Crawford avalanche. (Grayling, Mich.) 1879-19??, 1899-05-25

Address TO the Legislature ON the eub-
ject Of Railroad Taxation.

feet Of Railroad Taxation.
Gov. Pingree on Wednesday transmit
ted the following special message to tbs
Legislature:
To the Legislature;
since I transmitted to your body my spe.
cial message OF May last i have caused
the matter Of taxation or raiiroau, teie.
graph, telephone and express companies ~
Be carefully examined by competent a.,or.
news. with the view OF determining whether
n il poss BILE TO frame a law taxing those
corporations on their property accoruing 10
Its cash value, to be determined by state
Board OF Assessors, and still devote the TAX
40 raised 10 the primary school fund.
For this purpose l engaged the services
of the Hon. Edward Cahill. Of Lansing, and
the Hon. John J. Speed, OF Detroit. rhese
attorneys have examined the questions w
yolyed thoroughly and carefully and their
conclusions have been submitted to me In
communication from Judge CahiiL
IL appears from the conclusions contained
In this communication that under our pres
emf reconstruction, and because Of Its inter-
probation by the Supreme Court In the re-
cent telephone cases, II Is impossiDie 10
frame a valid law to make railroads ana the
other corporations referred 70 pay tner }usi
cash value Of their property, the same as
all other property In the state.
II III to be regretted that this state or
affairs exists. 1t demonstrates that not only
might be drafted, providing for taxation OF
the property of railroads, and the other cor
porations referred TO, upon lis actual cash
value, and directing the payment OF the
taxes into the primary school fund.- would
violate the provisions OF the Constitution.
The unfortunate situation In which the
State finds itself, and the ssibility at
present OF complying at once with the clear
ly expressed wish Of the people or the state,
does not relieve you OF the responsibility
and duty OF taking whatever steps are neces-
sary to make ali property In the near fu-
ture, IL not at the present time, bear It's JUST
share of taxes
To this end, I would recommend that your
body proceed upon the following plan:
/. Pass Il joint resolution providing for an
amendment TO sections 10, IL and 13 OF arti-
Gle IA Of the Constitution, so that the prop
erty of railroads and other corporations can
be taxed upon Its actual cash value.
2. Provide for special election to submit
to the people the quest on Of general revis-
ion Of the Constitution. | understand that
there Is no bill introduced In this Legisla-
ture under which the question of general re-
vision can be submitted. Such being the
case, VIII call n special session OF the Leg
lsature to convene Immediately upon your
adjournment, for the purpose OF enacting
such a law.
3. Enact law providing for the appoint
ment Of State Board Of Assessors primari-
ly for the purpose OF supervising assess
ments throughout the State, placing prop
erty on the rolls which has heretofore es-
capped taxation, raising and lowering assess
ments, enforcing the present tax laws, and
providing secondarily for the collecting of
Information relating to the value of railroad
and other property, so that specific taxes can
be Increased to q just amount, pending the
amendment or revision of the Constitution.
4. Amend the present law, known as the
Merriman law, so that at least one million
dollars additional taxes be collected from
railroads by means Of an Increase of specific
taxes. This Is rendered necessary because
| n
Supreme Court. TO enact a law taxing prop
erty OF railroads upon its value, and such in
crease should be made only temporarily, un-
til such time as constitutional amendment
or revision makes 1t possible to tax such
property upon its cash value. The people
have clearly expressed their desire upon this
matter.
Railroads do not now, under specific taxes.
pay just share of taxes. This cannot be
disputed. The present need Is not for in
formation as TO the actual cash value Of rail
road and other corporate property. 1t Is a
waste OF time TO delay such action until such
information Is gathered. The people demand
that all property, no matter by what corpor-
alton owned, or what its value. be taxed
upon Its actual cash value. 1t Is imperative,
therefore, TO so amend the Constitution that
a law can be passed taxing all property at
Its value. 1t Is a matter Of correct principle
OF taxation. not OF statistics. We do not
have TO know. the actual value of railroad
property in order to provide law for taxing
1t properly and justly. After such law has
been enacted the value Of railroad property
must then necessarily be determined by the
assessors provided under such law. The
people have decided upon the correct prin-
ciple Of taxation, viz: upon value. law
upon that principle should be enacted as
soon an amended Constitution will per-
nit. II will be the duty of the assessors,
provided for by such law, to determine the
value before the tax can be levied.
The cost Of all railroad property in the
State, according to their sworn returns In
Al
1926, 141, 1859 This does not include the
value of their franchises. which are worth
many millions more. 1t Is safe to state that
assessors throughout the State, In violation
OF their oaths of office. assess all property at
about 40 per cent. OF its actual cash value.
IL we apply the same proportion to the
sworn cost of railroad property In the State,
viz. 40 per cent Of S295, 141 1850, 1t is GER
talnly fair to estimate that railroad prop
erty. valued on the same basis as all other
property. should be assessed at least S11S-
O56, 4IS23. This should be accepted by the
most critical, as a not unfair assessment Of
the property Of railroads for the purpose of
taxation. The present average rate paid by
all other property In the State Is determined
by the Auditor General to be 2.OS per cent
If we should tax railroad property upon the
above valuation of $11S,056, 47S.23, at per
cent. their tax would amount to s., 36l,-
1886. This would be S1,273, 81. 81, more
than they pay at present under the Merri-
man law; The Railroad Commissioner COM
%
1t will be seen, therefore, that 1t Is not I'M
reasonable to demand that the present spe,
cifc rates be fixed, so as to yield at least
one million more taxes than at present paid
D. Amend or repeal the existing special
charters, so that all railroads will be subject
to the same laws, as to rates of fare and
taxes.
You are aware that bills are now pending
in this Legislature calling for an expendi,
:ure largely In excess Of previous years You
VIII, therefore, appreciate the imperative
necessity, before adjourning, of increasing
tne speclnc taxes upon the earnings Of rail-
roads. by at least 81, O0O 900, until such time
as the Constitution Is amended so that all
property may be taxed on Its value, and of
enacting law which will. among other
LILIES, compei assessors throughout the
State to place property upon the rolls which
now escape taxation, and thereby relieve
property now on the rolls from Increase
burden Of taxation.
HAZEN s. PINGREE, Governor.