The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-03-19
.IIIBBARD,
FL REY,
LARENIA,
and
AJOL.

that, as our Legislators nave been
called together for the pur-
pose Of remedying the evils
that exist AT present in the
matter of the taxation of
corporations. il is their plain
and simple duty TO remedy them
as speedily as they can and 90
home. Failing in that they fail
in doing the work for which the
people elected them
Ia order to look at the ques
ton intelligently we must have
a clear idea Of the conditions as
they exist. The railroad. tele.
phone and telegraph companies
OF this state pay tax upon the
gross earnings Of the road or
line which they operate. 1t is
obvious that in a time of com
mercial prostration when the
earnings fall of they pay less
tax than during the good times
when the earnings increase. by
this means there is an unequal
taxation Take the case Of a
man who owns a store on a mine
in this town he pays tax upon
the same valuation rs he did
during the good times although
his store may be empty on his
mine closed down. II makes no
difference TO people IN other
lines of work whether their in
yestments pay a dividend or
whether at the end OF the
year they show a loss, they
pay the same tax while in
the case of q railroad that does
not earn a dividend it pays a less
rate of tax than tho one which
does pay a dividend
1t is also clear that a railroad
property that does not pay a
dividend is not rs valuable as
railroad that pays one The
proper way to fix the different
values is by an assessor who
assesses the property according
TO its true cash value and not by
the earnings for the latter may
be altogether out Of proportion
to the value OF the property.
Take for instance the case OF a
railroad that has a number of
cars and engines standing idle
during a momentary lull in bust
ness. These cars, etc. are earning
and 50 there is no tax
paid upon them The Great
Western mine has not been
worked for several years. Ii is
absolutely nothing. Is
that any reason that il should be
dropped from the assessment
rolly II certainly ought not be
and the railroad that has its cars
and engines lying idle ought 10 |
pay taxes upon its property MS
well rs a mining company that
has an idle mine.
The question of fair and
equal assessment is perhaps the
most difficult one and i'm this mat |
ter we must be guided TO great |
extent by the earnings, as that
is manifestly the criterion OF lis
worth. and il was no doubt for
that reason that the present sys
tenn was fixed rs il is. However.
the rate should be upon u stable
The real value Of the
the different counties is fixed
every five years and we pay our
state tax upon the basis for the
period for which the rate has
been fixed Notwithstanding that
he value may have shrunk one
half in the meantime. A glance
1t the tax paid in other states in
which the earnings OF the rail.
roads is about the same rs i'm
may be instructive.
The railroads in Missouri
pay tax Of Sal per mile
n Kansas S2i5; in Iowa $3.50
ind SO we might mention a
OF states in which
he railroads pay a greater tax
Der mile than they do in Mich
gan although the earnings are
about the same per mile as the
earnings Of the Michigan roads.
These are the conditions as
hey actually exist at the present