Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-02-17
GOVERNORS MESSAGE.
Special Communication to the
Legislature.
Present Condition of the States Finances
is Outlined.

Madison, Wis, Feb. 11.-[Special. i
Gov. Scofield this morning sent to the
Legislature the following special mes
sage calling attention to the state imam
ces and making recommendations TO the
Legislature:
To the Honorable, the Legislature: a
more thorough investigation into me nnau-
cial condition of the state than hau Deeh
practicable at the date of my biennial mes
sage makes it my duty to supplement- the
statements contained therein upon the sub
ject by this special communication.
This is subject which ought to be clear
~ within the comprehension OF every IN
telligent citizen There is no reason why
the financial condition of the state may not
be as clearly and definitely ascertained at
any time as may the status or constitution
of the business of a private corporation or
private individual; and besides, exact
knowledge by the Legislature of the con-
ditiOn or the treasury IS Indispensable TO
wise and economical exercise OF the power
of making appropriations
Condition of the General Fund.
The Legislature has provided for the levy
of special taxes each year for the support
Of the public schools, the normal schools
and the university; but the general expenses
of the state government are paid from what
is known in the reports as the general
fund" This fund consists Of the money
received from railroad license fees, fees
collected from insurance companies from
street railway companies and of other pay
mentS into the state treasury or similar
character. These receipts by the general
fund and the disbursements from the same,
for the five years ending September 50,
1896, were as follows:
September So 1S92-Receipts, 81, 646, 724;
disbursements, 81, 1929. y. September 30,
1893-Receipts, 81, COS, Bliss; disbursements.
$1,7S6. 501.55. September 30, 1e94--Keceipts.
S2,226, 164 "A; disbursements. Sill, SS9.S4.
September 80 1S95-Receipts. $1,TSS, SO9.32;
disbursements S2,729, 506.7 September 30,
1S96-ReceiptS, 81, ~, 56G.os; disbursements,
81 III, 370.51
1t should be explained that the fiscal year
of the state ends on September 30, and on
that date, in 1896, there was a balance IN
the general fund Of $49.S15.56 As was
shown by a report to me from the state
treasurer, made OH January =, there was,
the 31st day Of December last, three
months after the close Of the fiscal year.
apparently cash on hand to the amount Of
S. 1909, but there had been advanced to
the state treasurer on the 18th of NoYem-
Der 1896. by the Chicago, Milwaukee & st.
Paul Railway company $4,000, and on the
ii day of December by the Chicago st.
Paul, Minneapolis & Omaha Railway COM
pany, $4,000 on December 10, by the Chi
cage q northwestern Railway company:
100000, making total Of S2O0,OO0 OF
moneys not due from these companies until
the 10th of January, 1897
1t is obvious that if the railway COM
panies had not been situated in the pres
emit financial depression that they could
Of $500, 600, instead of there being hand
December 81, 1896 IS, 1909. there would
have been an actual deficit of S241, $50. 81.
Nor is this all On the 1st day of Janu
airy, 1897, it became necessary to meet
Obligations then due, to OYerdraw the
states account at one of the banks TO the
amount of 100000, upon which Overdraft
interest was paid, by an arrangement TO
leave on deposit for a time when practical
bic a sum belonging to the state without
interest.
A Deficiency of $500, 900.
It is plain to be seen from this statement
that while the general fund was the
31St of December apparently solvent it
was in fact not only exhausted but in debt
over $500, How often this fund has
been kept good by bank oyerdrafts, if at
all, or by advances Obtained from the rail
way license fund, l have not yet ascer-
tanned, nor is it now important
This statement is made solely upon the
theory that the people are entitled to know
at all times the exact condition of their own
unaOcidl affairs.
It is manifest that the $3.50. 900 advanced
by the railway companies and the 500 OOU
advanced by the bank to make good deficits
pose at the end Of 1897. 1t has seemed to
me that every principle Of public policy
requires that the finances OF the state
should be placed now upon different
basis. 1t is not believed that the people
OF Wisconsin are willing that tney shall
owe from year to year the protection Of
their treasury from insolvency To the ac-
communicating disposition Of either the rail
roads or the banks.
If the railway companies could not. or
would not, advance, and if i condition OF
panic rendered it impossible to overdraw
easily be imperiled Nothing is clearer
than that the trainers of the constitution
permitted under any circumstances of their
motion to involve the state III any indebted-
ness Inc power of taxation with which
the Legislature is clothed was intended to
render unnecessary the borrowing of money
1oE r the ordinary ar purposes Of the state.
ia what cases the Legislature NAV borrow
money. Section ( of this article authorizes
the Legislature to borrow money ITO repeI
Invasion, suppress Instruction, or defend
the state in time of war" The borrowing
power authorized by this section is without
limit.
Section of the same article provides that
me state may contract public debts for
me purpose OF defraying extraordinary ex-
100000. and specifically defines the man
ner in which it is to be done
That neglect to levy sufficient fay ia
maintain the general fund authorizes STATE
onclalS TO bGrroW money from the banks Is
certainly certain without foundation in the consti-
authorizing the state treasurer to borrow
SlOoOO0, from a bank for an indefinite
# onId nut so 9g e the purposes,
purposes OF the state. But, the state treas
urer, under the existing state of affairs has
repeatedly found himself in the diIemmn
of having large obligations to meet and iii Ia
money IN the treasury to meet them with,
and has therefore been compelled. in ordnrr
TO protect the credit Of the state to resort
10 these eXpedientS.
Law to Levy of Taxes.
The condition of the law as TO tho low
OF taxes t5ts for the general fund seems to me
OF the constitution, is as follows: s.,rhe ,er-
Islature shall provide for an annual fax snf
ficient to defray the estimated expenses of
the state for each year, and whenever tho
expense Sc OF any year shall exceed the in
ing tax for the ensuing year s1Ifticie95t
With other sources of income to pay the de-
hCiency as well as the estimated expenses
of such ensuing year" The Legislarure has
provided by section 1910 of Sanborn e.
Berryman's annotated statutes that the
secretary of state shall annually aDnOrtion
the state tax levied for the year and ali
other taxes which he is directed by law to
several counties according and in pro-
portion as the relative valuation of each
county to the aggregate valuation of the
whole state etc.
1t will be seen that the succeeding section
1071, is the exercise by the Legislature of
the power granted by the last clause of
section ., Of article VIII, of the constitu
ton above cited, and authorizes the sec
rotary of state to levy for any apDortiOn.
ment in excess of prior levy, but This
prior levy the secretary Of state is now