Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1909-01-26
MES SAGE OF
GOV. DAVIDSON

iufsuant TO mat provision or the CON
stltution which requires the Governor ito
communicate to the Legislature at each
session, the condition cf the Safe, and to
recommend such matters to theE1 for their
consideration as he may deem expedient,"
l herewith submit the following:
Taxation.
In my message to the Legislature of
1907, attention was called to the fact that
the efforts of the tax commission to assess
and successfully tax personal property
had proved failure. We are no nearer
to the goal now than we were several
years ago. Especially is this true of cash
and intangible property, which may be
said practically to escape taxation. The
apparent impossibility of dealing with
credits as basis of taxation caused the
majority of the tax commits ZION in 1903
to recommend the exemption of all credits.
This has not been done by formal legis-
lative enactment though the fact is that
all forms of credits are virtually exempt
from local taxation. This is true, also,
of money, the most substantial form of
personal property. An attempt was made
in 1903 to provide for the taxation of
mortgages, but the act, in fact, resulted
in their exemption. This leaves the best
securities not taxable while other credits
are made taxable by law. 1t is hoped
that with the Inauguration of the system
of income taxation these inequalities may
be righted, and that if it shall be found
desirable to exempt credits and money,
that the same may be reached through
the income tax.
Property not taxed in community nee
essarily increases the rate paid on real
and personal property, which, in fact, is
taxed. The local taxpayer, therefore,
pays an increased rate because of omitted
property. As railroad and other corpora
tons under the State system are required
to pay the average rate paid by the peo-
pie of the State, it follows that if large
amounts are added by the tax commission
TO the property returned by the local as
SCISSORS, the result is that these corpora
tons are directly benefited in a reduction
of taxes and that, in fact, they do not
pay the average rate paid by the people
of the State. In my opinion the statute
should be amended so as to forbid addi-
tons being placed on the general prop
erty of the State based on the fact that
personal property is not reached by the
local assessors. Such power over the
amount of tax to be paid by any corpora
ton should not be conferred on COM
mission.
Inheritance Tax.
The act providing for a tax on trans
fers of property by will, or under the in
heritance laws of the State, has proved TO
be very important as a revenue measure,
while, at the same time, it is not burden
some to those paying it, as liberal ex-
emptions are allowed The act has been
held to be constitutional by the Supreme
Court, and may now be considered as firm
~ established as a permanent source of
revenue.
Public Utilities.
No question of public policy occupies, at
the present time a more prominent place
in the thoughts of the people than that
of properly regulating public service cor
porations, without unnecessarily checking
their growth or interfering with their
rights in legitimate business enterprises.
1t has long been demonstrated by actual
experience that very little dependence can
be placed on competition to supply ade
quate service or reasonable rates from
public utilities, for the reason that compe
tition is suppressed by traffic arrange
ments, holding companies, mergers or
other shifts, tending to destroy it. In
many cases a public utility is natural
monopoly, and without regulation by the
State the people are oppressed by made
quate service or by the imposition of ex-
cessive rates. In order to avoid such con-
ditions without interfering with the right
of the owners of capital TO receive rea-
sonabe profits on their investments, the
Legislature of 1907 enacted very COM
prehensive statute vesting the railroad
commission with the power and jurisdic-
ton to regulate every public utility fur
nishing telephone service, heat, light,
water or water power, directly or indi-
rectly, for the use of the public. This
statute placed much additional work upon
the commission, which has been prosecuted
with vigor and industry. The progress
thus far made has demonstrated that the
work of the Legislature was we'll done
and that the act is one of unquestioned
benefit to the people of the State.
stock and Bond Law.
In my opinion, chapter 576, laws of
1907, placing the supervision of the issue
of stocks, bonds and other evidences of
Indebtedness of public service corporations
under the jurisdiction of the railroad com
mission, should be amended SO as to IN
clude telephone companies. There APP
pears to be no good reason why such cor
porations should be permitted to issue
these securities in unlimited amounts TO
the injury of the public, while other cor
porations are subject 10 the safeguards
provided by the statute.
Education.
The last biennial period has been one
of unusual activity along all educational
lines. The university has largely in
creased its enrolment and been compelled
TO add many members to its educational
force. The State normal schools have
made gains IN Numbers of students, and
tie graduating classes are larger than
ever before.
The New State Capitol.
Work on the new capitol has progress
ed with no more delays than are incident
TO works of the same magnitude The
east and west wings hav. advanced so far
as to justify, by their appearance, the
use of white granite which the Legislature
authorized.
The east wing will soon be under roof.
and would have been inclosed before this
time had it not been for strike at the
quarries, lasting about two months. and
from the fact that the extremely dry
weather where the quarries are situated
destroyed the water power. which has de-
layed finishing the granite. This wing.
when completed, viii be for the use of
the Supreme Court and for the executive
Offices.
The wet wing is so near completion
that it is available for your use during
the present session. Every efcrt was
made to have it finished. but theze has
been delay in obtaining satisfactory mar
hleS. and the Wisconsin granite required
fer finishing the interior.
Immediately following the Adjournment
af the legislature il is intended. 70 re-