River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1899-01-19
GOVERNORS MESSAGE
Gov. Scofield to the Legislature of
Wisconsin.
Gives n Detailed Account of the states
Finances-subject of Taxation
The Pass system and
Lobbying.

The Piss system and
Lobbying.
To the Honorable the Legislature; l de-
| sire first to present for your consideration
| a statement of the fiscal system and the
| financial condition of our state. bothsome-
what more al length than has been the
| custom / think there never has been pre-
| scented to the legislature al the beginning
| of the session an estimate in the nature
| of budget showing the necessary eX-
| penseS for the current biennial period, to-
gether with a statement of the states fixed
| income. Inasmuch as the biennial period
| of 1899 and 1900 has already begun and some
| expenditures for 1t have already been
! made, no accurate or binding statement
| can be given force at this time for the
first half of that period. However it has
| seemed best to me to present these esti-
| mates and statements in the hope that it
| Will become settled practice of the state,
| and that hereafter all appropriations will
be made upon the basis of estimates. and
| be binding to the extent that no consider
! able expenditures can be made in any de-
| partment beyond the estimates furnished
al the opening OF each biennial session of
the Legislature.
The estimated expenses of the state for
| the present biennial period, not including
| any special appropriations which have
been asked and to which reference will
| be made later, are $6,S7I. 372; while the esti-
mated income for the same period is &c.
| $50 $50. Assuming that these figures are
correct, there would be a deficit at the
end of the biennial period of $4G522. This
deficit is not so great, however, but that
by the strictest economy it is possible 20
carry on all departments of the state gov
eminent for the present biennial period
| without provision being made by the legis-
lature for an increase of revenue.
There are asked, however special APP
| preparations amounting to more than $780,
| 600, which you will be called upon to con-
| slider. These special appropriations are:
! 100000 by the board of control, half of
which sum is asked for additional build
| ipgs for the new state reformatory; $780,
| 900 for completing the state historical
! building; $4,000 by the agricultural de-
partment of the State university; 100000
| for the erection of a suitable building for
| the College of Engineering of the uni
versity and $4,000 by the normal schools,
| besides an appropriation for the tax COM
mission, to reimburse the trust funds for
the loan to the Agricultural society, and
smaller amounts for other purposes. If
all or any of these appropriations are
made, it will be necessary for the legis-
| lature TO provide by special tax levy, or
otherwise, the money to meet them.
l recommend that hereafter all appro-
| priations made by the legislature be upon
| the basis of such budget as is here pre-
| sented and which in the future it will be
possible to make more accurate than this
| one; and that the difference between the
fixed receipts and necessary expenditures
be raised as one tax, instead of being di-
yided into a number of special levies.
l am convinced that while the license
| system of taxing certain corporations now
in force is the most practicable method
| yet evolved, IT yet has elements of unfair
ness and inequality which might. partially
al least, be eliminated There are certain
foreign corporations doing business within
| the state which | believe are not paying
| their share of the expenses of the gov
| eminent. Among these are insurance com
| panies, the sleeping car companies and eX-
! press companies, Then there are the trust
companies and insurance companies of our
| own state, which do not seem to be fairly
| taxed when compared with other large cor
! poration Our present graded license sys-
| tenn of taxing the railroad companies con-
| tains some glaring inconsistencies The
| class of roads which pay four per cent.
of their gross earnings pay the equivalent
! of a rate of forty-hundredths of one per
cent. upon the cost of the roads The
class which pays three per cent of their
gross earnings pays but twenty-eight one
| hundredths of one per cent. upon the cost.
| Another class pays but four and one-thtrd
| one-hundredths of one per cent. upon the
cost; while sIIll another class pays but one
/ and eight-tenths one-hundredths of one
| per cent upon the cost.
The commissioners report further shows
that some of the roads which pay the
triflng sum of five dollars per mile in
| ta xes, and from which the aggregate sums
| received vary from $50 upward show in
their own reports large earnings, and, In
some cases, that the management of the
roads have able to pay large dividends.
In view of these very noticeable incon-
| sistencies / recommend that the class-
fication 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 four
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.
1 have already referred to the fact that
the sleeping car, express, insurance and
crust companies 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 Wis
consin, and l realize that 1t will be difficult
to reach fair basis upon which to tax
| them. But, until such basis has been
| reached, l recommend that these COM
panies 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 ii is accessible, should be
erty of a lumber company or any similar
! corporation.
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 $94, 000, 900,
pay but S34 900 in the way of taxes. There
| will ultimately, through tax commission
or otherwise, be determined some just plan
for taxing them, but in the meantime some
/ of the unreasonable features of the pres
ent system might be dispensed with. I'm
der the law now in force, fees are collect
! ed from agents, as well as from the com
panies. L am persuaded it would be wiser,
| temporarily at least, to abolish all fees in
connection with life, fire, accident and
casualty 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.
Treasurer's Statement.
The following statement prepared by the
state treasurer shows the balances in the
several funds in the state treasury at the
| close of business December 81, 1898:
! Balance on hand in
state funds. ............ S571, $50 03
| Balance on hand in spe-
! clal funds.-.............. 76,44l %
Cash in state depos-
tories ................ s6S9. S95 50
Cash in state treas
ury .................... s,112 IS
s64S.OO7 % s64S. Oo7 IS
Grand total invest
ments ............. s5.537. 5O4 90
OF securities which are credited as
/ having been paid during the quarter
| ending December 81. 1898. there were three
loans to the state agricultural society.
which merged into real property by reason
of foreclosure of the mortgages held by
| the state. The property which the state
acquired is not considered in the foregoing
statement of investments. The loans were
as follows:
LOANS. DECEMBER 81, 1895
General Fund.
| State agricultural So
ciety ............. $50 100000
! State agricultural So
ciety ..................... f7,7S2 03
School Fund
State agricultural society. 90.666 %
! Total .SlbS,44 "
! SUMMARY TOTAL OF RESOURCES.
4 School Fund.
/ Cash on hand ............. s259. 947 %
! Securities and dues on
! land certificates. ......3, 207,199 ga
! University Fund
/ Cash on hand ........ s57 534 %