The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1897-01-16
therefore is only liable to the creditors for

therefore Is only naple 10 tne creators Iol
; a small amount Tho creditors are thui
swindled by the use OF the rich man y name
! There Is an easy remedy for all this-tht
lazy should make b,, 6is.lneolon Deswenaa
those which are strictly private: the latter
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 OF the concern precisely the Same
as though they were partners. All the
can thus be obtained, while at the same
time the public is protected from the
swindling operations OF those who organize
corporation FOR dishonest purposes.
| recommend that law he passed, substan-
TALLY embodying the views above indi-
| Gated.
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 SUI
pervision of them by the publlc, and the
facts have at least become partially known
/ submit the following statement taken
from the report of the railway commits
sioner for 1895, which / am sure VIII be or
| nterest 10 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 DO or me
| railway commissioners report for 1895:
| The gross earnings of the companies from
| all sources were 81, S079 C9.93; upon which
there was collected 9 total tax OF SOC, so;
L Il
| alton on gross earnings Is .O22S.S
| 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 g. 1891, sS54,S3i IL: 1892,
$685. 762. OIL 1898, SSH .O56G5; 1894, S11G,l2tlS
| 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 asscSsable prop
erty during the period or decreased earn
ing5
A like inequality of taxation under our
present system applies TO telephone, tSie-
graph and express companies Concerning
the latter l 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
the earnings.
1 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 or 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:
1.-THE total cost OF railway property in the
state of Michigan in the year 1895, accord
ing to the report of the railway commits
sioner mot yet in print was 1888 O27 ".
year in specific taxes s74l,46S77, or a frac-
ton more than two and one-third mills on
the dollar.
THE total value of real and personal
property in the state in the year 1885, as
cquallzcd by the boards of supervisors, was
SSlS, 6.lG0. and the taxes levied for the |
poses las shown below amounted to S2O,- |
633, ST. OF, or "a fraction less than two and |
one-half cents on the dollar |
1.-THE taxes were as follows:
State taN..................... .SSVlO,ZyI - |
county E.sI'oo1o ~
Township and city taxes......... T474,$26 g
From this statement 1t will appear how |
unjustly and how snequally the public
burdens have been distributed. and what |
applies to reilways In this regard applies |
with equal force to large amounts of other |
property In the state: While you may not |
deem 1t advisable to dispense entirely with
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
In the localities where It may be situated,
and In the absence OF any better system
ever. after considerable investigation 1t
appears to me that wiser and better
method would be to create department
q board to be appointed by the governor,
and which board should be composed In
Vision of the corporations against whom
taxes are to be assessed. This board to
determine the exact value OF all corporate
cally under the present law and to levy
taxes thereon in the same proportion that
private property Is taxed. II the forma-
ments of law no difficulty should be ex-
perienced on the part of the state In COM
pelling the payment Of just tax on the
by such corporations within the state.
including the value OF the franchise. look
upon the question Of taxation IN these
you have to deal and one with which we
must deal Justly II the people are to be
satisfied with our work. A careful investi.
TO you will make 1t manifest that the peo-
pie OF the state when they have a Just
and proper system Of taxation can be re-
government, and be burdened only with
local taxes OF their own creation. And
settlement OF the question Of taxation you
avoid levying taxes in such a manner that
by. increasing the prices of products or
oils to the consumer the burden of taxa
ton 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 I
must be considered double taxation. The
owner of the real estate must in all cases
pay the tax, not only upon the real estate.
he money is required to pay tax upon the
mortgage which ne holds ne will recuperate
rom the owner OF the property. either by
sufficient to cover the amount of the mort
gage. or by compelling him to execute
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 |
oaning money directly. and to avoid the
payment of tax frauds are committed, and
the mortgage Is taken in the name OF a |
against whom the collection |
Of the tax cannot be enforced. 1t would be |
far better to permit the borrower to have
the advantage of a lower rate of interest
than to allow the lender to exact higher
-ate upon the plea that a portion of the
interest received must be used for the pay
am also of the opinion that a radical
,hange should be made In the present law
by which tax titles are acquired. While |
every facility should be afforded for the |
of taxes, yet II should not be
possible for one Individual to confiscate |
the property OF another Whatever rights
are required by reason of the nonpayment
u taxes should be acquired by the state.
Whatever penalties are added for the non |
payment of tax should inure to the state. |
The present law which prohibits the re- |
,ording of deeds Of transfer without the
payment of taxes due at the time the trans |
- Is made has facilitated the collection |
)f taxes. This law, however, should be
so as to require the payment of
all back taxes, and not merely those that |
stand against the property for FIVE years
preceding the transfer.
/ would also recommend the adoption of
! general enabling act, II such can legally
be done. by which all property in the state |
which has been sold for taxes either to