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


the period OF their exemption from taxation,
and have returned to the state In worth
less condition for the non-payment OF subse-
quent taxes. In addition to the lands given
aid In building railroads. Immense tracts
we're given TO aid In draining and reolaiming
the low lands Of the State.
The Government OF the United States ana
OF the State and Of every municipality OF
the State have been careful to avoid every
species OF Reputation and to fulnil. even
beyond the letter of their contract, every
obligation Incurred on their part. Have we
not the same right to insist that those who
received large properties from the State
shall keep their contracts?
am aware that 1t Is claimed by the rail-
road companies that their business Is SO de-
pressed and Michigan affords such poor
field for their operations that they cannot
AFFORD TO contribute their share towards the
necessary expenses OF the State.
As to this excuse l can only repeat what
said In my message Of May 0. 1897 II re-
gard II as SANDER upon the Common
wealth to say that Michigan Is not as Ia
vorably situated for railroad operations as
any Of her sister States. She has been con-
sldered unusually rich In resources. and re-
sources Of that character which make busi-
ness for railroads. Michigan Is first In the
production OF lumber: first In the production
of salt; first In the production of copper;
first in the production OF iron: she Is far
above the average In the production or
wheat. corn, potatoes, wool and fruits she
she lies In the path Of through commerce
and certainly enjoys her full share of It."
The suggestion has been lndustriously cir
culated that Michigan enjoys unusually low
railroad rates.
The Interstate Commerce Commission
group Michigan. Indiana, Ohio, Pennsylva-
MIA and New York together. The average
rate Of freight In this group is ;oo642 per
Michigan for the same year was .OO76
which was Increased In 1896 to .00S0S. From
this II would appear that the railroads In
Michigan are charging more than the rail-
roads In other States in the group, although
| In all these States the taxes are at least
three times as high upon railroads as In
Michigan.
The increase in freight rates in Michigan
| In 1896 over 1895, figured upon the total
| traffic as reported to me by the Railroad
| Commissioner. was 81, 129, 955.45. This In
crease alone paid all the taxes that the State
levied against the companies and lett them
| over $300,000
| In Indiana, where the taxes on railroads
are at least three times as high as In Michi-
gan, the freight rate per ton mile for the
| year 1896 Is reported at 0O61S In Michigan
| for the same year, as already stated, 1t was
| OOS0S, a difference of 0O19 per ton per mile
| in favor OF the Indiana shippers. This DIFF
| ference calculated upon the total tonnage
| Of Michigan, as computed by the Railroad
| Commissioner. amounts to S4,472. 74O.33.
Out Of this difference the railroad COM
panies Of this State could pay their taxes
for 1896 and have balance left Of $780,
| 665. 20.
| From the computation on file in the office
of the Commissioner OF Railroads IL has been
| found that the through rate In Michigan.
| that Is to say on freight that comes into the
State from other States and passes on again,
| Is .OO614 per ton per mile. while the aver
age local,rate in Michigan is .O095035.
The rate to foreign shippers Is fixed by
competition. The rate to Michigan shippers
is fixed by the railroad companies
| To show how the discrimination works It
| Is only necessary to state that to ship car
load OF goods billed at twenty TONS the Mich
igan shipper has to pay S19.07 for 100 miles,
| while the through shippes, for the same
amount, can have similar car transported
| 1856 miles.
So far have dealt with those railroads In
! the State which contribute something to-
wards the public burden. There are, how
ever. number OF railroads which pay moth
ing. :.
| roads to be constructed north Of parallel A
| of latitude from taxes for ten years Under
| this act the Alpena and northern division OF
| the Detroit and Mackinaw, having S4.7O
| miles Of road, the Boyne City and Southwest
| ern, having II miles. the Chicago and Norti
| Michigan. having 92.62 miles, the Chicago
| Milwaukee and st. Paul. Charming division.
having 4705 miles the Manistee and North
| eastern, having "a miles, and the Wisconsin
and Michigan, having 5410 miles. have been
| paying no taxes whatever.
| The sworn reports Of these companies show
that they are valued at more than $4,000
| 900. They are used as feeders to other sys-
| tens, some of which pay as high as 7 per
| cent. In dividends. On what principle can
| these properties be exempted from taxation
The taxes paid by railroad companies; ex-
| press companies, telegraph and telephone
| companies under the present system are de-
| voted to the primary school fund. respect
| fully recommend you that the taxes to be
collected under any act which you may pass
| be devoted to the same purpose, and be paid
direct to the school districts of the State in
proportion to the number 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. 1t 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 devoting the taxes collected to the
primary school fund, In which all the people
| of the State are intensely Interested.
| In many parts OF the State the people are
unable to maintain schools except for few
months If these corporations are made 10
bear their proper proportion OF taxation and
| the money collected from them Is devoted TO
| the primary school fund. Ii Will enable Ills.
trcts where schools are now maintained
only for few months to maintain them ior
a longer period. and in all parts OF the state
will assist the taxpayer In defraying the ex'
penses Of education.
l recommend that you authorize the ap-
| pointment Of Il State board of fve, to be non
| partisan, IL the Constitution permits. which
| shall be empowered to make just and
equitable valuation OF the franchises and
other property Of railroad companies. ex-
press companies. telegraph and telephone
companies at their true cash value, ana 10
| ascertain the average rate OF taxes paid by
the other people Of the State for State, coun-
ty and municipal purposes. and to assess the
property Of these companies at that rate, the
| moneys collected to be paid directly to the
state Treasurer and by him distributed In
the same manner as the moneys now collect
| ed from specific taxes.
| In conclusion I desire earnestly to urge
this dirty upon you In the name Of equality
and Justice / trust that prejudices for or
against corporations will have no part In
| your deliberations Michigan should be alb
! solutely just Natural and artificial persons
| whether rich or poor. resident non-resi.
dent. are entitled to the same treatment be-
fore the law.
When the reading, which occupied near.
" two hours, was completed, the Pingree
taxation bill was introduced in the Senate
by Senator Moore and in the House by
Col. Atkinson. the Pingree leader and au
thor of the measure. In each body an at
tempt was made to send the bill to spe
cial committee. This was opposed by the
Pingreeites, who won by vote of so to 4
in the House and 20 TO 0 in the Senate
Although these cannot be considered test
votes the result caused great rejoicing
among the friends of the bill. Col. At
kinson succeeded in having it referred In
the House to the Committee on Revision
of Laws, of which he is chairman, and q
ma iority Of the members are Pingree men