River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1907-01-17
Total for state. 81, olO, 72lo8 l.6l2.2Ole5

come fund -. 1594O813 67,293O8
All other funds..... 56,469.94 83,71O.4
Total for state. 81 OH, 721.O8 $1,6l2, 2O1.65
In 1906, for the first time in the history
OF the state, there were RENTED not only
all taxes for the maintenance OF the state
but also one-half of the mill tax for pub
lie schools, and the amount needed Tor
these purposes was ordered transferred
from the general fund. Were II
not for the fact that the disastrous
fire of February, 1904, which partially
destroyed the capitol, neceSSitatlng the
erection of a new building, the entire
one mill tax might have been RENTED
and the school support rendered from
the general fund, but it was deemed
advisable to retain a sufficient amount
in the treasury to permit of the erec-
ton of a new state capitol without the
necessity of resOrting to state tax
for that purpose"
Local assessors increased their val
uations of personal property by 1882
per cent. over the former assessment
in 1900, by 1913 per cent. in 1901, and by
pended somewhat with the increase in
the assessment of real estate for the
same years. In 1903. however, the pas
sage of the mortgage exemption law
resulted in the lowering of the local
assessments of personal property that
year by 16 per cent from the point
reached in the previous year. and since
that time such assessments have not
been improved perceptibly. In 1914,
with no change in the law, there was a
further decrease, while 1905 showed an
increase of but 1888 per cent. The IN
crease of the valuation of personal
property found by the tax commission
in 1906 exceeded that of 1908 by 2.25
per cent, while q comparison or the
local valuation for the same period
shows reduction of 1852 per cent.
The efforts of the commission to secure
compliance with the law have had no
effect, and the state and local assess
mentS of personal property are fur
Their apart in 1906 than at any former
time"
The governor calls attention to the
law of 1903 relative to the taxation
of mortgages. and says that a COM
mon clause found in practically all
mortgages has resulted in the abso-
lutte exemption of mortgages from tax
alton, and places the burden of taxa
tion upon the poor man rather than
upon the holder of the mortgage, and
he says: Il therefore recommend that
chapter 37S, laws of 1908, be repealed
and the law be restored as it was be-
fore the enactment of said chapter.
In restoring the former law the balance
of credits above Indebtedness which
should be assessable and taxable should
include moneys as we'll as credits.
Income Tax and inheritance Tax.
"I wish to urge upon the legislature
the Importance of the constitutional
amendment providing for al income
tax. Such a tax is unsurpassed as a
leveller of the public burden. 1t most
nearly satisfies, with proper enforce
ment. the conception of an ideal tax.
The income tax should aim to reach
such property as otherwise escapes
and to compel contribution to the pub
lie funds from those who are best able
to pay them. Older countries have
generally sought relief in an income
tax. after unsuccessful attempts to
administer the personal property tax.
ANY further recommendation on this
subject may be considered premature
until such time as the proposed con-
stitutional amendment shall have au-
thorized such legislation.
The inheritance tax law. as passed
in 1903, has already proved to be a
most fruitful source Of state revenue.
collected under this law 1929. 919.54,
and the income from this source is con-
stantly growing. 1t is a matter Of
is collected without any burden to the
people of the state, for it is paid by
those who are amply able to do so out
has been entirely without their efforts.
Considerable difficulty. however, has
been experienced in the enforcement
of the law. The secretary of state
has neither sufficient authority nor
legal assistance to properly attend to
this matter Since the tax commission
is. by law and experience. better
equipped to enforce this measure, be-
ing organized under statute elastic
enough to permit of the special work
forcement of all taxation measures, l
recommend that the administration of
the inheritance tax law be transferred
to said commission.
State Railway Commission.
The work of the state railway COM
mission is reviewed at considerable
length and in connection with this
subject the governor recommends that
street railway companies be placed
under the regulation of the commits
sion He severely criticiSeS the action
Of railway companies in raising their
Capitalization and condemns the justice
of selling new stock issues to existing
stockholders at par regardless of its
says: ~. 4
ment of a law providing that the issue
of stocks and bonds. or other evidences
of debt to be secured by. a lien or
mortgage upon the property or fran
chiSe of any transportation corpora
ton organized under the laws of this
state, shall be subject to the super
vision and control of the state railway
commission, and that any additional
stocks or bonds so issued shall not be
sold for less than the market value
when the market value exceeds the par
The state board of assessment ascer-
tanned the value of the railway proper
ties of the state for the purpose OF
taxation. but such YaIuatlon may nor LOT
be adequate to serve as a guide 70
the railway commission when conSld-
ering the reaSonableness of the rates
prescribed for the transportation of
passengers and freight. The cost Of
railroad properties must be considered
as an element in determining rates
as the earnings of the corporation must
provide for the expense of maintenance
and repairs and reasonable returns
upon the capital actually invested.
L therefore recommend lnaI the
state railway commission be clothed
with adequate power to determine the
value of the railway properties of the
state and to employ such experts as