The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-05
Retiring Auditor Recon-
mends Specific Appropria-
lions for Some of the
Funds-Total Revenue for
Period Was $5,665,159 of
Which the Railroads Paid
S3,O98,646 in Direct Taxes
Says a Tonnage Tax
Would Be Unwise.

State Auditor Robert c. Dunn. who
on Tuesday will finish his second term
as auditor of the state and land COM
missioner, has prepared for the legis-
lature an Interesting report covering
the two fiscal years ending July 81
1902, and making some recommended
lions and suggestions concerning state
affairs and finances. The report which
is just made public, says on the sub
'Ject Of state finances:
The legislature of 1902 provided
for tax levy for state purposes for
the year ending July 81, 1902, of $780,
wv and provided that the rate should
not exceed l $40 mills, and for the
year ending July 81, 1908, a levy of
$8OO,0O0 was provided for, with the
same limitation as regards the rate.
This year, owing to large increases in
the amount of gross earnings paid by
the railroads, the splendid showing
made by the board of control, and the
very perceptible increase in the vaIua-
ton Of real and personal property,
we concluded that a rate Of 1 mill
would produce all the revenue neces-
sary."
Mr.. Dunn. in his estimate of receipts
and disbursements for 1903, 1904 and
1905, gives the following figures:
Receipts in 1903, including balance
of S799,569 on hand July 81, 1902, $4,-
274,563; disbursements. $4,197O4S.
Receipts, 1904, including estimated
surplus carried forward of $77;519, July
81, 1903, $9,632,519; disbursements. 3d.
Receipts, 1905. including estimated
surplus carried forward of $352,519,
July 81, 1904, $4,OO7,519; disburse-
mentS, $3.50 600; surplus carried for
ward to 1905, $427,519.
Figures Are Conservative,
Regarding these estimated figures. he
says: THE figures are conservative
II present conditions continue the
railroad gross earnings taxes will ex-
coed $1,650000, which I have estimated
for 1903 and 1904, and s1,7OO.O0O in
1905. The legislature can with safety
appropriate 100000 for new buildings
for the period ending July 81, 1905, but
II a larger sum is appropriated the
rate Of taxation for state purposes
must Of necessity be increased; GER
ta1nly 1-mill rate would not produce
suf1c1ent revenue unless there was q
marked increase in the valuation Of
the taxable property Of the state.
The auditor calls attention to the
poIlcy OF leVying taxes, save the one
mill school tax, in specific amounts and
allowing the state auditor to fix the
rate. If on the present valuation the
IWenty-three one hundredths of mill
university tax will produce q revenue
In round numbers of $178, 900 what OBJ
lection can there be urged against
making an unusual appropriation Of
$lSO,O0O for the support of the uni
Versity? If 23-100 of a mill will produce
sufficient revenue on a valuation of
$761,000,000 there is no sense in con-
tinuing the rate of 23-100 of a mill if
the valuation should be increased 25
or so per cent. If property was as
sessed at its full cash value certainly
such fixed rate would produce more
revenue than would be required. This
also applies with equal force to the
soldiers relief fund tax"
Railroads Pay Vast Sum.
According to the report the total
amount of revenue covered into the
state treasury for the two years end
ing July 81, 1902, was $5,e65,159. of
which $3,09S.646 was railroad taxes;
S1,679,538 state taxes; $581741 all 9TH
er taxes and $305,233 fees and fines.
1t Will be seen at a glance" says
Mr.. Dunn, that the railroads pay
considerably more than oue-half of all
the taxes paid into the state treasury.
The revolving fund and permanent
trust funds cut no figure whatever in
the states revenue proper. Toward the
close Of almost every year it becomes
necessary for the treasurer to borrow
temporarily from other funds $780,
Thls is done in anticipation of the rail-
road taxes which are required to be
PAID on or before March l in each year,
II Tor any reason long drawn out
litigation resulted over a proposed in
crease In the gross earnings tax, and
should the railroads refuse to pay any
taxes pending final disposition of the
matter by the courts, the state would
De placed in serious predicament. I'm
DER the present valuation it would
require an additional state tax of
about two and one-half mills to pro-
duce revenue equal to the amount at
present paid by the railroad COM
panies.
In view of possible contingencies it
seems to me that section SIG, Stat.
of Mimi, 1894, should be amended
so as to permit the state officers
governor, auditor and treasurer) to
borrow much larger amount than
100000 If it should become necessary
TO 90 so, in order to provide suffi-
Client funds for the support of the state
government, provided such authorize
uon would not conflict with section s
article of the Constitution. This
matter, in my judgment, is worthy of
the most serious consideration of the
legislature.
On a question of tax reform the au-
ditor says:
While the attempt to obtain better
system OF laws for the assessment and
collection of taxes are far from salts
factory to the friends of tax reform,
stlI the discussion in the legislature, In
the press and on public platforms have
been productive of much good 1t is my
judgment that a further attempt should
be made to secure to the legislature by
proper constitutional amendment much
larger powers of legislation than it now
possesses. Further 'tinkering' of the
present law will be likely to trend to
greater confusion. The state has en-
tered upon an era Of tax reform, and all
experience teaches that such reforms
must be preceded by popular education
upon the subject While reform will be
slow. the effort should be continuous.
Tonnage Tax Would Be UnwEse.
=, Admitting, for the sake of argument,
that tonnage tax would be constitution
al it would be unwise to impose it. be-
cause the present system is clearly con-
stitutional and is yielding the state the
county and the local communities a very
largo revenue, without requiring any ad-
a p ~