis a gentleman! He
brought Ehis vast wealth here. and
he has invested it to help build up the
mighty industries of the state"
Senator McHale here was recognized
by the chair. He began in low and
measured tone.
Speak little louder. SENATOR" in
terrupted Senator Donnelly.
"Pll speak louder as | get warmed
up" was the reply, and the eloquent
senator from Scott proceeded with
logical and argumentative dissertation.
He showed why the ad valorem tax was
abrogated and the gross earnings sys,
tenn was inaugurated. That was when
the earnings of the railroads were
Small and UnprofitabIe.
Taxes were a burden, and the new
system was adopted upon the theory
that ii the earnings We're small they
would pay prOportlonately small, and if
large the tax would be prOportiOnatelv
large. For thirty-fiye years this system
has been in satisfactory operation, and
now modern Moses comes to the
front ana cries out that change
must be made-that a revolution.
alone will deliver the people
from iDsufferable oppression. He argued
that the condition of today is only tenn
pordry. LII Carleton county the railway
lands are nearly all sold. Senator Nc
hale proceeded to make comparative
statement of the number of acres that
are actually assessed at the present
time, to show that the taxed acreage is
larger III Scott OF Carver counties.
Senator Day interposed that the ar
gument was fallacious for the reason
that there can be no comparison made
upon the assessable valuations of a sec
tion of country thickly settled and
highly improved with wilderness.
Senator McHale resumed his argu-
ment, claiming that the bill is so cum
ningly and ingeniously drawn that it
eXciteS his suspicion. He insisted that
the central idea OF the bill is that the
lands shall be taxed, no matter what be-
comes of the gross earnings. He urged
that the drift of the measure should be
reversed. Citations from supreme court
rulings were many, and from these Mr..
McHale argued that the gross earnings
system in lieu of all other taxes is
solemn contract and inviolabie. and he
held that the state is entitled to hold
the gross earnings because the state
had earned them by continuance of
thirty-fiye years; and he held, moreover,
that the repeating clause OF the Mark
ham bill will repeal the gross earnings
law. He accounted for his opposition
to submission to the people by stating
that the senate is better prepared to
Judge of the interests OF the state than
the huSbandman.
Where Are We At2
Senator Day would not discuss the
legal phases involved in the measure
under consideration. The senators not
so deeply versed in legal lore, after
listening to the didactic speeches. felt
like helplesslY inquiring Where are
we at?''
The senator from Martin had une-
quivocal confidence in the opinion of
the attorney general, and he had con-
suited some of the ablest lawyers in the
city and he had found them ready to
stake their reputation that the gross
earnings law will not in the least be at
tackled by the bill.
"And even if il does" he purSued
warmly, 81 shall still be in favor OF this
bill. 1t does not go into force and effect
upon its passage. 1t must be submitted
10 the people, and the people with al
most one voice cry out for that right.
The state press in burning elOquence
demands the right. If the gross earnings
system is i'll danger the people will have
two years to learn it. The best lawyers
and juristS will speak from every plat
form, and if the position of these bright
legal lumInaries who are arrayed against
this bill be correct, the people Of the
state will vote the amendment down. /
deny that the brains and intelligence of
this great state are centralized in this
senate"
Storm of Questions.
Mr. Day was attacked OH all sides by
the lawyers who opposed the bill. Ques-
tiOnS we're piled with cunning and
subtlety calculated to embarrass the
speaker, Senator Day submitting that
he was unable to cope with the brilliant
lawyer senators upon recOndite law.
He had only risen at the urgent request
of several laymen to show that the bill
had friends in the senate, despite the
fact that that the afternoon had been
consumed by practiced speakers who
are deeply verSed III the arts OF debate.
He was willing, however, to trust the
good judgment OF the sovereign people.
Senator Davis was also arrayed
against the measure. After speaking
upon the legal phases, he asked that the
bill be once more made special order.
He was not satisfied that the opinion of
the attorney general had covered every
feature of the bill, and he propounded
series of questions that he wanted sub
mitted to the attorney general for sup
Elementary report. These questions
are:
Senator Davis EnterrOgateS.
/. Can the state tax the gross earnings OF
the companies from interstate traffic with
out their consent?
=. Do the taxes now paid by the compa-
nies include q percentage upon their gross