The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-18
SURE TO SWELL. TAX K.
Public Examiner Johnson Comments
on the Operation Of the Gross
Earnings Amendment.
He Attributes the Attacks to the
Strongest Railroad Lobby
Ever Organized.
T. johnson. state public examine,

.. H. Johnson, state public examiner,
the official charged by law with verifying
railroad reports Of gross earnings, re-
turned this morning from an extended
stumping tour. He was seen by T h e
j o urn a in reference to the attack
made on the new gross earnings bill by
the st. Paul Globe. Mr. Johnson declared
his firm belief that the new measure
would add greatly to the revenues Of the
state. It is believed that he has reasons
other than appear on, the surface for
thinking the change in the method Of
computing gross earnings advisable.
Il was much surprised said Mr.. John
son, ito see what a hornets nest had
been stirred up during my absence.
II want to say, in the first place, that
b. w. McGrew and N. B. Hinckley, the
railroad, accountants of this department,
have been working only on figures per-
tanning to the question od whether the
railroad companies had fully complied
with the law as to back taxes. Figures
are accessible which would permit the
division OF the earnings into the three
classes that enter into this discussion
First, Minnesota business; second, short
haul interstate business; and third long
haul interstate business. They have been
taken only as incidental to the question of
earnings for taxation for the year 1901,
and not with a view Of indicating wheth-
er the new basis Of computation would in
crease or decrease the amount Of taxes
due the state, as compared with the pres
emit basis, such a question never having
been suggested and no discussion on the
subject being entered into until it was
suggested to me by a Globe representa-
tive within the past few days. Then it
was dismissed from my mind as being an
1mmater1al suggestion, knowing that the
Globe Is owned by J. J. Hill, and feeling
sure that If the so-called merger railroa
would be able to save money by and on
account of the passage Of the proposed
new gross earning bill, the Globe would be
the last paper In the world to fight its
passage.
For. that reason no thought was given
to any necessity for the compilation of
figures. feel, however, that, with the
great increase in taxes collected from the
Minnesota roads, such as the iron range
roads, the Minneapolis & St. Louis, the
Duluth Short Line and others and with
the from $50 to 300 per cent increase
there will be on Pacific coast business,
these increases will much more than offset
and made up for the from 20 to 40 per
cent decrease on business to and. from
North. and South Dakota While the in
crease of money paid into the state treas
ury because Of the gross earnings law
will not be equal to 33 1-3 per cent above
the old law, I am satisfied, for the above
stated reasons and others, that there will
be a very material and handsome increase
In the gross amount Of money received on
account Of railroad taxes. T am firmly
convinced that, If our: trascontinental
lines did not know this would be the case,
they would not be the ones to start and
maintain this fight against the passage
of the bill, which fight is only a contin-
uance of the awful fight put up by one
of the greatest railroad Hobbies that ever
assembled In a state capitol trying to
prevent the legislature from submitting
this question to the people. The fight
Their put up is now being carried on by
employees Of the same interests.
THE attempt of the state to comply
with the constitutional requirements, as
indicted by the supreme court Of the
United States, in order that we might
have a law that would stand the test of
tile courts, IS, the important ISSUE, over
and above all question Of a few Thousand
dollars more or less, as taxes from tho
railroad companies for a year or two.
Getting legal basis, and desiring to be
fair, even with railroad corporations,
therefore, leaving the rate at per cent
as q test, knowing full we'll that, legality
being obtained, the rate can be raised
from time to time, is the great object Sin
view, and should be considered a credit
to the republican or any other party that
will take this fair and -broad-guage view
Of the states relations Ito their great
railway interests"