Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1901-01-17
INAUGURAL MESSAGE BY
Gov ROBERT NJ. LA FOLLETTR

~
duties of the commission and economy ia
the state is the transfer Of all statistical
work TO the bureau of statistics.
10 obtain the best results, it seems to
me the commission should be free to give
thelr Tune wholly to the vigorous enforce
nienl or existing law, critical study of
us practical operation and the develop
ment OF better methods suggested by in
telligent and discriminating observation
and experience
In extending the term of service over a
period of ten years and fixing the salary
of the commissioner at $1,000 and the
two assistant commissioners at $4,000
each, the Legislature was undoubtedly
prompted by the desire to attract to this
service men of ability and fitness, such
as the work demands. 1t does not. how
ever, appear reasonable that it should
require ten years to revise the tax sys-
tenn, or that when a revision has been
completed by the Legislature that it
should require the services of the COM
mission as standing committee on re-
vision for six or eight years thereafter.
The period covered by two biennial ses-
slons Of the Legislature would appear
to be generous allowance of time for a
thorough and complete performance Of
all the work contemplated by the law.
1t is in no sense a disparagement Of
the value of the commissions services, or
the Importance of the work, which
prompts me to recommend that either the
powers and duties Of the commission be
greatly extended or that the term of SER
vice be shortened to a time consistent
with the accomplishment of the duties
defined by the law as it now stands.
That the law with respect to the as
sessment Of all property can be so
amended, supervised and enforced as to
secure uniformity of assessment and
enormously increase the tax upon classes
Of property which now escape wholly or
in part, there ms not the slightest reason
to doubt.
One of the questions you will have to
determine in dealing with this subject is
whether railway companies shall be tax
ed directly by assessment upon the value
Of their property, or whether they shall
continue to pay under the license sys-
tenn a certain percentage upon their gross
earnings. The strong objection to a Ii
cense fee upon gross earnings is that it
allows the corporation to make its own
report of the amount of its gross earn
ings, or, in other words, to assess itself.
1t is but just to note in this connection
that the railway companies have been
fairer than the average Of individuals,
who, as to the great mass Of personal
property, assess themselves; the percent
age of assessed Of market value Of the
railways being 20 800 as against
II 9-1OO for all other personal property
in 1899. In no case, however, should the
assessment be left to the taxpayer,
whether corporation or individual, with
out some check Or safeguard for the
State.
With no other class of property is
there presented so fragrant an example
of open disregard Of the law as in the
case Of bonds, mortgages, securities, and
the average amount Of money in posses
sion and on deposit. A conservative es-
innate, based upon the latest accessible
data together with the census figures for
1890, show real estate mortgages IN
Wisconsin amounting to S11O,O0O,OOO.
This takes no account Of unrecorded Sc
curities, computed at S160,OOO,0OO. 1t
is therefore safe to say that not over 3
per cent of the taxable notes, bonds and
mortgages in the State pays any tax
whatever. The average amount of money
in possession and on deposit which the
assessor succeeded in finding and return
ing as taxed in 1898 was only 81, 163, 444.
On the first Monday in July, 1898, the
State and private banks alone reported
TO the State Treasurer money on de-
posit'' amounting to $4O,976,312.7O. The
report of the United States Comptroller
of the Currency shows that on the 9th
day of May, 1898, the very month in
which assessments were made, there
was in the national banks of Wisconsin
SAG, 224, POI .43. Or in both national,
State and private banks on these two
dates in 1898 an aggregate of $ol,ZOo,-
1880. More than $SO,OOO,OOO OF this
money wholly escaped taxation that year.
| know well it is urged that any at
tempt to place these Sinking millions on
the assessment rolls will be wholly fu-
tile. and end in paying premium on per
iury increasing the interest rate and
driving money out Of the State. But II
# IS driven out of the State, where VIII
# 90? In every State i'll the Union to-
dav public sentiment is strongly aroused
and organization everywhere moving to
make all taxable property, individual ana
corporate, meet its assessments and pay
It's taxes On all sides laws are being
revised, and, in some States, constitution
NJ amendments are being adopted to Sc
cure this result. It is reasonably GER
TAIN that the day is at hand when no
State in the Union will offer an asylum
Of refuge for capital seeking to evade
+ba nayment of taxes.
II is asserted that it will raise the in
forest rate to make money and mort
cages pay taxes. Possibly 1t may increase
the interest rate somewhat TO enloiee
tho law as to money and mortgages.
whatever may be the exact fact as TO
tha effect on interest rate as between the
narrower and lender, the principle IS TO
be commended, because it taxes each
man justly on the record. The mort
oocor has to the extent OF the mortsase
parted with an interest IN the reai $50: $50.