The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 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
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, per cent. The average rate actu-
| ally collected in the several states is 2.S
/ per cent in Minnesota, 3.5 per cent in
| Wisconsin, SO 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 APP
pend. The average rate of gross earnings
| tax collected in the three states named is
over 4.3 per cent; more than one-third
higher than che 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, 200, 900, in
stead of something over 81, 100000 am
also advised that Notwithstanding the
fact that Wisconsin already collects
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 a 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
/ Saltwater Act" under section of Chap
! ter II 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 ieopardize the benefits that the state
now derives from that method of taxation.
No Question of Acceptance.
There is no question but that the com
! .panics will much prefer to r. q reasons
5ss eafifings t3x ti1t.ss i; have their
! property and franchises tas al upon val
uation But if it is feate that any COM
pany might resist the pay nicItnf a higher
/ gross earnings tax than is now levied, on
| the Ground that it is in violation of fed
er;a law to impose a tax upon the income
from Interstate commerce, as u 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
taxation on gross earnings which you es-
! tabltsh in Communication of other forms Ct
taxation, 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 - ue.As.-
ton in the state; thus leaving it TO tho
| corporations themselves to detsrmine
whether they will pay taxes on a r8luation
+; the same as other property in the state, Oh
accept your gross earnings comiau tation
| plan ia lieu of that form of taxation. You
! could 80 one step farther and authorize
: tlw companies to fix their own valuation
with the proviso that the valuation SO
liked should be the valuation md
basis for determining Transports
! ton rates as well as for taxation
| With such an alternative before them,
you need have no fears that they would
! reject any reasonable gross earnings rate
/ They understand, as well as every lawyer
! Ia your body, that they cannot escape
! payment in one form or the cher and
they will be glad to avail themselves of
1 the gross earnings tax as the least bur
/ densome.
Reduction in Expenditures.
Thus far, have only DISGUISE, matters
| relating 10 tie better 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-
grcssive state without further burde Ing
| persons Or property directly engaged in
production.
BY we'll considered legislation the state
may be able to so utilize its different re-
sources for raising revenue by t@vation
that the rate may be redncnd and still an
Increase secured in the revenues. But it
Is idle ia young state like ours with
constant and rapid growth in population
10 speak about decreased expenditures.
What we can reasonably hope for, and
what sge should insist upon attaining, is
not necessarilya reduction in aggregate
expenditures, but system of manage
rnent and administration in All public af-
fairs.hat win give the people the greatest
possible efficiency and the largest posi-
BE returns for the money expended.
TREATMENT or INSANE.
Governor Lind Warmly Commends What
Is Known as the Wisconsin Plan.