The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1907-01-10


by governor of this state The daily
papers give only synopsis of the
governors talk. The first part of the
message is devoted to matters pertain
ing to taxation. Following Auditor
VERSIONS suggestions he recommends
the appointment of a tax commits
sion, an increased royalty on ore
taken from state land and a registry
tax on mortgages. In addition to a
registry tax of half of one per cent
he favors a tax of ten per cent on the
income of the mortgage. How the
income tax could be collected from
nonresident mortgage is not made
clear. A registry tax is all right, but
the income proposition is not feasible,
and even if it were it would only add
to the burdens of the mortgagor.
Evidently the governor does not favor
a tonnage tax on iron ore but he ar
CUES in favor of an impracticable
tax. That part of the mes
sage reads as if it had been drafted
by an attorney of the steel trust. The
governor is correct, however, when he
says: 1.-The proposition which some
have suggested, that the direct tax
should be abolished and a tonnage
tax substituted to provide for all.
revenue, both state and local, is OBJ
jectionable because of the jeopardy of
revenue for local government during.
a period of Industrial depression or
in d year of possible lockouts and
strikes. wish it to be understood
that I clearly oppose any system of
taxation which will deprive local
township, village, school district and
county government and improvements
of a liberal, reliable and continuous
source of revenue.''
The recommended in favor of the
creation of a bureau or department of
mines which means a score or more
Of Office holders-will not be taken
seriously by the legislature. One or
two additional men under the super
vision of the state auditor is all that
is necessary. The governor spoke
the truth when he said the Mountain
Iron property, worth many millions of
dollars, was lost to the state through
the inadvertence or worse of state
officers. But the state delights to
honor some of the men who figured in
that nefarious transaction.
The governor favors reciprocal de-
murrage, a two cent passenger rate,
reduction of freight rates, a distance
tariff law, abolition of passes, an
amended primary law, increased ap-
preparations for the university and
abolition of the local boards of the
state institutions at Owatonna and
Faribault. If all of his recommends
lions and suggestions are acted upon
the Legislature will have little time for
any other business.
Few Suggestions.
With all due respect to the governor
and the legislature the U n n makes
bold to offer a few suggestions. In
our judgment it would be unwise for
the legislature to attempt to enact
complete tax code at this session of
the legislature. But permanent tax
commission to be chosen by the gov
ernor, auditor and attorney general
should be appointed without delay.
At least one member of the commits
sion should be a lawyer. The state
board of equalization should be
abolished. The governor, auditor,
encouragement and tax commission
should. take the place of the state
board Of equalization. At this session
laws should be enacted that will
provide for registry tax on mort
cages, increase of the taxes paid by
telephone companies, express COM
panies and sleeping cars; public SER
vice companies such as street car, gas
and electric light companies, should
be required to pay a reasonable gross
earnings tax-the state to receive it's
pro rata share-in lieu of all other
taxes. The tax commission should
have general tax law ready to SUBJ
nit to the next legislature.
Supervision in Local Expenditures.
In round numbers about 60 per cent
OF the taxes paid by the people of the
state are for local purposes, viz: 40
per cent of the taxes are for state and
county purposes and 80 per cent for
school,. town, village and city pur-
poses. The state, through the public
examiners Office, provides an elab-
crate system of inspection and SUPER