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

matter Of much Importance, and one
: IN which the people of our state are
greatly interested. will, without doubt,
emil. your attention. refer to the
gross earnings system, under which rail-
{ way companies pay into the state treas
ury, In lieu of taxes, 8 per cent of their
sr ftt earnings. Our state seems COM
question for your consideration is,
should the rate now fixed by law be in,
creased? At the last general session of
your oody, after the most careful DELHI
GRAFTON and thorough discussion, it was
concluded that the rate should be
changed from per cent to per cent
;rni a law to take effect was passed
RMS law, could not, however, take ef-
rect ana be In force unless the same was
adopted and ratified by majority Of the
SECTORS OF the state voting at the cleo
ZION 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
me 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 Que to the fact that many of the
voters did not vote upon this important
measure because their attention had not
Deen called specifically to it, and its i'm
p1rC 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
Ine voter; and from the further fact that
great doubt existed in the minds Of the
electors whether the measure as sub
miLted, did Increase the revenue or not
rms result suggests most emphatically
tnal some plan should be devised which
VIII require electors to give attention to
measures requiring ratification and to
proposed constitutional amendments I'm
ger ger 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
Idlled TO need them, the law was changed
recurring such measures to be placed at
tnls ehange, which gave measures of this
character the most conspicuous place
upon the ballot. would solve the difficulty
the result has not been what was an
t1clpated, and it seems imperative that
your body should so legislate that the at
tent1on of voters viii be more definitely
called to these measures.
URGES SEPARATE BALLOT.
To meet the difficulty referred to, 1
would suggest plan to which | am adj
vised there is no legal objection, and I
submit the same for your careful con-
S1deration. 1t is to so amend existing
laws that each proposed constitutional
arnendment or measure requiring ratif1ca-
tlon be placed upon a separate ballot and
that such ballot, upon being voted, If
G Gleddn necessary, be placed by the
box. This plan seems to be feasible, and
l believe would effectively meet the diff
nculty 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
united 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
De Iuiiy understood, 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 go
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"
RECOMMENDS 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
in the state to the entire mileage over
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
lngs 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.
III, III your wisdom, you conclude to
pass a law increasing the rate [ earnest
ly 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
rate of A 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, 1 recommend that the rate be fixed
at per cent.