The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-20
SPEAKERS OF NOTE KEPT LIMBS DR.
Attorney General Douglas Tells Of
the Authorship Of the Gross
- 49, b.
Earnings Section.
Lind Submitted a Draft Which Was
Rewritten, but the Idea
Retained.

Attorney General Douglas, who returned
to-day to his desk. at the capitol after
an extended stamping tour, made a state
ment: this morning which cleared up the
obscurity regarding the authorship of the
1901 gross earnings BILL, so fiercely at
tackled by the democratic state organ.
The bill as passed was, drawn by Mr..
Douglas, after consultation with II. w.
Childs, former attorney general, and John
Lind, former governor. Mr.. Lind has said
that he never saw the 1901 bill. He did
not, see the final draft, but it does not
differ materially from one made by Mr..
Lind himself and submitted to Attorney
General Douglas. That draft is on file in
the records of the office, and was seen
by Journal man this morning. 1t is
headed Lind men," and is corrected and
interlined partly in Governor Lind's hand
writing. This draft covers the question
OF defining gross earnings, and provides
for the same sort Of division as in the bill
portionate mileage. So,
Mr.. Douglas said this morning:
1.-THE Jacobson bill Of 1899, which failed
to pass, was not drawn by me, but by
A. Y. Merrill of Minneapolis. Governor
Lind may have had something to do with
it, but neither General Childs nor myself
had. In the 1901 session Mr.. Jacobson
asked me to draw a new bill. I examined
the question, and came to the conclusion
that the manner Of determining the gross
earnings would have to be changed, as
the supreme court in the Alvord case in
the previous decisions held that inter-
state earnings, as such, could not be
taxed. I was pressed with other work,
and called on General Childs, my pre-
decessor, asking him to draw the bill for
me. I brought up the point, and after
examining the authorities he agreed with
me. He submitted a draft to me, which ]
have on file. I met Governor Lind one
day on the street, and told him I should
like his advice in drawing a 4 per cent
gross earnings bill. He said he would be
pleased to give it, and called one morn
ing at my office. We looked over the
draft made by. General Chiids, and the
decisions of the court. He agreed with us
as to the. general proposition, and went
to the state library to look them over.
Some days later he brought in a typewrit-
ten copy Of his suggestion for the first
two sections. It was partly corrected in
his own hand, and I made some other al
terations. Finally I wrote an entirely
new section, making itfas brief as posi-
BILE, but retaining the idea. In that shape
the bill was introduced. The amendment
put in later had no reference to that Sec
ton.
Il am willing to take the responsibility
for the way the bill was drawn. I only
want to show that consulted good couin-
sci, and that they agreed with the posi-
ton took. The most important thing
was to get q bill that would stand the
test Governor Lind recommended D
clause in the 1899 bill, providing that if
the railroads should refuse to accept it,
they should go back to a valuation basis.
in 1871 he was of the opinion that there
was no reed of that section, as there was
no question Of the legality Of the hill us
drawn in that FORM ::
The Draft on File.
Three drafts Of the section in question
are on file In the attorney generals office.
The first is by Former Attorney General
Childs, and reads as follows:
The amount Of gross earnings in Minnesota
e eonpay OF sa Se s
the tot total earnings derived from such business
owned or operated within this state by such
person, company or corporation bears to the to-
tai miles of such railway owned and operated as
tion within, and without this state.
e. The next is the copy submitted by Gov
ernor Lind, which is as follows:
Section 1.-The term. .'the gross earnings de-
rived from the operation Of such line Of rail
Way .W1tuln tnlS state, as USED IN section l or
this act, shall be construed to mean all earn
ings arising from both local and interstate traf-
fc. and in ascertainfng the amount of such
gross earnings basis for taxation, the
same shall be computed by apportioning to the
state of Minnesota as the gross earnings therein
sum bearing the same proportion to the gross
earnings of such person. company corpora
ton as the mileage operated within the state
of Minnesota bears to the entire mileage oper-
ated by such person, company or corporation.
The final draft of the section as made
by Attorney General Douglas and as
passed by the legislature reads:
The term "the gross earnings derived from
the operation of such line Of railway within,
this state,'' as used in section 1 of this act is
hereby declared and shall be construed to mean
ali earnings on business beginning and ending
within the state and proportion Of earnings on
all interstate business passing through. into
or out of. the state the mileage operated with:
in the state bears to the entire mileage operated
by such company.
The system proposed by each Of the
three men, and coneurred in by all, Is
Identical with that submitted to the vot-
ers.
Mr.. Douglas says that in his mind there
is no doubt that the bill will increase the
states revenue from railroad taxes near
ly, if. not quite, one-third.,