The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1924-10-09
IF UNCLE SAM OWNED THE
RAILROADS

The LaFollette platform calls for
government ownership of railroads
The LaFollette campaign is to be
conducted with special appeal to The
farmer vote, especially the farmer
vote of the Northwest states.
There arises the question "Do the
farmers wish the government to own
and operate the RAILROADS.&C.
A very Illuminating editorial on
the subject of government owner
ship of railroads in it's bearing on
taxes appears in the August 80
number of The Countdy Gentleman.
aforementioned railroads and
railroad property, like federal build
ings, would be exempt from taxation
by states, counties or municipalities
On this phase of the subject the edi-
torial referred to comments in part
as follows:
That would mean loss of $685.
1872 tax revenue for Minnesota; ST.
321, 976 for Wisconsin; $6,849 fol-
Iowa; $6,739,346 for Kansas; S..
365,960 for Nebraska; $4,679,693
for Montana, and $4,072,282 fol
ANVIL I'll DdhOCd.
These losses, which would have tc
be made up by increased taxes on
other forms CT property, are equiva.
lent of $32 for every farmer of $3.50
for every man, woman and ch:td in
Iowa.
To $40 for every farm or $500
for every person in Minnesota.
To $52.4O for every farm ar $6.3t
for every person in North Dakota.
And to $81.25 for every farm OF
$3.50 for every person living in
Montana. 4
These figures in every case are
based on official records.
The bulk of more than 100000.
900 annually distributed py the
railroads in taxes goes to the states
and counties-$248,6O5,09 4 out of
$500, 452,723 in 1922, and s.:ll
larger amount last year.
1t is pointed out that drying up
railroad taxes would have pa :ti.'.l-
larly adverse affect on the agrlcul-
tural states, notably those # the
Northwest.
"On the basis of the 1923 collec-
tion," says the treasurer of Rose
bud county, Montana, "the loss of
railroad taxes would increase the
levy on remaining property 56 pc,
cent, thereby becoming an unbeara-
BILE burden on the taxpayer"
For dozen North Dakota coun-
ties, chosen at random, abolition of
railroad taxes would increase gencr-
al tax levies' from $3.50 per cent to
23.47 per cent.
Says the editor of The Country
Gentleman:
Railroad taxes, in effect, nave act
ed as medium for equalizing the
social balance between the newer To-
calities and the older and ricncr in
dustrial regions. 1t is in these older
and richer regions that most of the
stockholders of the railroads reside.
SO railroad taxes act as means of
siphoning funds from those regions
to pay for improvements in localities
that could not otherwise afford them
at this time"
Some may contend that there
would be for the farmers a compen-
sation for the loss of railroad taxes
in the fact of lowered freight rates
under government ownership and
operation. The credulity that under
lies this argument is on a par with
the credulity of the child that goes
In quest of the pot of gold at the
end of the rainbow. What is there in
the transportation experience of the
country to bolster this placid faith +?
What has there been in the spirit and
workings of American political af-
fairs To pive If Sl1hstanco2
Not only would hundreds of mil
lions of state and local revenue in
taxes cease with government owner
ship of the railroads, but federal tax
es would go up to take care of in
terest and principal on the purchase
price of the properties. AS between
the West and the East, as between
the farm community and the indus
trial community, the former has the
greater reason for backing away
from the LaFollette platform propos-
al regarding the railroads. Mime
apolis Tribune.