The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-08-09
big BOOST IN
RAILWAY TAXES
BOARD FIXES VALUES ON AID
VALOREM BASIS.
New Law May Increase the Revenue
from the Roads Some 33 Id Per
Cent-Milwaukee System Is Hit the
Hardest-La Follette's Fight for a
State Commission.
Snecial to The Journal.

Special to The Journal
Madison, Wis, Aug 9.--In accordance
with the law enacted by the last legls-
lature providing for the taxation OF rail
road property in Wisconsin upon an ad
valorem basis, the state board or assess
ment has just announced preliminary
determination of the value Of such prop
erty which will increase the taxes de-
rived from the railroads 33 1-3 per cent.
under the previous law railroads paid q
license fee in lieu Of taxes the fee rang
ing from per cent of the gross earnings
for large companies to So mile Tor
small ones This is the first valuation OF
railroad property in the state ever made
here. This total valuation is fixed at
1921, 431, 400, which under the provisional
average rate of taxation in the state as
shown by returns to the secretary OF
states department-1.17736 per cent per
81 of valuation-would give a state tax
aggregating $2,607,044.60. Under the old
license fee law the railroads would pay
this year $1,94S, 006,34, or 1868, 0SS.26 less
| than. they will have to under the neWzlaW.
| While the question of railroad taxation
! in Wisconsin Is somewhat of political
one, the assessment just made. Is the
work of what is virtually a nen-partizan
| board which is the state tax commission
| consisting Of three members. The board
has worked a year on the assessment AID
has proceeded very carefully. s
\ One Of Governor La Follette's conten-
/ lions is that Wisconsin should have a
! state commission to fix and regulate
/ freight and passenger rates Of railroads
That is one of the issues in the present
campaign. 1t is useless to increase the
taxes of railroads, the governor declares,
without having the power to prevent the
roads from raising their transportation
rates so as to make the shippers pay
increased taxes.
But the state board of assessment has
worked long and hard on the assessment
of the property and believes the valu-
ations ii Just announced are equitable as
4 compared with those Of the remainder of
the Staxable. property of the state, not
taking into account, of course, the con-
tention of the governor that under the
laws as they now stand the roads have a
loophole thru which to evade the in
| creased burden of taxation if they so de
SIRE,
The state board of assessment an
nounces that it will hold daily sessions
from Aug. % to Sept. 81, to hear COM
plants arguments of such companies
as feel that their property has been vail
ued too high.
This preliminary assessment increases
the taxes Of the Milwaukee road more
than those of any other company in the
state, the increase being 1929, 496.73
Other Increases are: Chicago & North
4 western, $1ll,O0o.Oo, chicago, 81. raul
f Minneapolis & Omaha, $7S,52O.79; Wis
: consin Central, s29,964.26; 500 line, $685.:
5 1864; Duluth, Superior g. Western Ter
3 minal, 81, 24175; Illinois Central, $13t
!1ss1s a. .sassCh1eago, Burlington & uincy
t | $13, 1850; Northern Pacific, S11,656.16. Or
/ the whole the smaller roads are hi
5 harder than the larger ones, tho O
e course, the aggregate increase in the
Ell taxes is not so great. For instance, the
taxes: of the Lake Superior Terminal &
n Transfer company are increased from
j., ISL. IS to $5,003..7S, an increase of 1892 Is
: This increase, however, is said to be due
d largely to the increased earning capacit,
v of the road, one of the things taken int,
). consideration by the state board in max
r ing the assessment.