Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1904-04-19

The law under which the railways
of the state pay taxes was drawn by
the representatives of the railroads
and it cunningly permitted the roads
to assess themselves. For years 1t
was believed that the railroads did
not make true report of their gross
earnings and the Hon A. r. Hall for
years tried to induce the legislature
to take some effective and thorough
going action to investigate this subject
The power of the lobby was always
sufficient to prevent the accomplish
ment of anything of real value In
this direction.
It remained for Gov. LaFollette to
lead the way for the recovery of large
sums of money as back taxes, out OF
which the state has been defrauded
by the railroad companies year after
year under this old license fee law
passed just a half century ago.
Railway Legislators In Panic.
The presentation of this message to
the legislature on the 23d day of
April created profound impression
upon the public and CONSERVATION in
the ranks of the railway lobby It
was cleary manifest to the most cas-
ual observer that the outcome was a
body blow to the representatives of
the railroads in the legislature and the
lobbyists. The legislation recon-
mended In the special message was so
manifestly fair, so plainly demanded
by the interests of the state, and so
strongly backed up by the experience
Of Minnesota as to make a case which
even the most hardened corporation
serving senator and assemblyman
could find no possible excuse to op-
pose.
Strong Bill Passed Assembly.
The governor had recommended
clothing the bank examiners office
with authority to make the investi-
cation. This, doubtless, for the rea-
son that the investigation required
the work of expert accountants and
could be directed with less expense
and greater expedition by a depart
ment, the head of which was a
skilled and experienced expert in such
work. In order, however, to offer no
possible excuse for defeating the
measure, the friends of the admins
tration prepared bill placing the ex-
animation in charge of the bank ex-
aminer, railroad commissioner and at
torney general, with view of having
the benefit and advantage Of cooper
alton with the several departments
named. The bill provided for exam
lining the books, papers, accounts and
records of any railroad or or any Off
Ger or agent thereof, without prior
notice. and in aid Of such examina-
ton, upon cause shown, gave author
ity likewise ''to compel the attendance
and testimony of any witness and the
inspection of the books and papers of
all persons, joint stock companies, CO.
partners or corporations who by rea-
son of any business transaction with
the railroad whose accounts were under
investigation would have knowledge
relative thereto"
Sen ate Protects Railroads.
In this form the bill passed the as
sembly and went to the senate. In
the senate the assembly bill was re-
jected and a substitute measure re-
ported therefor, providing that the in
vestigation should be conducted by the
commissioner of railroads and elimin-
ating many of the strong provisions
in the bill as passed by the assembly,
among others striking out the proyi-
sion authorizing the examination of
the books and papers of railroad
company to be made without notice
to the company" and striking out
also the provision to take the testi-
mony Of individuals and examine the
books, papers and records of co-part-
nerships and corporations transacting
business with the railroads as an aid
to such investigation.
How They Voted.
The following named stalwart SEN
ators voted to strike out these i'm
portant provisions from the bill:
Beach, Eaton, Gaveney, Green,
Johnson, McDonough, Morse, North,
O'Neill, Riordan, Roehr, Rogers,
Whitehead and Willy.
The following named senators voted
to retain these provisions in the bill:
Bird, Burns, Hudnall, Martin, Nc
Gillivray, Merton, Miller, Munson,
Wipperman and Wylie.
Railroads Cheating State for Years.
The report of Commissioner Thomas
does not include anything from the
Wisconsin Central railroad, because
the work is not far enough along to
embrace it within this report. If in
Guided within the two-year period it