Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1899-01-06

group Of states are on the whole
traversed and dominated by the
same systems, and the business
of each system operating within
the group 10 treated - . unit. Our state
Is therefore (aside from tho need of tho
revenue) interested in seeing to it that 1t
obtains substantially as large q proper
ton Of the earnings of these companies
for the support of its government and in.
situations as is taken by the other states
In the group. If we do insist upon this,
we simply compel our people to help pay
taxes in the other states. If our railroads
were confined in their business operations
wholly within the boundaries Of this
state, the rate Of taxation imposed would
perhaps not be so material, for a high
rate Of taxation would necessarily
in the course Of time, be reflect
ed in higher transportation rates;
so, also, q lower rate Of taxation would
have tendency to produce lower trans
portation rates, but inasmuch as We are
part and parcel of the suites referred to
for transportation purposes, We cannot, In
justice to ourselves, be governed by any
such considerations, unless they are also
hooded by the other states in the group.
Lower Transportation Rates.
Iowa and Illinois have already secured
materially lower transportation rates
than we have. II We continue to also per-
init 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 cont; in our own
state, 3 per cent. The average rate actu-
ally collected in the several states is ~
per cent In Minnesota, s.5 por cent in
Wisconsin, q per cent in Iowa, = per
cent in Illinois, as appears by the stale.
ment furnished by the board Of railroad
and warehouse commissioners which I ap-
pend. The average rate Of gross earnings
tax collected in the three states named il
over 4.S 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, a. the average Of the rates in
Iowa, Wisconsin and Illinois, we would
have received last year over 81, 100000, in.
stead Of something over : 100000. am
also advised that Notwithstanding tho
fact that Wisconsin already Collects q
much larger rate than we do, and on \
less volume Of business, the executive Of
that state will urgently recommend to tho
legislature at the ensuing session to in.
crense tho rate now In force to keep pace
with the increase in tho rate of taxation
upon other property in the state. That,
also. Is feature that should not he lost
sight of, for increased taxation and higher
60 hand in hand.
Some Alternative Propositions.
The Chicago Great Western Railway,
which 10 operating under an old terri
torial charter which axed the rate oil tax
alton at per cent on the gross earnings,
has not accepted the provisions of the
"Stillwater Act" under section l Of Chap
ter IL Of the General Laws of 1857, 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, 1t 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 case.
! am fully aware that the argument will
be used before you that 1t is unsafe to at
tempt any revision Of the gross earnings
Tux law in this state; that by 50 doing you
will jsupardize 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 pay q reasona-
BILE gross earnings tax than to have their
property and franchises taxed upon = val.
uaJion. But II IT. Ia feared that any com.
pany might resist the payment of a higher
gross earnings tax than Is now levied, on
the ground that it is in violation Of fed
eral law to impose q tax upon the income
from Interstate commerce., as q 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 e.
tablish in communication OF other forms Of
taxation, then the property and franchises
Of such corporation shall be taxed upon q
valuation the same al other property In
the state, and at the average rate of taxa
ton in the state thus leaving it to tho
themselves to determine
whether they will pay taxes on valuation
the same as other property In the state, or
accept your gross earnings communication
plan in lieu of that form of taxation. You
could go one step farther aud authorize
the companies to fix their own valuation
with the proviso that the valuation so
Fixed should be the valuation and
basis for determining Transporter
ton rates IS we'll 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 we'll as every lawyer
in your body, that they cannot escape
payment in one form or the other, and
they will be glad to avail themselves OF
the gross earnings tax as the least bur-
dcnsOme.
deduction in Expenditures.
! has far, have only discussed matters
relating to the better adjustment Ut the
burdens Of taxation and the sources to
which you can look for additional rcreE'!"
to meet the growing wants of our pro-