Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1903-01-21

some OF whom had not previously given me
subject any study whatever ana n' sst ,,I ~
= whom had examined II but superhciai y! y
should feel prepared TO assume the rt5lo.isi-
blity OF rejecting the conclusions OF the taA
commission, arrived ut after long PAtieh Z,
and ardnous investigation
Such was, however, the ease. AFTER Weesks
arf months of delay, during which i0los
agent and Representatives OF fle faHWay
companies were busy the recommendations
Of the tAx commission were rejected ana taf
bills prepared by them and submitted ~
the Legislature, In accordance with INV,
were defeated ia the Assembly, action upon
the same having been delayed In the senate
Hntil atter tue measures proposed ~ w
tax commission had been beaten N the
Assembly.
Again the question OF equalizng the bur
dens OF taxation has beJr submitted to the
people OF Wisconsin. and your honoraDl,
Doay assemblies with obligations FeneWeu
for the third time. and with responsibilities
Increased, finally 10 accord justice 10 the
taxpayers OF this commonwealth.
Upon the executive, under the tOnsufu.
ton and laws. rests the responsibility OF
presenting TO yod such reasons as he may
ofeF why legislation shonld be enacted.
ms ne may do from time 10 time during
your deliberations. Further than this he
is powerless, excepting the Legislature. act
Ing upon those suggestions. or npOn their
own initiative, pass the measures and pre-
sent them for his approval After propos
Ing or recommending the enactment of the
measure to the Legislature, the responsible
lily OF the executive, as well as his author
NY EedSsSs UulesS action be taken DN tQt
Legislature, the measure fails
You VIII soon be In possession Of the re-
port Of the tax commission. 1t represents
nearly four years OF labor by the able mem
bers OF that body without bias or prejudice,
prompted solely by the desire conscientious
~ to discharge high official obligation. /
am confident you will place that reliance
upon the work of this commission that the
public has already sealed with It's approval.
II the Inauguration of the investigation Of
this subject by the commission was In good
faith. then In good faith those for whose
guidance Its work was planned are bound to
give heed to Its findings and recommends
lions.
In determining that we should abandon
the license fee system of railroad taxation
In Wisconsin, the commission will simply
reaft1rm the declaration made two years
ago that the license fee system would be
superseded by a more scientific method
of railway taxation.
OF the license fee system upon gross earn
lDgs high authority nays:
The administration - such taxes is
comparatively simple and certain. but they
nave no other Justification. They are I'M
equal and arbitrary, the rate imposed being
neces rily fixed by guess work or intrigue.
In the case OF public service corporations
there are but two bases Of taxation that
can he plausibly defended-net Income and
actual value. When both these are aban-
donSd, chaos results. These arbitrary
taxes, though unequal as between corpora
tons or the same class. have usually been
favored by corporate interests because Of
their dAtiniteness and because the amount
paid Is usually much below their proper
ilonate share of the burden Of government
as measured by net income or the actual
value of their property
While the administration or collection Of
such taos is comparatively simple and Ger
tain. II l. not less certain that the state is
entirely at the mercy of the corporation
respecting the amount Of gross earnings
reported, upon which the license fee is com
puted. and II may be safely assumed thar
all In, L
ing such report.
License Fee System.
The license fee system If fairly adjusted
as between railroads and other taxable
property OF the state today upon an agreed
percentage would furnish no assurance of a
fair division of tax burden a year hence
Conditions arise from time 10 time in the
commonwealth requiring an increase in the
rate upon taxable property. At such times
property taxed under the nd valorpm svs-
TEN must bear all of the increased burden
while the percentage upon which the ucer ~
fee is based remains the same No valid
reason can be assigned why railroad prop
erty. remuneratiye as il Is. its value in
creasing with the development and growth
of the state, should not bear its relative
proportion OF whatever befalls other pr0n-
erty by reason of increases in taxation to
meet emergencies and exlgencies that come
In the ordinary course of human events
Legislative appropriations from year TO
year are Increased rs the expansion and de
unanswerahle demands therefor. Public
buildings for properly housing and caring
for the states dependent, its criminal
classes, for it's schools and courts and mt
yersity, must be erected, renewed and en-
larged repeatedly. 1t is but just that raj.
road property should bear its share of such
appropriations.
The railroad companies undef' the license
fee system have no interest and no concern
respecting the money appropriated by the
legislature. 1t is fact within the knowl-
edge OF every legislator of experience that
the influence Of the railroad lobby Is often
employed to pas legislation resulting in an
II crease of e eral taxes in exchange for
the votes of those interested in such APP
preparations to defeat other legislation oh
noxious to the railroads. Doubtless millions
of dollars have been unnecessarily expend-
ed through such combinations. This could
not have occurred II the railroads had been
taxed under the ad valorem system and
possessed the same general interest that
other taxpayers have in keeping appropria,
tinns within reasonable limits
But in addition TO all of the other ohjec-
lions to the license fee system, when 1t
Is remembered that they are permitted IN
effect 10 fix the amount Of the taxes which
they will pay, without any practical check
or supervision by the state, no excuse or
justification can he given for continuinS Il
pan of taxation SO unjust 10 other FAX
payers OF the state. Investigations which
have been conducted by the Interstate com
merce commission in the courts leave no
room 70 doub' that millions of dollars are
p ~ 80 - snlpptSIs ia repates under
a. I dtEne,i udNantAEeous' dlreet
~ an .nulitc1S, 70 poth the fallfoadS
- ~ NY A11Etottu Shlpptfs' IHaL THESE re
na1VS ~ Wisconsin atone mount 10 vast
suns u money 5nhuatE Is beyond dis,
,u'rit ~ oht no!aF OF thls SUM REPEATED
to shippers, and properly part Of the
$3.50 taIi M ~. OF railr3au companies, Is
49, 49, teu ~ tie STATE. IhaI Nalla cain
.AIstS "Ealnst the faiT"au companies, Tor
w ailUuntS :" Wthheld from their re
~ ecu SatnIhsSr nDes not ADMIT or ques,
Nels WhateNtF dlriculties lie III me way
~ ,4uaAuiE proof OF me same l DO not