The Lake County star. [volume] (Chase, Mich.) 1873-current, 1875-10-07
LAND DEPT q. II. 81. R'y
GRAND RArIi,S. MiCII.,

every honest voter, who believes
IN doing justice will acqnicscc
in the sentiments therein expressed
The interest of the railroad lands
and those of the people are ident-
zeal and injury and injustice towards
one is injury and injustice towards
the othcr,and the sooner this princi-
pie is understood the sooner will
the lands of the railroad be placed
on the same basis with resident taX-
payers lands, tr surh * tie M~.
Yours truly,
j. II. j.. Pierce,
Scc'y Land Dept.
CIRCULAR.
IL He Supervisors onl oM .
ctfcrrs cii"rycd wi'h Nh, asses smrni
om/ disbursement If Toycx Mwg
tie Hn IF the mrr,M Ldm Gr,ni
Hdilroo,is IL thr state If VI 'ch-
iyan.
In 1856. Congress granted to the
State of Michigan certain lands to
aid in the construction of the sever
al roads herein represented. These
lands were by the State transferred
to the several Railroad companies
to aid in building said roads. The
country through which said roads
were to be built was, in the main,
II wilderness, substantially inacccSs-
idle by roads of II character which
would permit the ingrcSS of heavy
machinery for the construction of
mills, and over which the products
of such mills had they been con-
structcd, could be transported to
market. To build these roads re-
quire,l an outlay Of many millions
of dollars. The mcncy to build
them conl,l not be- obtained within
this State, but could he obtained
from capitalist, of Eastern States
or in Europe. To obtain the
money, bonds were issued, the pay
mcnt of which was secured by trust
deeds embracing, not only the line
of the road to be constructed and
the rolling stock and other property
of the company. but also the lands
embraced within the land grant
aforesaid. These bonds were
placed uroa the market and capita
lists were solicited to Purchase
them. Those who had money to
invest objected that the roads. be-
ing projected through IN uninhahit-
eel country. would not have sufficient
business to enable them to pay
interest ON the bonds a. it should
accrue, and that it would he many
years before the country would bc
SO far developed aS to furnish
paving business for the roads. The
lands had lain many years in the
market, subject to sale at the MINI
imum price, and had not been ell
tered, anal this was urged a. II
reason why the lands were not
desirable security. The officers of
the companies. desiring to sell the
bonds, and believing that the lands,
under the legislation by which they
were granted. would not be sub
jcct to taxation while held by the
companies, so represented to these
capitalists. claimin. that the con
Struction Of the road would give
increased value to the lands. and
thereby increase the value of their
securities. These representations
were made in good faith, it being
then believed that sucl, wasthc law.
All these inducements however.
failed to secure the money for Tic
construction of the roads, except
a. the bonds were sold ut a large
discount and bearing higl, rates o.
interest. Struggling under these
adverse circumstances the com
panics, however, pcrscvcrcd aud
have now, in the main. completed
the roads and furnished the coun-
try with first class transportation.
But the country is yet new. and no
one of the companies has earned
enough, to pay the interest upon its
bonds and its operating expenses.
In 1873 the Legislature Of Mich
igan passed an act imposing taxes
upon the lands embraced in said
grants the same a. upon other lands.
The parties who had invested their
money IN the bonds of the roads,
believing it was not competent for
the lands to he taxed under the
legislation before mentioned, took
to test the question. This
was done, not in factious or de-
fant spirit, but in good faith and
at the earliest possible moment and
and the suit was prosecuted ~
as the practice in the court"
would permit to u final decision by
the Supreme Court of the United
States, which decision was render
cd affirming the legality of the i'm
position of taxes. The binding force
Of this decision is net questioned,
and the companies propose here
after, ut the earliest practicable
time, t, pay their taxes and pay
them in the counties in which they
are assessed. In some OF the coui-
ties the railroad lands embrace
nearly or quite h ,lf Of the taxable
lands in the county. The railroad
are interested largely IN
excess OF any other interest in dc.
velon;uy and ro.torino busiucss i'm