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


state pertaining to amendments thereto re
qu1re that such amendment shall be pub
llshed for three months previous to the time
of the holding of such election. This pro-
vision of the Constitution is mandatory and
must be observed. All steps taken in the
adoption of an amendment to the constitu-
By an oversight the office of the secretary
Of state neglected to cause this publication
to be made. 1t was not discovered until
after the three months had begun to run
that publication required by the provisions
Of the constitution mentioned had not been
commenced. On account of this oversight
agreeing to the proposed amendment is un.
ayailing and must go for naught, and it is
necessary that the same be proposed anew
and agreed to by this Legislature by yea
and nay vote and referred to the Legislature
to be chosen at the next general election
and be published for three months prior to
holding such election.
RAILWAY TAXATION.
In laying before you brief statement re-
Specting the progress made in railway tax
alton within the last few years a cursOry re-
view of the antecedent facts to secure a
just taxation Of railway property seems
proper at this time.
Several years ago the question was raised
in Wisconsin as to whether the railway cor,
porations were paying their fair share of
taxes. In this. as In all other questions
newly raised, the people of Wisconsin, al
ways conservative, withheld Judgment
corporations are involved, the citizenship
of Wisconsin has always taken time for
thorough investigation before reaching con-
illusions. With respect to railway taxation.
public opinion slowly reached a final con
clusion that railroad property in this state
was not paying it's just share
No hasty action, however, was taken by
legislation upon the subject. A bin fnajIy
passed the Assembly in the session of 1895.
which would have made a substantial in
crease in the amount Of taxes paid by the
railroads, although much below the sum
fairly and justly due from them.
From the beginning, the railroads resisted
every step and now thoroughly alarmed.
lest they should be required to increase
ward with a scheme to postpone further
consideration Of the subject under the
complex one, requiring investigation by ex-
perts, and urging the adoption of a law
providing for the appointment Of tax COM
mission, permanent i'll character, and re
ferring the subject to such commission for
it's consideration. 1t was urged that during
the brief and busy term covered by the
average legislative session, members occu>
pied in some measure with their own af-
fairs. and charged with a responsibility of
leglslat1ng upon large number of sub
jects, could give to the subject of railroad
taxation no such time as its intricate char
acter and great Importance demanded.
While the proposal to create such a COM
mission was under discussion, the accredit-
ed representatives, of the railway com
panies solemnly declared that if such a
commission were created as proposed, and
reported as result of its investigation
that the railroad property was not ade-
Quately taxed in Wisconsin, that thereupon
the companies would cease opposition, bow
TO the Judgment of the commission, and &C
cept its findings.
The offer was plausible, and having the
apparent merit. of fairness, was accepted,
the tax commission was established and
railway taxation thus postponed during the
legislative session of 1899.
AT the beginning OF the session Of 1901 the
commission, much to the surprise OF the
railway corporations, came forward with
report Of its Invests CATION, making it clear
to the Legislature that if the railroads were
taxed upon the same valuation and at the
same rate as the other taxable property Of
the state, these corporations would pay into
the state treasury a million dollars a year
more IN taxes than they were then paying.
Ignoring the pledges made to secure the
establishment of the commission, and the
postponement in the session of 1899 of legis-
lation increasing their taxes, the railroads
assembled q powerful lobby at the capitol
and again defeated the bills prepared by
the TAX commission in order 20 enforce
legislation on recommendations made in It's
report, again deferring any increase in taxa
ton for another two years.
The railway corporations carried on
protracted and extensive campaign to Sc
cure the election OF Legislature. which On
the tax commission TO increase their taxes.
At the opening Of the session Of 1903, prep
for 0eenK fhe 5 6 asans
increased railway taxation before that Leg
islature At the beginning of the session,
IN IN the message presented, the Importance OF
the control of railway services and railway
rates In Wisconsin was quite fully. placed
before the Legislature. This was the first
time that this subject had been presented
to the Legislature in executive message for
more than a quarter Of century. 1t was
treated at such length its great impor
oughness as the executive could at the time
bring to bear upon it. The opposition OF
the railway lobby was centered in a con
test for the defeat Of legislation to regulate
ton bill was allowed to become law.
The tax commission, acting as board Of
ton of railroads, gave full hearings to the
representatives Of the companies with re-
spect to all matters pertaining to the ex-
railroads had been i fully heard, the com I'M
mission proceeded with its important work.
The commission caused to be made an ap-
railroad company of the state. This in.
yOlYed considerable expense, which seemed
necessary, however, in order to lay foun-
dalton for present and future work. The
filed with the state treasurer, prescribed
by law, on the 10Th day of October 1904,
and each company was Immediately notified
of the amount of taxes assessed against it.
Upon the 9th inst, suits were begun by
all of the principal railroads of Wisconsin
to prevent the collection OF any tax under
the assessment.
And so at the end of all these years OF
delay, these corporations will seek still fur
Their to defeat the ends of justice and defy
the will of the people in a state where
they collect annually transportation charges
amounting, IL round numbers, to $4,000
600.
For half a century the railroads of Wis
consin had been taxed under what is known
as the license fee system BY this method
they were obliged to GpGp the fn total
years business in the state of Wisconsin,
and upon these earnings reported they
paid in lieu of all other taxes, per cent.
license fee.
For the purpose OF determining whether
the railroad companies have heretofore
truthfully reported the full amount of their
gross earnings for taxation, the present
railroad commissioner on the first day of
October, 1903, began an examination of the
railroad books and accounts, as he was
thorized to do under the statutes of this
state That investigation is not yet com
pleted. 1t has progressed far enough, how
ever, to disclose the fact that these same
railroad companies have Systematically de-
frauded the state for years, by classifying
the reports of their gross earnings. Mil