The true northerner., 1899-05-17
Legislatures Final AdjournmentDe-
layed by the Conflicting
Tax Law Plans.
LAWMAKERS AND GOVERNOR AT OUTS.
senate Passes the Wagar Bill to
Take the Place of the Atkinson
Pingree Act The Income Tax
Measure and the Antitrust BiiI
Are Also Passed.
Especial correspondence


ing plan of settling the taxation ques-
tion warrants the belief that there Is
a long fight ahead and that there is no
telling when final adjournment will be
reached. The senate has fixed the date
for June z, and the house has resolu-
ton making it June ,. Both will be
considered as a special order in the
house Wednesday. Nothing definite
will be done, however, until the tax
question is disposed of.
The two most important bills passed
by either house last week were the in
come tax and antitrust measures
passed by the senate. The income tax
bill provides rate of one-quarter of
one per cent. on incomes ranging from
$1,000 to $4,000, one-half of one per
cent. on incomes from $4,000 to $4,000,
and one per cent. on all over $4,000.
Unsuccessful attempts were made to
exempt invested capital because of the
risk taken by the investor and to make
the penalty of imprisonment for five
to fifteen years for false return of in
come apply only where intent to de-
"eive can be proved. The only amend
ment made to the bill served to make
it more sweeping in its provisions. AS
originally drawn it applied only to the
incomes of individuals. The amend
ment makes it apply to the income of
all corporations organized in Michigan,
the object being to reach the incomes
of nonresident stockholders whose
Michigan earnings would otherwise
escape taxation altogether.
The antitrust bill is designed to
reach violators of every name and ma
ture. 1t applies not only to principals,
but TO agents, each being liable to a
heavy fine and long term in prison.
Offending companies are to lose their
rights to do business in Michigan and
persons injured by them are to be en-
titled to judgments for twice the
amount of the damage sustained.
Each days violation is made separate
offense, and every provision of the bill
is made as stringent and far-reaching
as possible.
The Wagar bill for taxing earnings
of railroads, which is intended To in a
measure take the place of the Pingree-
Atkinson railroad taxation act, de-
clared unconstitutional by the supreme
court, passed the senate Thursday and
went TO the house. Under its provi-
sions railroad taxes are graded accord
ing to the gross income per mile, in
creased somewhat from the present
rates under the same system. This
bill, as variously amended, is far from
satisfactory to Gov. Pingree, as, if en-
acted, it will increase the tax receipts
from railroads to only a small degree
The governor will veto any measure
concerning railroad taxation unless a
resolution submitting to the people the
question of a revision of the state con-
stitution be passed at the same time
The governors intention is to have the
state constitution so amended that a
law similar to the Atkinson act, under
which the railroads can be taxed upon
their values instead of their earnings,
will withstand the scrutiny of the su-
preme court. n taxation bill, to meet
the governors approval, must also pro-
Nidt lOl al SltNN dNSNSSlilS bOdIhs
governor has retained eX-Justice Cahill
of the supreme court and Judge John
j. Speed, of Detroit. and these two
jurists are now at work on draft of
a bill that will tax the property of the
corporations on its value. There is
question whether this can be done
under the present constitution so as to
credit the revenue derived TO the pri-
mary school fund. These gentlemen are,
however, to work out constitutional
bill, if such a thing is possible.
Representatives McCallum, Gustin
and Crosby, each Of whom has per-
manent tax commission bill somewhat
similar to the one drawn for the gov
ernor by Attorney General Oren, are
to endeavor to get together on meas
ure that will follow the lines of the
oren bill as closely as possible. The
governor is entirely satisfied with the
Oren bill. If Judges Cahill and Speed
find it impossible to draft bill with
whose constitutionality they are salts
fed, then the Fleiscbhauer railroad
specific tax bill is TO be taken up and
the rates increased so as to double
the present revenue from that source,
the Gustin-McCallum-C tax COM
mission bill is to be passed, as is bill
bringing all special charter roads un-
der the provisions of the general law
regarding rates of fare and taxation,
and bill taxing express, telegraph and
telephone companies specifically. On
top of all this is to come the joint reso-
luton providing for a special election
on the tax revision proposition in July.
The object in having special election
on this question is that it is lost sight
of at general election, and not one in
ten of the electors votes on il either
way.
a majority of the senate have in
preparation tax commission bill, but,
unlike the governors measure, it does
not provide for permanent commits
sioner. 1t will, according to the pres
ent programme, name Prof Henry G..
Adams, of the University of Michigan;
Russell G. Ostrander, of Lansing; Rol-
land Morrill,, of Benton Harbor; Devere