The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-10-15
Observation-Disclosures

A profound sensation has been caus-
ed in Republican political circles by the
discovery of the fact that the opera
ton of the Jacobson per cent law,
upon which the campaign has been
made to a great extent, is framed di-
rectly in the interests of the railroad.
1t would appear that the Republican
machine is being used to foist upon
the public shameless fraud.
The discovery was made through a
member of the Republican state cen
trail committee, who analysed a speech
made by John F. Jacobson, and found,
upon the showing made by the author
of the amendment that is submitted to
the people, that the proposed enactment
was framed In such a manner that it
will materially reduce the amount Of
revenue that the state will receive from
the railroad corporations in case it be-
comes a law.
In effect the proposed bill waS COM
pei the railroads to pay per cent tax
upon their earnings on freight hauled
within the state, the earnings to be
computed on the proportion Of the
mileage within the state to the total
mileage of the roads concerned.
A trifle of arithmetic demonstrated
the fact that the operation Of the bill
would reduce the income of the state
from the railroad tax by from % to 80
per cent.
When this was shown to the Repub-
lican managers it created CONSERVATION
among those members of the commit
atee who had been framing their cam
paign on the assumption that the
statesman from Lac qui Parle was the
Moses to lead them out of the slough
into which they had been led by in
competent financiering.
There Was Consultation.
Gov. Van SAINT was called into con-
sultation hurriedly. Senator Nelson,
who was making a campaign based
very largely on the face of the Jacob
son bill, was telegraphed for.
The conference which ensued became
acrimonious. Some members of the
committee accused the governor of act
ing in bad faith. He was openly charg-
roads, either through ignorance or con-
nivance, to promote a measure which
would save the corporations hundreds
of thousands of dollars.
1t was demonstrated. that only the
grossest ignorance could free the
members of the railroad and ware
house commission from the imputa-
ton of being privy to an imposition
on the public in supporting the pro-
posed measure. Only the fact that
James A. Martin. the chairman Of the
state central committee, is the gov
ernor's executive clerk and dependent
upon the head of the state for his
place, prevented a split in the COM
mittee and the resignation of several
members.
eve cannot afford to change poll
cies in the midst of the campaign"
argued the governor.
Would Invite Defeat.
''But if this thing leaks out we will
be beaten and beaten ANONYMOUSLY"
said a member of the committee.
A large minority of the members
confessed themselves as being in favor
of frankly admitting to the public
that they had been deluded into sup
porting the bill that is submitted and
throwing 1t overheard. 1t was held
by the majority of the members that
such an admission would be fatal, as
showing incapacity to grasp a large
revenue proposition.
The outcome was that the commit
tee concluded to hold to the original
lines of the campaign, but to instruct
the speakers to avoid figures in COM
menting on the proposed bill.
And here is q statment Of the exact
facts concerning the bill, framed upon
the face of the measure.
What 1t Provides.
The jacobson bill, to be submitted
to the people at the coming election
for their approval, while it increases
the percentage of railroad tax from
to per cent, decreases the taxable
earnings of every railroad from % to
80 per cent
No railroad in the state will pay as
much tax under the Jacobson bill as
under the existing law.
Following is the reason advanced
for this statement. Under the exist
Ing law the basis of valuation is ar
rived at by taking business purely To-
cal, that is business which begins and