Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1924-11-07
PEOPLE WOULD PAY
If RAILROADS WERE
GOVERNMENT OWNED
Third Party Plan Would
Take Revenue From
States Involved.

should be taken over, owned and op.
eruted by the government, the vast
taxes now paid by the railroads would
have TO be paid by the people, accord,
Ing to VIII X. Wood, member Of con,
sress from Indiana and chairman of
the Republican National CongrcssIon-
al committee Mr. Wood has made
careful analysis Of the situation,
noting the tax payments by the rail
roads to the several state governments
last year.
II the roads We're owned by the
government they would be tax free
Just rs the post offices now are. The
states would Still need the money,
just as they do now, and as result
additional taxes would have to be lev
led on the citizens.
Mr.. Woods complete analysis fol-
lows:
Robert NJ. LuFolette, the Social.
ia-third party candidate for Presi-
dent, Is trying to convince 100000
farmers that the surest cure for their
ills is to bring about government own
ership Of all the railroads in the coun,
try; that, If this Is done, transporta-
ton rates of all kinds would be I'M
medately reduced.
There are n lot of things, however,
that would transpire If this scheme
were carried out, that Senator LaFol-
lette is woefully silent upon. He is
not telling the farmers that the gov
eminent pays no taxes on its proper
J ties and that 1t would pay no taxes
on the railroads of the country If it
/ owned them. He Is not telling them
| that the railroads are paying into the
various county and state treasures of
the United States more than 100000.
600 annually, which sum would have
to be paid in large part, by the farm
ers, once the government began the
ownership Of the railroads.
Take the state of Wisconsin for in
stance: Last year the railroads paid
the state of Wisconsin S7,32l ,976 in
taxes. In the state of Minnesota the
railroads paid, last year, a total tax
to the state of SS,425,9S2. In Iowa they
paid $3.50, 703; in Kansas, $6,739,3l6;
In Indiana, S13,004,627. In these five
states alone the railroads paid S42,-
431,634 of the public tax burden. !
have taken the figures In the above
named states because they are large
ly agricultural and in the event that
the government became the owner of
the railroads Of the country the farm
ers of these states would have to bear
the greatest part of the burden in pay
Ing these additional taxes.
"In the state of Iowa If the LaFol-
lette scheme were carried out, 1t would
mean an increase of $50 in taxes an
state, or $3.50 for each man, woman
and child in the state. In Kansas the
burden would he $40 against each farm
or $500 for each resident of that state.
In Minnesota, where Mr.. LaFollette is
. making strong appeal for votes, he
would take away from the farmer,
under the government ownership plan,
tax income now paid by the rail-
roads and place 1t as an additional as
sessment of SAT against each farm In
: the state or $3.50 against each person
residing in that commonwealth.
81 am told that, in one county in
Montana, the total tax paid by the rail
roads amounts to 1881 per cent of the
entire levy. In midsummer of this
! year there was $104, 102 of the total
- To-, no JaIinnront
upon which penalty had been laid.
2 This is convincing evidence that this
county was already taxed much more
than 1t was able to pay. Yet Mr.. La,
Toilette would take away 1874 per
cent of the tax revenue of this coun,
, iy, now being paid by the railroads
and place 1t as an additional burden
l upon the individual taxpayer.
f. IN my own state of Indiana, the
e railroads pay $13,094,627 in taxes an
S124S6679O The railroads share OF
this tax is over 10 per cent. If Mr.
: LaFolette's scheme We're put into eff
feet. the individual taxpayer of lndt
t ana would have to pay this additiona
sum of S13,094,6 27 each year In Mari
I on county the railroads pay annual!
$7l5,3SS in taxes, very substantial
Item in the total of the taxes paid IL
: that county.
|, The figures that l have given, ap
h plicable to the five agricultural state
: named, differ only in degree from thos'
U that might be given for every othe
= state in the Union.
mot only would the farmers be bur
dened by the payment Of these ad
ditlonal taxes, should the government
II become the owners of the railroads
e but they would also have an additional
V burden to bear, the size OF which
is hard to ascertain, in the shape o
y deficits occurring in the operation o
the railroads OF the country for main
: tenance, extensions and upkeep.
Q "Some idea of what this burden woul
e be- may be had, however, by recallin
E the experience during the perio
y of government operation of the rail
, roads under the management of WI
- | 49,. MA loo ,,.hnp tbo up,pupt n