Evening star., 1926-09-07
Continued from First Page.)

spections of plants that are burden
some upon the manufacturers.
While the industries of the state
have been making money, and their
products have increased in value by
many millions of dollars In recent
wears, the conservative manufacture
ers declare that the increase has not
.bten s great as 1t should be. They
profess a fear that if the progressives
are kept in the saddle, what pros
perity they have will disappear AS
an example of what the progressive
government and State tax laws are
doing to industry. they point to the
fact that some large concerns have
moved their corporate offices to other
States and have established selling
companies elsewhere in order to avoid
paying the Wisconsin income taxes on
their business.
They say that many men or large
wealth are leaving Wisconsin to be-
come citizens Of other States. 1t is
true, of course, that wealthy men in
other States have sought residence in
Florida and other places, where the
tax laws particularly the income and
inheritance tax laws, do not fall so
heavily. While some of the manufac-
turing compa MES have moved their
corporate offices out of the State.
their plants are still here, and the
progressives call attention to this fact
when their opponents chide them with
driving factories out Of the State.
What Is lost to the State is the income
taxes from these corporations.
Campaign OF Education.
A campaign Of education was de-
I, Pnv nd a
on the conservative side in this hight.
The Wisconsin Manufacturers AS
sociation, which is conducting the
campaign Of education, insists that its
program avoids politics and political
activities However, speeches by om-
cials of the association urge tnaI IL
is "high time that the people or WIS
consin decide that State government
is to be a government of the people,
by the people and for the people, IN
stead of a government OF the people
by a few people and for g. few people.
1t is time that all her public offices. as
some of them are, should pc nileo py
men who make real efforts and sacrl.
fees to serve the people. instead or
the people being sacrificed to serve
the individual"
This campaign was begun two or
three years ago. by the manuIactur'
ers' association. 1t is said that the as
sociation itself was started as a defen-
sive organization ito protect industry
and Wisconsin itself from laws that
were bound to interfere with lts oeVei
opment," but that Of late years the as
ISOLATION has directed its enorts III
furtherance of the educational pro-
gram which would interest the peopie
Of the State generally.
It has gathered information on TAX
matters and has distributed 1t gen
erally. 1t has established campaign
to increase the consumption OF raw
milk. particularly among the WoTkers
in the factories, to indicate to the
IA rmers that their interest was joined
with the interest Of industry. anu IL
has nut on eXpositions in Mllwaukes
showing the products OF 1arm anu
factory together. the aSsocla.,o.l
sends out a great deai Oh h.ei a.
and many speeches are made to snow
that the industrial and agricultural
producers are dependent on eacn
other and all the people are dependent
on the producers.
Report Progress Made.
The snonsors Of this campaign feel
that much progress has been mace:
With the development OF sentiment
along the lines fostered by the cam
,>oign II is expected that the people
Iii turn awav from radical ideas and
hecome more conservative. IL tnev
become more conservative, 1t ls easy
IN understand what will happen 10
the La Toilette progressives.
Wisconsin's income tax on corpora
tions results in a larger tax on sue
cessful corporations than, Tor eXalnpe'
,oht
cause the tax is levied on net income
e., Wisconsin, while it is levied on the
canital stock in Michigan. Nash
Motors. for example. paid an income
tay on the business done In Wisconsin
of 500 900 last year. while In Mlch-
iean it would have paid but $oo,ooo.
ON the other hand, one of the largest
tanneries in the country, located III
Milwaukee, has paid only $4,000 IN.
come tax since 1920, whereas 1t would
have paid $50, 1000 a. year in Michigan.
There has been much talk OF IN
dustries moving out of Wisconsin.
but they have not moved their piants'
even though a. few of them nave
moved their offices to other states, as
in the case Of the Simmons Co, now
in New York. and the Palm Oilve Co,
which has moved it's offices to Chi
cARO. On0 ucNitS " avn
ment of the income tax in Wisconsin
is to establish selling company
outside of the State. This selling COM
pany purchases from the manufac-
turing concern its products at cost or
little more. and then proceeds to mar
ket them for what 1t can get.
Selling Company Device.
The manufacturing corporation,
located in Wisconsin, shows no prof
its. and therefore. pays no income
tax. There have been a few instances
of such selling companies. which the
progressives insist are merely tax
dodging eXpedients, and they are he
ing assailed now in the courts. The
tax on the properties of manufactur-
ing plants in Wisconsin is declared
to be no higher than that levied on
similar plants in other States.
The progressives say that success
full manufacturing corporations should
be willing to pay the taxes levied here.
The less successful are not compelled
to pay so much in taxes. They say,
TOO, that the real problem of Wiscon-
sin manufacturers is transportation.
since they must haul their products
farther to markets and at higher rates
than products in competing States.
And. having said that. they redouble
their attacks upon the Esch- -Cummins
transportation act. for which Senator
l.enroot voted.
4 fear of some Of the conservatives
is that in today's primaries too many