The River Falls times. [volume] (River Falls, Pierce County, Wis.) 1894-1933, 1899-01-17

a iar,e ~ nroyiding for the special levies of
comparatively small amounts for various
institutions. the sum OF wnlGn repi ies l1S
the total tax levy. These Speclal leVles run
for different periods and some are not mn
tied. You many not consider 1t best 10 cut
off these at the present tline; put pe
lieve that ultimately this VIII pc Iouh9
TO be the proper method. Inc erect OF
such change would be to clear up muGh
of the confusion which prevails IN the pun
lie mind relative to the collecllon anu eA-
penditure of public moneys.
If this practice of dividing up the tax
levy were abolished and it were found at
+ba herinning of any biennial period that
the difference between the liked recelplS ana
the necessary expenditures amounleu 70,
oo ge on6 and 1e4 tbe aopropri
ationS would be made by the Legislature
on the basis of the receipts thus provided
for and not as they nave sometimes neHe-
tofore been made.
IF all or any of the special appropriations
TO which I have referred are made, ana a
snecial tax levy to meet them be au-
tb h all of the taxable property Of the
state will be called upon to pay It's snare
of this amount, except the property OF the
corporations now taxed unoer the hcense
am convinced that while the license
system of taxing certain corporations now
in force is the most practicable metnou
vat evolved it vet has elements of unfair
ness and inequality which might, partially
at least, be eliminated. There are certain
foreign corporations doing business Wltnln
their share of the expenses or the govern
ment Among these are Insurance com
panies, the sleeping-car companies ana eA.
press companies. Then there are the trust
companies and insurance companies OF our
own state which do not seem to be falrly
taxed when compared with otner large cor
poratiOnS. Our present graded incense Sys-
TEN of taxing the railroad companies CON
tains some glaring Inconsistencies We have
under this system five classes OF ROADS, the
classification being based upon the earnings
per mile. The first class p:ys per cent.
upon its gross earnings; the second class
is taxed 312 per cent. on its gross earnings;
the third class 3 per cent. on it's gross
earnings; the fourth class pays so per mile
and 21a per cent. on all earnings over $1,000
class pays IS per mile only.
The report of the railroad commissioner
of the state, which will be laid before you,
contains some figures showing the inequall-
ties of this classification. For instance, the
class of roads which pay per cent: OF
their gross earnings pay the equivalent of
a rate of 45-100ths of per cent. upon the
cost of the roads. The third class, which
pays 3 per cent. of their gross earnings,
pays but 29100ths of 1 per cent. upon
the cost The fourth class pays but 1-3-
100thS of 1 per cent. upon the cost; while
the fifth class pays but 1 8-10-100ths of L
per cent. upon the cost.
The commissioner report further shows
that some of the roads which pay the tri-
fling sum of So per mile in taxes, and from
which the aggregate sums received varies
from $50 upward, show in their own re-
that the management of the roads have
been able to pay large dividends.
In view of these very noticeable incon-
SistencieS, / recommend that the classified
ton be abolished entirely, and that uni
form license fee upon their gross earnings
be charged all roads doing business within
the state, regardless of what their mile
age or earnings may be. If the per cent.
fee upon the gross earnings which the
first class roads now pay, were charged all
of the roads, the income of the state, based
upon the returns for the past year, would
be largely increased.
1t rests with you to determine, in pro-
viding for raising the additional revenue
| necessary to cover any appropriations
which you may make, whether the tax
shall be levied upon the assessable property
only, or shall be divided between the as
| sessable property and those corporations
which are taxed under the license system.
The facts we have to face is that each
year the expense of carrying on the state
government increases. This is true, l be-
lieve. in every state. Not only is there an
increase in the aggregate cost but there
is an increase in the per capita cost. In
other words, the increase in the cost OF
carrying on the state government shows a
higher ratio than the increase in our popu-
lation. 1t is your duty to say whether, in
meeting these increased expenditures each
year, any class of taxable property shall
be exempt from paying its share OF that
increase.
1t Will not be possible, I think, for the
Legislature to take up the question of tax
alton so thoroughly as to ascertain definite
ly just what Increase there should be, II
any, in the license fees charged to certain
corporations now paying taxes under that
system. But, if you deem it wise to con-
tinue or provide for the continuance of the
work of the tax commission, we may hope
that by the time another two years have
passed 1t will be possible to present to
the Legislature such recommendations.
based upon the most careful research, as
will simplify and make more just the whole
system of taxation in our state.
| have already referred to the fact that
the sleeping-car, express, insurance and
trust companies are not now sufficiently
taxed, and on further investigation, it may
be found that there are others which should
be placed in this list. The trust companies
are somewhat of an experiment in Wiscon-
Sin and | realize that it will be difficult
to reach a fair basis upon which to tax
them. But, until such basis has been
reached, / recommend that these companies
be taxed as other companies are upon the
property they own Certainly there can be
no injustice in this: for there is no reason
why the property of trust company,
where 1t is accessible, should be exempt
from taxation, more than the property of
q lumber company or any similar corpora
tion.
The present system Of taxing insurance
companies Is In many ways unsatisfactory.
The inequality of the present method can
be understood when it is stated that the
life and fire Insurance companies of Wis
consin, with assets aggregating S94 0OO,-
900, pay but $34, 900 in the way of taxes.
There will ultimately, through tax COM
mission or otherwise, be determined some
just plan for taxing them, but In the mean
time some OF the unreasonable features Of
the present system might be dispensed
with Under the law now in force fees
are collected from agents, as well as from
the companies ] am persuaded 1t would
be wiser. temporarily at least, to abolish
all fees In connection with life, fire, acct
dent and casualty companies, except a level
license fee upon the gross premium re-
ceipts measure changing the. methods