The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-02-07
FRANCHISE TAX ON EARNINGS.

Ii the United States is in advance of its Canadian
reigh0ors the of industrial and commercial
terprse, it is least plain that in learn
something from the Dominion in the matter of taxation,
and especially i'll regard the taxation Of corporation
franchises.
AS regards the plan Of taxing personal property,
the province the north generation ahead of
The old-fasioncd personal property everything
III sight, which that about four-fths Of the per
sonal property is hidden of SIGHT and escapes, has
been largely done away among Canadian neighbours
it has i'll Europe An income has been substituted
instead and the very class Of taxpayers who sup
posed to be the buwark Of the personal property
here is the class which i'll Canada has benefited most
from the change The farmers Of Minnesota, according
to OF their representatives in the legislature
demand that The personal property shall be retained
while in Ontario the farmers the whose bur
dens have been lghtened by taking taxation from the
live stock, grain machinery and household goods,
whereas a long list of corporations which
formerly paid taxes at all except on
little Office furniture, paying liberal income
taxes a condition to their doing business in the
province.
The superiority of the earnings percentage plan over
the direct the taxation of franchise corporations
IS III The annual report of the Toronto rail
way, which published in the Toronto and Montreal
newspapers last week. The report shows that the
gross earnings percentage plan the city of Toronto
ceves for the of its railway franchise
than double the income that the American city
OF the receives. Take the figures of the
pany's report.
The gross earnings Of the Toronto Railway company
about cnehaf those Of the Twin City Rapid Transit
company and $I834oo8 in 1902 and ST, 66I,o17 in
1901 For the Of its franchise the company paid to
the city of Toronto the percentage plan the large
sum Of S22555 in 1892 and $226453 in 1901, which is
mere than both St. Paul and Minneapolis with the
Of Minnesota town in receive for the of their
railway franchises.
Toronto has about the population and business de-
velapment IF St Paul. and yet derives greater income
from It's street railway franchise than any American city
Of 5ouble the population With one-ha1f the earning
power, the Toronto franchise pays taxesthan the
Twin City the Milwaukee street railway system "
Whereas the average American street railway pays
about cent tc per Of its gross earnings in the
shape Of direct taxes the Toronto Montreal and Quebec
street railway franchises bring into the city treasury in
the shape of income gross earnings percentages an
amount Of revenue which to per cent to 10
per cent CT the company earnings.
The difference in the theories Of the American and
Canadian governments is this The American city looks
the public franchise private property be taxed
other property; whereas the Canadian city looks upon
the franchise perpetuay vested in the public sim
ply let to the private corporation for rental value
measured by the earning power Of the franchise.
tainy, both in theory and in practice the Canadian
system is far superior.