River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1911-07-20
DIRECT TELEPHONE
TAX IS FAVORED
Governor Asks Legislature to
Adopt AID VaIorem System.
CAMPAIGN MEASURE SIGNED
Corrupt Practices Act Specifies the
Amount That Candidate for Of
flee May Spend-New State
Board of Public Affairs.

Madison.-Governor McGoYern sent
to the legislature message calling
that body to enact at this session
an ad valorem plan of taxation for
Wisconsin telephone companies.
The governor in his message said
that the bill which had been passed
by the legislature simply increased
the license fee and did not carry out
the recommendation he made in his
first message.
when this BILL" said the governor
in his message, referring to the meas
ure passed by the legislature, came
to me, | signed it, although in my
opinion both it and the law it seeks
to amend are unconstitutional.
THE plan followed for years and
contained in this bill taxes telephone
companies practically on the basis OF
the earnings derived from other in
terstate business and is a burden On
interstate commerce."
The governor then states cases
where the courts had so worked.
1t is a fair inference from these de-
cisiOns that If attacked in court the
license fee plan of taxing telephone
companies would not stand the test
Of constitutionallty.
What is needed" continues the
message, rs the enactment of new
legislation which will place the tax
alton of this species Of property on
an unquestionably sound basis. In
my message to you at the beginning
Of this session | took the liberty OF
calling this subject to your attention,
and recommended a change from the
license to the advalorem system of
taxation.
For the additional reasons here
given | now renew this recommends
ton and suggest that only a short
time which will intervene between
now and the adjournment of the leg
stature may be found sufficient for
enactment of a law which will place
the taxation Of this species of prop
erty beyond question as to its valid
ity."
When the special message was re-
ceived by the assembly, it was re-
ferred to a committee on taxation.
None of the members of this COM
mittee was present. and 1t appears as
though the governors request would
receive little consideration.
Governor McGoyern signed the
corrupt practices act, which
specifies the amount of money
that a candidate for public office
may spend, and further provides for
the frequent publication OF campaign
contributions The act is considered
the most drastic ever enacted in this
country, excepting the Oregon law.
McGovern appointed W. II. Hatton
Of New London, former state senator;
John Humphrey of Milwaukee and w.
III. Hanchett of Sparta as members of
the new Wisconsin state board Of
public affairs created by chapter $50
Of the laws of 1911. The appointments
must be confirmed by the senate. The
other members of the board are Gov
ernor McGovern, Secretary of State
F'rear, Senator A. w. Sanborn, chair
man of the senate finance committee,
and Assemblyman r. J. Nye of Su-
perior, chairman of the assembly
finance committee. The law creating
the state board Of public affairs pro-
vides that the board shall prescribe a
uniform system of state accounting
and investigate the cost of living and
methods of a more economic distribu
ton Of products and commodities.