The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-03-09
just about as bad to be robbed by an
authorized robber
A De.eitfui Tax r1easure.

If an added egg hath meat then doth
JacobSonS gross earnings tax bill pos-
sess much merit. Not otherwise, as tie
taxpayers of the state would learn, to
their cost, If it ever became q law 1t
has passed the house and is now re-
ceiving the attention of the senate
Judiciary committee The public is
slow to learn the truth about their leg
islative representatives. the motives be-
hind their measures, the arguments
that are advanced, the actual facts
upon which statutory enactments are
predicated. A lusty-lunged demagogue
may fool them tremendously, but as
Lincoln remarked. they cannot be fool
ed all the time
Upon the face of things it might
seem as if Jacobsons proposition to
compel the railroads of Minnesota to
pay per cent of their gross earnings in
to the state treasury. where they row
pay three, is a good thing But an anal
ysis of the facts will show that Jacob
son is really Offering gold brick to
the Taxpayers.
Somewhere about the time Jacob
sons keel was laid in Norway, the
territory of Minnesota was peopling
with progressive men who felt the
great need of more rapid communica-
ton with the older civilization Of the
East They offered as an inducement
to capital railroad charters with the
stipulation that a tax of per cent
upon their gross earnings, no more,
no less, should be imposed for all time.
These charters enter into the life of
three of the largest railroad systems
of the state today. They possess a
binding force because they have le-
gal existence. Other railroads organ
lied since may possess no such cor
porate privileges as the pioneer syS-
TENS. The imposition of a 4 per cent
tax would be a manifest breach or
faith by the state toward the former
and an act of grave injustice toward the
latter The courts would undoubtedly
uphold the old territorial compact, Tor
its recognition by any future form OF
state government was expressly stipu-
lated originally. This having been
determined. one-third the increased
taxation would naturally fall upon
their fellows. But, leaving this phase
of the question one side. there enters
into the situation the more serious
question whether the good faith which
was pledged in the hour Of the states
need shall be violated as Jacobson pro-
poses.
If this is not a reason Weighty
enough for the thoughtful and con-
sentative taxpayer to repudiate the
pending legislation. let us consider an
other. 1t is proposed by this measure
to give the railroads, if they object TO
a per cent assessment, the alterna-
tive of paying taxes upon fixed as
sessment Of the valuation of their prop
erty. Now it is a historical fact that
the plan of railroad taxation, based
upon a percentage of gross earnings,
proved so acceptable to the taxpayers,
it was so simple, 1t involved so little
expense in it's collection. that they en-
bodied in their constitution a provision
prohibiting the passage of any law
changing the plan. without it's being
duly ratified by the people.
The gross earnings taxes in Mime
sofa have increased 400 per cent in the
last twenty years, while railroad rates
have decreased even in greater pro.
portion. During the past year this tax
amounted to about $1,3OO.0 900 and it is
| steadily increasing. Contrast the
amount of revenue obtained under the
| gross earnings tax with that derived
from a tax based upon a fixed assessed
valuation, and it is not difficult to COM
prehend how the taxpayer would be a
loser by the latter method of taxation
The Jacobson bill isn't even honest
with the taxpayers. Democrats haven't
any business behind such measure
Fortunately for their regulations, the
man from Lac qui Parle isn't a member
of their party. 1t remained for a Re-
publican with political ambitions to
conceive such a deceitful measure