The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-03-26
Thirty-Ninth Legislature of Michi-
gan Convenes in Extra Ses-
sion in Lansing.
HIS MESSAGE READ TO THE ASSEMBLY.
He Says the Country Is Only Half
Taxed, and That the Individual
Bears More Than n Just burden
Suggests "a Hoard of Five 10 Assess
Corporation Property.

houses OF the legislature convened III
special session at noon yesterday, in
response TO Gov. Pingree's proclama-
ton, for the purpose of considering the
governors bill for the taxation at cash
value of the property of railroad, tele-
graph, telephone and express com
panies. The two houses met In joint
convention In the afternoon and lis
tened to Gov Pingree read his mes
sage. The message in part was as fol-
lows:
ITO the Senate and House OF Repre-
sentatives: You have been called together
under the following proclamation:
by section OF article 5 OF the consti-
tuition OF the state IL Is provided that the
governor shall take care that the laws be
faithfully executed
by section OF the same article he Is
given the power 10 convene the legislature
on extraordinary occasions.
by section IL OF article IL II Is made the
duty OF the legislature TO provide uniform
rule OF taxation.
"By section II OF the same article all
assessments hereafter authorized shall be
on property at It's cash value These pro-
visions have been part OF the fundamental
law OF the state since 1850
'In violation OF the spirit, IL not the let
ter, OF these provisions OF the constitution
laws have been passed from time TO time
by which railroad companies express COM
panies. telegraph and telephone companies
now owning according 70 their sworn
returns, at least one-third OF the property
OF this state, are required 10 pay only about
one-twenty-sixth OF the taxes levied for
state. county and municipal purposes"
After quoting the remaining portions or
the proclamation by which the legislature
was summoned to meet at noon yesterday
Gov. Pingree declares IL Is clearly the
meaning OF the constitution that all taxes
TO be levied should be based upon the cash
value OF property" and continues:
''The first essential OF just taxation is
that IL shall be equal. To exempt one per-
son from taxation Is 10 rob another. To
provide a low rate for one and "A high rate
for another Is despotic
Equality Essential To Justice.
"At your last session an act was passed
increasing TO some extent the taxes now
levied upon the earnings OF railroad COM
panies. II was asserted that this act would
bring into the treasury between $1,000
and 100000. No taxes have yet been col
lected under IL, but from the most reliable
estimates that can now be made IL will
only yield about 100000.
THE Michigan Central and Lake Shore
a. Michigan Southern companies, the two
most wealthy and powerful companies OF
the state, claim that the bill does not APP
ply to them. They assert that because II
a
eral railroad law they are protected from
II by their special charters.
THE system OF taxing earnings is wrong
In principle and unsatisfactory In results.
This places the state absolutely at the mer-
cy Of the railroad companies. Ii is com
PEELED TO take such reports as are made
10 Il. / do not wish 20 charge fraud upon
any OF the companies doing business I'm this
state. What ! insist upon is that the state
should never be at the mercy OF any tax
payer, and that a system so open TO frauds
should never have been adopted"
Railroads Pay TOO Little.
RAILROAD companies in this state are
not bearing their just proportion or taxes.
For the purpose OF Illustration desire TO
call your attention TO the official figures
of 1895. which are not materially different
from those OF the presentrear and which.
having been acted upon, are more certain
for the purposes OF computation.
THE entire value OF the assessed prop
erty OF the state In 1895, equalized by
the boards OF supervisors. was $SlS, 0S6 l60.
The board OF review. acting under section
1888 OF Howell's statutes. fixed the aver
age rate OF taxes for state county and
municipal purposes at OBS
THE total cost Of railroad property I'm
the state, as returned by the companies
and verified by the aflldavits OF their Of
ficers for the same year. was 1901 ,003 "A.
If the companies had been assessed
upon lHlb sworn Nhlhhilon tntlf taxes TOT
that year, at the average rate, would have
amounted 20 SS,i2S,0SS.l5. The taxes which
they paid were S4l ,4OS77 Their tax
amounted TO little less than one-quarter
OF one per cent. upon their own sworn
valuations IL was less than one-eleventh
OF the percentage paid by other taxpayers
or the state.
The average rate OF taxation, as fixed
by the board OF review for the year 1897,
Is reported TO me as three per cent. The
taxes TO be paid by the railroads do not
materially differ from those collected In
1896
''The enormous inequality TO which
called your attention In my special mes
sage OF May 6. 1897. has increased instead
OF growing less.
After quoting figures showing the valua-
tion OF railroad property IN the state and
the amount Of taxes paid thereon, the gov
ernor continues:
1--WE are confronted with this situation:
The ordinary taxpayers OF the state are
bearing an annual burden OF three per
cent. upon the value OF their property.
The railroad companies are paying less
than onc-quarter OF one per cent. upon
their properties, and less than one eleventh
OF the proportion borne by others"
The message then quotes from the speech
delivered Ia Chicago by ex-Presldent Har-
rson In which the speaker said. Mr.. Lin
coins declaration that this country could
not continue to exist half slave and half
free may be paraphrased to-day by saying
that this country cannot continue TO exist
half taxed and half free" nd continues:
I'm 1866. AZ the end OF the war, the taxes
for state purposes were less than four mills
on the dollar and only 81 cents per capita
In 1895 our taxes for state PURPOSES have ln-
creased TO t.A per capita. During the
same period the proportion OK taxes paid
by the railroad companies decreased In
1855 the railroads paid 70 per cent OF all
the taxes levied for state purposes In 1895
the percentage had dropped 90 q 7-lO per
cent This percentage refers TO state taxes
alone"
History ot Hatirond Hamilton.
THE history OF railroad taxation I'm this
state Is very interesting. Under the special
charters OF 1886 the roads were required TO
pay, after 1851, an annual tax OF three-auar-
tiers OF one per cent upon their capital
stock paid IN and upon all loans made by
the company for the purpose Of construc-
ton.
Upon this basis the taxes upon railroads
IN 1925 would have been 1851 s2s.Gi instead
OF S74i. fOST.