The Leon reporter. (Leon, Iowa) 1887-1930, 1901-10-24
WHAT RAILROADS PAY IN OTHER
STATES.

Des Moines Leader Editorial, 1901. I
The gross earnings of the railroads of
Iowa for the calendar year 1900, as the
same have been returned to the execu-
tive council, were $52,0OO,000. Out of
this sum, received from the people, the
railroads paid back in local and state
taxes something like ST 100000. The
railroads thus paid in taxes 2.69 per
cent of their gross receipts. Out of
every 500 taken in they surrendered to
the public $3.50.
How is it in other states? Is Iowa
hard or easy on the railroads? Com.
paratively, does 1t take big or little
bite of the railroad earnings for public
purposes? The expense of railroad
operation in Iowa is not higher than in
other states. Grades are low, coal is
cheap, snowdrifts seldom impede in the
winter and in the spring the track is
seldom undermined or bridges carried
away by freshets. In few states is it
possible to carry on the railroad bust
ness at smaller proportion of expendi-
lures to gross receipts. Therefore it will
not be claimed that Iowa may not fairly
take as large percentage of gross earn.
ings as other states. If anything, on
account of low grades and cheap fuel. q
given weight of freight can be hauled
with less initial and secondary expedi.
ture than the average of other states.
What is the percentage of gross re.
ceipts absorbed by the public in Mime
sofa and Wisconsin, for example. In
Minnesota the state law provides for q
fiat collection of per cent on the gross
receipts of the Minnesota railroads.
With less mileage and less gross receipts
the railroads of Minnesota pay more
taxes than those of Iowa. In Wisconsin
taxation is upon gross receipts and there
is sliding scale. 1t is provided that
railroad having gross receipts in excess
of $1,000 per mile shall pay per cent
thereof into the state treasury; railroads
having gross receipts between $1,000
and $4,000 per mile pay 81 per cent;
railroads having gross receipts between
So 900 and $1,000 pay per cent.
The average earnings per mile of the
Northwestern railroad in Iowa during
1900 were 81 1922. Under the Wiscon.
sin tax this road would pay taxes at
the rate of $300.Ss per mile. AS a
matter of fact the Northwestern in Iowa
last year paid taxes at the rate of $l67.-
81 per mile. The Chicago, Burlington &
Quincy had earnings in Iowa at the
rate of $7,2Sl per mile. Under the
Wisconsin law the Burlington would
pay taxes at the rate of 1921 "a per
mile. AS matter of fact this road paid
taxes last year in Iowa at the rate of
$2l7.35 per mile. The Chicago, Milwau-
kee & st Paul had earnings in Iowa in
1900 at the rate of $6,l22 per mile.
Under the Wisconsin law it would pay
at the rate of $244Os per mile. As a
matter of fact the Milwaukee IN Iowa
paid at the rate of $135.2O per mile.
The Chicago, Rock Island & Pacific had
earnings in Iowa in 1900 at the rate of
$6,219 per mile. Under the Wisconsin
law it would pay at the rate of $248.9S
per mile. As matter of fact the Rock
Island last year paid taxes in Iowa a
the rate of $222.O4 per mile.
An interesting comparison in railroad
taxation is gained by considering the
case of Connecticut, another state not
accused of populistic leanings. Con.
necticut, with a railroad mileage less
than one-seventh that of Iowa, collects
from its railroads $685. SOP, annually
or more than two-thirds of the amount
collected in Iowa.