The Washington herald., 1912-01-21
TAXATION IN WISCONSIN.
Chicago Publication Answers State
ments by La Toilette.

From the ChioagO Inter Ocean.
Senator La Toilette. in his speech at
Youngstown. Ohio, and subsequent
speeches, has greatly misrepresented
conditions in the State of Wisconsin.
For instance. he made the following
statements regarding the taxation Of
Wisconsin railroads.
Tt is not claimed that railroads are
both making and keeping more money
in Wisconsin than they did before the
progressive legislation began. Indeed,
they are making more. but keeping a
smaller proportion of It. They are now
paying taxes the same as the people Of
Wisconsin on exactly what their prop
erty is worth. This they began to do
in 1904. Under the old political system
Of unequal taxation, in 1908, when the
railroads practically assessed them
selves. they paid taxes in the State
amounting to Sl.7l1,OOo. Under the
new system in 1909, when the State tax
commission assessed them exactly like
farms and other property, they paid
s3,I42.s .sS6. This was an increase of s3
per cent in the amount Of their taxes.
wisconsin taxes are now about ST.
o0o, 900 a year more than they were un-
der the old boss system"
The foregoing contains at least four
Measurements:
l. 1t is not true that in 1903 and prior
thereto the railroads OF Wisconsin
practically assessed themselves"
Prior to 1908 Wisconsin railroads were
taxed upon their gross earnings; they
paid per cent OF all their earnings in
taxes. Their earnings were reported
under oath, subject to the approval OF
the State authorities.
That was an automatic, plain system.
leaving no room for discretion or favor
itism. and the railroads had nothing to do
and could not have anything TO do about
taxes except to pay them. The same
system now prevails in Minnesota and
no one charges that the roads assess
themselves: there is no assessment. Cali
ifornia, under reform rule, Is Just adopt
ing the gross earnings tax for railroads,
and tax reformers everywhere regard II
as the furthest possible removed from
railroad Influence. 1t Is not a political
system, and cannot be-
2 II is not true, as stated by-Mr. La
Toilette, that under his system the rail-
reads of Wisconsin are now assessed
exactly like farms and other property"
For the automatic, direct, and plain
gross earnings plan La = olelte AupStl-
tuted a political. discretionary so-called
valuation system which hakplaced in
charge Of a partisan bureau or coH-
mission. This bureau. pure product of
bossisrn, was not only given the power
to value railroads. but to fix the rate
that must be paid on their yaluation-
the whole being left to their absolute
discretion. They fixed a tax rate that Is
&C per cent higher than other property
pays in wisconsin. Taking the personal
property and real estate together. the
assessment by this political bureau has
probably levied twice the amount of
taxes upon railroads that Is being paid
by the general property In proportion to
value.
I g II is not true, as la Toilette states.
that railroads are paying in Wisconsin
the same as others. ''on exactly what
their property Is worth"
Some railroad companies are being
forced 10 pay one-fourth Of all their net
eaRnines in taxes. They are required to
pay taxes os OF all propoEtion TO other.
1Nft Is not trus-the. the Eress earn
ings plan was ssscsuld Be taxation M