Crawford avalanche. (Grayling, Mich.) 1879-19??, 1898-03-31
LEGISLATURES MEETS.
OPENING or THE SPECIAL SEES
SION AT LANSING.
Both Houses Listen to Gov. Pingree's
Reading Of His Message ON the SUBJ
ject Of More Equitable Taxation of
Railway and Express Companies.



vened In special session at noon Tuesday
mt Lansing, in response to Gov. Pingree's
proclamation. for the purpose of consider
ing the Governors bill for the taxation
at cash value of the property OF railroad,
telegraph. telephone and express COM
panies. Trouble commenced in the Senate
before the secretary had completed calling
the roll, protests being made against call
ing the names of Senators Covell of Trav-
erse City, Preston of I.apeer and Hughes
OF Barry. Covell has been appointed
United States District Attorney and Pres
ton deputy collector of customs at Port
Huron, while it is claimed that Hughes
mas vacated his office by moving from
his district to Lansing.
The two houses met in joint convention
IN the AFTERNOON and listened to Gov. Fin
gree read his message. The executive
was enthusiastically received. the crowd
ed galleries contributing liberal applause.
The message in part was as follows:
To the Senate and House of Representa-
tives:
You have been called together under the
Following proclamaton:
by section Of article v. OF the Consti-
tuition Of the State. 1t is provided that the
Governor shall take care that the laws be
faithfully executed.
by section Z of the same article he is
given the power to convene the Legislature
ON extraordinary occasions.
by section IL of article XIV. 1t Is made
the duty of the Legislature to provide Il uni
form 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.
In xxsd hnxr loo 81 .k.. 70 tttnn
by which railroad companies. express com
panies, telegraph and telephone companies
Row owning, according to their sworn re-
turnN, at least one-third of the property or
this State, are required to pay only about
one-twenty-sixth Of the taxes levied for
State, county and municipal purposes, leav-
Ing their just proportion of the cost OF sup
porting our schools, asylums and other pub
lie Institutions, and of defraying the public
expenses, to fall upon the farmers, laborers.
manufacturers and other property owners Of
the State
Taxation has In many parts Of the State
become In the nature of contiscation, the
amount levied being greater than the proper
~ taxed can be made to produce.
IL regard the situation as extraordinary
and one that demands an Immediate REM
edy which cen only be given by the Legis-
lature.
at Is the duty of the Governor, under his
oath OF office. to see that the Constitution of
the State Is obeyed. and the laws faithfully
executed, and to submit to the Legislature
from time to time his views upon existing
mischiefs, so that remedy can be provided.
I'm obedience to this duty, l hereby call
the Legislature of the State to meet in ex-
traordinary session on Tuesday, the 22d day
OF March, 1898, at noon of that day, to con-
slider the question OF the taxation of rail-
road companies, express companies, tele-
graph and telephone companies, and such
other matters as shall be submitted by spe-
cial message"
l have cited this proclamation In full be-
cause, by section Is OF article w of the
Constitution 1t Is provided. as to the Legis-
lature, that '.when convened In extra SEES
sion they shall legislate on no other
subjects than those expressly stated In the
Governors proclamation, or submitted TO
them by special message"
The proclamation explains itself. You are
called upon TO consider the question of tax
Ing railroad companies. express companies.
telephone companies and telegraph compa-
mics, and for no other purpose.
l deem the occasion an extraordinary one.
The inequality of our system of taxation Is
so great that 1t should not be permitted to
continue for another year. | have therefore
called you together In extraordinary session
to consider 1t and to provide proper rene
dies.
No one can read the Constitution of Mich
igan without coming to the conclusion that
Its trainers Intended that all taxes to be lev
led should be based upon the cash value OF
property. While 1t permits the Legislature
to provide for the collection of specific taxes
under the laws as they then existed. and
even to collect specific taxes from corpora
tons thereafter TO be organized Ii express
ly requires that all assessments thereafter
authorized should be upon property at its
value, This provision of the Constitution
applies well to specific 10 general tax
es. Its continued violation since 1871 has led
to many evils. At the time the Constitution
was adopted, spcciic taxes. except upon
valves, were unknown TO the legislation of
tne State.
The first essential of just taxation is that
1t shall be equal. To exempt one person
from taxation Is to rob another. To provide
low rate for one and high rate for an
other Is despotic.
AT your last session an act was passed In
creasng to some extent the taxes now levied
upon the earnings of railroad companies. II
was asserted that this act would bring into
the treasury between two Ind three hundred
thousand dollars. No taxes have yet been
collected under 1t, but from the most relia.
BILE estimates that can now be made 1t will
only yield about one hundred thousand dol
lars.
The Michigan Central and Lake Shore and
Michigan Southern companies the two most
wealthy and powerful companies in the
state, claim that the bill does not apply Ia
them. They assert that because Ii was
passed rs an amendment to the general rail-
road law they are protected from 1t by their
special charters
IL is more than likely that the act will lead
TO serious and prolonged litigation. IL the
contention of the companies should be sus
tanned the result Will be that between the
railroads themselves the additional taxes
imposed by the act Of the last session will
fall upon the companies least able to bear II
The system of taxing earnings Is wrong III
principle and unsatisfactory In results The
Railroad Commissioners Is required to flle
. with the Auditor General a computation OF
the amount Of tax which will become due
from each of the railroad companies, which
computation is to Be based upon the report
of the railroad company for the preceding
year. This places the State absolutely al
the mercy of the railroad company. 1t 1,
compelled to take such reports as made
TO 1t. The privilege OF examining the book.
of the company Is useless one. The worl
would be almost endless. and even IL wei
done. uncertain in Its results.
4 .'Where the railroads lie partly within and
partly without this State prima facie thu
gross income OF the company, for the purpos,
OF taxation, are The actual earnings of III,
road In Michigan" Qtailroad laws, section
1867
This can be only ascertained from the com
pany itself. 1t may credit such portion OF
It's earnings as 1t sees fit to its Michigan
business The state Is compelled to trust en-
tlrely TO the method of division adopted b.
the company.
I do not wish to charge fraud upon any o.
the companies doing business In this State
What insist upon Is that the State shoult
never be at the mercy OF any taxpayer. and
that system open to frauds should neve
have been adopted. and having been adopted
should be abandoned at the earliest possible
moment for one under which the ostensibl'
property Of the company can be fairly and
honestly taxed.
Railroad companies In this State are no
bearing their Just proportion OF taxes. Fo
the purpose OF Illustration | desire to cal
I... H.. IAII Asrfar ~