Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1903-02-02

The second biennial report of the
state tax commission was submitted to
the legislature last night. The chap
ter on the taxation OF creQ4CS is the
most sensational because Of the adj
vauced ground taken. After giving a
history OF the efforts that have been
made to reach intangible personal
property for taxation and pointing out
the impossID4nty OF ever reaching for
assessment any considerable portion
Of this class OF property, it is contend
ed that it is folly to longer try TO per
Oetuate the pretelSe OF taxing it. In
a carefully developed argument the
reasons are given why there never
should have been any effort to tax
credits. To cease to tax this kind Of
property, it is held, is not to exempt
any property, but rather TO abolish the
fiction that it is taxing property. The
argument covers all phases of the sub
iect and is in line with some Of the
most advanced economic thought or
the day. Whether public sentiment
has yet reached the point Of believing
as the report asserts that the only
just and rational solution Of the prob
lem as to taxation OF credits it 10
cease all attempts to tax them-in
other words, to exempt til en- from tax
alton" is not so clear. But whatever
verdict the legislature may pass upon
it in the form Of law, it will be con-
sidered one OF the most important con-
tributions yet made to the literature
OF taxation.
After quoting the existing laws
which exempt from assessment not
only the credits held by the banks ana
trust and other financial companies
and debts owing by the holders OF
such credits, the report says. 1T will
be seen that while the laws Of the
state provide for the taxation as prop
erry OF virtually every kind OF credit
known to business transactions, avery
large portion Of such credits are not
and would not be assessed ii the law
were fully and efficiently enforced
Tables accompanying the test show
marked increase in the amount OF
VI CO1CS CIo0C0OCu LII 1COG ORC1 Oily PAN
vious year. Of this the report says:
1.-The marked increase in the assess
ment OF credits in the last three years,
particularly that in 1902, may seem,
at first thought, to give some support
to the contention that it is practicable
to secure the full assessment OF all
credits which under existing laws are
To Sbn1115 Ela
borne in mind, however, that there
were conditions existing in 1902 eX-
tremeIy favorable to securing q large
assessment of credits which cannot
be expected to continue if the effort
to tax credits be kept up. In many
parts of the state there had been little
or no effort to secure the assessment
of credits prior to 1902. In cOnse-
quence there was little effort to con-
ceal them from assessing officers. In
many localities mortgages were placed
on record without any attempt to con
ceal the name or residence Of the act
ual owner and in the expectation from
part experience, that no attempt
would be made to examine the records
VI OIu0I WISE ulSCONSl ClSOllS lOI DUl~
poses of taxation. In brief there HAD
been little attempt at cOncealment or
evasion except in a few localities
where previously there had been some
effort to discover taxable credits.
Holders of credits were taken I'M
aware in 1902 by the. systematic and
thorough manner in which credits evil
denced by public record were ascer-
tanned and assessed in that year. II
can hardly be expected that many will
be again caught mapping, in the near
future at least; and it would seem
fairly safe to conclude that unless
more effective laws are provided for
the discovery and listing of credits
and to prevent cOncealment and eva
sion, the total assessment of credits
will be less in future than in 1902.
"The amount assessed in 1902 is be-
lieved to be but a small portion or at
least not a very large portion Of the
total amount of credits legally subject
to taxation. The manner in which
the increase in 1902 was secured, al
ready mentioned, indicates plainly
that such increase was made up al
most wholly of credits secured by
recorded mortgages Of real estate.
''It is reasonably certain, however,
that the total amount of credits legal
ly liable to assessment under present
: day business conditions, after deduct
ing bona fide debts owing by the hold
ers thereof, is large sum and it is
not doubted that it exceeds many
times the seemingly large sum assess
ed in 1902. When it is considered
that the credits of real estate mort
cages and others credits the evidences
of which are a matter Of public record
and the ease with which, to the pres
ent time, these credits could be ascer-
tanned and listed, in most parts Of the
state, as compared with the much
greater quantity of unknown and I'M
ascertainable credits of other sorts
above mentioned, it will be perceived
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