The times. (Owosso, Mich.) 1882-1897, 1897-01-08

therefore Is only liable to the creditors for
| small amount Tho creditors are thus
There is an easy S remedy for i ali tbis@the
| law should make a distinction between
public and quasi-public corporations, and
should, In my Judgment, for convenience
and distinction, be designated as Joint
stock companies and all holders of stock in
such companies should be liable for the
debts or the concern precisely the same
as though they were partners All the
honest advantages of a corporate existence
time the public Is protected from the
swindling operations OF those who organize
recommend that law be passed, substan-
tally embodying the views above indi-
While we should not of necessity select
the railway OF the state to prove the great
inequality OF our present distribution OF
taxes and present burdens. yet have the
figures at hand with reference to these
corporations because there has been q SILL
pervision of them by the public, and the
facts have at least become partially known.
from the report of the railway commits
sioner for 1885, which am sure will be of
interest to you In determining what your
duty to the people of the state may be
with reference to the question of taxation.
The figures are taken from page Sc of the
The gross earnings of the companies from
all sources were $29, 307 9.93; upon which
there was collected a total tax of $670, 500;
and as compute 1t the percentage of tax
alton on gross earnings is .022S78.
Page 81 of the commissioners report gives
the following total tax for Michigan. under
the present system of tax of gross earn
ings 1890, sSl2, 99963; 1891, $S5433l.12; 1892,
1893, 762.01 1893 sS11 ,056.65; 1894, s6761S6.1s.
Showing that railway companies in Mich
igan are paying taxes under the gross
earnings system in exact proportion to the
conditions of their business, thereby In
creasing the taxes on all assessable prop
during DGriOd decreased
ingS.
A like inequality of taxation under our
present system applies to telephone, tele-
graph and express companies. Concerning
the latter call your attention to the fact
that while the earnings of these companies
are very large the amount of asseSsable
property, either real or personal used in
their business Is very small compared with
I submit also herewith a statement OBJ
tanned from the reports of the auditor-gen-
eral and of the railway commissioner
showing the inequality of taxation of rail-
way properties In this state. The items
contained in the statement as obtained
from the railway commissioners office are
taken from the report not yet published:
state of Michigan in the year 1895, accord
ing to the report OF the railway commits
sioner (not yet IN print was $SlS, SsS,O27 30
year in specific taxes $7f1 ,4OS.77, or a frac-
ton more than two and one-thrd mills on
the dollar.
"The total vaiue of real and personal
property in the state in the year 1896, as
equalized by the boards of supervisors, was
$S1S, 0S6. 160, and the taxes levied for the
same year for state local and all other pur-
poses (as shown below amounted to $20,-
633,5n0, or "a fraction less than two and
one-half cents on the dollar.
1.-THE taxes were as follows
State observation-disclosures. ,010 297 S2
Sounty taxes ....''..''"''.'. ts9i 10y 0S9 ~
school takes. .O,fJl,Ul ~
Township and city taXes......... 7,474,326 80
S......................
From this statement 1t will appear how
unjustly and how enequally, the public
burdens have been distributed, and what
applies to railways in this regard applies
with equal force to large amounts of other
property In the state; While y you may net
the present system of specific taxation of
corporations, which do not recommend,
some steps must be taken by you in the
interests of the people in at least adding to
that system From many sources comes
the proposition to- tax corporate property
and in the absence of any better system
1 commend 1t to your attention How
ever, after considerable investigation 1t
appears to me that wiser and better
method would be to create department
OF taxes and assessments, composed OF
board to be appointed by the governor,
part of such officials as have the super
vision of the corporations against whom
are to be THIS 6Sad 70
property in the state not now taxed To-
cally under the present law and to levy
private properly is taxed. If the forma-
ton of such board can meet the require
ments of law no difficulty should be ex-
polling the payment of just tax on the
actual value of the property owned
by. such corporations within, the state.
upon the question of taxation in these
times as the most vital one with which
se to af apd tb Sne ars
satisfied with our work. A careful investi-
cation Of the statement herein submitted
pie. of the state when they have Just
and proper system or taxation can be re-
lieved of the burden of the expense OF state
government, and be burdened only with
local taxes of their own creation. And 1
especially recommend to you that in the |
settlement of the question of taxation you
by. increasing the prices of products or
tolls to the consumer the burden OF taxa
tion will indirectly remain upon the people.
The Present Tax Law. |
am of the opinion that some radical |
changes should be made In the present tax |
law. The taxation of mortgages upon land |
must be considered double taxation. The |
owner of the real estate must in all cases |
pay the tax, not only upon the real estate, !
but upon the mortgage, for IL he who loans |
mortgage which he holds he will recuperate |
from the owner of the property, either by |
requiring him to pay additional interest
gage, or by. compelling him to execute
mortgage which contains a clause requir- |
ing him to pay the tax upon the mortgage |
direct. The effect of the present law is |
to prevent residents of the state. from |
loaning money directly, and to avoid the |
payment of tax frauds are committed, and |
the mortgage Is taken in the name of
nonresident, against whom the collection
OF the tax cannot be enforced. II would be |
far better to permit the borrower to Lave |
the advantage of a lower rate of interest |
than to allow the lender to exact higher |
rate upon the plea that a portion of the |
interest received must be used for the pay
ment of the tax.
/ am also of the opinion that radical
change should be made In the present law
by which tax titles are acquired While
every facility should be afforded for the /
Of taxes, yet 1t should not be
possible for one Individual to confiscate
the property of another. Whatever rights
are required by reason of the nonpayment
of taxes should be acquired by the state.
Whatever penalties are added for the nom
payment of tax should inure to the state.
The present law which prohibits the re-
cording of deeds of transfer without the
of taxes due at the time the trans
fe~ Is made has facilitated the collection
OF taxes. This law, however should be
so as to require the payment of
all back taxes, and not merely those that
stand AGAINST the nrODprtV for five wears |