Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1902-01-09

migl be enc of the great issues and
to narrow the contest to La Follette's
record as governor and the primary
election law
In view of the cry of opposition
which has gone up throughout the
state over increased taxes, due to the
efforts of the commission, Senator
Whitehead's defense of that body
makes the political situation one of
more completely in some respects.
Senator Whitehead said one of the
big problems Of the tax commission
is how to meet the objection of local
organizations, county boards, councils,
etc, and how to reach the great and
swiftly increasing form of wealth rep
resented in bonds, mortgages and SIM
liar holdings. He does not take a
hopeful view regarding the latter
problem, but believes conditions
should be faced as they exist and that
the efforts should not be relinquished.
However, he believes that the greater
part of property thus represented pays
its tax in some form and that the
evils of this evasion have been great
ly exaggerated. He said in part:
Our rich men are growing richer in per
sonal property. 1t is true that lands are of
more value and that wealthy men hold also
large investments in lands and houses but
the wealth of the country that is Milling Nh
in such fabulous figures comprehends vast
amounts of property that is not in the dirt
NJ nor IN the brick and building material that
is placed on the dirt. 1t is property that is
represented. 1t may be placed in his in
= rl,,rz "1cket. 1t may be stored away in his
stronghold.
Wrath hSSs been poured out upon his head
in torrents and invectiye has siezed him
for the object of its hatred. And yet the
show goes on and the hidden stores are not
broken into by the tax collector, and this
is one of the problems before the tax com
mission, before the legislator before the
citizen, the problem that has baffied the
economist and the student. and appears to
be no nearer its solution when studied to-
day than in the past when such stores were
not so large as they are now.
My own opinion is that the attempt
which have been made to break into these
stores have been futile. they will con-
tinue to be futile, and that the more dras-
tie the legislation aimed at these hidden
stores of wealth the less shall we be able
to say that the efforts made were success
full? | believe that this great common
wealth, with ali its vast possibilities for the
accumulation of wealth, with its inviting
fields for the investment of capital, with
its ample room for these hidden stores of
wealth, should grapple with this problem
and face the conditions they are and
Tor generations have been. and as they are
believed by students of the subject likely
to be for generations to come.
do not believe that we can depend upon
these hidden stores of wealth for the need
ed increase of revenue of our state and the
subdivisions of our state. and l think we
should face the proposition at once. / do
not expect that an immediate solution of
the question can be found. | do not sup
pose that it will be practicable to immedi-
ately abandon all attempts to reach these
hidden stores, but can at least cease to
beguile ourselves with the idea that the tax
collector Will finally break in and find this
hidden wealth and bring It forth 10 the
light and make it contribute to the revenues
said It ought to contribute.
But, in this connection. | desire to say
that, in my judgment. we very much over
estimate the amount of this hidden wealth
which escapes the tax gatherer and which
makes no contribution to the support of the
state. This hidden property is, for the
most part, representative. and it stands for
property which is somewhere taxed. The
shares of Il corporation represent corpora
ton property.
The state may reach that property the
state will in time reach all of that property
and tax it fairly and justly.
Much of this hidden wealth represents
mort ga eS upon land. The land is taxed for
its full value. The mortgages add nothing
to the value Of the land nor to the wealth
of the community. There are diamonds
and watches. fine wearing apparel and other
kinds of tangible personal property. to be
sure, that escapes the eye of the assessor,