The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1902-10-03

the largest states should pay a spe
cial tax for such protection. This is
recommended in the report and pro-
vided for in the amendment.
The report is exhaustive in its con-
sideration of the taxation of fran
chise companies. 1t points out that
the tangible property of a public
franchise company often does not be-
gin to represent the actual value of
the company's property. That with
street railway, gas, electric lighting,
water, telephone and such companies
the greater value may be in the fran
chise itself. There are two methods
of reaching such companies. At pres
ent only their tangible property, such
as cars, tracks, poles, wires, plants,
machinery, real estate. etc., are tax
ed, but the amendment permits the
reaching of their other property by
either of two ways: By getting at
the actual value of the franchise,
which is the right the law gives such
a company to do business, or by a
gross earnings tax. The latter is sim
ply an income tax applied to such cor
porations, and is the same method
that is now used in taxing steam rail-
ways.
Other advanced stands taken in this
amendment are also along lines pro-
posed by the commission. For in
stance again, the report says: pub
lie interests void undoubtedly be best
guarded under a constitution which
divests a legislature of the power of
entering into contract with respect
to taxation. Every tax system should
rest upon the rules of uniformity and
equality and legislature should not
therefore be vested with authority to
violate them" Along these lines the
amendment first of all specifically
prohibits the surrender suspending or
contracting away of the power of leg
islation. This makes it impossible to
fix a form of taxation for corpora
tons, or for any other class of per-
sons, or property, that a future legis-
lature could not change. 1t provides
further that all taxes for Estate pur-
poses shall be uniform throughout
the state. The word estate" is used
because of the clause which provides
that when special tax levy for state
purposes is not necessary that then
there shall be county option" in tax
alton. In view of the fact that the
revenue tax will probably be reached
next year to less than one mill and
that the increased tax on railroad
gross earnings alone would amount to
a half of the total revenue tax raised,
it is not at all improbable that in the
very near future there may be no di-
rect tax levy for state purposes; that
all state taxes will come from the
railroads, franchise companies and in
heritance taxes, foreign corporation
and income taxes. Then each county
would be free to assess and tax its
own property in its own way, accord
ing to it's own local interests to meet
its own local expenditures for roads,
bridges, schools and general expenses.
This is again along the most adj
vanced thought of many tax students
and places Minnesota among the
states such men are eagerly watching
for developments.
So it is that the passage of this pro-
posed tax amendment is being watch
ed with interest by public men in all
states. The proposed amendments
and there are four of them, will come
first on the ballot. This tax amend
ment will read as follows:
amendment to Section one (D,
two (2) and three (3) of Article nine
co. of the constitution providing for
tax on real estate mortgages and on
the franchises of corporations, and
upon the income of corporations and
individuals in excess of the sum of
one thousand dollars ($1,OO0.O0) per
year" -"Yes''-'No" Each elector
voting upon such proposed amend
ments shall place cross (X) mark
in the space opposite the word Eyes"
or 'No" as he favors or opposes it.
And just here comes in a peculiar
consequence of the constitutional pro-
vision which requires that no amend
ment to the state constitution can be
carried or adopted unless it receives
a majority of all the votes cast at the
election. This makes it necessary
that to carry this or any amendment
over half of all those who vote at the
election shall put the cross (X) OPP
posite the Eyes" for those who do not
mark the amendment at all are count
ed with those who mark NO" For
example, if there were 100000 votes
cast in all at the election and on 1OO,-
900 of them the voters had voted for
the amendment and not one vote was
marked against it, yet it would not
carry for it would need just one more
vote to make a majority of all the
votes cast. So the Importance of ev-
cry one voting on the amendment
who favors these changes in the
methods of taxation can easily be
seen. In no other state, we believe,
is there any such requirement for
passing a constitutional amendment,
yet it is not a bad idea to make the
people study such a question and ac-
tually register their votes upon it, if
they wish it adopted.