The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-01
THE JACOBSON BILL

IHE JACUbSUN DILL
The Jacobson bill seems to be finding
much more favor with the legislature
than either the original code of the COM
mission or the code as amended by Mr.
Wallace. The vote in it's favor in the
house yesterday was very emphatic. Per-
haps some of those who voted for It cast
their ballots in that way because they
thought they might as we'll get a record
that would show to advantage politically,
leaving the bill to be dealt with earnestly
by the senate.
The bill is strongly supported by many
members who believe that the legislature,
can not afford to adjourn without enacting
some positive legislation. The pas
sage of amendments that may or may
not be adopted by the people will not pro-
tect the republican party from much ad-
verse criticism in the approaching cam
paign. It is eminently proper for the
legislature to strive ITO improve the eX-
it stands. The question to be considered
is whether the Jacobson bill is an i'm
proyement. 1t has three features:
tax commission, tonnage tax on iron
ore and system of taxing public serv-
ice corporations.
The Journal thoroughly believes
in the creation of a tax commission We
would prefer to see the state board OF
equalization eliminated, but it is under
stood that the legislature will not assent
to such step. 1t has often been re-
marked in these columns that an efficient
state tax commission with such powers
as the Jacobson bill provides is a great
power for good even with poor system.
A tax commission, considered purely as
means of collecting and disseminating
educational matter regarding tax systems
and reform, would be well worth creating.
AS to the tonnage tax we are rather
indifferent. 1t may or it may not give the
state and the local communities more rev.
enue than they may extract from the
mining corporations under the present
system The hardships that, it was
pointed out yesterday, it may work to the
| local mining communities are matters
that need not distress the state as a
| whole. So far as concerns the mining
companies, it is difficult to see why they
should complain of paying what amounts
| to an income tax, unless they think that
the rate is too high. AS the state audi
| tor promises to double their assessment
under the present law and get more from
them than the tonnage tax would yield,
they are certainly between the devil and
| tho MiphioHD'S lYnariQncp
seems to be rather against the tonnage
| tax. and it has tried both systems. Min
nesota had a tonnage tax prior to 1896,
but it was repealed because it was con-
! sidered unconstitutional and unjust to To-
cal communities. The Jacobson bill was
finally amended yesterday SO as to give
the local communities a share of the
revenue yielded by the mines, which was
denied to them by the law referred to-
But the bill still remains open to the To-
cal criticism that it will cripple the gov
|ernment Of small political subdivisions
within which the mines are located if, fol-
any cause, the mines are temporarily
closed
AS to the provisions Of the Jacobson
bill relating to public service corpora.
lions, they are the same as those of the
code prepared by the tax commission
which were generally accepted at frs
as being admirable. But now they ar.
J designed to quadruple valuation with
: proportionate reduction in the rate.
the bill should become a law and shout
: be strictly enforced the corporation
would be taxed at the prevailing rate on
| valuation that would be vastly Increased
, at least, do not now pay such taxes as thei
valuable franchises call for. Representa-
tives of these corporations have said tina
they would be willing to pay more i
there were something better than sys
4 TEN of guessing and juggling whereby tn
5 amount of their taxes could be deter
t mined. 1t is already asserted that tn
y proposed law will not be strictly enforced
e and that even Mr.. jacobson does not ex
;. pect it to be. In that event it may nc
q work any hardship to the companies i
: the way of unjustly increased taxes, bu
e it will be very annoying and, perhap:
r depreciative of their stock, to have Away
e suspended over them a Damocles-swor
i law of this kind which may sometime b
: enforced to the letter and, perhaps, til
$ ruin Of the companies. Moreover as th
T tax problem discussion has progressed
: the advisability of taxing public servie
corporations ON their gross earnings ha
: met with increased favor though. {
e course, that requires constitution:
$ amendment and is not, therefore. sui
e ject for legislation at present.
The COURSE OF BUSINESS
America has been losing gold this Wet