The Yale expositor., 1899-01-13

over COTDOTdllOnb inc STATE mas
met with a prompt obedience to Its or
ders.
The repeal Of special charters. granted
TO certain companies when the state was
new and undeVeioped, is now demanded
In the interest of justice.
There has been created within this
state class, of corporations known as
suburban railways, which do very
profitable business. Some OF them are
operating unuer the general railroad law
of the state. and others. are doing BUSH
ness under what is known as the street
railway law. They are performing in
many cases the duties OF steam railroads
In the carrying OF freight and passen-
gers. The police power OF the state over
this class of corporations is poorly de-
lined. Regulations for the safety OF per-
sons and property. carried by them have
fore urgently recommend that the state
nave the same supervisory control over
the conduct of their business that it has
over that OF steam railroads, and that
they be placed under the supervision OF
the Commissioner of Railroads.
Taxation.
Equal taxation has ever been the para
mount problem involved in civil govern
ment. The best thinkers In every age
have grappled with the question but as
yet we are, apparently, as far from a
perfect system as we were half a CEN
fury ago. 1t is one OF the principal OBJ
1ects or government TO equaize public
burdens. and both the constitution and
the law. in form, at least, contain a
guarantee of It, The question OF equal
taxation has become the most important
question In this state and no one has
ever opposed 1t, except the lobbyist and
the special interests benefited The pres
ent state administration, by which
mean not only the state officers but also
the legislative branch of the govern
ment. has been placed In power with the
express understanding that some action
looking to an equitable system or tax
alton be taken at once. l respectfully
call attention to the recommendations
heretofore made and commend them to
your careful perusal, to the same extent
as If the matter were embodied in this
message to you upon the subject.
The average rate of taxation for all
purposes in this state, exclusive OF the
special Improvement tax. is not far from
2h per cent on the dollar The most
careful research that can be made de-
velops the fact that the rate paid by the
earnings or income is about clio of per
cent. In other words, individual proper
ty pays SO upon 81 900 OF valuation. while
pay Sc upon 5000 of actual Value. A
continuation of this inequality is wholly
inconsistent with the faithful discharge
of our duty to the public.
There is no reason why the land,
buildings and other property OF these
corporations should be more sacred in
our eyes. or should receive more favor
and other property of a citizen. The
question whether railroad business is
profitable. has nothing whatever to do
with the mode of taxing 1t. The income
or profit of a railroad company would
have to do with the fixing OF the value
Of the. property, but not with the sys-
dwelling is not as profitable as one rent
ed and producing an income. but could
we, by any. argument, show that
building should pay tax upon its earn
ings, because it's location was unfayor-
able and the investment not profitable?
The farmer and merchant is not asked
whether his business Is profitable when
the tax levy is made. He is confronted
simply with the statement OF the states
need. accompanied bv .-.e states demand
for money. The argument that differ
emit rule should apply to corporation
property is the argument Of the lobbyist
and those specially interested. The argu-
ment that these corporations are quasi,
pubic in their nature and are controlled
TO a certain extent, by laws that are
made for their government by the state
wherein their tolls and rates OF fare Is
fixed. is just as weak when used as an
argument that n different system of tax
alton should prevail as when applied to
the vacant store. These corporations by
the very reason of being .quasi-public,
are endowed with powers that an indi-
vidual cannot exercise. Under the right
of eminent domain. they mLs enter up
take his property for their own use and
benefit. They have the right of perpet-
ual charters and other privileges, and
the fact that they are granted these
powers and privileges makes it necessary
that the state in a measure, legislate for
their goVernment-else there would be
no guarantee that the property thus
taken by the power granted by the state
would be USED in the interest OF the pub
lie.
ity over a corporation in fixing its tolls
and throw around IL other restrictions
that would make Improbable the oper-
alton of the system, its value would be
to consider this fact I'm fixing the value
Of the property. The state has never yet
legislated to, Cypress, bankrupt or de-
stroy the railroad corporations and has
only used it's power to prohibit oppres-
sion and eXtortion against those of It's
citizens. who were unable, except under
the law. to protect themselves. L under
stand that a mile OF railroad in the bar
rem plains of northern Michigan Is not as
profitable as mile Of railroad in the
Washtenaw county. Neither is 1G0 acres
of poor land in the northern part of
Michigan as profitable as $50 acres of
land in Washtenaw county. but each
should be taxed at what it is worth. and
under the same system. This Is all /
ask from corporations, and the people OF
who is willing to accept less
1 speak now of the methods OF tax
alton. There should be but one rule and
one method in order to create an equal
taxed locally in the different assessment
districts, Tor the reason tndt the great
lines of railroad. having the most valu-
able equipment, the most valuable right
of way and the most valuable franchises
are located in the older and more thick
ly populated portions of the state. In
these sections the rate of taxation in
some instances is as low as l per cent
upon a dollar of value, while these rail-
roads have the largest earnings. On
the other hand, those railroads having
less valuable rights of way, less extensive
equipments and less valuable franchises
and the earnings of which are greatly
less. are located I'm the sparsely settled
portions of the state, where the average
local rate is. in some instances, as high
as 6 per cent. 1t is easy to see, there
fore. that local taxation of railroad
property would place the heaviest bur-
den upon the least valuable property en-
gagged in the business. There is a more
potent reason, however, IL possible,
against the local taxation OF railroads
than the one above stated-that of de-
voting the taxes derived from these cor
porations to the primary school fund
IL is deemed necessary to assess and
levy the taxes against this class or prop
erty by means of state board, created
for that and other purposes, and to have
the taxes when levied paid directly into
the state treasury. This method is sim
pie and comparatively inexpensive and
cannot be complained of for any good
reason. 1t is the method of the AtSpson
bill so-called. and in that form has re-
ceived an endorsement OF the people of
- l.