Crawford avalanche. (Grayling, Mich.) 1879-19??, 1898-03-31


We are confronted with this situation: The
ordinary taxpayers OF the State are bearing
| an annual burden OF 3 per cent. upon the
value OF their property. The railroad com.
per cent. upon their properties and less than
one-eleventh OF the proportion borne ny
others.
One set of taxpayers are bearing an excess
| I've share OF the public burdens. Another set
Of taxpayers are almost exempted from any
| share.
The system OF specific taxes. when applied
| TO only part OF the property or the state.
cannot be continued for any great length OF
time without producing great injustice.
1t viii be readily seen that II all the prop
| erty OF the State were to be taxed specincai-
| ly, and at a fixed rate determined upon In
! advance. II would be impossible to meet any
| OF the emergencies which from time to time
arise. IL, for Instance. In 1916, the Legisia-
| ture had fixed three-quarters OF per cent.
as the taxes which should be paid by all tax
| payers. as Ii did fix the taxes to be paid by
the chartered railroad companies, there
would have been no way to provide Tor the
Increase of taxes which has since occurred.
Under the special charters specinc taxes
| were placed In 1S48 at three-quarters OF !
per cent. upon the capital stock paid In and
! such moneys as were realized from loans
| used In the construction OF railroads. This
| rate OF taxation was made to commence In
| 1851. 1t will be noticed while this rate was
fixed as a specific tax 1t was fixed upon the
| value OF the property and not upon earnings.
| At the time we had no great university.
| no asylums worth speaking OF. no Soldiers
! home, no normal schools, no agricultural col
lege no schools for the deaf and blind, no
| Industrial homes, no mining school, no great
prisons, no expensive militia and compara-
| lively inexpensive schoolhouses. This was
at time, too, when the population along
| the line of these roads was very much less
than Mt present. Indeed, the entire popula-
| ton Of the State was not at that time as
| great as the present population or the city
| OF Detroit. The commerce of the State was
| comparatively undeveloped.
The intervening period has been one OF
wonderful development In this State AT
| every session OF the Legislature the people
have been called upon TO make extraordin-
airy appropriations for building up State In
! situations. The period includes the years or
war between 1861 and 1865 during which
the burdens upon the taxpayers were great
ly increased and enormous sacrifices had to
be made. Nn1
During this period the percentage of tax
es Of the ordinary taxpayer Increased with
great rapidity. In 1855, when the first Re
publican Legislature convened, the rate or
| taxation for State purposes was less than
one-third of mill on the dollar and about
q cents per capita.
In 1865. at the end OF the war. the taxes
for State purpose were less than four mills
on the dollar and only 81 cents per capita.
In 1895 our taxes for State purposes had
increased to $1.34 per capita. (Aud. Gen
era.'s rep. for 1896, pages 800 and 31O)
During the same period the proportion Of
taxes paid by the railroad companies de-
creased.
In 1885 the railroads paid 70 per cent. of
all the taxes levied for State purposes. In
1895 the percentage had dropped to 81 ITO
per cent. This percentage refers to State
| taxes alone.
The other taxpayers OF the State were call
ed upon to meet similar increase in taxes
for local purposes from which the railroad
companies in the State have been entirely
free.
The history of railroad taxation In this
| q Under snacfaI
charters Of 1876 the roads were required to
pay. after 1851. an annual tax of three-quar-
tiers Of l per cent. upon their capital stock
paid In and upon all loans made by the COM
pany for the purpose of construction.
Upon this basis the taxes upon railroads In
1895 would have been s., 257, 523.61 Instead Of
$741, 4OS.T7.
In 1855 the general railroad law was passed
by the first Republican Legislature Of the
State OF Michigan. 1t placed the taxes Of
railroad companies organized under 1t at
l per cent. upon the capital stock paid In
Under this act. IL 1t had been left undis-
turbed aud applied to all railroads. the State
would have received In 1895 5000, 031 49,
instead OF $741 .04S.77.
In 1869 the act was amended so as to re-
quire the companies to pay, In addition to
the above, l per cent. upon all moneys real
lied from loans. municipal aid and other
sources used In the construction OF the roads
Every change in the system Of taxation
from 1869 to the present time, with the ex-
ception of the act passed In 1897, has result
| OI
by the railroads.
In the meantime the burden of taxation on
others. as already shown, has enormously in
creased.
Tic Legislature Of 1885, although supposed
to have been compelled to submit to hard
bargain. fixed the rate of taxation at that
time upon a comparatively fair basis.
The Legislature In 1855, In fixing The tax Of
1 per cent. upon the value of railroad prop
erty, sought to make the railroad companies
pay their just proportion, that being about
the average rate at that time.
The Legislature of 1869 saw the justice of
adding to the capital stock OF the companies
the property received from towns through
which the roads passed. and the improve
ments made from borrowed money.
The system OF a tax on earnings was not
adopted until 1871. At that time the rail-
road companies were paying nearly 30 per
cent. of the whole State tax, not including
taxes for municipal purposes. The effect OF
the legislation was to decrease the percent
age paid by railroads In two years to less
than Is per cent.
Even the change made in the Michigan
Central charter In 1893, by which the people
were led to believe that the Michigan Cen
trail Railroad Company. In coming under the
general laws as TO taxation, had made n
concession favorable to other taxpayers, has
operated to decrease the burdens OF that
company.
While these reductions were being made
In the taxes paid by the railroads they were
receiving immense favors from the State.
In 1855 the general government gave to the
State. to aid In the construction OF railroads,
six sections of land for every mile Of rail-
road that should be built.
In 1857 the Legisla ture OF the State passed
an act to aid In the construction Of Il rail-
road from Amboy. by way of Hillsdale 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 to Trav-
erse Bay; another from Marquette to the
| nsi hnr frnt nntn apnn IN
the Wisconsin line; another from Little Bay
De Noquet to Marquette; and another from
Marquette to Ontonagon.
1t turned over to the companies undertake
, Ing to build these roads the six sections of
, land given TO 1t by the general government
for every mile of road. 1t exempted the
! land so given from taxation for the period
OF seven years.
, In section 20 of the act 1t was provided
SIN consideration OF the grants Of land and
other privileges hereby conferred on each of
, the several railroad companies mentioned
the said several railroad companies
, are hereby required within sixty days from
and after the first day OF January OF each
and every year 10 pay into the treasury OF
, the State, as a specific annual tax, per cent.
, upon the cost of the road and Its equipments
, and appurtenances of whatever kind and II
, shall be lawful for the Legislature Of he
, State In their discretion. after ten years. to
impose upon either or each Of said railroad
companies the payment of a further tax
: upon the gross or total earnings OF such road
, not exceeding per cent" laws Of 1857,
page 346).
taxes was made for ten years The act re-
mi rnd IN M NIL IN rfF ~