The true northerner., 1897-01-13

a
When the affairs OF the concern become
involved and creditors seek TO get
their money, II IL fouiH that the afore-
said president has only few dollars
stock I'm the concern and therefore Is
only liable to the creditors for a smail
amount The creditors are thus swim
died by the use of the rich mans name.
There is an easy remedy for all this
the law should make a distinction be-
tween public and quasi-public corpora
tions and those which are strictly pri-
vate; the latter should. in my judgment.
for convenience and distinction, he
designated as joint stock companies and
all holders Of stock i'm such companies
should be liable for the debts of the
concern precisely the same as though
they were partners I recommend that
a law be passed. substantially embody-
irg the views above indicated.
Hallway Taxation.
While we should not Of fnecessitys select
railways of the state TO prove the great
inequality of our present distribution
of taxes and present burdens. yet l
have the figures at hand with reference
TO these corporations because there has
been supervision of them by the pub
lie. and the facts have at least become
partially known. These figures show
that railway companies in Michigan are
paying taxes under the gross earnings
system in exact proportion to the con-
dtions of their business. thereby in
creasing the taxes on all assessable
property during the period of decreased
earnings. A like inequality OF taxation
under our present system applies 10 tel
ephone. telegraph and express compa-
nes. submit also a statement OBJ
tained from the report OF the auditor
general and of the railway commission
er showing the inequality Of taxation
of railway properties in this state.
The Present Tax Lew.
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 the
money is required to pay tax upon the
mortgage which he holds, he will re-
cuperate from the owner of the prop
erty either by requiring him TO pay ad-
ditional interest sufficient to cover the
amount Of the mortgage or by compeil-
ing him to execute a mortgage which
contains a clause requiring him TO pay
the tax upon the mortgage. The effect
OF the present law is to prevent resi-
dents Of the state from loaning money
directly. and TO avoid the payment OF
tax, frauds are permitted. and the mort
gage Is taken in the name OF a non
resident against whom the collection OF
the tax cannot be enforced. IL would
be far better to permit the borrower TO
have the advantage OF a lower rate OF
interest than to allow the lender 10 ex-
act a higher rate upon the plea that
portion of the intrest received must be
used for the payment OF the tax.
am also OF the opinion that a radical
change should be made in the present
law by which tax titles are acquired.
While every facility should be afforded
for the collection of taxes, yet Ii should
not be possible for one individual to
confiscate the property OF another.
Whatever rights are required by rea
son Of the nom payment OF taxes should
be acquired by the state. Whatever
penalties are added for the non-pay-
ment OF tax should inure to the state.
The present law which prohibits the re-
cording Of deeds of transfer without
the payment of taxes due at the time
the transfer is made has facilitated the
collection OF taxes. This law, however,
should be amended 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 a general enabling act, il
such can legally be done, by which all
property of the state which has been
sold for taxes either to the state or to
the individual can be redeemed by the
original owner, or by his heirs or as
signs. al any time within five years
from the passage of such an act upon
the payment OF the original tax and
costs and 8 per cent. interest To the
date Of redemption.
Taxes Upon Timber Lands.
The state has suffered great losses in
the past by failure TO collect taxes due
upon timber lands. l would recon-
mend the passage OF law prohibiting
the cutting and removal of timber from
lands upon which taxes are due and un-
paid.
The educational. charitable, reforma-
tory and penal institutions of the state
should all command your earnest at
tention, and be subjected to such in
spection as will enable you TO provide
intelligently for their needs. Economy
in their management should always be
practiced. but the necessity for reduc-
ing the cost of maintenance, IL possi-
BILE, was never more keenly felt than
al the present time. The number OF
officers and employees on the pay rolls
should not exceed actual need for safe
and efficient service. and high or ex-
travagant salaries ought in no case to
be paid. ] am very strongly OF the
opinion that supplies for the various
institutions should be bought Of Mich
igan producers.
The University,
Permit me to direct your special at
tention to the university. This great
institution should under no circum-
stances be crippled. Its reputation as
one OF the great American universities
should be sustained. 1t has been en-
dowed by the people and has been main
tained by them with a spirit of pride
and often at a great sacrifice. It's teach
ers should be equal To any i'm the world
and they should be men Of independent
40 H. II