Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1903-02-19
Would Increase Rail-
road Taxation
a Million
Provisions Prevent
Loss to State by
Litigation
Madison, Feb. IA.

Madison, Feb. IA.
The ad valorem railroad taxation
bill, for the enactment of which the
republican party of Wisconsin is vtr-
tually pledged by its platform, and for
which the governor argued at length
in his message, was introduced in both
houses of the legislature last
night 1t was drawn by the state tax
commission after hearing the argu-
ments of the presidents and high Off
Gals of the railroads, carefully study
ing the tax question of Wisconsin and
having considered the recommends
lions of Governor La Toilette. The tax
commission handed it to Chairman
Whitehead of the committee on assess
ment and collection of taxes yesterday
and after the committee had met and
considered it briefly it was introduced
at the night session.
Million Dollars More.
The bill provides for a complete
change in the method of taxing the
railroads of the state and it is estimat-
ed that under it's operation this class
of property will pay about $1,OOO,O0O
more than it is paying under the IL
cense fee system. 1t is expected that
the bill will go through the legisla-
ture with practically no change, al
though it will be some time before
it will be passed as the railroads will
hardly be satisfied with the bill which
has come from the tax commission, as
indicated at the hearing last Wednes-
day. There is also said to be no
doubt in the minds of those familiar
with the bill that if enacted into law
it will surely be contested by the
railroads, and the tax commission, an
ticipating this, has safe-guarded the
law so that if the courts should undo
the work of the legislature the state
would in no way be the loser.
State Cannot Lose.
The bill in one of it's sections reen-
acts the license system so that 1t shall
apply for two years. The railroads
are to pay into the state during that
time their taxes under the license fee
system. In the meantime the state
tax commission will make its valua-
ton of the roads and if after this has
been made it is found that the rail-
roads should under the ad valorem
system pay more to the state than I'M
der the license fee system then the
roads must pay the additional amount.
Il on the other hand it should be de-
termined that the roads should pay
less under the ad valorem system
than they do under the license fee
system then the state will be COM
PEELED to refund the difference to the
roads.
Makes Transition Safe.
By making this provision the tax,
commission has not only safeguarded
the state against any loss of income
during the period of transition from
rhe license fee system to the al
valorem system, but it has also made
it practically impossible for the roads,
in case the courts should declare the
law unconstitutional, to escape the
payment of taxes, as though no
change were enacted. 1t IFS believed
that anv litigation which may arise
over the passage of the bill will be
concluded at the end of two years and
the constitutionality of the law fully
determined.
Assess all Property.
The bill does not specify the way in
which the tax commission shall arrive
aft the value of the roads but 1t makes
II incumbent upon the commission 10
take into consideration everything
which will have bearing upon the nx-
ing of the value of the roads. Whlle
NO snecifc rules are laid down the
hoard cannot only view the physlcal
nropertv of the roads but 1t can also
emnlov the stock and bond method.
That the board believes that ooth
methods should be taken into consld-
Grafton is evidenced by two provisions
in the measure one authorizing the
emnlovment of an expert civil engi-
neer and the other of an expert ac-
countant to aid the commission. Inc
commission is also given ample au-
tboritv under the bill to examine
books to compel the roads to show
their hooks and to examine all neces-
sary witnesses and compel them 10
testify as to all matters pertaining 10
rho valuation of the property.
Rate Alike to All.
The board must not only value all
the nroperty of the railroad companies
-. !. ,,,st also value all of the other