The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1897-01-09


law should make distinction between
public and quasi-pubiic corporations. and
those which are strictly private the latter
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
honest advantages OF a corporate existence
can thus be obtained. while at the same
time the public Is protected from the
swindling operations OF those who organize
a corporation for dishonest purposes
recommend that a law be passed, substan-
tally embodying the views above indi-
Gated.
While we should not OF necessity select
the railway OF the state 70 prove the great
inequality OF our present distribution OF
taxes and present burdens, yet have the
figures at hand with reference 10 these
corporations because there has been sill
pervislon OF them by the public. and the
facts have at least become partially known.
l submit the following statement taken
from the report OF the railway commits
sioner for 1895. which am sure VIII be OF
Interest TO you I'm determining what your
duty 10 the people OF the state may be
with reference TO the question OF taxation.
The figures are taken from page SO OF the
railway commissioners report for l@5'
The gross earnings OF the companies from
all sources were SO, 307. 909. 80: upon which
there was collected a total tax OF SOC, 5Z9;
and as compute IL the percentage OF tax
alton on gross earnings Is .O22sfA
Page 81 or the commissioners report gives
the following total tax for Michigan. under
the present system OF tax OF gross earn
ings: 1850. ssh. .65; 1891. 1851 S?i;l2: l's2
$500. 7620i: 1898. SSH .05GC5; 1884, $50. lse ~
Showing that railway companies In Mich
igan are paying taxes under the gross
earnings system I'm exact proportion 70 the
conditions OF their business. thereby In
creasing the taxes on oil assessable prop
erty during the period or decreased earn
ings.
present system applies 10 telephone. tele-
graph and express companies. Concerning
the latter call your attention 10 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 n statement oh
tained from the reports OF the auditor-gen-
eral and OF the railway eommissionsr
way properties In this state The items
In the statement as obtained
from the railway commissioners office are
taken from the report not yet published:
'''The total cost OF railway property In the
state OF Michigan I'm the year 1895. accord
ing 70 the report OF the railway SS CO. nm ~
aioner mot yet i'm print was $685. ,O2l ~.
The railway companies paid during the
year IN specific taxes $7fl, ~, or frac-
ton more than two and one-third mills on
.'The total value OF real and personal
property in the state I'm the year 1925. rs
by the boards OF supervisors, was
$SlS, oSG 100. and the. taxes levied fer the
same year for state, local and all other pur-
poses Gas shown below amounted TO $2o,-
j33, 57i o., or a fraction less than two and
one-half cents on the dollar.
The taxes were as follows:
state taN...,.....-.........,. .$5'ylVE.a ~
county taxes ....'...'.'..'..'...' zt99ii0.1 ~
School taxes. ..........,............6. 4altl AZ
and city taxes........ Tfli326 30
Liquor taxes ...................... l,S9,Sel ~
From this statement it will appear how
S nrdens have awe Been boM dstTbutsd and what
applies 20 railways I'm this regard applies
With equal force TO large amounts Of other
property in the state While you NAV not
deem Il advisable to dispense entirely with
the present system of specific taxation OF
corporations which / do not recommend,
some steps must be taken by you I'm the
interests of the people in at least adding 10
hat system. From many sources comes
the proposition TO tax corporate property |
N the localities where II may be situated, |
and In the absence OF any better system |
commend II TO your attention How |
svcr, after considerable Investigation Il |
appears to me that "a wiser and better |
method would be TO create department |
" taxes and assessments, composed of |
! board TO be appointed by the governor, |
Ind which board should be composed I'm |
part OF such officials as have the super |
Vision OF the corporations against whom |
axes are 70 be assessed. This board 10 |
determine the exact value OF all corporate |
property I'm the state not now taxed To- |
ally under the present law and 20 levy |
axes thereon I'm the same proportion that |
lrivate property Is taxed. IL the forma- |
Ion OF such board can meet the require |
nonts OF law no difficulty should be ex- /
1erienced on the part OF the state In com
lelllng the payment OF n just tax on the /
actual value of the property owned |
~ such corporations within the state /
the value OF the franchise. / look |
ipon the question Of taxation IN these
lines as the most vital one with which
'ou have 20 deal and one with which we /
must deal Justly II the people are 20 be |
ration OF the statement herein submitted |
Q you VIII make It manifest that the peo-
nd proper system OF taxation can be re-
icved OF the burden OF the expense OF state
government, and be burdcncd only with
specially recommend TO you that in the
OF the question OF taxation you
void levying taxes I'm such a manner that
~ increasing the prices OF products or |
oils TO the consumer the burden OF taxa
Ion Will Indirectly remain upon the people.
The Present Tax law.
] am OF the opinion that some radical
'hanges should be made In the present tax
aw. The taxation OF mortgages upon land
must be considered double taxation. The
'wner OF the real estate must I'm all cases
nY the tax, not only upon the real estate, |
M upon the mortgage, for II he who loans
he money is required 20 pay tax upon the |
mortgage which he holds he will recuperate
rom the owner or the property, either by
equring him 10 pay additional interest |
ufficient 70 cover the amount OF the mort-
age. or by compelling him TO execute a |
mortgage which contains clause requir-
ng him 20 pay the tax upon tho mortgage
lirect. The effect OF the present law is
o prevent residents OF the state from
oaning money directly, and TO avoid the
laymcnt OF tax frauds are committed, and
he mortgage is taken in the name OF n
against whom the collection |
n the tax cannot be enforced. IL would be
ar better 20 permit the borrower 10 have
he advantage OF lower rate Of interest
han 10 allow the lender TO exact n higher
ate upon the plea that a portion OF the
interest received must be used for the pay
1cnt OF the tax.
7 nrn also OF the opinion that a radical
hange should be made I'm the present law
y which tax titles are acquired While
very facility should be afforded for the |
objection OF taxes, yet Il should not be
osslble for one individual TO confiscate
he property OF another Whatever rights
re required by reason OF the nonpaymcnt
7 taxes should be acquired by the state. |
Whatever penalties are added for the nom
ayment OF tax should inure TO the state. |
he present law which prohibits the re-
nrding OF deeds OF transfer without the |
aYmcnt OF taxes due NJ the time the trans |
- Is made has facilitated the collection |
taxes This law. however, should be
mendcd 80 as to require the payment OF |
II back taxes. and not merely those that |
tand against the property for five years |
rcccdlng the transfer.
would also recommend tho adoption OF |
naf -. /