Show GOVERN GOVERNOR DAVIDSONS DAVIDSON 8 MESSAGE capitalization overcapitalization over of railroads la Is an unjust burden madison wis jan 10 the message of governor davidson to io the legislature was read today the governor recommends legislation that will protect policy policyholders holders a amendment providing for an income tax amendment ot of the law giving tho state railroad commission jurisdiction over all transportation companies of the state and for state control of all local public service corporations the necessity for the large increase of it capitalization by the chicago northwestern and the chicago milwaukee st paul railway companies Is not apparent said tho governor and may justly challenge the attention of the legislature I 1 am advised that the additional stock Is subject to the preemptive pre emptive right of existing stockholders to purchase the same at par although its market value is largely in excess of that amount issue and sale of additional stock under tinder such circumstances an unjust and unreasonable burden upon tho commerce of tho state and country and proper legislation should be enacted to prevent the continuance of such suet ineth methods this IB Is but one form of the evil of capitalization overcapitalization over of public service corporations aad and demonstrates the importance of placing the whole subject under the control ot competent state authorities tho the governor i said Is a growing sentiment in f faar alip of muni munt elbal own ownership ersh 1 and encouragement should be extended in this thip direction especially with respect to waterworks water works and gas and lighting plants 1 I recommend the necessary necess arf tion to enable any city or village to establish public utilities or to acquire such as may already exist under tinder the power of eminent domain and to pay for the came out of the proceeds proc eeLs of certificates of indebtedness which may be a hen liens on the property ob so acquired |