Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1899-01-19

nrebensiye to which any executive OF TINS
state ever attached his signature. very
exhaustive explanation of the state hscal
system il given. At the opening the gov
.Tnor says he is 'lmpeled to suggestIal,
though an innovation upon estaDllsheu
prnct ice-that 1t would be an advantage 10
fhe legislature and also to the incoming
executive If 1t were the duty OF the Tetlr-
ing governor to address to the legislature
message covering fully the condition OF
public business, with such iccommehda-
lions as his experience and observation IN
office might commend to his judgment
The experience and observation OF an eN-
ecl,tiyr who has served two or four years.
and embodied in such a message, could not
fail to be beneficial to the legislature anu
helpful to his successor. TINS Would not
in any wise supersede the message OF the
incoming governor.
The sources OF state revenue and the
channels Of expenditure are next noted.
Wisconsin has no bonded Indebtedness
technically speaking, and yet the STATE
owes on certificates Of Indebtedness S2,25l.-
900 This debt was contracted Tor War
purposes between 1861 and 1850: 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 Indebtedness given to
the several trust funds representing the
amounts borrowed The state pays, there
fore. On certificates Of indebtedness, back
into these funds, the sum OF Sl5I 900 an
nualy the interest being at the rate of
seven per cent.
The governor favors the budget system
that is it seems to him, in studying the re-
cefpts and disbursements of the various de-
partmcnts, that II Is necessary. If the
legislature is to vote intelligeuty upon APP
preparations to have prepared for each
legislative session such n statement lie
hopes that Ii will become settled practice
Of the state that all appropriations VIII be
made upon the basis Of estimates, ana be
binding TO the extent that no considerable
expenditures can be made In any depart
mpnt beyond the estimates furnished at the
opening of each session of the legislature.
The governor virtually proposes budget
for the rest of the present biennial period.
This allows the university the S16O,0OO for
the years Of 1890 1900 that has already been
provided $l,j9O,000 for the common
been provided S640.0OO for the normal
schools. already provided S1.200,23S for
the board Of control for general admins
tratiye purposes 81. 140.776. for the courts
$40 53S and for the legislature S2ll.219 -
total of S6S7I,3I3 for the present bien
NAL period. \ careful estimate of the
probable total income, based upon the re-
cepts for the last few years and including
years receipts front the special tax
levy made to reimburse the general FUND IN
amount there Is not included the money re-
ceiyed from counties for care of their own
insane in other county institutions, as tht
state In this particular acts merely as q
clearing house for those counties. paying
each the amount due on this account but
there Is included an amount of 1857 900
which Il Is estimated will be received by
the treasurer from charitable and pena
institutions and from counties for main
tenance of their insane In the various state
institutions. Thus there Is shown 10 be 4
small probable deficit Of $46,522.
There are asked special appropriation
amounting to more than 100000. These
are S30O,000 by the board OF control, hal
of which is asked for additional huilding
for the state reformatory S2aO,uuO fo
completing the State Historical building
$4,000 by the agricultural department %
the university 100000 for the erection u
suitable building for the college OF cngl
neerng of the university: and So oao ~
the normal schools, besides an approp'in
tion for the tax commission. to reimbucS
the trust funds for the loan to the agrlcul
turul society, and smaller amounts TO
other purposes. II all or any of these mp
preparations are made, Il will be necessary
for the legislature to provide by special tal
levy or otherwise the money to meet them
am convinced, says the governor, that
while the license system of taxing certain
corporations now In force Is the most prAc
tlcnble method yet evolved, Il yet has cle
ments Of nnfnirness and inequality wh'cl
might, partially at least be eliminated
There are certain foreign corporations do
ing business within the state which | he
lleve are not paying their share of the eN
penses of the government Among these
are insurance companies the sleeping car
companies and express companies Then
there are the trust companies and insur
hnCe companies of our own state, which dt
not seem to be fairly taxed when compared
with other large corporations our present
graded license system OF taxing the rail-
constituencies. We have under this system
Ave classes Of roads. the classification betns
based upon the earnings per mile. The hrst
class pays I per cent, upon Its gross earn
ings the second is taxed I . per cent.
the third per cent the fourth pays 81
per mile and IL per cent. on all earnings
aver 81 500 per mile ~ 90 S2.000 per mile
The fifth PAYS 81 per mile only.
The class Of roads which pay per cent
of their gross earnings pay the equivalent
of a rate of forty-tive hundredths Of | pei
third class. which pays per cent. Of theil
gross earnings pays but twcntN-etCht one
The fourth class pays hut four and one
third one undredths of | per cent. upon
the cost while the NTH pay hut one nnj
eight-teuths one-hundredths of | per cent
upon the cost some Of the roads whlcl
pay the tritiing sum of 50 per mile In taxes
and from which the aggregate sums re
ceived varies from 500 upward. she" n
their own reports large earnings, and IL
some cases. that the management Of tn,
roads have been able to pay large dividends
In view of these very noticeable incop
sistencieS recommend that the classified
tion be abolished entirely and that q uni
form license fee upon their gross earnings
be charged all roads doing business within
the state. regardless of what their mileage
or earnings may he IL the per cent fec
which the frst-claSs roads now pay wer,
charged all Of the roads the income Of the
state would be largely Increased.
The trust companies are somewhat of ~
experiment in Wisconsin and ] realize that
II will he difficult To reach fair basis uuOi
which to tax them. Rut. until such
basis has been reached. ! recommend that
these companies be taxed as other com
panies are. upon the property they own
Certainly there can be no Injustice In this
for there is no reason why the propcrty 81
a trust company. where Il is accessible
should be exempt from taxation more thar
the property OF lumber company or any
similar CORPORATION. am persuaded II
would be wiser. temporarily at least C
abolish all foes In connection with life fire
accident and casualty companies. except d
level license fee upon the gross premium
receipts. II may be found that the proper
method Of taxing Insurance companies Is e
charge a Zee upon their gross Incomes as Is
now done in the case of railroads.
The governor reiterates his declaration
that sieeping car and express companies
should contribute through taxation their
fair proportion to the EXPENSE of the state
government. That they do not now do so
Is obvious. / most earnestly commend this
subject to your prompt consideration and
action II is possible that the best mode
of reachiaC them Is through charge uDan
their gross earnings within the state,
whether e be cali cd license fee or tax.
II It he found that this method cannot Sc
cure from these nonresident corporations
a fair amount. there still remains the
method Of assessing them by what Is known
as the unit rule. which has been sustained
BY the sunreme court of the United States
In case from Ohio.