The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-11-02
Make RAILROADS
PAY MORE TAXES.
Tax Commission Shows That Rail.
roads Are Not Taxed as High
as Other Property.
IT, ", -. II
QUESTION IS BEFORE i
= VOTERS NEXT TUESDAY
Amendment Provides For An In.
crease in the Tax From Four
+: to Five Per cent. -:

No voter in Duluth or st. Louis
county. should fail to vote next Tues
day upon the constitutional amend
ments which have been submitted by
the legislature to the people Of the
state for their ratification. The prin-
c1pal amendment provides for an in
crease in the gross earnings tax on
railroads from four to five per cent.
widely advocated by the progressive
elements in all the political parties.
The Minnesota tax commission in
each Of two of the biennial reports
which have been issued by that COM
mission, calls attention to the fact
that railroad property in this state
is not taxed as high as other property.
The amendment will simply compel
the railroads to submit to rs per
cent increase in taxes and even when
this shall have been done, they will
still be paying less money than the
owners of other property. - .- :
Now Pay Only Per Cent.
The railroads at the present time,
in lieu Of all other taxes, pay into
the state treasury annually 4 per cent
of their gross earnings in this state.
tuition this tax cannot be diminished
or increased without the approval of
the voters of the state.
Having become convinced that the
tax was too low the legislature at it's
last session passed an act submitting
the question of increasing the tax
from per cent to per cent to the
voters of the state to he voted upon
at the election next Tuesday.
The tax commission believes that
the railroads, like all other taxpay-
ers, are entitled to fair treatment
no. more and no less, and that these
taxes should not be increased unless
the facts fully warrant it. In order
therefore to make assurance doubly
sure the commission, with the able
assistance of Prof. E. V. Robinson OF
the department of economics OF the
state university, has just completed
another investigation of the whole
matter and find as result that the
proposed increase is more than justi-
fled by. the facts. -
Pay Less Than Others.
-Four per cent of the gross earnings
lof railroads in Minnesota in 1911
amounted to $3,670,760.25. The IN
vestigation by the tax commission
shows that if all roads were assessed
and taxed the same as other property
| they would be required to pay
$5,011,267.12, or $1,340,506.s7 more
than 4 per cent Of their gross earn
| ings. In order to obtain this amount
on the gross earnings basis it would
| be necessary to raise the rate from
to 5.46 per cent.
The foregoing figures are based up
on the states valuation of the railroad
property with additions to date
If the valuation allowed by the
court in the rate cases, which was
considerably higher than the states
| appraisal, should be accepted as cor
rect, the tax assessed against the
| roads, on the same basis as other
property would be $5,4s0,964.1S; and
the rate of gross earnings tax neces-
sary to bring that amount into the
state treasury would be 5.92 per cent.
If the valuation which the COM.
panies have themselves placed upon
should be taken as the basis of taxa
| ton, the rate of tax on gross earnings
| would greatly exceed any of the above
figures.
! It is clearly evident. from these
! figures that the proposed increase
from 4 per cent to 5 per cent is fully
| justified.
Under our constitution a failure to
vote on the proposition is the same as
! a vote against it. go