The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-03-17
A Clear Case.

ings law for thirty years. Under That law
the railroads have made their own re-
ports of gross earnings. Those reports
have never been checked up till within the
last year. At the special session
in 1902, at the instance Of Mr..
johnson, the public examiner, he was au-
thorized to check these reports. to exam
Inc the accounts of the railroads and see
whether they were making proper return
OF gross earnings for taxation purposes.
He made the examination and claims
that the railroad companies owe the state
$275, Of back taxes for the years 1896
to 1901 inclusive. How much they owe
the state for evaded taxes prior to 1896 will
probably never be computed in detail. for
limitations running against itself by which
It is barred from attempting to collect
unpaid gross earnings taxes more than
six years old.
:. It was no easy task to figure out how
much Minnesota had lost even for the past
gross earnings, but it has been done so
well that the railroads have already ac-
knowledged the states claim to $3.50, 900,
and have paid over already nearly that
amount to the state.
Another fact accomplished is that as a
result Of this examination and public
showing Of the amounts due the state the
accounts Of the railroads will hereafter
be so kept, SO long as the public examiner
is authorized to review them, at least, that
the state will secure about 500, 900 an
nually more than it would otherwise have
received.
The public examiner also holds that I'M
der the constitution taxes should be
levied on large items Of railroad proper
ty that have heretofore escaped taxation
altogether, but which make up a part of
the gross earnings of the railroad compa-
MES From these sources it is estimated
the revenues Of the state should now be
about $4,000 annually
Now. let's see how this thing stands.
Here is 100000 of back. taxes in the
treasury, or Is good as there.
There IS the balance of the $275. 900
which will probably get there in time, in
whole or in part.
! There is a reform in railroad bookkeep-
ing which means 100000 annually to the
state.
There is the discovery, which ought to
be worth something to the legislature
that other property belonging to railroad DIS
is escaping taxation through loosely
drawn laws, to the amount Of 800 900.
And yet here is a proposition before the
legislature to repeal the act of 1902 au-
thorizing the public examiner to examine
railroad accounts, put stop to his fur
Their investigations in that direction and in
effect administer a rebuke to him for
having done this work which has resulted
in such enormous gains in revenues to the
state. And. as If that were not enough.
it is even proposed to reduce the compen-
sation, already too small for the work Of
this important office-more important in
the hands Of the present officer than it has
ever been before in the history of the
state.
Naturally the public will ask who wants
this done and vhy should extraordinary
service Of this kind be treated in this
way. We can think of but one answe,
and that is the one which Is bound te
suggest itself to every reader of these
facts.
It Is true that the bill repeating the
power Of the examiner to examine rail
road accounts proposes to confer that au.
thority upon the railroad commission
Now that commission has had that power
ever since it was created in 1885, but Il
has not exercised It,
The fact Of the matter Is that no mem
Der Of the legislature will ever be able tt
explain his vote in favor Of the pendfns
bills to cripple the work Of the public
examiners office if he should live thou
sand years, and the Babcock majority
4 the creature OF the Heatw organization
If 1t passes these bills, will have indi
Gated so clearly to the people Of the STATE
what that organization stands for and wha
controls 1t that an x-ray couldn't make i
any palmer to the public eye.