The Carbon County chronicle. [volume] (Red Lodge, Mont.) 1924-1924, 1924-10-22
PEOPLE WOULD PAY
If RAILROADS WERE
GOVERN MENT OWNED
Third Party Plan Would
Take Revenue From
States Involved.

Grated Dy 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-
gress from Indiana and chairman of
the Republican National Congresslon-
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 were owned by the |
government they would be tax free |
just as the post Offices now are. The
states would stlll 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. LaFollette. the Social
lst-thlrd party candidate for Presi-
dent, is trying to convince 0000000
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 Inn
medlately reduced
There are lot OF things, however.
that would transpire II this scheme
were carrled 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
| ties and that 1t would pay no taxes
on the railroads of the country If II
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 $3000O0,-
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 1921 ,9T6 In
taxes. In the state Of Minnesota the
railroads paid, last year, total tax
to the state of Ss,425,9S2 In Iowa they
paid $3.50, 703 In Kansas, $0,739,346
in Indiana, S13,094,027. In these five
states alone the railroads paid S42,-
| 49, ,634 of the public tax burden.
have taken the figures In the above
/ named states because they are large
" agricultural and In the event that
the government became the owner Of
| the railroads of the country the farm
ers of these states would hnye to bear
the greatest part Of the burden In pay
| ing these additional taxes.
''In the state of Iowa If the LaFol-
4 lette scheme were carried out, 1t would
mean an increase Of $32 in taxes an
nually levied against each farm In the
! state. or $3.50 for each man. woman
and child In the state. In Kansas the
burden would be $40 against each farm
or $500 for each resident Of that state.
In Minnesota, where Mr.. LaFollette Is
making strong appeal for votes, he
l would take away from the farmer,
under the government ownership plan,
a tax Income now paid by the rail-
roads and place II as an additional u.s.
sessment of SAT against each farm In
the state or $3.50 against each person
residing in that commonwealth.
II am told that, In one county in
Montana, the total tax paid by the rail-
roads amounts TO 1851 per cent of the
entire levy. In midsummer of this
year there was S104,102 of the total
tax assessed in that county delinquent,
upon which a penalty had been laid.
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 3S1a per
cent of the tax revenue of this coun-
ty now being paid by the railroads.
and place II as an additional burden
upon the individual taxpayer.
''In my own state Of Indiana. the
railroads pay $13,094,627 In taxes an
nually The total tax of the state Is
$124.sG6,790. The railroads share OF
this tax Is over 10 per cent. If Mr.
LaFollette's scheme we're put into ef-
feet, the individual taxpayer Of lndi-
ana would have to pay this additional
sum of S13094,627 each year. In Mari
on county the railroads pay annually
$7l5,3SS in taxes, very substantial
Item in the total Of the taxes paid In
that county.
1.-THE figures that | have given, APP
pllcable to the five agricultural states
named, differ only in degree from those
that might be given for every other
state in the Union.
mot only would the farmers be bur
dened by the payment of these adj
ditional taxes, should the government
become the owners Of the railroads,
but they would also have an additional
burden to bear, the size OF which 1t
Is hard to ascertain, in the shape Of
deficits occurring In the operation of
the railroads Of the country for main
tenance, extensions and upkeep.
"Some idea Of what this burden would
be, may be had, however, by recalling
the experience during the period
Of government operation Of the rail-
roads under the management Of VIII
liam G. McAdoo, when the amount Of
the deficit over the earnings Of those
railroads taken over by the govern
ment was more than a million dollars
| day, exclusive Of the payment Of
4 / A. IL. II.