The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1899-01-11

The Subject Dealt with at Considerable
Length.

Length.
Governor Pingree states his views up
on the subject OF taxation in plain lam
guage. He says:
THE average rate of taxation for
all purposes in this state, exclusive or
the special Improvement tax, is not
far from 2La per cent. on the dollar
The most careful research that can be
made develops the fact that the rate
paid by the corporations that are now
taxed on their earnings or income Is
about 6-10 of per cent. In other words,
individual property pays S25 upon the
$1,000 of valuation. while the property
of those quasi-corporations pays 50
upon 81 600 of actual value. A contin-
uation of this inequality is wholly in
consistent with the faithful discharge
of our duty to the public. 49, There
should be but one rule and one method
in order TO create an equality before the
taxing law. There may be difference
in the manner of determining the value
Of different kinds of property When
that question is reached. il can be
solved by the proper authorities. but
the rule of taxation should be a simple
one and applied to all alike. When l
say that there should be one rule of
taxation applied TO all property, l do
not mean that railroad property should
be taxed locally in the different assess
ment districts. Ii is neither necessary
nor advisable to submit this property
to the prejudice of a local assessor.
who might by reason of his want of
knowledge of it's value, be incompetent
TO assess fairly. Nor do / deem the
system of local taxation as applied to
this class of property a just one, for
the reason that the great lines of rail-
road. having the most valuable equip
ment, the most valuable right of way,
and the most valuable franchises are
located in the older and more thickly
populated portions of the state. In
these sections the rate of taxation in
some instances is as low as / per cent.
upon dollar of value, while these rail-
roads have the largest earnings On
the other hand, those railroads having
less valuable rights of way, less ex
tensive equipments and less valuable
| franchises and the earnings of which
are greatly less, are located in the
sparsely settled portions of the state.
where the average local rate is. in some
instances. as high as per cent.
A More Potent Reason.
1T is easy TO see. therefore, that local
| taxation of railroad property would
place the heaviest burden upon the least
valuable property engaged in the bust
ness. There is a more potent reason,
however, IL possible, against the local
taxation of railroads than the one
above stated. and that is that ii has
been not only the law but the custom
of the state for many years to devote
the taxes obtained from these corpora
tons to some portion OF the primary
school fund. This plan has been as
equitable as 1t has been satisfactory
These corporations derive their power
their rights and their privileges from
| the state at large, and taxes derived
! from them can, in my opinion, be most
reasonably applied to fund created
for the benefit of all sections of the
state, whether a railroad is there To-
Gated or not.
I'm order to accomplish the object
above stated-that of devoting the taxes
derived from these corporations to the
primary school fund-t was deemed
necessary TO assess and levy the taxes
against this class OF property by means
of state board. created for that and
other purposes. and to have the taxes
|
treasury. This method is simple and
comparatively inexpensive and cannot
be complained of for any good reason.
1t is the method of the Atkinson bill.
so-called. and in that form has re-
ceived an Endorsement of the people of
this state. This board should be COM
posed Of experts. we'll equipped by ex-
perience and ability to place a proper
| al ha IA.
isdction. 1t is neither necessary nor
advisable to provide cumbersome or
technical machinery for the accom-
plishment of the desired end. | there
fore recommend to you the creation OF
a state board whose business it shall
be to determine the value Of this and
other property of quasi-public corpora
lions and to levy an assessment there
on. and that the tax so levied shall
be paid into the primary school fund
under the provisions of the act The
argument has been presented in GER
tain quarters that an inequality exists
in the assessment and taxation of 9TH
er properties than those above men,
toned. Granting this to be true. il
does not affect the merits of the plan
proposed. 1t simply casts upon you an
other duty-that of readjusting the as
sessment laws of the state in order
that all property within the state shall
be placed upon the assessment roll at
| It's true value.
Used to Create Prejudice.
When this argument that other
property is escaping taxation is used
by the lobbyist it is used to create a
prejudice against a good measure and
not for the purpose OF having you pass
two good measures which shall remove
all injustice. 49, A system Of taxa
ton to be just must make no distinc-
tons. 1t must treat the rich and the
poor alike. The railroad president and
the hod-carrier should know no distinc-
ton before the law. nor should a rail-
road corporation pay Il of 1 per cent.
upon its actual value under one system
of taxation. and a banking corporation
pay 21a per cent. on the value OF it's
property under another system, while
both are equally protected and have the
came privileges under the law of the
| state.
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