The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-26

graduated according to their annual earnings
per mile. The most profitable lines In the
state are paying per cent. with others rang
ing downward to 8 and per cent, and upon
all below that rate a minimum is fixed at IS
per mile. The average rate charged the Wis
consin road does not exceed per cent
Gov. Lind said in his message that in ILL
nois the railways paid per cent upon gross
earnings. That appears to be a mistake
There is no gross earnings tax in Illinois ex-
cept that paid by the Illinois Central under
an old contract, in consideration of which
the company got their land grant All other
roads in that state are taxed on their actual
property value. The same ia true In Iowa.
Railroads are taxed on actual property and
the rate is approximately per cent on gross
earnings.
FOR example. In the seven or eight states
through which the Northern Pacific operates
the company Is taxed on actual property ex-
cept In Minnesota and Wisconsin, and pays
In all those states just about per cent on
gross earnings. 1t pays about S115, 600 taxes
IN North Dakota. when the actual properties
are assessed as those Of other people. If the
company paid on gross earnings 1t would
have paid for the last year about $114 900, or
little more, say. substantially Sis, OCO The
same is true in Montana, Idaho, Washington
and Oregon. where 1t is taxed on actual
property
Now for an illustration regarding the
methods of taxation in Wisconsin. There are
twelve roads there coming under the 4 per
cent class, seven under the per cent and
SIX roads under the 2la per cent class On
all roads on which the earnings are less than
$1,000 per mile, per annum. the tax Is So
per mile. which is. Of course, merely nomi-
nal OF this class there are seventeen roads.
There is still another class, known
as pontoon bridge roads, which are taxed 2
per cent, but there is only one road of this
class.
The Northern Pacific paid Minnesota last
year. In round figures. between $4,000 and
S1SO. 0OO in taxes, and in North Dakota with
one-third more mileage. $115, 900. say but, Of
course, the company did not earn so much
there as on the lines in this state. Another
per cent would add just so much to that
company's burdens and depress the people of
the state who have to pay the rates. to just
that extent.
Furthermore, 1t is believed that the opinion
Of the best lawyers in the state would be
substantially unanimous that the per cent
law would prove invalid as to all the rail-
roads which operated under territorial
charters, all Of which contained a contract
to pay per cent. All the charters granted
by the territorial government contained a
provision that the state would charge per
cent In lieu Of all other taxes and that pro-
vision has been held valid by the supreme
court of Minnesota. This Is no longer an
open question. The old Manitoba lines, the
Wincna St. Peter. the River d.
vision Of the Milwaukee & st. Paul, the Mil
waukee & st. Paul division from here down
to Faribault. formerly the Central Minnesota,
and the Chicago Great Western are all OPP
Grated under these charters. Probably over
90 per cent Of the mileage in the state Is
operated in accordance with this provision
1t Is therefore maintained that that law will
be held invalid as to these roads: and, If it
Is. 1t will be held invalid as to the balance
OF the roads. or else 1t will accomplish a
great injustice. The roads like the Northern
Pacific. the Great Northern and the St. Paul
& Duluth come under charters granted after
the admission of the state.
In general way, 1t is believed the passage
OF this law would have the effect of deterring
the construction Of new railroads in Mime
sofa and that it would be very Injurious to
the interests Of the state, If the impression
should go forth that the legislature Of the
state was growing hostile to capital from
abroad invested here for the upbuilding of
the transportation facilities Of the state.