The Saint Paul globe., 1905-01-11
Total to Be Increased

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With the placing of all railroad earn
fngs under a 4 per cent gross earnings
tax, which the state officials expect to
see become effective Dec. 81. 1905, the
railroads will pay still much larger
share of the total of state taxes. Based
on gross earnings of 66,800,13O in
1903, which is the last statement avail
able from the railroads by the state
officers, it would naturally be expected
to Increase the total paid under the
per cent tax by 1 per cent of that
amount; but according to C. F. Staples,
of the state railroad and warehouse
commission, who has had the figures
compiled, the Increase will amount in
round numbers to 100000, and the
state will receive from the railroads in.
taxes on their earnings approximately
$2,600,000 within $367,000 of the total
Of all the money paid last year in taxes.
The cause of the increase over the
amount that will be naturally created
by the addition of / per cent on gross
earnings, is found in the fact that
when the new law goes into effect all
the railroads of the state will pay a
straight A per cent tax on their earn
rings. At present there are different
grades of railroads, some paying 1 per
cent, others 2 and the remainder 8.
The difference in the rate is due to
contracts entered into between the rail-
road companies and the state at the
stime of the construction of the rail-
roads. With the new law and the
snatural increase in the earnings of the
state, it is expected to SO materially
increase the taxes derived from rail-
road sources that the tax rate through
out the state will be almost wiped
sout.
Iverson Discusses Bill
I 'I cannot see how 1t will be possible
for the national government to incor-
porate into law the suggestions OF
|: Auditor S. G.. Iverson yesterday. ANY
sattempt by the national government to
enforce gross earnings tax on Min
Fnesota railroads., to the exclusion of
.the state, would be a violation of the
constitution of the United States and
Asthe state of Minnesota. The state is
absolute in the matter of leyying taxes,
except that the national government, in
the event that the ordinary sources OF
revenues should prove inadequate, may
Escall on the state for aid, baSing the
states proportion of the entire amount
required by the population of the state.
This must be on all the property of the
state. On Otner matters or taxation
the state is sovereign. 1t simply cam
not be done. There is no use discuss
ing what means we would take to raise
the money we now receive from the
railroad taxes in the event that the
Newlands bill became effective, but of
course the only alternative would be
1.-THE raising the deficit by taxing the
other property of the state. cannot
ssee how any such bill would ever be-
come law, If I am correctly informed
as to it's provisions"
G. f. Staples, a member of the rail-
road and warehouse commission, ex-
pressed the belief that the author of
the Newlands bill is not sincere in
fathering measureSof its character.
In discussing legitimate supervision
and control of railroads. he said,
there are always people who go to
such extremes with radical measures
that they defeat the very object for
which sincere men are aiming. There
twill doubtless be other measures just
as radical as the Newlands bill claim
ing the attention of congress and the
country during the present session Of
congress. They are beside the uues-
tion and ought not to be considered