The Minneapolis journal., 1906-08-10
PETE MUCK RAKES
In STATE J A | !; SENATE
FORMER COUNTY ATTORNEY DIGS
s INTO THE RECORD.
He Charges that Special Interests Have
Found Safe Bulwark in the Sen
ate and Cites Treatment Accorded
Various Measures to Back Up His
Statement.

James A. Peterson opened his cam
paign against the state senate combine
last evening" In speech at Swedish
Union hall. 295O, Nicollet avenue. He
delivered a scathing arraignment Of the
senate as the tool of corporate infu-
ence, and will make similar addresses
from time to time in other parts of the
city. /
Mr.: Peterson declared that the true
enemies of the republican party were
within, and must be eradicated. The
senate, he said. had always been the
bulwark of the ,special, interests, In
ten years only two bills have been
passed by the senate that the "inter-
ests'' opposed, and they had been
forced thru by the power of public SEN
timent. Those were the per cent gross
earnings tax bill and the inheritance
tax bill. The senate beat both Of these
measures the first time they were passed
The gross earnings bill was beaten in
1899 on the ground that the railroads
would fight it in the courts and tie up
state revenues. The first year the 4
per cent tax was in effect the state
received $1,000,000 more in taxes, and
only $l41 900 is now involved in Htlga-
tion. Wisconsin had a 4 per cent tax
and valued the roads like other prop
erty. In three years Wisconsin has
received $1,6OO,00O more in taxes than
it did under the 4 per cents Mime
sofa has larger railroad mileage. and
if the roads paid on the same basis as
year more in this state than they
are now paying under 4 per cent tax.
Franchise Tax Killed.
The senate in 1908 beat the Haug-
land bill for franchise tax law and a
tax commission, after it had passed the
house. Street railway properties in the
twin cities are now paying on little
more than one.fourth of their. stocks
and bonds. while other property pays
on SO per cent and more of it's real
value. In that session the house passed
bill to tax freight line companies 4
per cent Of their gross earnings, which
would have increased state revenue 500
per cent. The senate tax committee
killed it. In fact, he said, all bills the
"interests' have opposed have been
killed by adverse committee reports,
showing: the .'system'' has its grip on
the organization.
In 1905 the senate. killed the bill to
abolisha private banks. The public; ex-
aminer says that since June, 1903, de-
positors have lost ST 100000 in the fail
supervision. Only two state banks have
failed, and. the depositors have been
1 paid in full. . : !
4 The senate tax committee in 1905
killed HI. F.. 736, bill to tax express
companies 6 per cent on their gross
earnings, which would have increased
the taxes 40 per cent. 1t Also killed
H. F. $50. a bill to tax sleeping car
companies on. ass Valuati basis: = They
now pay only per cent on business
beginning and ending in the state. and
! evade it by manipulating destinations,
SO they only paid 81 ,160 last year, The
bill killed would have increased the
taxes 1000 per cent. s,,r. .y.~.
ga. Railroad Bills Laid Away. Z o.
The senate railroad committee Killed
the reciprocal demurrage bill, after it
/ passed the house. 1t also killed by a
ma ajofitY report s. F. 81, the F. HI Pc
terson bill to abolish passes and reduce
railroad fares to 2 cents mile. In this
connection Mr.. Peterson quoted from
Senator La Follette's speech, showing
that one person in ten travels On q
pass, and that those paying. cash fares
have to pay for $50,O0O000 worth OF
travel on passes every year. He also
showed that by withdrawal of mileage
privileges and other means the railroad
! companies had actually increased thei1
passenger revenues per mile since the
date Of the merger. AS shown by theil
own reports on file, the average reye
nue. per passenger per mile has in
\ creased as follows:
\ 1904
\ Burlington, 1898. es.................. 200 2.1
Il Rock island, 1908. ................ 2.45 2.2
a Northwestern, 1S99 9.............. 1.95 20