Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1902-10-08

| opinion upon the corporation Slue VI
| any question which is presented. Pos
| ing as private" citizens the weight OF
their position and influence in the com
| r'unity is made TO appear 'dislntefested
| and TO count strongly for the corporation
| upon any matter or thing in which It's
| interests are involved, from railway
crossing TO the quiet organization OF c
| local and secretly-conducted campaign lii
| opposition to railway tax bills. Ihese
very discreet and unannounced agents
Of the corporation are useful in silently
directing the sentiment Of the Shippers
of a community in such way as TO pro-
mote railway interests. Votes were
changed upon the railway bllls III Inc
last Legislature by drawing upon the
shippers who receive special favors and
alarming others who were in position,
as they mistakenly supposed, 70 be M
jured by threats of advanced freight
rates, to bear down on their representa-
tives in the Legislature to vote against
the railway tax bills. In consequence
many members were surprised and be-
wildered at the solicitude for railroad in
terests suddenly made manifest by GER
tain of their constituents. Could they
have known the inspiration and true
source Of this apparent concern on the
part of these gentlemen, and the reluc-
lance with which they aeceded to these
demands, their letters and kilograms
would have had much less weight in aid
ing to defeat the taxation bills. In some
instances Legislators themselves were
threatened directly with business ami
hilation unless they ceased their support
of the taxation bills. Members, whose
business interests were dependent upon
ira lsportation rates, who favored and
proposed to vote for the tax commission
bills, assert that they were ordered to
vote against them or suffer the conse-
quences of extortionate freight rates
which would destroy business. 1t mat
tered not that the companies back or the
lobby agents might not attempt TO exc
cute these threats it mattercd not that
to DO so would violate express statutes
enacted TO prevent determinations; 1t
matteFed not that the members might
have known that AT the end Of protlacted
litigation they would get redress for such
WRONGS it was easier for them to avoid
such contest and yield to such demands
even at the sacrifice of their indepen-
dence and the future support OF their
constituents.
Mark you, this arrogant and repre-
| hensibe conduct Of the corporation lob
| by was not employed to defeat legisla-
! ton conceived in hostility and framed
! by demagogues to cripple public-seryice
corporations and advance selfish polt-
| ical interests. These threats were made
! to defeat bills drawn by a non-partisan
| commission of experts, after patient and
| thorough investigation, and so con ierya-
| lively drawn as 10 exact less than the
| corporations propOrtionate share of the
| general tax burden. This was not the
| desperate defense Of corporation. tight
! ing with fair and lawful weapons to
| maintain the right and protect their in
| terests from unjust encroachments. This
| was the unlawful use Of great powers
| which had been given to them by the
state for the general gooI, aud now em-
| ployed by them to pcrpetuate wrong
/ nganst the state. This was compelling
| the citizen who had been robbed to aid
in further plundering himself and his
neighbors.
Value of Railroads in Wisconsin.
| These corporations cannot plead that
| they are TOO poor to pay. Their Wis
| consin lines are worth in the worlds
| markets tomorrow, Mt quick sale, any
! where from $25S,000,0 600 to S309,0O0-
| 600. This is easy of demonstration as
: 4 business proposition.
|&na The average net earnings of the rail-
- in Wisconsin for the last three
are SO, 4S3,T62 per year If this
I'm is capitalized at 6 per cent, which
~ / per cent. above the current rate Of
n interest, the earning value of the roads
- 6 per cent. b. sis is obtained. This
Tue Is N--tBl1.tp-- AbDs III OLHeF MoTuS,
the past three years the Wisconsin
/ mes have earned net sum that is equal
| to g per cent. on $20S, 062. 700.
! If the average net earnings is capital
( lied at 3 per cent, which is nearer the
! market rate OF interest, it shows the
| earnings value of these Wisconsin rail-
| roads to be 5000 .675.2 40. In other
| words, the roads earn on the average >
! per cent. net on that sum.
| Thu tDV tntnfui saiou ninn1 the
| actual value of all he stocks and bonds
| by taking the average OF sales. not for
| one year. but for the last FIVE years, in
! order that no injustice might be done.
! Calculated upon the five year basis the
| value OF the roads is found to be SILL
995 rs; upon three year average
| S23l $50 ,40l, and upon the average
sales of Il year S252, 31S,7T6
Approved by the U. S. Supreme Court.
The method of ascertaining the value
Of corporate property for taxation is
| distinctly approved by the supreme
court Of the United States in 81 L. s.,
600, where it is said by Mr.. Justice
Miller:
ut is therefore obvious that when you
have ascertained the current cash value
Of the entire number of shares, you have
| by the action of those who above all
others can best estimate it, ascertained
the true value Of the road, all its prop
erty, its capital stock and its franchises
for these are all REPRESENTED by the value
of its bonded debt and the shares of
its capital stock"
And in a later decision in the same
court Mr.. Justice Brewer in 166 L. s.,
! 1875. said:
Now, this is cardinal rule which
| should never be forgotten. that whatever
| property is worth for the purpose of in
| come and sale it is also worth for the
/ purpose Of taxation The value
which the property bears the market
the amount for whic.. it's stock can be
bought and sold, is the real value. Bust
| ness men do not pay cash for property in
moonshine or dreamland. They buy and
| pay for that which is OF value in its
| power TO produce income, or for pur
! poses Of sale. In conclusion, let us say
t,Int this is an eminently practical age;
! that courts must recognize things rs they
| are and as possessing a value which Is
| accorded to them in the markets of the
! world, and that no hne-spuL theories about
! situs should interfere 10 enable these
! large corporations. whose business is car
| rled on through many states, to escape
| bearing in each state, such a burden as
! fair distribution of the actual value of
their property among those states re-
| qulre.'
In the two years that have passed since
| the tax commission made its calculation
the bonds and stocks of these roads have
steadily risen in value. Their earnings
| increase, their profits are mounting high
er and higher. From the financial re
| ports the two principal roads of the state
l quote the following:
Report TO Stockholders.