The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-10
URGES INCOME TAX.
Gov. Davidson's Message to the Wis
consin Legislature.

Madison, Wis. Jan. 1o.-The mes
sage Of Governor Jas. o. Davidson to
the Wisconsin legislature was present
ed today. The governor recommends
insurance legislation that will protect
the policyholderS; a constitutional
amendment providing for an income
tax; amendment of the law giving the
state railroad commissioner 1urisdic-
ton over all transportation companies
OF the state; and for state control of
local public service corporation --
The message is in part as follows:
"In recent years this state has &C
complished much in the way of bring
ing public service corporations under
state control and helping them to give
the people better service at more rea-
sonable rates than before obtained.
While the advance made is in all ways
comm dablc, the work along this line
is far from complete. The people are
supreme. What they want is just
obstacles come in their path, no mat
ter in what form they present them
selves, they will be swept aside.'
He urged upon the legislature the
importance of a constitutional amend
ment providing fer an income tax and
said the inheritance tax law passed in
1903 had already proved to be a most
fruitful source of state revenue.
The work accomplished by the state
railway commission since its creation
long struggle for it's establishment.
The law, however, should be so
amended he urged, as to extend to the
commission jurisdiction over all trans
portation companies of the state.
He continued: 1T has long been the
settled policy of this state that capital
ization of corporations should be meas
ured by actual investment. The neces-
sity for the large increase of capitalize
ton by the Chicago and Northwestern
and the Chicago Mi1WaI1Irao and
Paul Railway company is not apparent
and may justly challenge the attention
of the legislature. I am advised that
the additional stock is subject to the
pre-emptive right of existing stock
holders to purchase the same at par.
Issue and sale of additional stock under
such circumstances places an unjust
and unreasonable burden upon the COM
merce Of the state and country, and
proper legislation should be enacted to
prevent the continuance of such meth
DDS of railway management. This is
but one form of the evil of over capital
ization of public service corporations
and demonstrates the Importance of
placing the whole subject under the
control of competent state authorities
THE state railway commission should
also be clothed with adequate power to
determine the value of the railway
properties of the state and to employ
such experts as may be required to aid
in this work"
Speaking of the question of control
and regulation by the state of local pub
lie service corporations, he said:
THE remedy for conditions now so
oppressive in municipalities lies in a
complete revision of the statutes relat-
ing to the organization of public utility
corporations and the granting of NUM-
cipal franchises. and providing for the
supervision by public authority of the
issue of stocks and bonds and the con-
troll of the rate that shall
and the service that shall be rendered.
There Is a growing sentiment in
favor of municipal ownership and en-
enlargement should be extended in this
direction, especially with respect to
waterworks and gas lighting plants. I