The Owosso times. (Owosso, Mich.) 1897-1926, 1897-05-21
OUTLOOK PROMISING
For Deadlock Between the Sen.
ate and House.
TAXES JF RAILWAYS THE CAUSE.

important Developments i'm the State Leg
tslature During the Past Week-Anoth-
er Stroke of Railroad Business Done by
the House-Governor Pingree and the
Merriam Bill - Another Appoiutee
Turned Down by the Senate.
Lansing, Mich, May 1S.-The chances
for deadlock between the senate and
house and a row with the governor in
consequence are most promising. 1t is
all due to the important developments
of the past week in the line of legisla-
ton increasing the taxes paid by rail-
roads In my last letter / referred to
the passage by the senate of the Merriam
bill increasing the specific tax rate so
as to make an aggregate annual increase
Of about $1S0,000 in the taxes paid by the
railroad companies operating in this
state, and at the same time stated that
the house would probably see the senate
and go it considerably better. The
house did just this thing, and did it With
a vengeance, too. The contest was a
most exciting one and showed good gen.
eralship both on the part of the Pingree
forces and the railroad people.
The battle opened up with the consid-
Grafton Of the Stoneman bill providing
that railroad property shall be taxed To-
cally just as other property is taxed. Aft
er amending this bill by taking the pow
er Of assessing railroad property from
the supervisors and requiring that all of
1t shall be done by the board Of state au-
ditors, who shall apportion the assessment
among the various townships and cities
in which the property is located, and
derived therefrom shall be used for the
support Of the public schools just as the
revenue from specific taxation is now
used, the bill was agreed to in commit
tee Of the whole. This done, the Pingree
leader, Colonel Atkinson, called up his
bin providing for fiat 2-cent passenger
rate on all reads in the state and sue
ceeded in having that agreed to also.
Merriam Specific Tax Bill.
While all this was going on the Mer-
Ram specific tax bill, which had passed
the senate as above noted was in the
hands of the railroad committee Of the
house, which had set a hearing on ii for
several days hence. The railroad men
rallied over night after the action on the
local taxation and 2-cent fare bills, and
succeeded in having the hearing aban-
doned and the bill reported out
bright and early the next morn
ing and placed at the head
of the special order so that it would be
the first measure considered. Their OBJ
ject was to rush it through ahead of the
other two bills, which they feared more
than this one, and thus kill them off, for
1t was not possible that all would pass.
On the other hand. the Pingree forces
used the action on the two bills as a club
with which to force an increase in the
ra ties of specific taxation made by the
senate. 1t was case Of deg eat dog
and both sides claim to have secured an
ample moutEfUl.
The present rates CT taxation are as fol-
lows: on earnings of 1000 per mile or
less, per cent; $4,000 70 $4,000. 2lb per
per cent; from $4,000 e. $4,000. per
cent. from $1,000 to IS, eco, 3A per cent;
over $1,000, : per cent. As fixed by the
house the rates are as follows: on earn
ing Of COCO or less, 2E per cent; from
$4,000 to $4,000, 4 FER cent. from $4,000
to $4,000, 6 per cent; ever $G,000 10 per
cent. A careful computation Of the
amount Of revenue the state would re-
ceive under the Merriam bill as tpassed
the house shows that it would be $1,246,
1913 annually, TIE computation being on
the earnings Of last year. This is an in
crease Of 1904, 7S4.34 over the revenue re-
ceived last year, as against the increase
of $3.50 600 provided by the senate.
senator Cunngcd Ills Mind.
When the bill was sent back to the
senate II was laid on the table without
discussion, it being the purpose of Sena-
tor Merriam not to call it up until this
week. The senator changed his mind,
however, and on Friday morning had
the bill taken from the table. On his
motion the house amendments were no;
concurred in, but. five votes being cast in