Omaha daily bee., 1907-01-11
LAWS NEEDED In WISCONSIN
Governor Davidson Tells Legislature Of
Things to Aid the State.
TAXATION, RAILROADS AND INSURANCE
Three Points An which the Law
makers Can Work RefoEns
for the Beneat 81
the People.

the People.
AADIsoN, wIs., Jan lA-JThs message /
Of Governor James o. Davidson 70 the /
Wisconsin legislature was presented today. |
The governor recommends insurance legis- |
lation that will protect the policy holders; |
constitutional amendment providing for |
an income tax; amendment of the law Civ
ing the State Railroad commission jurisdio- /
ton over all the transportation companies
OF the state and for state control Of local |
public service corporations. and says in
part:
In recent years this state has ao-
compished much In the way OF bringing
public service corporations under state COG
troll and compelling them to give the people
than before obtained. While the advance
made Is In every way commendable, the
work along this line is far from cOmplste:
In Just legislation they win have. and II
obstacles come in their paths, no matter
In what form they present themselves, they
viii be swept aside.
Income Tax Necessary.
1t would seem that the evils OF the
present system of taxing personal property
should be placed upon eorporate, income
and Inheritance taxes. The mortgage eN-
the expectations Of its advocates, and the
results of its enactment has proved every
argument advanced in taVor OF the eNemP-
ton Of credits.
wish to urge upon the legislature the
Importance Of a constitutional amendment
providing for an income tax. such tax
Is unsurpassed as leveler Of the public
burden.
The Inheritance tax law passed in 1903
has already proved to be most fruitful
source OF state revenue. The experience
OF the last two years Nv, with TINS law ro, mas
state supervision is essential to proper
collection of the tax.
The work accomplished by the State Rail-
way commission during the one and one
half years since its creation more than
IusIlhesr tne i I sSs s lot houd Ss az
amended as to extend to the commission
Jurisdiction over all transportation COM
ton of their lines with respect to munich
pal limits, or the character OF their service
state that capitalization Of corporations
should be measured by actual investment
The necessity for the large insreS Mr,S or
western and the Chicago, Milwaukee St
Paul Railway companies is not apparent
and may Justly challenge the attention OF
the legislature.
More Power over Railroads.
The State Railway commission should
also be clothed with adequate power to
critics Of the state and to employ experts
as may be required to aid In this work.
A question Of the utmost Importance nc TO 20
control and regulation by the state OF local
public service corporations Those corpora
straint, have grown in wealth and power
and have become the masters instead of
the servants of the people.
There is a growing sentiment in favor Of
municipal ownership, and announcement
should be extended in this direction, espe;
cially with respect to water works and
necessary legislation to enable any city or
acquire such as may already exist under
the power of eminent domain, and to pay
tifcates of Indebtedness, which may be a
lien the property so acquired.
Many people have come to regard life
certainly their equities In insurance poll
Giles are entitled to the same careful legis-
lation and state supervision as have been
adopted In regard to banks.
~. There is one inconsistency in the banking
law which should be remedied 1t is in
the interests Of the state TO encourage tho
largest degree of industry and thrift on
( the part Of all people by protecting savings
mended preventing the establishment OF
branch banks. or requiring an increase
each branch Institution opened by it.
In general, the primary law has been a
complishlng the results promised for It.
Deneen Would Sue Railroad.
SPRINGFIELD, ILL.,. Jan, l0.-Governor
Deneen sent n special message to the leg
islature today recommending an appropria-
tion OF $4,000 for the purpose Of prosee-
cutting a suit against the Illinois Central
Railway company to collect back taxes
claimed due the state under the company
charter provision requiring payment of /
per cent of it's gross earnings yearly to the
state
The investigation made by accountants
the governor says has demonstrated that
earnings amounting to large sums have
been wrongfuly omitted from the semi
annual statements and practices have beer
for years in vogue whereby in the appor
tionment of revenue between the variou,
divisions OF the system now operated by
the company the charter line earnings hav,
been systematically and persistently mini
mixed. Large quantities of coal. lumber
and other materials are hauled free owe
the charter lines for the beneht of tn,
other branch lines. This practice Is char
acterized as "a mere device to IninImiz
the gross earnings of the charter line.
Rebates and drawbacks have been allowe,
20 shippers against the income and re
ceipts Of the charter line thereby reduc
ing the amount OF the income and receipts
This clearly illegal practice. the governo
4 says. deprives the state sof revenue 4
which Il was justly and honestly entitled
Speaker shurtlefr~ announced to tn
house today that during the session OF tn
legislature none but members. ex-memberI
congressman and others privileged by tn
rules to come upon the moor OF the hous
would be allowed that privilege Tn
speakers decision to keep out lobbyist
was loudly applauded by members on bot
sides.