The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-03-20
UPHOLD TAX COMMITTEE
REFERENCE OF GROSS EARNINGS
BILL TO TAX COMMISSION
INDORSED
PROPERLY BELONGS TO 1T
Researches Show That Minnesota
Derives Greater Revenue Proper
tiOnately From Railroads Than
Her Sister States.

From general discussion by legislators
yesterday 1t was apparent that the action
OF the house committee on taxes and tax
laws in referring the jacobson gross
earnings bill to the newly created tax
commission is regarded as the proper dis
position of the measure. 1t is held by the
majority of those expressing opinions
upon the Subject that the province of the
commission essentially includes the con-
Slderation of all such proposed legislation
In submitting the matter to the tax
commission the committee took the view
that it would not be the work of this COM
mission to enact tax laws of this or any
other character, but to make investiga-
tions of the divers systems of taxation
and the manner of their enforcement.
and report to the next regular or special
session of the legislature. Under this
construction of the duties of the COM
mission, it would be difficult to under
stand why it should not have Jurisdiction
over the tax affecting railroads as well
as any other kind of property.
After having made some exhaustive Ce-
searches, the tax committee has learned
that the Minnesota tax on railroad gross
earnings is not below the average in other
states. In the wealthy states of New
York, New Jersey, Delaware, Maryland
and Pennsylvania, where such property is
far more valuable, and the returns are
more lucrative than in Minnesota, the
average tax only amounts to 2 40 per
cent, whereas Minnesota collects per
cent. The figures published in the G o b e
some days ago, showing the comparative
earnings of the various states, their total
taxes with the distance of mileage, viii
show that Minnesota derives more, pro-
portionately, and in some instances more
disproportionately than do other states
from their railroads. Iowa, for instance,
with 1926 miles of trackage last year
collected in these taxes 81, 424 600; \, iscon-
sin, from $3.50 miles of road, got $l,401,-
Geo. while Minnesota collected $14i4 900
from 6,33S miles of railroad The average
taxes collected on all TIE railroad proper
ty III the United States amount to ITO
per cent of the gross earnings, which
includes the Eastern terminals, worth
millions of dollars.
While 1t is generally admitted that the
tax commission is the proper body be-
fore whom this measure should come, it
is also said that the gentlemen on that
commission perhaps have a knowledge
of the requirements of the state along
these lines which will equal if not even
surpass that of the author of the Er'oss
earnings bill, and that they will give the
measure careful consideration is gen
orally maintained Speaking of the mat
ter member of the tax committee said
lie was unable to conceive why any OBJ
lection should be made by the author OF
the bill to it's being referred to this CON-
mission. Said he eff such measures as
this do not properly belong to the COM
mission, why was it ever appointed 1t
is believed the commission, while it may
not pose as a strictly reform body, will
propose or recommend no radical legisla-
ton of any kind