Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1903-02-14
LICENSE FEE SYSTEM.

LICENSE FEE SYSTEM.
In explaining the taxation of railways
and of some other corporations that pay
the so-called license fees, the Tax Commits
sion on page 20 of its first annual report
said: Certain classes Of corporations or
persons engaged in quasi-public enterprises
are required to contribute to the puDlc
revenues amounts not measured or appor-
toned by property Valuations but, usually,
by fixed percentage of the income pro-
duced from operation Of the business en-
gagged in. Generally 1T is In form license
fee or charge for the privilege OF CON
more than mere charge for business
privilege or franchise. In most Instances
1t is essentially a measure of revenue, the
fee or charge being imposed-with slight
exceptions-in lieu of other forms OF taxa
ton
That the fees collected from the rail-
roads are something more than "A mere
charge" for business privilege appears
pretty plainly from the provisions or the
law. Under present statutes, the rate OF
taxation is graduated according to the
average amount of annual gross earnings
per mile of road, viz:
On roads earning $1,000 per mile or over,
4 per cent. of gross earnings;
On roads earning $500 and less than
$4,000 per mile, 80 per cent. of gross earn
ings;
On roads earning $1,000 and less than
$500 per mile, 8 per ceat. Of gross earn
ings;
On roads earning $500 and less than
$1,000 per mile, the tax Is So per mile and
of $500 per mile;
On roads whose gross earnings are less
than $500 per mile the tx is So per mile.
GROSS EARNINGS.
The license fee or tax IL based upon the
annual gross earnings from operation In
the state, including such earnings from In
terstate traffic as are eaEned within the
state. The gross earnings. from which the
amount of fees is determined, are ascer-
tanned from statements made annually. by
each company under oath of an officer, to
the State Treasurer and to the State Rail-
road Commission. The latter officer Is re-
qured to approve the repurt made to the
Treasurer before the license can be issued,
authorizing the company to continue Its
business.
RAILROADS DO NOT ASSESS THEM.
SELVES.
1t is often said, generally by those who
wish to uproot the license fee system, that
under this system the railroads assess them
selves. The railroads make returns annual
ly to the state of their gross earnings and
the law of the state does the rest. The re-
ports are sworn to, and before a license
can be issued the Commissioner Of Rail-
roads must approve the conpanys report.
Thus it appears that the reports Of the
railway companies are not final and con-
elusive. 1T is not only the privilege but
it is the duty of the Commissioner of Rail-
roads to review them.
There is never so thorough a security of
the ordinary taxpayers schedule as there
is IF the railway company's statement Of
its gross earnings If there were, much
of the property which now escapes taxa
tion would be on the tax roll and this will
be admitted by every candid man.
Railway officials may not lie more honest
than ether people. but they are surrounded
by conditions which not only enable them,
but which compel them to Submit full and
accurate returns They are obliged to make
many re ports to the officials OF the different
states, to national officials and to their own
stockholders 1t would be Impossible so to
juggle the figures as to hide anything dis
honest. Anything crooked Gould inevitably
appear on a comparison of these different
reports.
How many citizens of Wisconsin Pay per
cent. of their gross income for taxes7 ALI the
principal railroads pay per cant.