Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1905-01-18
GOVERNORS MESSAGE.

Madison. Wis, Jan. 12.-[Special /
Gov. La Toilette read his message to the
Legislature today.
Severe on Corporations.
AS expected, the governors message is
q severe arraignment of the corporations
and an appeal to the law makers to give
the people of the state relief from their
alleged depredations. 1t was strong
and forcible address and distinctly La
Follettesque He gave a resume Of the
crusade against the corporations at great
length and urged drastic action. 1t was
delivered in the governors characteristic
vigorous style.
What Governor Urges.
The message occupied three hours in
reading, nearly half being devoted to
the railroads. The governor also urged
repeal Of the mortgage taxation law, the
enactment Of an income tax and better
protection against railroad accidents.
Relative to railways he said: indie
pendently Of the question of excessive
freight charges, the state should no long
without supervision, absolutely and arbi-
trarily the commerce Of Wisconsin and
through control of that commerce deter
mine what villages shall become cities,
what cities become great markets and
dictate as to business supremacy in ev-
cry industry. Whatever temporary re-
auctions may have been made for bust
ness reasons, study Of railway tariffs
in force in Wisconsin now discloses: First
Wisconsin rates are still higher than
the rates charged under substantially sim
liar conditions on state traffic in the
neighboring states Of Illinois and Iowa,
where the rates are regulated by law.
"Second-Interstate rates in Wisconsin
are generally higher than rates in Illinois
and Iowa.
@'Third-Rates charged on traffic i'll
Wisconsin. OH the whole, yield gross
income to the railroads considerably above
the amounts required for all operating
expenses, for maintenance Of property
and for fair interest profit on the cost
of the roads.
Accuses the Railways.
''Fourth--The railway companies are
guilty of gross determinations in favor
of certain shippers, and their discrimina-
tons as between favored shippers are
likewise rankly unjust, resulting in the
upbuilding of monopoly, controlling pro-
duction and markets alike.
THE fact that the railroads have such
complete control over the rates has Civ
en- them control over commerce Of far
reaching 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
superior facilities in one case or made
quate service in another.
, Calls for Decisive Action.
s'The time has come for decisive action.
the control Of price of coal and iron and
the food products and other basic ele-
ments of our commercial life by trust Or
carnations in connection with the great
transportation systems of the country is
absolutely destructive of industrial and
commercial independence. Industrial and
commercial servitude in the final analysis
is absolutely destructive of political indie
pendence. 1t is time to look to the gov
eminent for relief, and for its own sake
no power short of the government itself
is adequate now to meet existing condi
TONS"
Amend Primary Bill.
Amendments to the primary election
law were recommended and a general
municipal charter providing for initiative
legislation from the people and for the
removal of dishonest or corrupt officials
by vote of the people.
The recommendation that employers be
prohibited from interfering with the right
Of suffrage Of employees was applauded
A state civil service law was recon-
mended
public lands for school purposes and Of
the fines collected in different counties for
like uses, contrasting the amounts from
Dane and milwaukee counties to the
discredit of the latter. He urged liberal
appropriations for the Platteville and
Milwaukee normal schools, and the state
university.
He referred to the capitol fire and
urged legislation for the betterment Of
the rural schools.
The governors message regarding rail-
ways and the primary bill follows:
MORTGAGE TAXATION.
The mortgage taxation law, SO called, Of
1903 has proved disappointment. While no
statistics can be produced at present to
knowledge that the rate Of interest in
Wisconsin upon mortgages, as well as upon
other credits has not been reduced since
its enactment. On the contrary, | find it is
the observation Of many bankers and others
whose business it is to know that the rate
of interest has increased within the last two
years, and that this increase does not eX-
cept mortgages upon real estate in this
state. 1t has also been a cause Of embar-
rassment to local assessing officers. 1t is
quite natural that men of small or moderate
means object to being assessed for the full
value of any. property possessed by them,
when they see their more wealthy neigh
bors, whose property is in the form of mort
cages, escape taxation. The construction
placed upon the law by the tax commission
results III the exemption OF all mortgages
upon taxable real estate, while a mortgage
upon real estate not taxable, for instance,
upon church property, is liable to assess
ment and subject to a tax.
Before the enactment of this law the own
err of farm, or home in the city, having
outstanding a debt secured by mortgage
upon such property which he endeavored to
pay off in yearly payments, was not liable
to be assessed and taxed upon the moneys
held by him during the year to meet such
payments as such moneys If in the form
Of q deposit in bank and consequently a
credit would be affected by his indebtedness
and the law taxed only the balance of cred
its above Indebtedness. Under the present
mortgage exemption, he has lost this privf-
lege If he accumulates now, say $1,000,
with which to meet yearly payments due
upon his mortgage, he must pay taxes upon
the average OF such moneys on hand during
the year. Besides this liability, he must
pay q higher rate of taxation owing to the
fact that his more fortunate neighbor whose
property consists in credits OF the exempted
class escapes taxes entirely.
1t IS recognized principle by all econo-
m1sts of standing at the present day, that
the true rule of taxation should require
every citizen TO contribute to the support