The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-08
GROSS EARNINGS LAW

), A matter of much importance, and one
IN area W t'n the people of our state are
enlist your attention. T. refer--to the
gross earnings system, under which rail-
/ way companies pay into the state treas
gross earnings. Our state seems COM
mltteds to this policy, and the simple
question guests l. for your consideration is,
snouid the rate now fixed by law be in
creased! AT the last general session of
your BODY, after the most careful DELHI
eratlon and thorough discussion it was
concluded that the rate should be
changed from 8 per cent to 4 per cent
ana law to take effect was passed
rms law, could not, however, take eff
Ieet ana be In force unless the same was
daopted and ratified by a majority Of the
ttiiectors OF the state voting at the cleo
ton at which the same was submitted.
pursuant to- this requirement of the
constitution, the law referred to was
submitted to the electors of our state at
Inc general election held on the 4th day of
November last. The required majority
was not received. This result is, how
ever; not to be regarded as an expression
OF the people against the measure. 1t
was due to the fact that many of the
voterS dld not vote upon this important
measure because their attention had not
Deen called specifically to it, and its i'm
port was not sufficiently understood; and
also the fact that the measure appeared
upon the general ballot which led to
oversight and confusion on the part Of
the voter; and from the further fact that
great doubt existed in the minds of the
eIsctoIs Whether the measure. as sub
A15teu' Old increase the revenue or not.
MS result suggests most emphatically
that some plan should be devised which
VIII require electors to give attention to
measures requiring ratification and to
proposed constitutional amendments I'm
uef an Old law, measures of this charac-
Ter were placed at the bottom of the bal
Iot: put owing to the fact that the voters
1alled to heed them, the law was changed
requiring such measures to be placed at
the top of the ballot. 1t was hoped that
character the most conspicuous place
upon the ballot would solve the difficulty
Inc result has not been what was an
ticipated, and it seems Imperative that
your body should so legislate, that the at
tentlon OF voters will be more definitely
called to these measures.
URGES SEPARATE BALLOT.
To meet the difficulty referred to, 1
would suggest plan, to which / am ad-
V1Sed there IS no legal objection and I
submit the same for your careful con-
Slderat1on. 1t is to so amend existing
laws that each proposed constitutional
amendment anne or measure requiring ratif1ca-
tion De placed upon a separate ballot and
that such ballot, upon being voted, if
deemed necessary, be placed by the
judges of election in a separate ballot
box This plan seems to be feasible, and
l believe would effectively meet the diff
fculty referred to-.
Before leaving the gross earnings sub
Ject, permit me TO call your attention to
an important difference between the Ian
guage In the present law and the law sub
mitted to the people for adoption at the
late election This difference gave rise
to considerable discussion during the re-
! cent campaign and in view of the fact
that the difference referred to makes a
| radical change in the method of comput-
ing gross earnings, great care should be
exercised in framing a bill relating to
this subject. That the difference may
be fully understood, I quote from the
present law as follows:
Gross earnings shall be con-
strued to mean all earnings on business
beginning and ending within the state, and
a proportion based upon the proportion of
the mileage within the state to the entire
done''"
In the law passed at the last general
session and submitted to the people at
the late election the term gross earnings
is declared and construed
TO mean all earnings on business be-
ginning and ending within the states and
a proportion of earnings on all interstate
business passing through, into or out of
the state as the mileage operated within
the state bears to the entire mileage op-
Grated by such company"
| coMMENDs 4 PER CENT LAW.
Hence, under the present law, gross
earnings upon interstate business is ar
rived at by taking the proportion based
upon the proportion of the mileage with
which business, is DONE. while under the
law recently submitted to the voters the
gross earnings upon interstate business is
arrived at by taking a proportion of earn
ings on all interstate business passing
through, into or out of, the state as
the mileage operated within the state
bears to the entire mileage operated by
such company.
In the one case the basis for computa-
ton in the proportion of mileage within
the state to the haul, while in the other
the basis is. the proportion of mileage
within the state to the actual mileage OPP
Grated by the company.
If, in your wisdom. you conclude to
pass a law increasing the rate I earnest
~ recommend that you adopt the Ian
guage of the present law, unless you are
so thoroughly. satisfied that there are Sc
rious legal objections thereto. In any
event, let the bill be so drawn that there
can be no question of an increase of
per cent above the present rate.
In view of the fact that officials and
others who have given the matter thor
ough consideration have concluded that
a rate of per cent is just and equitable,
and substantially exacts from railway
companies what they would be required
! to pay if they were subject to direct tax
alton, recommend that the rate be fixed
at a per cent.