The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-03-26


roads. the state would have received In 1895
5000. as. instead OF Sal .40sT
I'm 1869 the act was amended so as TO re-
quire the companies TO pay, In addition to
the above. one per cent upon all moneys
realized from loans. municipal aid and
other sources used in the construction OF
the roads.
Every change In the system OF taxation
from 1863 TO the present time. with the ex-
ception OF the act passed In 1897, has re-
suited in decreasing the proportion OF taxes
paid by the railroads.
I'm the meantime the burden OF taxation
on others has enormously increased.
Land Grants.
''In most instances the land grants made
TO tho companies have been separated from
tho ownership OF the railroads and treated
as profit by the promoters. In this way
the state has been left TO deal with Grip
pied and Impoverished corporations. while
the generous gifts TO aid them have passed
into other hands. Under what pretense
can the railroad companies OF this state.
after having received these generous gifts.
ask TO be exempted from their contract
obligations? How can any honest man
now object 10 making the companies thus
richly endowed by the state pay az least
their share OF the public burdens7'
while these reductions were being made
in the taxes paid by the railroads. they were
receiving immense favors from the state.
'In 1886 the general government gave TO
the state. TO aid In the construction OF rail-
roads. six sections OF land for every mile
OF railroad that should be built.
I'm 1857 the legislature or the state passed
an act TO aid in the construction OF a rail-
road from Amboy, by way OF Hllsdale
and Lansing, to Traverse Bay; another
from Grand Haven TO Flint and then TO
Port Huron: another from Pere Marquette.
now Ludington, to Flint and from there TO
Port Huron: another from Grand Rapids
10 Traverse Bay: another from Marquette
to the Wisconsin line; another from Onton-
agon TO the Wisconsin line; another from
Little Bay De Noquet 10 Marquette, and
another from Marquette TO Ontonagon.
1T turned over TO the companies under
taking to build these roads the six sec
lions OF land given TO IL by the general
government for every mile OF road. II
exempted the land so given from taxation
for the period OF seven years
THE value OF the lands thus given away
Is almost beyond computation. They were
covered with magnificent forests OF pine
and hardwood and beneath the surface
there was untold mineral wealth.
Earnings I'm Michigan.
Discussing the claim the railroads OF the
state cannot afford to pay full taxes be-
cause Michigan IS a poor field FOR their
operation, the governor cites figures show
ing the Michigan roads receive higher
tonnage rate per mile than those I'm In
diana and certain other states. while the
Indiana roads, for example. pay a much
higher tax rate than those In Michigan.
The next argument IN favor OF change
In the tax laws was based on the fact that
the railroad companies pay mere pittance
compared with other taxpayers for the sup
port OF state institutions. on this point
the message says.
THE railroad companies make a profit
out OF every appropriation made, while
they contribute a mere pittance I'm proper
ton to the general taxpayer They make a
profit upon every student who Is carried 10
our normal schools or university; upon
every prisoner who is taken TO one OF our
penitentiaries. upon every insane person
who Is transported TO an asylum, upon
every pound OF freight that IS carried TO
any or the state institutions for their use.
Refers To Prospects of war.
From the beginning these great cor
porations have practically evaded thely
duties 10 the state. In the war for the union
the burden OF every taxpayer was largely
increased. The railroad companies made
profit on. every soldier who was carried 10
the front and upon the body Of every dead
soldier that was brought home to be buried.
AT the same time their taxes remained sta
tionary. We cannot tell at what moment
the state may again be called upon TO con-
tribute TO the national defense. Shall we
permit history to repeat itself and leave the
whole burden OF national defense to fall
upon the ordinary taxpayers while the rail-
roads reap profit from the struggle?"
Express and telephone companies are
rext considered. the point being made that
they have comparatively little In visible as
sets when their large earnings are borne In
mind. and that under the system OF taxa
ton employed In Ohio and Indiana these
companies are required to pay larger rev.
enue to the state than in Michigan An
adoption OF this system Is recommended.
on the subject OF the principles that
should be adhered TO IN framing new tax
laws, the message says:
There Is but one rule consistent with
honesty and that Is TO place all the property
OF the state upon the same footing and 10
make every one pay his share and TO ask
no one to pay more than his share. No one
should ask the railroads, express com
panies, telegraph and telephone companies
TO do more than they Insist upon others do
ing We should not be satisfied with less.
We should bear In mind that we are only
representatives In passing laws that affect
the Interests OF our constituents and the
interests OF unborn men and women who
are TO come after us. Our constituents have
right to demand a substantial and bona
hde effort TO equalze taxes and 10 make
every one pay his just share"
Distribution of Taxes
THE taxes paid by railroad companies,
express companies, telegraph and tele-
phone companies under the present system
are devoted TO the primary school fund /
respectfully recommend to you that the
taxes TO be collected under any act which
you may pass be devoted TO the same pur-
pose, and be paid direct TO the school dis
tricts OF the state In proportion 10 the num-
Der Of school children.
AS | have already pointed out, the state
has made great sacrifices TO establish rail-
roads. Many OF the municipalities have
made large donations for the same purpose.
IL is only just that those parts OF the state
which have no depots or other valuable
railroad property should receive something
In return for the sacrifices In which they
have shared. The return can be made In no
better way than by deyoting the taxes col
lected 10 the primary school fund, In which
all the people OF the state are intensely in
terested
I'm many parts OF the state the people are
unable TO maintain schools except for
few months III these corporations are
made TO bear their proper proportion OF
taxation and the money collected from
them IS devoted TO the primary school fund
Il viii enable districts where schools are
now maintained only for few months to-
NH a.. IL -