The Sauk Centre herald., 1899-01-05

have a tendency to produce lower trans
portation rates, but inasmuch as we are
part and parcel of the states referred to
for transportation purposes, we cannot, in
justice to ourselves, be governed by any
such considerations, unless they are also
needed by the other states in the group.
Lower Transportation Rates.
Iowa and Illinois have already secured
materially lower transportation rates
than we have. If we continue to also per-
NIT them to exact higher rates of taxation
from the railroads which operate in those
states, and in ours, than we collect, mani
fest injustice will be done to our people.
The maximum rate of gross earnings tax
in Hi nois is per cent; in Wisconsin,
per cent in Iowa, per cent; in our own
state, 3 per cent. The average rate actu-
ally collected in the several states is 2.S
per cent in Minnesota, 35 per cent in
Wisconsin, 3.6 per cent in Iowa, 6 per
cent in Illinois, as appears by the state
ment furnished by the board of railroad
and warehouse commissioners, which ap-
pend The average rate of gross earnings
tax collected in the three states named is
over 43 per cent; more than one-third
higher than the rate imposed in this state.
In other words, if the railroads had been
subjected to the same rate of taxation in
this state, as the average of the rates in
Iowa, Wisconsin and Illinois, we would
have received last year over 81, 700, 900, in
stead of something over 81, 100000. 1 am
also advised that Notwithstanding the
fact that Wisconsin already collects a
much larger rate than we do, and on a
less volume of business, the executive of
that state will urgently recommend to the
legislature at the ensuing session to in
crease the rate now in force to keep pace
with the increase in the rate of taxation
upon other property in the state. That,
also. is q feature that should not be lost
sight of, for increased taxation and higher
civilization go hand in hand.
Some Alternative Propositions.
The Chicago Great Western Railway,
which is operating under an old terri
torial charter which fixed the rate of tax
alton at 2 per cent on the gross earnings,
has not accepted the provisions of the
"Stillwater Act" under section of Chap
ter I of the General Laws of 1887 and
therefore contends that it is liable to pay
only per cent. AS we have no general
provision of law imposing the 3 per cent
gross earnings tax, it is probably right in
its contention, at least, it has prevailed
with the state authorities up to this time,
and it is therefore imperatively necessary
that legislation should be enacted to cover
that ease.
am fully aware that the argument will
be used before you that it is unsafe to at
tempt any revision of the gross earnings
tax law in this state; that by so doing you
will jeopardize the benefits that the state
now derives from that method of taxation.
No Question of Acceptance.
There is no question but that the COM
panies will much prefer to q reasona-
5la 0ss e.riiings taA tiassSs - have their
propsrty and franchises taxed uron val
uatio1i. But if it is fea,e that any COM
pany might resist the pay nic,4t of a higher
gross earnings tax than is now levied, on
the yr5und that it is in violation of fed
er;d law to impose tax upon the income
from Interstate commerce, as a pre-
caution, you can readily obviate this diff
Guilty by also enacting an alternative
mode of taxation, providing: That in the
event that any railroad company, subject
to the payment of taxes in this state, shall
refuse to adopt and abide by the rates of
J
tabl.sh in Communication of other forms cf
taxu,ion, then the property and franchises
Of such corporation shall be taxed upon a
valuation the same as other property in
the state and at the average rate ~ .sAs.-
ton in the state; thus leaving it 10 tho
corporations themselves to detsr1nine
whether they will pay taxes on aT5luation
the same as other property in the state, Oh
accept your gross earnings conf alton
planiu lieu of that form of taxation. You
CCg2l so one step farther and authorize
tlr companies to fix their own valuation
with the proviso that the valuati SO
Fxed should be the valuation md
basis for determining Transports
tion rates as we'll as for taxation.
With such an alternative before then,
you need have no fears that they would
reject any reasonable gross earnings rate
They understand, as we'll as every lawyer
in your body, that they cannot escape
payment in one form or the o'har, ard
they VIII be glad to avail themselves of
the gross earnings tax as the least bur
densCme.
Reduction il Expenditures.
Thus far, have only Discus, matters
relating 20 Tie letter adjustment of tho
burdens of taxation and the sources to
which You can look for additional revenue
to meet The growing wants OF our pro-
grossiye state without further burGe Ing
persons or property directly engaged in
production.
BY we'll considered legislation tho state
may be able to so utilize it's different re-
Sources &or raising revenue by t@v"fion
that the rate 7nav 'Dn redu"nd and still an
lncTe.asa secured in the revenues. But it
is idle in young state like ours with a
eo1stant and rapid growth in population
to speak about decreased expenditures
What we can reasonably hope for, and
wh&t Ee should insist upon attaining, is
not necessarilya reduction in aggregate
expenditures, but a system of manage
nant and administration in al public af-
fairs.hat win give the people the greatest
possible efficiency and the largest possi-
bic returns for the money expended.
TREATMENT OF INSANE.
Governor Lind Warmly CoInmends What
Is Known as the Wisconsin Plan.