The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1909-01-07
THEFGOVERN0R'S MESSAGE
Continued from First Page

The laws of the state now provide for
the payment of aid to the graded
schools, high schools, semi-graded
schools and rural schools to the ex-
tent of upwards of 100000 annually
and further provide for these pay
ments in October of each year. The
payments are in advance of the appro-
priation on it's way to the state treas
ury and in consequence necesSitate
temporary loans and overdrafts, thus
creating a deficiency in the treasury.
This condition could be avoided alto
gether by amending the law and re-
Quiring corporation gross earnings
taxes to be paid semi-annually on or
before Sept. and March /, respec-
lively.
A law passed in 1905 provides for
B per cent gross earnings tax on all
telephone companies doing business
In the state. The public examiner re-
ports that with few exceptions the
various telephone companies have
been reporting for taxation purposes
the earnings originating and terminal
ing within the state and have not re-
ported earnings on interstate bust
ness. Action has been instituted
against one Of the companies neglect
Ing to report interstate business and
the matter Is now pending in the
courts. The decision in the lower
court was in favor of the state and
the company appealed the case to the
supreme court. In view of the ambig-
uous terms of the statute it would be
best to repeal the present statute and
pass new law which will be specific
In its terms and provide for tax on
all interstate business, and the state
share on all business, and which will
provide the necessary penalties for
failure to make returns of gross earn
ings.
Railway Regulation.
Especial attention should be given
BY the legislature to the subject of
regulating public service corporations,
especially railroads, and the securing
of equal and just railroad rates to the
people OF this state. The so called q
cent passenger rate has now been in
operation for about a year and eight
months and have no hesitation in
saying that it has been demonstrated
during that period that such rate is
sufficiently high and that no reason
exists why the state should not per-
sist in its demand that the maximum
be fixed at that sum.
The maintenance of a maximum
rate of cents per mile for the trans
portation Of passengers undoubtedly
tends to equality of rates and per-
haps lessons the discretion which the
carriers formerly had to grant spe-
cial rates either to particular class
OF persons or upon particular coca
sions where it was expected or de-
sired greatly increased travel would
occur.
Shortly before the converting of the
legislature of 1907 the railroad and
warehouse commission of this atate
had made its order establishing rates
to be charged by carriers upon cer.
chandise In this state, the term mer-
chandise covering articles enumerated
IN and covered by the so called West
ern classification. The schedule so
ordered was accepted by the carriers
affected and the rates went into effect
Nov. Is, 1905, and have been main.
tanned ever since.
The governor here reviews at
length the suit brought by railroad
stockholders to restrain the enforce.
ment of the commodity rate law of
1907 and continues:
suggest therefore that your atten-
ton need not be diverted to any dis
cussion as to the reasonableness of
any one Of the three schedules to
which have referred, but that your
efforts should be directed to strength.
ening the position taken by the last
legislature In it's demand for their en-.
forcement. =
To Make Rates Effective.
For many years legislatures and ad-
ministrative officers charged with the
duty of fixing rates have INDUCED in
the hope that some method would be
discovered by which rates so pre-
scribed could become Immediately ef
fective. The protracted and involved
litigation which has followed each at
tempt to adjust rates has always re-
suited In more or less disturbance of
industrial conditions and has always
involved considerable expense and
where the rates have been found just
and reasonable there has always been
a long period during which the carrier
has exacted an unreasonable and ex-
cessive rate. would suggest that this
presents for your most careful con-
sideration a question of high impor-
lance. 1t would be entirely feasible to
enact a law providing that where
rate had been established either by
the legislature or by commission
and compliance with such rate was
refused by carrier that during the
period In which such rate was being
tested the carrier should be required
to make and keep a report and COM
plete record of the amounts received
by 1t In excess of the prescribed
rates, the persons from whom such
amounts were received and such other
information in connection Herewith
as might be required by the railroad
and warehouse commission. In the
event that the contested rate was
found to be just and reasonable the
carrier should be compelled to refund
the excess amounts so received in
proceeding to be brought by the rail-
road and warehouse commission and
80 framed that all of those paying ex-