Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1903-01-22
AID VAL
OREM
Thus Would the Governor
Have Railway Conn
panies Taxed
And Freight Rates Regu=
lated by a State
Commission
Exhaustive Message Read
to Legislature in
Joint Session
The Governor Recommends.


1. That railways be taxed on property,
not earnings.
3. That a state board of assessment be
created.
2. That a state railway commission to
regulate rates be authorized.
4. That state, legislative, congressional
and county officers be nominated by
direct vote.
5. That mortgages be taxed.
6. That the mill tax levy be limited to
$650000 a year
z. That a constitutional inheritance
tax law be enacted.
s. That an effective antitrust law be
enacted.
g. That the coal famine be investigated
by the legislature.
10. That the contract prison labor sys-
tenn be continued.
II. That a workshop for blind adults
be established in Milwaukee.
r. That the lobby be still further re-
stricted.
IS. That railways be obliged to better
care for their crippled employees.
IA. That owners may hunt upon their
own lands without licenses.
15 That special legislation for cities
be curtailed.
16 That a new limitation upon city in
debtedness be established.
II. That an investigation and revision
of the road laws be made.
Gov La FOllette's message, read by
him personally to the two houses in
joint session Thursday, is probably the
longest document of the kind ever
submitted to a legislature. 1t embraces
145 pages and contains considerably
more matter than many large books.
A score or more of tables, some in much
detail, are given; but the above syl-
labus fairly suggests it's contents,
though there are numerous minor
recommendations. Largest attention
is bestowed upon taxation, railway
rates and primary elections.
Taxation of Railways.
In the contest for equal and just
taxation prior to 1899 it was we'll IN
derstood, says the governor, that the
public-service corporations were bear
ing much less than fair share of the
tax burden The legislature of that
year assembled under the strongest
obligations to equalize taxation. A
movement was made toward the dis
charge of that obligation by passing
through the assembly a bill increas-
ing the license fee upon the gross
earnings Of the railroads from four to
five per cent While this would have
fallen far short Of the amount which
should be borne by the railroad COM
panies, it would have proved a very
substantial increase. This bill was
beaten in the senate. 1t was at this
period in the contest that the bill was
brought forward creating the tax COM
mission. The bill received the sup
port of the opponents as we'll as advo-
Gates of more equal taxation, includ-
ing lobby agents and railway COM
pany attorneys. To them it presented
the relief of pOstpOnement. While it
was then well understood that the ill
crease in railroad taxation sought to
be enacted at that session was much
less than the amount fairly due from
the companies, nevertheless the crea-
ton of the commission was accepted
in good faith upon the promise made
by the representatives of the railroad
companies that the results of the work
of the commission world be accepted
and acquieSced in. Able, conscienti-
Gus, and conservative men were ap-
pointed upon the tax commission, and
prosecuted their investigation for near
ly two years, making their first report
to the legislature of 1901 The report
presented by that commission made it
clear that if the railroads were taxed
at their actual value at the same rate
as other taxable property of the state,
they would pay a million dollars a year
more than they were then paying.
After weeks and months of delay. dur
ing which lobby agents and represen-
tatives of the railway companies were
busy, the recommendation of the COM
mission were rejected and the bills
prepared by it and submitted to the
legislature, were defeated in the as
sembly, action upon the same having
been delayed in the senate until after
the measures proposed by the tax
commission had been beaten in the as
sembly. Again the question of equal
izing the burdens of taxation has been
submitted to the people of Wisconsin,
and your honorable body assemblies
with obligations renewed for the third
time, and with responsibilities in
creased, finally to accord justice to the
taxpayers of this commonwealth
In determining that we should aban-
don the license fee system of railroad
taxation in Wisconsin, the commission
will simply reaff1rm the declaration
made two years ago that the license
fee system would be superseded by a
more scientific method" of railway
taxation. The license fee system if
fairy adjusted as between railroads
and other taxable property of the state
today upon an agreed percentage
would furnish no assurance of fair
division of tax burdens a year hence.
Conditions arise from time to time in