The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-01-16

Adjourned till Tuesday at 10 a. m.
The four percent gross earnings bill is
before the legislature. To-day, the eighth
working day Of the session, it was in
troduced in the house by Lawrence H.
Johnson Of Hennepin, the defeated can
didate for speaker. The bill went on
the records House File As, and was
referred to the committee on taxes and
tax laws
Both house have adjourned until Tues
day and r. J. Wells, chairman of the
tax committee, said this morning that
he would call the committee together tc
consider the bill after the adjournment
Tuesday morning. Mr.. Wells also said
that in his belief the bill would go through
both house without serious opposition.
This Is the general impression among
members and it seews well founded. The
good authority, we decided not to make
any attempt to block the bill this year.
They do not consider that it would be
worth what it would cost to defeat the
bill before the legislature and the more
fight made against the bill the greater in
terest aroused among the voters. They
have hopes that the bill will again fail
to get the popular vote necessary. Even
If it passes eventually and becomes
law they have strong hopes that they can.
knock it out in the courts. Without the;
railroad companies backing ! them up.
members opposed to the bin will not
make serious trouble. The principal coh-
Germ ct the friends OF the measure is tie
make lit: invulneEable -Theres-is tconsid-;
cradle question az to- the form in which
It should be drawn. Mr.. johnson has fol-
lowed the recommendation made by Gov
ernor Van SAINT in his. message. IL
What the Bill Provides ~
The bill as he introduced it to- day
reads, lin part, as follows:
Section Livery railway company
owning or operating any line of railway
situated within or partly within this state,
| shall, during the year Of 1905 and annually
thereafter, pay into the treasury of this
state as taxes upon all property within
this state owned or operated for railway
| purposes by such company including
I equipment. appurtenances, appendages
! and franchises thereof, a sum Of money
| equal to per cent of the gross earnings
! derived from the operation Of such line
Of railway within this state; and the pay
ment Of such taxes shall be in full and in
| lieu of al lotier taxes upon the property
! and franchises so taxed. The lands &C.
| quired by public grant shall be and re-
| main exempt from txation until sold OF
contracted to be sold or conveyed as pro-
vided in the respective acts whereby such
graft WSIS 1IlduS Ut recognized.
'Section11-The term the gross earn.
ings derived from the operation of such
line Of railway within this state as usec
in section of this act is hereby declared
and shall be construed to mean all earn.
ings on business beginning and ending
within the state, and a proportion o.
earnings on all interstate business pass
ing through, into or out of the state as tn,
mileage operated within the state in do
ing such business compares to the entir,
mileage operated by such company In do
ing such business"
Section 3 repeats acts Inconsistent
with the bill and makes applicable the ex.
empting act regulating the payment, en-,
forcement and reports on the amount o.
taxes to be paid. Section 4 provides FOL
collection in civil action brought by the
state in any county upon failure to pay
the taxes. Section 5 provides, for submit
ting the act to the people Of the state
for their approval or rejection In 1904.
new feature in the bill Is the pro
vision for printing the act upon the bal
? lot. which says: THE secretary Of state
shall cause to be printed in bold type
upon the ballot used in voting for state
officers or upon a separate ballot. if 81
provided by law, at the said election IL
!, manner conformable with the REQUIRE
, ments Of the general election law tn,
words for increasinf the gross earning
+ ak of railroad companies from 3 to pc
!. cent ,..' -
:, =, Fine Distinction Made.
In its main features this bill follow
e the form Of the present law The defini
. ton gross earnings is the same though
n worded somewhat differently The pres
: ent law says that the "gross earning
d shall be construed to mean all earnings o,
RI business beginning and ending within til
O state and proportion based upon tn
r proportion Of the mileage within the stat
v to the entire mileage over which the bust
h ness IS done" :...s y = B.. .... :,
n Attorney General W. B. Douglas an
Q former Attorney General H. W. Child
e doubted whether this system of dividin
: earnings would be held valid by the court
- If put to test In the light of certai
supreme court. decisions. they believe
that the only method Of dividing interstat
earnings was by an arbitrary percentag
/ based on each roads proportional mileae
within the state. They so drafted til
> jacobson bill. which was submitted la
fall to the people: it defined gross carr
, ings to mean "all earnings on bushes
beginning and ending within the sta,
an da proportion on earnigh 8 all inter
state, business passing through into {
out of the state as the mileage operate
within the state compares to the entil
mileage operated by such company !
This fea ture was attacked in the car
= paign, the enemies Of the bill declarii
# that it would bring less revenue than Il
d present law. Investigation showed tha
ID while there would be an increase, it wou
It not be as large as contemplated In t
= bill. but would be only about half t
lie 100000 which it was supposed the b
le would add to the annual revenues of t
r-.t state. This helped to defeat the bill.
4 1.-the polls and Governor Van SAINT desir
le a return to the present method: of divisi
er If practicable b! ,sz is s s.
The legal aspects Of the case win