The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1877-01-16
NUMBER 1875.

tors, firemen and others who should
be under his superintendence and con-
troll. In q business, money-saving
view, this Office will be one OF great
importance and demand the entire
time OF q good business man. j recon-
meLd. therefore. the creation OF such
an Office, TO be filed by appointment
of the Governor, and under his control
conjointly with the Board Of Auditors.
RAILROADS.
We have in the state thirty-fve rail-
road companies, operating 5,811 miles
Of road, S,346 miles of which are in
the State, costing S154 So, ,665 Y, and
represented by $40. .946 % Of debt and
f27, ,046 81 Of stock per mile of road.
The large proportion of debt shows
that railroads like municipalities and
individuals, maintain their fashionable
character. The gross railroad earn
ings in this State for 1875 were SIT ,592.-
292, which was not sufficient to pay
expenses, interests and rents. -Four
roads paid no interest on their indebt-
edness in 1875: nine paid a portion
only and report 81, l89. $40 unpaid for
the year. Two have been sold under
foreclosure, and four are in the hands
of receivers. One company only paid
a dividend during 1875, in cash, Of two
per cent. and one q stock dividend OF
ten per cent. This condition of so
great and important an interest, en-
ploying so large capital. is very nn-
satisfactory, but it cannot be attribu-
tad 30 .frsA H. lo< lat. IA
Michigan is concerned. The roads have
only themselves to blame, and the rem
edy is in their hands alone.
Our roads and equipments are in
good condition. OF 10. TIC. .227 passen-
gers transported in 1875. not one was
killed, and only six were injured from
causes beyond their own control.
Twenty-threc per cent. Of the acci-
dents were caused by trespassers on
the tracks. It would seem that some
steps should be taken to prevent this
large loss Of life and limb. There are
a large number OF bridges over the
roads of the State, which are not OF
sufficient height to allow the safe pas
sage under them OF men at work on the
trains. Five persons have been killed
and three injured by these bridges in
the past three years. The Commis-
sionsr should be authorized TO compel
the roads to raise all bridges to
heighth of eighteen feet. and to pre-
vent the erection in the future OF any
lower than this, and respectfully rec
ommend the passage OF such law.
In this connection, / desire TO call
your especial attention to what to my
mind is matter OF very great impor-
tance TO the State, viz: the manner in
which the Lake Shore and Michigan
Southern Railway makes its reports for
purposes of taxation, and the very
small amount OF taxes it pays, compar-
ed to other roads similarly situated.
This railway and the Michigan Central
are organized under special charters;
both of them are taxed by their char
ters three-fourths of one per cent. on
the capital stock and bounded debt.
In 1855, the Michigan Southern was
consolidated with the Northern Indi-
ana Railroad Company. and the act au-
thorizing the consolidation provided
for its taxation, as follows:
"Section 3. The said corporation so
to be organized by virtue OF this act,
shall continue subject to the same rate
Of tax as though such consolidation
should not take place; and the amount
of its capital and loans hereafter, upon
which such taxation shall be paid, shall
be such portion Of the whole of its cap
ital and loans as is actually employed
in the State OF Michigan, to be ascer-
tanned on or before the first Of January
in each year by the Auditor General Of
this State, from the annual report OF
said corporation, or from such other
reports on oath as he may deem neces-
sary for such purpose, to be ordered
by him from the Office Of such corpor-
alton"
From that date until the present
time their reports have been made up
on the basis of S27, 300 per mile OF
stock and debt, and the tax has been
sos per mile, or gross amount OF 3D.
544 80 per annum; the number of miles
of road in this State being 173. The
Central and Southern roads are great
trunk lines, and as through roads are
OF about equal value. The Southern
reports the value OF Its road to be $685.
295 50 per mile; the Central reports
Ill, ,29S 04 per mile. The Central pays
tax OF 1897 AZ per mile to the State;
the Southern pays tax OF S2O5 per
mile, a difference of nearly 800 per
cent, while the difference in value
from their own reports is only IL per
cent.
For the purpose OF illustration: In
the year 1876 these two roads, under
practically the same charters, both pay
ing on the basis of the value of their
property in the limits OF the State,
paid into the Treasury Sl34, ,0S3 20 and
$685. 80 respectively.
Deduc.ing the IL per cent. differences
in cost and value and the difference in
mileage between the two roads, the
Southern should have paid $50, ,951 20,
showing a loss to our revenue in this
year alone of S55, ,406 90.
In 1874 this company repsrts 20 the
Commissioner OF Railroads that
the proportion Of its value In -
Michigan was..... ..-....--..... Slo,ous'sls W
In 1873 .......-.-.-..... .......s. n,Sssssz "
In lsIs .......-..... i.ote'vss ~ ~
In ls1o...... ..........-.....''s'..''' "is"0'siS W
Yet for all these years they have re-
ported their road to the Auditor Gen.
eral for taxation at a valuation Of S4,-
739, ,240 Is each year.
While the value aud taxation of this
road have remained stationary, other
roads under the same provisions of
law, have reported an increased value
and an increased taxation each succeed
ing year. In the case of the Michigan
Central tho valuation and tax have
nearly doubled in fifteen years.
Which of these reports are we 10 be-
lieve? The reports of other roads
our own business iudgment-the taxes
paid in other States, are all evidences
that the report made for taxation is in
correct. The total amount OF taxes
paid by the company in 1875 was siS3,
700. OF this amount $50, $50 was paid
in Michigan, or about one-ninth, though
the proportionate value of the compa-
ny's property in Michigan is about one
quarter of the whole. Our newer aud
poorer railway companies pay theiI
taxes under the general railroad law. :
IL the Lake Shore and Michigan South.
ern paid under the provisions Of this
act, their tax would be 1897 "a per mile
of road, or nearly double what they
are now paying. The fact seems to be
that this company has selected the l7g
miles of road in this State as its poor.
est and least valuable property and
paid taxes on il accordingly. / car
/ see no reason in law or equity for this