Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1903-01-19

GUS. and conservative men were ap-
pointed upon the tax commission, and
prosecuted their investigation for near
| ly two years, making their first report
J 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
J as other taxable property of the state,
they would pay million dollars 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 recommendations 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 abaE-
don the license fee system of railroad
taxation in Wisconsin, the commission
will simply reaf1rm 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fee system would be superseded by a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
fairly adjusted as between railroads
and other taxable property Of the state
today upon an agreed percentage
would furnish no assurance of fair
I division of tax burdens year hence.
Conditions arise from time to time in
the common wealth requiring an in
crease in the rate upon taxable prop
erty. At such times property taxed
under the al yaIorem system must
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-
its value increasing with the develop
ment and growth of the state. should
not bear it's relative proportion Of
whatever befaIls 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, it's criminal
classes, for it's schools, and courts,
and university, must be erected, re-
newed and enlarged repeatedly. 1t is
but just that railroad property should
bear it's 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
a fact within the knowledge of every
legislator of experience that the in
fluence 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
other legislation obnoxious to the
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 plan of
taxation 50 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
cOrsin alone amount to vast sums Of
money annually is beyond dispute.
Not one dollar of this sum related to
shippers, and properly part Of the
gross earnings of railroad companies,
is reported to the state. That 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
the average value Of their
bonds and stocks in. the~market WOULD
be an element to be taken into consid- /