The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-08
JACOBSON BILL GOES |
THE HOUSE PASSES THE MEASURE
TO INCREASE THE TAXATION
OF RAILROADS
LITTLE OPPOSITION TO 1T
Mr.. Abbott Offers an Amendment
Providing for Gradual Increase.
but 1t Was Voted Down-The
Lac qui ParIe Member Repeats
His Argument Made In Committee
Five Noes Against the Bill.

His Argument Made In Committee
Five Noes Against the Bill.
-Four of the five hours the house was
In session, yesterday, was taken up in
discussion on the Jacobson bill, provid-
Ing for the increase in taxation of
railroad companies on their gross earn
ings from to 4 per cent. The bill
was passed with but five opposing
votes. 1t will be submitted to the
PEOPLE at the next general election,
providing it is not killed in the senate.
Twenty bills were introduced and
three PASSED. Two of these were SEN
ate bills passed under suspension of
the rules.
At 1880 the speaker announced as
the special order the consideration of
MI. Jacobson's bill. H. F. %. relating to
the increase in the gross earnings tax
Of railroads from to per cent.
Mr.. Larson Rep), of Redwood, NOV
ed that the house proceed in regular
order.
Mr.. Jacobson tRep), of Lac qui Parle,
Objected and said this could not be
done without suspension of the rules
Mr.. Larson said he had a bill relating
to the reduction of freight rates in the
state which he desired to Introduce
Mr. Jacobson said this meant that
the bill now under consideration would
be put off for six weeks One bill would
anita goniZe the other and the result
would be the death of both measures
The motion of Mr.. Larson meant the
postponement of the gross earnings bill
until the one relating to freight rates
had reached the same stage. 1t meant
more. 1T meant the death blow to all
legislation on these lines.
Mr.. Roberts fRep.), of Hennepin, rails
ed the point that the hour for the spe-
c:al order having arrived and passed
the motion could not be entertained
The speaker held the point we'll taken,
and the consideration Of the bill was
proceeded with.
ABBOTT HAS AN AMENDMENT.
Mr.. Abbott (Rep), Of Faribault, had
an amendment which provided that
the tax be per cent in 1899 and in
crease 2-10 per cent a year until 1903.
when it would reach 5 per cent. He
stated that even with this amendment
Incorporated in the bill he could not
say whether he would vote for it. He
advised that no hasty action be taken.
Many persons were of the opinion that
the present tax be not disturbed now,
but the legislature should wait until
the increased business of the railroads
increased the amount derived from
gross earnings. In a few years the
present tax would pay all the taxes Of
the state.
Mr.. Jacobson sent up two amend
ments. one excepting street rail-
way companies from the provisions OF
the bill, and the other inserting as sec
ton of the bill the exact words OF
the supreme court as to the definition
OF gross earnings.
Without the amendments offered by
Mr. Abbott or the author of the bill
being acted upon, Mr.. Jacobson COM
menced his argument In favor Of the
passage of the bill. He contended that
unless it could be shown the railroad
companies were not paying just pro-
portion of taxes, the measure should
not pass. If it was shown they were
not, 1t was the duty of the legislature
to pass measure which would COM
pei them to do so.
GIVES SOME FIGURES.
The railroads were not paying the
same amount of taxes as other indi-
yiduals or interests paid The market
value of railroad property was, accord
ing to the figures of the companies,
S290, COO, 900. The average rate of taxa
ton paid in the state in 1897 was "A CLIO
mills, while the taxes paid by the rail-
road companies was less than mills, il
the valuation of the railroad property
was cut in half and placed at s145,000,-
000 The railroad companies were
taxed only on a valuation of S4S, DOC, 600,
or 25 per cent of the actual value, or
less than a valuation of $4,000 per mile,
The gross earnings for 1897 in Mime
sofa were $40, $40 600; the operating ex-
penses $21, 4S4, 600; the net earnings S1S,-
$50 900, and yet the total taxes paid
were only S,127 900. The railroads were
capitalized for $3.50, 600 0G0 and on this
they paid nearly Z per cent, and ac-
cording to their own figures the net
earnings were about $4,000, 900. If the
legislature acted fair the gross earn
ings should be increased and the
freight rates reduced in order to put
the railroads on a just and fair basis
of taxation. If the rule of taxation as
to railroads was not increased it meant
an increased rate of taxation through
out the state. The law had to go to
the people for rejection or approval,
and not a dollar would be received
from the increased raise for nearly
three years.
MR.. WHEATON'S EXCUSE.
Mr.. Wheaton Rep.), of Hennepin,
said he would support the bill so as to
refute the charges made that the Re-
publican party was the servant of cor
porations and tools of the railroads.
Mr.. Pennington Oem.), of Dakota
protested against making the bill a
partisan measure. Every member, ir-
respective of politics, should support
it because it was fair and Just meas
ure.
REPUBLICAN RECORD.
Mr.. O'Neill Union), of Big Stone
said it was not necessary to reply to
the member from Hennepin. All thai
was necessary was to look at the fig.
ureS presented and see where Repub-
lican Minnesota had stood in the way
of taxing corporations. The Republican
party had been in charge for thirty
years, and if the corporations had been
taxed justly the party deserved credit
If not, then the party deserved CEN
sure. At one time in the past the
Democrats and Populists had stood for
just taxation, and the records would
show whether the Republican party
had or had not.
Mr. Grondahl (Rep.), of Goodhue, was
sorry politics had entered into the de-
bate. He, as Republican, represent
ed all the citizens of his district The
state had a right to levy taxes. but
only just and proportionate There
We're two arguments against the bill
but neither was that it was unfair O;
unjust. One was that it was uncon-
stltutional; another was that it would
discriminate against certain comp anies
winch did not have charters from tbs
territorial legislature The cry of un.
constitutionality was the same one al.
ways raised whenever an attempt was
made to pass a law beneficial to the
people.
Mr.. Sander Rep). of sibley. claimed