Decorah public opinion., 1922-12-06
Governor Kendall to Put Many
Changes to the Legislature
When Fortieth General
Assembly Convenes.
COMING SESSION OF
LEGISLATURE BUSY ONE
Attempt Will be Made to Tax Rail-
ways on Income Only. Much
Excitement Promised.

Governor Kendall cannot be known
until the governor delivers his in
augural address, but legislatures
are much in the habit of making
their own programs. Legislators
are girding for one of the most
exciting sessions in years, says W..
B. Kerr in the Des Moines Capital.
1t is safe to say that the bills
introduced this winter will include
many measures based on the ex-
periences of the past two years. In
his recent political tour, Governor
Kendall found most ready response,
| he states, to recommendations for
code revision, a budget system,
consolidation of departments ana
the extension of the authority of
the state auditor in the matter OF
examining accounts to the boarc
of control, the board of education
and the highway commission.
These measures are far from ex-
hausting the list of subjects upon
which public sentiment demands
legislation. -
Impo 4Sant Measures
Tax law revision, highway legis-
lation, a renewal of the attempt to
bring the highway commission to
Des Moines, an amendment to the
state constitution giving women the
right to sit in the legislature, other
legislation advocated by the women,
changes in the primary law, better
regulation of utilities, motor vehicle
Legislation, measures to assist law
enforcement and limit the present
delays in criminal cases, improve
ment of the insurance laws and leg
islation that win make it Ebszns 3
have the Supreme court pass directly
on the constitutionality of important
measures such as the bonus law are
among the question over which the
fortieth legislature will struggle this
winter.
The subject which will probably
take precedence over any other is
general overhauling of the tax
laws and the enactment of a budget
system. The thirty-ninth general
assembly gave some attention to
this subject and then appointed a
tax committee to study the subject
and make recommendations to the
special session that it was expect
ed would be called to revise the
code. The refusal of the governor
to call such a session makes it nee
essary for the recommendations tc
go to the new Legislature.
But it is not the existence of this
committee alone which has made
the subject of tax revision a live
subject. The costly and trouble,
some litigation between the state
and the railroads over the assess
ment of the carriers will probably
result in an attempt to change the
manner in which railroads arr
taxed.
Tax Gross Earning
1t is practically certain that ;
bill will be introduced providing fo1
an excise or franchise tax on rail
roads in lieu of the present method
of taxation. Such a tax woul'
simply provide a tax of so man!
per cent on the gross business o
income of the roads, thereby elimi
mating the question of The value o
the carriers. Excise taxes hav
been upheld by the United State
Supreme court, according to wei
informed attorneys, and if law o
this character were enacted,
would do away with the fight o
the past two years as to whethe
railroad land is assessed at high
er value than farm land.
Another branch of the tax sui
ject upon which the Legislature Wi
be compelled to take action is tn
taxing of bank stocks. This is du
to the fact that the United State
Supreme court, in a case appeale
from Richmond, Va, ruled tn;
"moneyed capital" included I'll
vestments of individuals in secur
ties that represent money at inte
est" and further held that "bond
notes and other evidences of il
debtedness came into competitiC
with national banks in the 10;
market,
Bank Stock Moneys and Credits
As the Iowa statutes provide tn
all money capital, as defined
section 5219 of the revised fe
eral statutes, shall be taxed at t