St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-03-04

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Nothing but the theory of the
greatest good to the greatest num-
Der signifies in this matter, and,
while we would gladly extead any
aid to our neighbor, we fear the peo-
pie of the state cannot see their
way clear to purchasing the pile of
soft brick and atmosphere where
William Hennery Eustis nominated
James G. Blaine, and where the
butchers and brewers of Minneapo-
lis meet in annual session to expose
their wares for SALE
THE GREEKS BEARING GIFTS.
The good people of this state are
again presented with the novel spec
tacle of the lobbyists of certain rail-
way companies of the state beSieg-
ing the legislature, or rather the
senate, as the more vulnerable body,
beseeching it not to endanger the
privilege enjoyed by the roads of
contributing something less than a
million dollars year to the taxes of
the state. Their organs in the press
of the state are playing a vigorous
second fiddle to the organs throng-
ing the lobby of the senate, echoing
the plaintive wall that if the granted
lands are taxed the railways will not
be permitted to share their gross
earnings with the other taxpayers.
This interest of these companies in
the public welfare is unusual and
S1Icninin11c ic,o
be predicated on the motives that or
dinarily actuate men. 1t is so unself-
ish, so disinterested, so purely pro
bono publico, SO antipodal to the
usual course of these organizations
that the diSinterestedness of the mo-
tive may well be suspected. Men
learned centuries ago to prick up
their ears and open wide their eyes
when the Greeks came bearing gifts.
The most singular thing is that so lit
tie stress is made on the contract
phase Of the question and so great
stress is laid on the certain loss of
the gross earnings tax. One recog-
niZed organ of these corporations
and it must be understood there are
but a few of all of them interested
puts the paltry estimate of $4,000
to be derived from taxation by the
side of the 100000 derived from the
gross earnings tax, and asks the
dear people if they can afford to
make this present to the corpora
tons.
We have threshed the arguments
over so often that it seems useless
and profitlesS to thresh their straw
again. But the argument of a loss
of the gross earnings tax and the
resultant gain in tax exemptions to
the railways invites an examination
Of the results to the companies
should this actually prove to be the
result. From comparison of the re-
suit Of the two methods we will find
the secret of this surprising concern
of the railways and their organs for
the preservation of the gross earn
ings tax and the exemption of their
grants.
The gross earnings tax is about
100000 a year. The total cost of
the 5,409 miles of road in the state
is $201, 021 ,013. The gross earnings
tax is four mills on the dollar of
cost. If assessed at half its value
the rate would be eight mills to pro-
duce the 100000. The total value of
taxable property in the state is $685.
100000; the average rate of taxation
is ZIG mills, and the total tax is
SIS, 10000 If the gross earnings tax
should be lost the roads would be
subject to taxation the same as other
property. The taxes, instead of be-
ing, as now, turned into the state
treasury to be made a standing in
ducement for eXtravagant expendi-
ture, would go into the local treas
uries to help defray local expenses.
But that aside. If the railways
paid the average tax on their cost
their annual tax would be some
thing over 100000 annually. If as
sessed at half their cost they would
pay $4,000 900 taxes.
Here is the milk in their cocoanut.
Here is the real reason of their anx-
lety to pay a gross earnings tax in
stead of local and state taxes on a.
valuation basis the same as other
property. They escape with a paw
ment of less than half what thew
would pay if gross earnings taxation
were abolished and direct taxation
substituted. But this is not their
only reason. The gross earnings tax
virtually exempts them from taxa
ton, and makes them merely the
collector of taxes for the state from
the users of railways. Such a tax
is shifting tax, just as a tariff is.
and is merged in cost, in freight and
passenger rates, and exacted from
the users, who, especially in freights
PAID, pass them on to the consum-
ers. 1t is an application here of the
system OF farming out taxes prev
alent in Turkey and other semi
civilized nations.
There need not be, therefore. the
slightest apprehension that the rail-
ways will attempt to evade the tax
alton of their earnings should their
iand grants be subjected to a direct
tax, or that they will carry any of,
their threats or those of their advo-
Gates into execution. In fact, and in
sober truth, it may be confidently
said that, were a proposition made
to substitute direct for this indirect
system of taxing them, the legisla-
ture would be deluged with the
lobby Of the companies seeking to
prevent the change.
NEEDS A KINDERGARTEN.
There is dire need of some more
drastic kind of educational methods