Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1899-03-15

cent lee appneS only TO those roads earn
ing $4,000 or over per mile. Those roads
earning less than $4,000 and over $500 q
mile pay 315 per cent; those earning less
than $4,000 and over $4,000 mile pay 3
per cent: those earning less than $1,000
and over $500 mile pay s. n mile and
212 per cent. Of their gross earnings in
excess of $500 a mile. while those earn
ing less than $500 Il mile pay the state
20 mile Of their road operated. AS the
purpose of these articles is to state only
facts, 1t IS but fair that even such a
trltflng error be corrected and the readers
be given clear understanding Of the
exact facts.
In this connection it is of interest to
know how many railroads in the state
earned SoOOO or over Il mile. The report
of the Wisconsin tax commission, recent
ly issued, gives the figures for 1897.
From them it is seen that of the 1884
miles in the state, $3.50 miles, owned by
twelve companies, showed average gross
earnings of $1,000 or over per mile that
year. From the same authority it is
learned that there were 42O miles owned
by eighteen companies that earned less
than $1,000 a mile. leaving 596 miles
earning between $1,000 and $4,000 a mile
This figuring, however, is upon q basis of
entire systems. Reports of the large
companies show that a large part of their
total mileage does not earn $4,000 a year
per mile, but that the general average is
made up by the bettcr-paying lines.
Few Earning Dividends.
There are forty-three railroad compa-
MES operating in this state. Aside from
the Chicago & Northwestern and the
Chicago, Milwaukee & ST. Paul, there
are probably not more than two or three
that have ever earned their stockholders
any dividends. On the contrary, the pub
lie is we'll aware many of them have
been placed in hands of receivers be-
cause of their inability to earn sufficient
to pay interest on their bonds, TO say
nothing of their inability to earn any
thing for their stockholders. 1t is claimed
on good authority that the Chicago, Bur
HngtOn Il Northern, which is regarded
as a good line for through business, has
never been able to earn any dividends for
its stockholders. Records show that even
the Chicago & North Western, the very
best Of the lot, was only able to earn 4
per cent. for holders of its common stock
i'll 1895 and but > per cent. since then,
while it is well known that the Chica go,
Milwaukee & st. Paul has been unable
to earn anything for holders of its COM
mon stock in at least four or five of the
last ten years. With such roads as these
unable to do more than this, it does not
seem strange that the weaker roads find
it difficult to pay operating expenses. At
best they seem to be but poor invest
ments for their owners, yet highly i'm
portant aids in developing the state.
Pay Local Taxes Also.
There is general impression that the
per cent of gross earnings constitutes
all of the taxes the railroads pay Such
is not the case, however. The per cent.
tax relieves them from taxation by as
actually used in the operation of the
roads. They are taxed by local assessors
throughout the state upon all other prop
erty they own, even upon strips of land
lying between their parallel tracks,
which they have had to buy III securing
rights of way, as well as upon their wild
lands and grain elevators i'll cities. To
illustrate this point, here is list of
taxes the Chicago, Milwaukee & ST.
Paul company has paid in local assess
ments in Milwaukee, upon its elevators
and other property, not regarded as used
strictly for railroad purposes, in the last
1890 49,. 17,474 8918a5 ...... S146Os. IS
1891 w 22.3149l 1896 ... 164O5. IS
1892 ...... 21.11404i 1897 ...... 1883. G6
1898 1I,752 20I1S9S 800. 1S,416.04
1894 .. 21.31143
Total paid city in nine years. .S163 $50. So
Besides this. Milwaukee received it's
pro rata of the company's 4 per cent
tax on gross earnings paid to the state
each year. The cOmptrollers report
shows that Milwaukee's share of this re
ceived for 1897 was 060S.92, while
the city's share of the Chicago & North
Westerns license fees for the same year
was So, 1921, making the city's share
of the license fees of these two roads, in
the one year S153,071 SO. From all
other corporations paying license fees to
the state in lieu Of taxes, such as life
and fire insurance companies, trust COM
panies, electric railroads and lighting
plants, Milwaukee's share was but Sill,
542.0S And Milwaukee has some pretty
wealthy insurance companies.
Conclusions OF Tax mmission.
The report Of the Wisconsin tax COM
missioner for 1898 recently published
and submitted to the state Legislature
contains some important conclusions and
suggestions upon the question of taxing
railroads. 1t says
wisconsin was one of the early states
to adopt the method of taxing railroads
Oh the basis of gross earnings and our
experience has been freely and fayOrably
commented upon by the residents OF
other states in which railroad property
was assessed by local officers.
Most of the states have come to act
on the theory that it is impracticable to
have this kind of property assessed eX-
clusively by local assessors and III con-
siderable number of states the earnings
of railroads are made the basis Of deter
mining the amount of tax.
cit is now generally conceded by econ
omists and practical legislators that there
are serious difficulties in the way of as
sessing railroad property in the same way
as other property. The fact that al
though railroad extends through many
towns and counties and even into differ
ent states, it should still be treated as
one line and should not be divided is
we'll recognized by the courts and rests
on plain grounds of public policy. 1t is
very evident that this form of property
would be likely to be assessed on many
different theories if left to local asses
sors, and that the opportunities of such
officers to ascertain the relative values
of different parts OF the line are compare
lively limited
by the present mode of taxing rail-
roads IN Wisconsin every taxpayer in
the state shares in the benefits derived
from the tax. In the year 1897, 81 ,265,-
O94.54 were paid into the general fund
Of the state in the form of licenses or
taxes. This, Of course, was exclusive
of the taxes paid in the various locali-
ties on lands owned by the railroads but
not used for railroad purposes. THESE