The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-03
Minnesota Legislature.
THE FINISH
IS IN SIGHT
Minnesota Solons Are Work.
ing to Get Through
This Week.
Belief That the Jacobson Bill
Will Pass in Some
Form.

The legislature is on the home stretch.
about the capitol to-day, which to ex-
perienced observers was premonitory Of
adjournment. Members are in haste to
get home, and party leaders are anxious
to finish the work and close the session
as quickly as possible. The appropriation
will be exhausted by Saturday and the in
tention is to adjourn on that day, unless
an unlooked-for deadlock occurs.
Five busy days remain to conclude the
work. No tax legislation has been COM
pleted, and minor Hesitation is likely to
be lost in the shuttle. Hennepin county
measures are moving fairly we'll and
may be cleaned up. The sheriffs salary
bill reached final passage this morning.
The focal point Of interest is the senate
where the Jacobson tax bill is pending.
Public service corporations are I'D in
arms against 1t and are likely to make
their objections in public before the SEN
ate tax committee, which began holding
hearings this afternoon. A delegation
from Duluth this afternoon presented
their objections to the tonnage tax on
iron ore. They present strong case
and the committee is likely to recommend
an amendment eliminating these sec
tons. Two main points are made by the
directors. In the first place they say
that the fiat rate Of five cents per ton
hits the Independent mine owners harder
than the trust. The trust owns all the
high grade ore, and the tonnage tax on
the Vermillion mines Will be less than the
present rate. On the other hand, low
grade ere in the ground is being sold for
from one to three cents per ton, and
five-cent tax will mean that this ore will
stay in the ground indefinitely. 1t will
check the working of low grade mines.
The second objection naturally follows.
Towns such as Virginia and Ely depend
for their taxes largely on the mining
properties within their limits. Under the
tonnage tax if the mines suspend opera
ton in any year they will be left with
out money to run their governments. No
one ventures TO predict the outcome of
the Jacobson bill in the senate, but there
is belief that it will be passed in some
form.
Senator Miller's constitutional amend
ment was advanced to the calendar by the
senate this morning. It restores the old
provision that to pass an amendment it
is only necessary to get majority of
the votes cast on the proposition.
The house gave a boost to the consti
tutional convention bill. Sherman Smith
had it recommended to pass by the COM
mittee Of the whole without debate, and
it goes on the calendar tomorrow.
The Anderson real estate and inheri-
lance tax bills were taken up as a special
order this afternoon with prospects of
speedy passage.
A Gross Earnings Plan.
Another day passed without a move in
the direction Of constitutional amend
ments. The house reached them on gen
eral orders at noon and laid them over
until tomorrow. The senate bill is not
out of committee yet 1t would have been
reported to-day, but Senator Horton
turned up late and spoiled the plan. He
wants the constitution to include a clause
requiring the legislature to tax public
service corporations on a gross earnings
basis. This would knock out the fran
chise tax feature of the jacobson bill. The
judiciary committee was willing to pass
permissive amendment but would not
stand for the word SHALL The commit
tee has decided on an alternative provi-
sion and will add it to the bill when the
report is made tomorrow. 1t will read
as follows:
There may be by law levied and collecte@
an annual tax upon all franchises granted
by the state or by any subdivision thereof;
or in lieu Of such franchise tax there may be
imposed such tax upon the gross earnings of
the person or corporation holding such fran
chse as the legislature may determine.
The house bill has a mandatory amend
ment attached to 1T, but it was drawn
before the Jacobson bill passed, and Mr.
Anderson, its author, is willing to change
the word "shalp' to may making the
gross earnings feature optional.
Many members of both houses will OPP
pose any reference in the constitution to
either the franchise or gross earnings
taxes They hold that the present con-
stitution permits either system and there
is no need of burdening the states or
ganic law with reference to any system.