Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1906-03-29
TRUE HISTORY OF THE
REBATE OF TAXES


streets and other gathering places
about the reDating of taxes to the
Consolidated Water Power s. Paper
company. 1t seems to have become
one of the issues Of the campaign.
The facts are often miStated due to
lack of information. The following is
the true history of the rebate question:
On the 9Th day of February 1901, a
petition was presented at the regular
session of the common council of the
city OF Grand Rapids, asking that the
Consolidated Water Power company
be related their taxes for five years
This petition was referred to a COM
mlGtee who was to report on the 18th
day OF February, 1901, the night set
for the adjourned meeting.
The committee recommended that
the taxes upon all improvements
made by the Consolidated Water
Power company shall be RENTED for
the year 1901, 1902 and 1903.
1901 and 1902, there were no i'm
provementS made by this company
and therefore no rebate of tax could
be made or allowed. When the Con-
solidated company asked for this re-
bate in 1901 their officers promised in
public that they would begin i'm
mediate Improvements and also
claimed that they would have surplus
power to the extent of several thou
sand horse power which would be used
to build up other industries in this
city. Most of the SignerS of the petit
tion had the welfare of the city at
heart when they attached their sig
natures to it,
On the third day of March 1903, the
| Common council adopted resolution
by which it extended the rebate of
taxes for two years more. This eX-
tension was made without any public
notice and without even many of the
aldermen having any prior knowledge
of the same until it was read in open
council. Some of the aldermen say
that the matter was not properly pre-
Sented as they did not understand the
full significance of the resolution of
extending the time of rebate.
On January Goth 1904, the CONSOLE
dated Water Power Company paid
taxes to the extent of s7271.36 On
March 25th 1904, W. E. Wheelan.
Mayor of the city of Grand Rapids, and
M. Gordon, the city clerk, executed
and delivered to the Consolidated
Water Power Company, a city order
for the amount of S475S.2 "a. This
order was paid by the City Treasurer
out of The general funds. PLEASE
NOTICE THE LAW: That all moneys
appropriated out of the city fund
should be first voted by the Common
Council. This order was made and
executed by these officers without the
matter ever coming up before the
Common Council. The fact is some
of the aldermen didn't even know of
this sum being returned to the Con-
SOlidated Water Power Company,
until after the suit was started by
G. w. Paulus, tax payer Of this city.
| Mr.. Wheelan the mayor, and
the city clerk, had repeated notice
that there was objection, both on the
part of the public and also by some
members of the council that this tax
should not be returned to the Con-
solidated Water Power & Paper COM
pany. The city had, on prior &C.
caSionS, related taxes, but never had
the Mayor or the Clerk taken the
matter in their own hands and issued
an order for the rebating of taxes
without specific instruction from
| the common council.
The method taken by the officers of
our city at that time would certainly
not be countenanced by people who
recognize good open business methods.
| October 10TH, 1904, G.. w. Paulus
began suit for the purpose of get
ting back this S475S.24 into the city
treasury. The stand taken by him
was that rebating of taxes is wrong in
law and that it is contrary to good,
moral principles. That the company
had no water power TO sell and
weren't and couldn't liye up to their
agreement. No poor man was eX-
empted from taxation.
| The taxes for the year 1904 of the
Consolidated Water Power & Paper
company was S10030. 49, The rebate
would amount to S7792 SO and for the
purpose of considering this matter,
a special meeting of the common
council was held January II, 1905.
After due consideration the council
voted not to allow this rebate of
S77S2.93.
| The taxes for 1905 was about $780,
The rebate for this year would be
about 100000.
| Aoout $4,000 was saved to the tax
payers OF Grand Rapids on this matter
of rebate to the Consolidated Water
Power & Paper company.
| In May 1905 the suit to recover the
S475S.24 was dropped. The question
was discussed at the time and the
City attorney together with the City
Mayor L. NJ. Nash, suggested that the
matter be dropped, G. W. Paulus
agreed TO do this providing the Con-
Solidated Water Power & Paper COM
pany would not ask for further rebates
in the future. The company got the
rebate they were entitled to for the
year 1901, 1902, 1908 as per the agree
ment and papers which Mr.. Paulus
| signed.