Willmar tribune., 1900-09-12


ent classes. That this condition of af-
CATION of the subject will show. It is
no more just or candid to charge this to
the depravity of the wealtllier members
OF the community than it is to cry dem
agogy whenever the subject is brought
up. 1t is in my judgment condition
resulting from the new forms that
wealth has assumed under the renlarka-
bic progress and the economic changes
which have taken place in this century.
1t is not subject for defamation or
invective, but for patriotic, speedy solu-
ton, now and here, and as rapidly as
the forms of our institutions permit"
10 remedy in part this condition of
affairs l made three specific recommen-
dations to the legislature. One was the
imposition of license fee upon foreign
corporations doing business in this
state, the same as is imposed upon the
formation of corporations under our
statute. Second, that the legislature
enact legislation providing corporations
doing business in this state, the same as
the law authorizes the taxation OF do
mestlc corporations. Third, that the
gross earnings tax upon the railroad
property in this state be increased to a
figure somewhat commensurate with
the rate of taxation imposed upon other
property in the state.
LEGISLATURE ACTED UPON
ONE.
OF these recommendation the legis-
lature saw fit to act upon one only, and
that the least important. By the pas
sage OF the law known as the Somerville
bill, license fee was imposed upon for
eign corporations for the privilege Of
doing business in this state. The law is
rather crude in its provisions, and it's
enforcement having been committed to
the Office OF secretary of state, the re-
celpts under it have not been as large
as would have been the case had it been
more carefully drawn and more dill
gently enforced. Notwithstanding, it
has brought upwards of $4,000 into the
state treasury. By the omission to
adopt my second recommendation,
namely, the passage of a law to provide
tor the annual taxation of the business
OF foreign corporations in this state, the
legislature prevented the people of the
state from imposing any taxes upon the
immense amount Of foreign capital en-
ployed in profitable trade and business
in this state, except such little office
furniture and fixtures, or property of
that character, as may be found at their
places OF business. AS citizen of the
state, I feel Inundated to think that
the. legislature, elected by the people,
sworn to support the constitution of
Our state, which imposes equal burdens
upon all, and permits special privileges
to none, should refuse to pass law en-
abling us to tax the Standard Oil trust,
which transacts millions of dollars
worth of business in the state annually,
or the Federal Steel company, which
owns nearly all the valuable mining
properties in the northern part of the
state, to say nothing about the lucra-
tive business of the various loaning
companies, machine companies, and
other corporations that enjoy the ad-
vantage of our trade, protection of
our laws, and the fruits of our indus
try. But such is the fact, and so it will
continue until the people pass judgment
upon such action in manner that can
not be misunderstood.
GROSS EARNINGS TAX.
The inadequacy of the present gross
earnings tax I called to the attention of
the legislature Our state auditor, Mr..
Dunn, did the same in his annual re-
port, but with a perversity that is mex
plicable on principles that ordinarily
guide human conduct, the senate abso-
lutely refused to afford the taxpayers
any relief from this unjust discrimina-
ton in favor of railroad property.
In Iowa railroad property is taxed
8 7-1o per cent on gross earnings; in
New York 7 4-1o per cent; in Illinois S
4-1o per cent; in Massachusetts, 8 $40
per cent; in Missouri 3 $40 per cent; in
Kansas 12 per cent; in Connecticut $
per cent; and in Minnesota only 2.8 per
cent Were railroads in Minnesota
taxed as in Iowa and Wisconsin they
would pay one-fourth more taxes than
they do now. Were they taxed as high
their present tax. Were they taxed as
high in proportion to earnings as in
New York, our receipts from that
source would be increased over $50 per
cent. Were they taxed in Minnesota
as in Massachusetts the revenue from
the railways in this state would increase
over 200 per cent. The gross earnings
of the railways in the state of Massa-
chusetts for the year under discussion
were $41, 100000, and were taxed by the
state $3,527,82o. In Minnesota they were
taxed only $1;127,o5o. In Minnesota
and Missouri, both agricultural states,
the earnings were about the same, but
the Missouri roads paid $336ooo more
into the state treasury Of that state. And
yet, with all these facts before the Re-
publican legislature of two years ago,
with an overwhelming majority, with
absolute power to pass or defeat any
bill, the senate persistently fought and
deliberately killed a bill to raise the
gross earnings tax on the railroad prop
erty in this state to 4 per cent. By this
action the taxpayers of this state and
the state have been deprived of nearly
$4,000, 600, even though the next legis-
lature, after the election of new senate
should act as promptly upon the ques-
tion as the forms of law permit. Ordi-
nary arguments Of this question fear
are of no avail with the senator's now
elected. The only argument that can
convince them is the citizens argument
at the polls. But these facts do not
measure the convictions of duty of the
present Republican state senate to the
people of the state and to the state. I
had specially called attention to the fact
that one of the railroads in this state,
operating under an old territorial char
ter, was not paying even the 8 per cent
rate on gross earnings. 1t