Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1903-01-22

bear all Of the increased burden, while
the percentage upon which the license
fee is based remains the same. No
valid reason can be assigned why rail-
road property, remunerative as it is,
its value increasing with the develop
ment and growth of the state. should
not bear it's relative proportion of
whatever Details other property by
reason of increases in taxation to meet
emergencies and exigencies that come
in the ordinary course of human
events Legislative appropriations
from year to year are increased as
the expansion and development Of the
state creates proper and unansWer-
able demands therefor. Public build
ings for properly housing and caring
for the states dependent, its criminal
classes, for its schools, and courts,
and university, must be erected, re-
newed and enlarged repeatedly. 1t is
but Just that railroad property should
bear its share Of such appropriations.
The railroad companies under the
license fee system have no interest
and no concern respecting the money
appropriated by the legislature. It is
fact within the knowledge of every
legislator of experience that the in
f1uence Of the railroad lobby is often
employed to pass legislation resulting
in an increase of general taxes in ex-
change for the votes if those interest
ed in such appropriations to defeat
ic1n I'M xviO
railroads. Doubtless millions of dol
lars have been unnecessarily expended
through such combinations. This
could not have occurred if the rail
roads had been taxed under the ad va
| loren system and possessed the same
general interest that other taxpayers
| have in keeping appropriations within
| reasonable limits.
| But in addition to all Of the other
objections to the license fee system,
when it is remembered that they are
| permitted in effect to fix the amount Of
the taxes which they will pay, with
out any practical check or supervision
! by the state, no excuse or justification
can be given for continuing a plan of
| taxation so unjust to other taxpayers
of the state Investigations which
have been conducted by the interstate
commerce commission in the courts
leave no room to doubt that millions
| of dollars are paid back to shippers
| in rebates under arrangements deemed
advantageous, directly and indirectly,
to both the railroads and the favored
shippers. That these rebates in Wis
consin alone amount to vast sums Of
money annually is beyond dispute.
Not one dollar of this sum rebated to
shippers, and properly a part of the
| gross earnings of railroad companies,
| is reported to the state. That a valid
claim exists against the railroad COM
anies, for the amounts so withheld
from their reported earnings, does not
admit Of question, whatever difficult
ties lie in the way of making proof of
the same.
In ascertaining the value of railroad
property the average value of their
bonds and stocks in the market would
! be an element to be taken into cOnsid-
Grafton. If it were taken as the sole
basis for valuation, the railroad COM
panies ought not to be heard to COM
plain of unfairnesS to them because
they levy such a tax upon the public
in the form of transportation rates as
will produce a certain income COM
puted upon the market value of their
stocks and bonds, in addition to eX-
| aoti Jnh 70 atai n
roadbed, rolling stock, depots, and
grounds, in good condition, and pro-
vide an increasing surplus; but the
average value of the bonds and stocks
should not be taken as the sole meth
cd of ascertaining the value of rail-
road properties for taxation. The
state board of assessment would ap-
praise the actual value of the tangible
physical property of railways. In ad-
ditiOn to this the value of the fran-
chise, into which there enters many
elements embraced in the corporate
power and privileges with which rail
roads are clothed, must be reckoned.
experimenting all these, the earning
capacity Of. the property would cOnsti-
!
Michigan adopted the ad valorem
| system of taxing railroads and other
| public-service corporations, estab-
! lished a state board Of assessment, as
! certained the value of railroad prop
! erty, applied to it the same rule Of tax
alton which is applied to the property
Of individuals, resulting in an increase
in the taxes on railroad property Of
that state $1,366 ,324.3S.
The taxpayers OF this commonwealth
were very patient while investigation
was being prosecuted. They have
shown great forbearance with delays
and postponements heretofore. They
have sustained wrong and injury
which can never be repaired. They
! have carried the burden of others in
addition to their own, for which they
will never be compensated. They
have paid out of their savings the
taxes of the public-service corpora
tons for many years. 1t is their due,
it is due to the state, that these
wrongs should end here and now.
| The governor recommends that the
| bill formulated by the tax commission
in accordance with their report, pursu-
ant to the law creating that body, and
| presented by them to the legislature,
be passed promptly, and that there
may be no uncertainty he says that
measure creating a state board of as
! sessment to determine the value of
| railroad property and APPLYING to