Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-10
PEOPLE ARE AROUSED
Gov. Davidson Says They In
sist Upon lust Legislation.
PUBLIC WILL is SUPREME
Wisconsin Executives Message Advo-
Gates an Income Tax.
MELON CUTTING ATTACKED
Increase in capitalization of Rail-
roads Invites Attention of
the Legislature.
PUBLIC WILL is SUPREME
MELON CUTTING ATTACKED

MADISON, Wis. January 1O.-The mes
sage of Gov. Davidson was received by the
legislature today. The governor said, in
part:
In recent years this state has accom-
plished much in the way of bringing public
service corporations under state control and
compelling them to give the people better
service at more reasonable rates than before
obtaineG. While the advance made is in
every way commendable. the work along
this line is far from complete. The people
are supreme. What they want in just legis-
lation they will have. and if obstacles come
in their path. no matter in what form they
present themselves they will be swept
aside.
l wish to urge upon the legislature the i'm
portance of a constitutional amendment
providing for an income tax. Such a tax is
unSurpaS Used as a leveler of the public bur-
den.
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 with this law has empha-
sized the fact that some effective state SUI
pervsion is essential to a proper collection
of the tax.
Opposes Melon Cutting.
1t has long been the settled policy Of
this state that capitalization of corporations
should be measured by actual investments.
The necessity for the large increase OF
capitalization by the Chicago and North
western and the Chicago. Milwaukee and
St Paul Railway companies is not appa-
rent and may justly challenge the atten-
ton of the legislature l am ADVISED that
the additional stock is subject to the pre-
emptive right of existing stockholders to
purchase the same at par. although
it's market value is largely in ex-
cess of that amount. Issue and sale
of additional stock under such circum-
stances places an unjust and unreasonable
burden upon the commerce OF the state
and country. and proper legislation should
be enacted to prevent the continuance of
such methods of railway management. This
is but one form of the evil of over capitali-
zation of public service corporations. and
demonstrates the importance of placing the
whole subject under the control OF COM
petent state authorities.
There is growing sentiment In favor of
municipal ownership and encouragement
should be extended in this direction espe-
cially with respect to water works and
gas and lighting plants. l recommend the
necessary legislation to enable any city or
village to establish public utilities or to ac-
quire such as may already exist under the
the same out Of the proceeds of certif-
Gates of indebtedness. which may be lien
on the property acquired.
Many people have come to regard life
insurance as a saving bank account, and
certainly their equities in insurance policies
are entitled to the same careful lesisla-
ton and state supervision as have been
adopted in regard to banks With the
immense sums taken from the policyhold-
ers the treasures of the insurance corpor-
ations have presented such temptations for
questionable transactions as have been be-
yond the power of present day officials to
resist.
Protect the right and property of the peo-
pie, erect such legal safeguards that in
surance shall be such in fact, that trust
funds shall be honestly applied, that there
shall be a limit to the expenditure OF the
insurance money and that just punishment
be meted out to all violators of the law.
Legsla ton failing in these respects falls
short of the public will.
The Banking Law.
There is one inconsistency in the banking
law which should be remedied. 1t is in the
interests of the state to encourage the larg-
est degree Of industry and thrift on the
part of all people by protecting savings
banks. Legislation is urgently recon-
mended, whether preventing the establish
ment Of branch banks or requiring an in
crease in capitalization by the parent bank
for each branch institution Opened nv