Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1899-01-19

most practicable method vet evolved. if
yet has elements of unfairness and in
equality which might, partially at least
be eliminated. There are certain foreign
corporations doing business within the
State which l believe are not paying their
share of the expenses of the government.
Among these are insurance companies,
the sleeping car companies and express
companies. Then there are the trust COM
panles and insurance companies of our
own State, WHICH do not seem to be fairly
taxed when compared with other large
corporations. Our present graded license
system of taxing the railroad companies
contains some glazing inconsistencies
We have under this system five classes of
roads, the classification being based upon
the earnings per mile. The first class
pays per cent upon its gross earnings;
the second class is taxed 80 per cent on
It's gross earnings; the third class 3 per
cent on it's gross earnings; the fourth
class pays 80 per mile and 211a per cent on
all earnings, over 81, 800 per mile up to
$4,000 per mile. The fifth class pays So
per mile only.
The report of the railroad commission
er of the State, which will be laid before
you. contains some figures showing the in
equalities of this classification. For in
stance, the class Of roads which pay per
cent of their gross earnings pay the equiv
alene of rate of 45-1OOths of l per cent
upon the cost of the roads. The third
class, which pays per cent of their gross
earnings, pays but 2S-100ths of 1 per
cent upon the cost. The fourth class pays
but 1-3-1OOths of 1 per cent upon the
cost, while the fifth class pays but $40
lOOths of l per cent upon the cost.
1.-The commissioners report further
shows that some of the roads which pay
the triaing sum of SIS per mile in taxes,
and from which the aggregate sum re-
ceived varies from $50 upward, show in
their own reports large earnings, and, in
some cases, that the management of the
roads have been able to pay large divi
dends.
I'm view Of these very noticeable incon-
sistencies, [ recommend that the classif-
cation be abolished entirely, and that a
uniform license fee upon their gross earn
ings be charged all roads doing business
within the State, regardless of what their
mileage or earnings may be. If the 4
per cent fee upon the gross earnings,
which the hrst-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.
Taxation of Insurance Companies.
1.-THE present system of taxing insur-
ance companies is in many ways unsatis-
factory. The inequality of the present
| method can be understood when it is stat
ed that the life and fire insurance COM
panies of Wisconsin, with assets aggre
eating $94 O0O,0 pay but $34, 900 in the
way Of taxes. There will ultimately,
through a tax commission or otherwise,
be determined some just plan for taxing
| Them but in the meantime some of the
unreasonable features of the present sys-
tenn might be dispensed with. Under the
law now in force, fees are collected from
agents, as we'll as from the companies. |
am persuaded it would be wiser, tempo
rarily at least, to abolish all fees in con-
nection with life, fire, accident and cas-
ualty companies, except level license
fee upon the gross premium receipts. A
measure changing the methods thus would
! not reduce in the least the safeguards
now placed around public interests, while
| it would reduce expenses in the insurance
department and largely increase the
! States receipts.
IT may be found that the proper meth
| cd of taxing insurance companies is to
charge fee upon their gross incomes as is
now done in the case of railroads"
The Bonded Indebtedness.
While on the subject of finances Gov
| Scofield says: wisconsin has no bonded
| Indebtedness, technically speaking, and
| yet the State owes ON certificates of in
debtedness 1921 900. This debt was con-
tracted for war purposes between 1861
and 1865. The State first raised money
by selling it's bonds; later these bonds
were redeemed by money accumulated in
the trust funds, and certificates of indebt-
edness given to the several trust funds
representing the amounts borrowed. The
State pays, therefore, on certificates of in
debtedness, lack into these funds, the sum
of $157, 800 annually, the interest being
! at the rate Of per cent. This interest is
one of the items of disbursement from
the general fund"
The state University
Under the general head of educational
interests the following paragraphs APP
pear: THE board Of regents of the State
University report an increase in the en-
rollment of students for the present year
of about two hundred over any previous
year. This is but one indication of the
increasing usefulness of this great insti-
tuition. The university at present stands
we'll up to the front among the great uni
versities of this country, and the citizens
generally, as well as the regents, have
pride in maintaining it's present high
standard In their biennial report, which
will be placed before you the board of re-
gents asks for Il special appropriation of
$33 900 for additions to the dairy depart
ment of the Agricultural College, and
100000 for the erection of suitable
building for the College of Engineering.
The current expenses of the institution
are already provided for by tax levies, per-
manent appropriations and otherwise, and
these amounts asked are exclusively for
the purposes named. am sure that these
requests will receive your careful eonsid-
Tho Nom hers of the hoard of