The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1901-01-11
Our MADISON LETTER
The Tax { commission Report Is a
Book Of About $50
Pages.
CORRECTs THE PRESENT SYSTEM
Tremendous Calculations to Find Out
if Corporations Pay Their Share
Compared to Personal
and Realty.

|
the legislature meets to be in session
for about 100 days. AT noon will be
presented TO the Legislature the re-
port of the tax commisssiOn-Mes
Gibson Of Fond du Lac, Curtis of
{ Merrill and Anderson of Milwaukee,
Madison, private secretary to Govern
ors Upham and Scotield. 1t Will be a
, volume Of $50 pages, but it is prelim-
! mary 10 the full report to follow dur
ing the legislative session, which will
; be d work of 800 to 600 pages. The
commission was interrupted by the
death of General Griffin on the start.
which necessitated reorganization; but
it has done the hardest kind Of work,
and its findings will enlist the respect
of all acquainted with the splendid
men constituting the commission and
with their diligent endeavor. The
body wisely limited the scope of the
; work, which has been in the way OF
Investigations to ascertain the right
principles OF the taxation of quasi
public corporations. 1t was impossi-
bic to cover all the field. Tax COM
missions have been at work in this
country for fifty years without reach
ing final conclusions.
j So the first question to which the
commission addressed itself was, Are
the corporations paying their just
share? To ascertain this it was nee
essary to find out what real and per-
sonal property pays in Wisconsin.
This was an enormous calculation and
required two and three persons time
for six months. The hearings of the
railroad experts are summarized in
the report, and the methods and re-
suits of ascertaining the value of rail
road properties discussed. II the real
ty and. personal are so many millions
and pay q certain sum, the railroads
being worth an ascertained amount
should pay pro rata. The inquiry,
covering the records of every county
in the state for a term of years, show
ing selling values Of property as re-
lated to assessed value Ito ascertain
average of assessment is said to have
been most thorough, and the results
reached most important. The findings
as to personal property escaping tax
alton will attract national attention.
The tax laws of the state will be
set forth and a synopsis Of the pres
emit system of revenue discussed first
from taxes and second from licenses.
1t is understood that the annual re-
ceipts and expenditures for ten years
have been analysed to secure the "a
ito of increase, as a basis for future
financial legislation. This in itself
will be very valuable, for instance, in
curbing unduly large appropriations.
and in directing proper distribution Of
expenditure that the states finances
be not disarranged. Bank taxation
is discussed with tons.
as is also the taxation of different cor
porations.
1t is believed the data as to cor
porate taxation have been so thor
oughly gathered and digested-as to
whether corporations are paying their
proportional share-that the finding
will be epochal and curiosity on this
point is naturally keen. The commits
sion has sought to establish facts and
suggest remedies. In these regards
the report of the tax commission will
, be all the public expected and. when
read. the skeptical will be satisfied
that the able trio has neither been
lazy nor timid.
! 1t is not so that the Michigan plan
(which collapsed) of assessing railroad
properties as house and lot is as
sessed is recommended. While the
commission has some most specific
] recommendations. and even radical,
! the object in this preliminary report
i Is rather to correct Inequalities in the
! present systemic show what the
! railroads and other corporations
! should pay. The calculation then be-
comes matter Of revised and not
substituted plan. There may be some
disappointment that the work of the
commission has been concentrated on
few points. but when it appears
what vast calcula ton is necessary
to establish even elementary factors
in the larger problem. it is believed
the commission will be commended
, 1t will likely issue supplementary re-
ports from time to time during the
! session and information NAV be asked
Of the commission by the legislature
| This preliminary report will he a
| summary of the most important find
ings.
Taxing Railroad Property.
Nothing would create more warmth
than a movement to radically shift
the plan of railroad taxation In
Michigan. it will be remembered that
| the Republicans promised to tax roads
| in that state on the ad valorem basis
| The Legislature failed to do this and
Pingree called a special session to
vote upon the proposed amendment to
the state constitution. to which both
parties were pledged-to tax the rail
roads upon their cash valuation The
| plan failed again.
In this state the railroads are taxed
| on the license fee system. railroads be-
ing classified according to their gross
earnings. The ad valorcm plan pro-
posed to find the value Of railroad
| property exactly as the value Of a
house and lot is determined. This is
no easy task. Some say that the
value Of a railroad property is the
sum which 1t would cost to duplicate
! it. While there is opposition to the
other plan, amely. to figure the mar
ket value of the stocks and bonds.
yet this plal is in favor by many au-
thorities. While panic or boom times
| may greatly advance or depreciate the
value of sec ,rities. yet by taking the
| yalue for a rerm of wears and Strik-