Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1901-01-09
OUR MADISON LETTER
The Tax Commission Report Is a
Book of About $50
Pages.
coRREcTs THE pREsENTsYsTEM
Tremendous Calculations to Find Out
If Corporations Pay Their Share
Compared 10 Personal
and Realty.

Madison, Wis, Jan. S.--Tomorr0w
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 commission - essrs.
Gibson of Fond du Lac, Curtis OF
Merrill, and Anderson of Milwaukee
Madison, private secretary TO Govern
ors Upham and Scofeld 1t will be u
volume of 100 pages, but it is prelim-
mary to the full report to follow dur
ing the legislative session, which VIII
be a work of 500 to 600 pages. The
commission was Interrupted by the
death of General Griffin on the start,
which necessftated reorganization; Dut
it has done the hardest kind OF work,
and its findings viii enlist the respect
of all acquainted with the splendid
men constituting the commission and
with their diligent endsayor. The
body wisely limited the scope of the
work, which has been in the way oil
investigations to ascertain the right
principles of the taxation of quasi
public corporations. 1t was impossi-
Bile to cover all the field. Tax com
missions have been at work in this
country for fifty years without reach
ing final conclusions.
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 vslue of rail-
road properties discussed. II the real
ty and personal are so many millions
and pay 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
The tax laws of the state will be
get forth and a synopsis Of the pres
ent system Of revenue discussed, first
from taxes and second from licenses.
1t is understood that (. annual re-
ceipts and expenditures ior ten years
have been analysed to secure the ra-
ito of Increase, as a basis for future
financial legislation. This in Itself
win ~ very valuable. for instance, In
curbing unduly large appropriations,
and in directing proper distribution Of
expenditure that the states finances
be not disSrranged. Bank taxation
is discussed with recommendations,
as Is also the taxation of different cor
porations.
1t is believed the data as to cor
porate taxation have been so thor
oughIy gathered and digested--as to
whether corporations are paying their
proportional share-that the finding
WI 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 viii
be all the public expected and, when
read, the skeptical win be satisfied
that the able trio has neither been
lazy nor timid
T. Is not so that the Michigan plan
(which collapsed of assessing railroad
properties as a house and lot is as
sess J is recommended While the
conn 'ssion has some most specific
recommendations, and even radical.
the object in this preliminary report
Is rather 10 correct Inequalities in the
present systemic show what the
railroads and other corporations
should pay. The calculation then be-
comes a matter of revised and not
substituted plan. There may he some
disappointment that the work of the
commission has been concentrated on
a few points, but when It appears
what a vast calcula ton Is necessary
10 establish even elementary factors
in the larger problem, ii Is believed
the commission VIII be CONNER ed
1t win likely issue supplementary re
ports from time to time during the
session and information may be asked
of the commission by the legislature
This preliminary report win he a
summary OF the most important find
tngs.
Taxing Railroad Property.
Nothing would create more warmth
than a movement to radically shift
the plan of railroad taxation. In
Michigan, 1t viii 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 q 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 valorem plan pro-
posed to find the value OF railroad
property exactly as the value OF a
house and lo. is determined. This Is
no easy tasl- Some say that the
value Of a r1ilroad property Is the
sum which It would cost to duplicate
It. While there Is opposition to the
other plan, namely, 10 figure the mar
ket value OF the stocks and bonds,
yet this plan is In favor by many au-
shorities. While panic or boom times
may greatly advance or depreciate the
value of securities, vet by taking the
value for a term Of years and strik.
ing the average, It is reasoned that n
fair valuation may be secured. Rail
road officials almost always deny this
and greatly prefer the present license
fee system, which Is a convenient and
simple plan. The plan of assessing
railroad property locaT? woaG lead
II infinite confusion and Injustice.