Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1903-01-29
CREDITS
SENSATIONAL FEATURE OF TAX
COMMISSION REPORT.
NEW GROUND TRAVERSED
AID Vaiorem Taxation of Railways Pro-
posed, the Commission to Be
State Board of Assessment-Mr.
Hauqen Enters Protest on One
Issue.

state tax commission was submitted to
the legislature last night. The chap
ter on the taxation of creu4ts is the
most sensational because of the ad-
yanced ground taken. After giving a
history OF the efforts that have been
made to reach intangible personal
PR erty for taxation and pointing out
tne ImpossIDIuty OF ever reaching for
assessment any considerable portion
OF this class OF property, it is contend
ed that it is folly TO longer try to per
9etuate the pretense OF taxing 1t. In
a carefully developed argument the
reasons are given why there never
should have been ahy effort to tax
credits. To cease to tax this kind of
property, it is held, is not to exempt
any property, but rather TO abolish the
fiction that it is taxing property. The
argument covers all phases of the sub
ject and is in line with some of the
most advanced economic thought OF
the day. Whether public sentiment
has yet reached the point Of believing
as the report asserts that the only
just and rational solution of the prob
lem as to taxation OF credits it to
cease ell attempts to tax Uhem-in
other words, to exempt them from tax
ation," is not so clear. But whatever
verdict the legislature may pass upon
it in the form of a law, it will be con
sidered one Of the most important con-
tributiCns yet made to the literature
Of taxation.
After quoting the existing laws
which exempt from assessment not
only the credits held by the banks and
trust and other financial companies
and debts owing by the holders of
such credits, the report says. 1t will
be seen that while the laws Of the
state provide for the taxation as prop
erty of virtually every kind of credit
known to business transactions, avery
large portion of such credits are not
and would not be assessed if the law
were fully and efficiently enforced"
Tables accompanying the test show
a marked increase in the amount of
credits assessed in 1902 over any pre-
vious year. Of this the report says:
THE marked increase in the assess
ment OF credits in the last three years,
particularly that in 1902, may seem,
at first thought, to give some support
to the contention that it is practicable
to secule the full assessment Of all
credits which under existing laws are
subject to taxation. 1t should be
borne in mind, however, that there
were conditions existing in 1902 ex-
tremely favorable to securing large
assessment of credits which cannot
be expected to continue if the efforu
to tax credits be kept up. In many
parts OF the state there had been little
or no effort to secure the assessment
of credits prior to 1902. In conse-
quence there was little effort to con
ceal them from assessing officers. In
many localities mortgages were placed
on record without any attempt to con,
ceal the name or residence of the act
ual owner and in the expectation from,
part experience, that no attempt
would be made to examine the records
or otherwise discover credits for pun
poses of taxation. In brief there HAD
been little attempt at cOncealment or
evasion except in a few localities
where previously there had been some
effort to discover taxable credits
Holders of credits were taken un-
aware in 1902 by the systematic and
thorough manner in which credits evi
denced by public record were ascer-
tanned and assessed in that year. II
can hardly be expected that many will
be again caught mapping, in the near
future at least; and it would seem
fairly safe to conclude that unless
more effective laws are provided fol
the discovery and listing of credits
and to prevent concealment and eva
sion, the total assessment of credits
will be less in future than in 1902.
"The amount assessed in 1902 is be
lieyed to be but a small portion or a
least not a very large portion Of the
total amount of credits legally subjec
to taxation. The manner in which
the increase in 1902 was secured, al
ready mentioned, indicates plainly
that such increase was made up al
most wholly of credits secured l..
recorded mortgages of real estate.
1T is reasonably certain, however
that the total amount of credits legal
ly liable to assessment under presen
day business conditions, after ieduce
ing bona fide debts owing by the hold
ers thereof, is large sum and it is
not doubted that it exceeds man,
times the seemingly large sum assess
ed in 1902. When it is considere,
that the credits of real estate mort
cages and others credits the evidence.
of which are a matter of public RECORD
and the ease with which, to the pres
emf time. these credits could be aScer
tanned and listed in most parts of thu
state, as compared with the much
greater quantity of unknown and I'm
ascertainable credits of other sort
above mentioned, it will be perceivet
that the seeming progress made il
1902 does not of itself give much as
surance that such further progress
will be made as will secure anythin,
near the full assessment of all kind
of taxable credits in the future. O
even that the mark made in 1902 cal
be manned. The most important info1
nation, perhaps, disclosed in the sta
.tistics of the assessment of credits I
the marked inequality in the result
accomplished by local assessing Off
GERS as between different portions O
the state"
Proceeding in its argument agains