Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1905-01-24
GOVERNOR IA FOLLFTTE'S
MESSAGE TO LEGISLATURE,
.sss

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only science of rate-making possessed by
the companies to-day is to charge all
| that the traffic will stand.
lie reviews the interstate commerce
| commission and argues that railroad
rates, being virtually public transpor-
tatlon tax, should be fixed and absolutely
controlled by railroad rate commissions.
| lie goes after corporation lobbyists,
state and national, branding them as
public enemies and engaged in defeating
the will of the people
Tax on Life Insurance.
The message dealing witif nfe insur-
ance companies says: Each life insur-
ance company doing business in this
State ought to bear its just and equal
burden of taxation without reference to
| the fact that other States may or may
not impose such burden fairly or justly.
No person or corporation should be called
upon or permitted to pay more than his
| or its just and equal share of taxation
| here, in order that he. or it, may derive
special benefit therefrom in some other
| jurisdiction.
1T is not recommended that the tax
| upon life insurance companies be meas
| ured by premium receipts. 1t can readily
be seen that company with large assets
| may not collect premium receipts CORE
spending Herewith in any given year;
while, on the other hand, company with
very small assets may collect large re-
ceipts in any given year. 1t is unneces-
| sary to give examples OF this Many
are readily found in the insurance re
ports
Tax Cash Values ON Policies.
The only tax that appeals to our
sense of justice is a tax based upon the
cash value of the policies-that is the
equity of the policies in the assets of the
company. This includes both reserve
and surplus. 1t would be equivalent to
| taxing the policies on their investment
value in the hands of the owner But,
to make the administration of the tax
economical and effective, it should be
levied upon the company
ITO avoid double taxation, the value of
real estate and United States bonds
owned by the company should be deduct
ed from the gross assets before making
the levy, for real estate is usually taxed
locally and United States bonds are ex-
empt. All policy holders in the State
would then be taxed on the same basis
and there would be no incentive for the
insuring public to patropize foreign COM
panies in preference to home companies
The tax would be more uniform and
more productive than at present. At the
average rate in the STATE the tax on life
insurance values would produce about
100000 instead of $27S,000, as under
the present law"
Thrust at the Railroads.
Relative to the railroads, Gov. La Fol
lette has this to say: Independently of
the question of excessive freight charges,
the State should no longer allow a rail-
way corporation to control without SUI
pervision, absolutely and arbitrarily, the
commerce of Wisconsin, and through CON
troll of that commerce determine what
villages shall become cities, what cities
become great markets, and dictate as to
business supremacy in every industry.
Whatever temporary reductions may
have been made for business reasons, a
study of railway tariffs in force in Wis
consin now discloses:
81. Wisconsin rates are still higher
than the rates charged under substantial
~ similar conditions on State traffic in
the neighboring States of Illinois and
Iowa, where the rates are regulated by
law.
"2. Interstate rates in Wisconsin are
generally higher than rates in Illinois and
Iowa.
Guilty of Discrimination.
"3. Rates charged on traffic in Wis
consin on the whole yield a gross income
to the railroads considerably above the
amounts required for all operating ex-
penses, for maintenance of property and
for fair interest or profit on the cost
of the roads.
IL. The railway companies are guilty
of gross Determinations in favor of GER
tain shippers, and their determinations
as between favored shippers are likewise
rankly unjust, resulting in the upbuilding
of monopoly, controlling production and
markets alike.
THE fact that the railroads have such
complete control over the rates has given
them control over commerce of far-reach-
ing effect. 1t is easily in their power
to destroy cities and villages or build
them up in wealth and power. They
have but to raise rates in one case and
lower them in another, or afford supe-
rior facilities in one case or inadequate
service in another.
Industrial Combinations.
1.-THE same spirit which promoted con-
solidation of the railways of the coun-
try into six great systems" continues
the message, operates with powerful eff
feet in concentrating shipments with a
view to large traffic transactions. If in
a position to make terms without inter
ference, the railway companies cap vary
the rate slightly to the advantage OF one
company or combination, with the ulti-
mate effect of concentrating business
completely with the shippers so favored.
DETERMINATIONS of this class are
most pernicious. They create conditions
under which it is impossible for those
not so favored to continue IN business.
They mean ruin to all who do not receive
them. The ones favored prosper; others
fail. Rebates are not given to those
struggling for footing, but to those who
can furnish the most business to the rail-
ways. Determinations between individ-
uals are usually made in the form of
rebate to those favored. Such rebates
are paid out of the increased rate ex-
acted from the many shippers and by
maintaining high rates for the general
public.
Time for Decisive Action.
''The great trusts and combinations of
the country owe their life and are largely
dependent for their existence upon spe-
cial rates, special privileges and close
association with the great railway sys-
TENS.
The time has come for decisive ac-
| ton. The control of the price Of coal
| and iron and the food products and other
basic elements of our commercial life by
trust organizations in connection with
the great transportation systems OF the
| country is absolutely destructive OF IN
| dustrial and commercial independence.
Industrial and commercial servitude IN