Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1899-01-19
PASSES AND TAXES
9TH DISCUSSED IN THE GOV
ERNOR'S MESSAGE.
NEEDLESS LAND OFFICE
It's Effacement Advised-Exhaustiv
Consideration of Fiscal Affairs
Laws Against Lobbying-Favorable
View Taken of the Budget Plan of
Controlling Expenses.

View Taken of the Budget Plan OF
Controlling Expenses.
Madison, Wis, Jan. 12.-Gov. Scoheld'
biennial message read to the legislature to-
day was one of the longest and most COM
prehensiye TO which any executive OF thls
state ever attached his signature A very
| exhaustive explanation OF the state IS nscal
| system is given. At the opening the gov
| ernor says he is "impelled to suggest-al-
| though an innovation upon established
| practice-that it would be an advantage to
| the legislature and also TO the incoming
! executive If it were the duty, Oh the retlf-
| ing governor to address to the legislature
a message, covering fully the condition OF
| public business, with such recommends
| tons as his experience and observation IN
| The experience and observation OF an eA-
! ecutiye who has served two or four years,
| and embodied in such message, could nor
! fail to be beneficial to the legislature and
| helpful to his successor. This 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; ana YET the s aI,
0 0%e en- ns dn6f OF for war
| purposes between 1861 and 1859, The
| state first raised money by selling its
| 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 Sl3i, QUO an.
nually, 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-,
ceipts and disbursements of the various de
partments, that it is necessary, If the
! legislature is to vote intell1gently upon APP
preparations, to have prepared for each
! legislative session such a statement He
hopes that it will become settled practice
| of the state that all appropriations VIII be
| binding to the extent that no considerable
expenditures can Ye made in any depart
| ment beyond the estimates furnished at the
opening of each session OF the legislature
| The governor virtually proposes "a budget
| for the rest of the present biennial period
| This allows the university the Sl6o0Ou Tor
the years of 1S99-1900 that has already been
| provided S1,590,O00 for the common
| schools for the period, and it too has
| been provided; S640.000 for the normal
schools, already provided; 1929, 23S for
the board of control for general admins
trative purposes 50, 149, 776, for the courts
$226.o3S and for the legislature s211, 219-
total of $6S77,373 for the present ben-
NAL period. careful estimate of the
probable total income, based upon the re-
! ceipts for the last few years and including
one years receipts from the special tax
| levy made to reimburse the general fund In
1897, aggregates $3.50 $50 In this
| amount there is not included the money re-
| ceived from counties for care of their own
| insane in other county institutions: as the
state in this particular acts merely as a
| clearinghouse for those counties. paying
| each the amount due on this account: Dut
| there is included an amount of 1851 900,
| which it is estimated Will be received by
the treasurer from charitable and penal
| institutions and from counties for main
| tenance of their insane in the various state
Institutions, Thus there is shown ho to be a
amounting to more than 100000. These
are: 100000 by the board of control. half
of which is asked for additional buildings
for the state reformatory; S25O,00O for
| completing the State Historical building !:
$4,000 by the agricultural department OF
| the university: 100000 for the erection Of
| suitable building for the college of engi-
| ueering of the university and SO 600 by
the normal schools. besides an appropra-
ton for the tax commission. to reimburse
| the trust funds for the loan to the agricul-
| tural society. and smaller amounts for
other purposes If ALI or any of these APP
| preparations are made, it will be necessary
| for the Legislature to provide by special tax
| levy or otherwise the money to meet them.
/ am convinced, says thu. governor. that
while the license system of taxing certain
| corporations now in force is the most prac-
| ticable method yet evolved; 1t yet has ele-
,nts of unfairness and inequality which
| might partially at least be eliminated.
| There are certain foreign corporations do
| ing business within the state which be-
lieve are not paying their. share of the ex-
| penses of the government. Among these
| are hsurance companies the sleepfng-car
| con mics and express companies. Then
there are the trust companies and insur-
| ance companies of our own state. which do
| OF seem to be fairly taxed when compared
| with other large corporations. Our present
graded license system of taxing the rail-
| road companies contains some glaring In
| consstencies. We have under this system
| five classes of roads the classification being
| based upon the earnings per mile. The first
nor
| Ings: the second is taxed 3 IL per cent.
the third g per cent: the fourth pays 50
over $1,000 per mile up to $4,000 pei, mile.
| The fifth pays So per mile only.
The class of roads which pay per cent.
Of their gross earnings pay the eqa f
cent. upon the cost Of the roads; The
third class. which pays per cent; of their
gross earnings: pays but twenty-elght one
hundredths of I per cent. upon the, cost.
The fourth class pays but four and one
third one-hundredths of / per cent. upon
the cost while the fifth pay but one ana
upon the cost. Some of the roads, which
pay the trihing sum of So per mile in taxes,
and from which the aggregate sums re
ceived varies from $50 upward. show in
| their own reports large earnings. and. In
! some cases, that the management or 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 a uni
| form license Zee upon Cnelr gross earnings
| be charged all roads doing business within
! the state, regardless of what their mileage
| or earnings may be. If the per cent. fee.
| which the first-claSs roads now pay, were
| charged all of the roads. the income of the
state would be largely increased.
| The trust companies are somewhat of an
| experiment in Wisconsin. and ! realize that
it will be difficult to reach fair basis upon
which to tax them. But. until such a
basis has been reached. / recommend that
these companies be taxed as other COM
panes are. upon the property they own
for there is no reason why the property of
a trust company where it is accessible
should be exempt from taxation, more than
the property of a lumber company or any
similar corporation. | am persuaded it
would be wiser. temporarily at least. TO
accident and casualty companies, except q
level license fee upon the gross premium
receipts. It may be found THAI the proper
method of taxing insurance companies is to
charge fee upon their gross incomes as is
now done in the case of railroads.
The governor reiterates his declaration
that sleeping 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. It is possible that the best mode |
Of reaching them is through a charge upon |
their gross earnings within the state, |
whether it be called license fee or tax. |
It it be found that this method cannot Sc
fair amount. there still remains the |
method of assessing them by what is known !
the unit rule which has been sustained i
by the supreme court of the United States |
IA case from Ohio
After an elaborate fiscal exposition the /
ARM Lot bot q <