The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1900-12-22
GOV. PINGREE'S MESSAGE.
synop~is of the Document Presented
to the Michigan legislature
In Special Session.

In Special Session.
Lansing, Mich, Dec. 14.-Gov. Pin
gree's message on taxation was read
before both branches of the legislature
In joint session by Clerk Miller. 1t
was, in part, as follows:
have. In the proclamation calling you
together In special session at this time.
discussed the reasons for so doing. 1t Is
not necessary, therefore, for me to repeat
them In full in this communication. 1t is
sufficient to say that you are more familiar
than the next legislature with the SUBJ
fore, the debate need only relate to the
provisions of the law; that you are per-
sonally acquainted with the wishes Of the
people upon this subject; that you passed
the Atkinson BILL and your work. at this
special session. Is merely the reenactment
OF that law. with such changes as may be
deemed advisable.
IT seems to be now admitted by every
one that taxation of railroad property
upon Its assessed value will yield much
more In taxes to the state than Is now
paid by the railroads under the present
law taxing them upon their earnings. Such
being the case, II is probably true that the
enactment of a law by you, at this special
session. will save to the people of the state
that increase OF taxes for one year II Is
safe to say that the chances are that the
next legislature might not enact tax law,
under the amended provisions of The con-
stitution. until well towards the end of It's
session. That has been the experience Of
recent sessions. In such case II would be
impossible to levy the taxes under the new
law until the succeeding year.
Under the present law taxing railroads
upon earnings, the state receives accord
ing to the latest computation. $1,240 SGT,
being for the year 1899. payable on July 1.
1900. A conservative estimate of taxes I'M
der the new law. honestly administered,
viz. IL assessed at actual cash value. would
be more than two and a quarter millions
of dollars. I think. therefore. that am
warranted In saying that the calling OF
this special session, and the enactment by
It Of a law. in obedience to the demand Of
the people, will result in saving to the peo-
pie at least 81. 100000 in taxes In one year.
In the case Of railroads. and some addition
al in the case of other corporations, taxed
under the new law.
1t is now generally understood that, I'M
der the present plan Of taxation upon earn
ings, the railroad Is Its own assessor, and
1t Is practically impossible for the state
to know whether II is receiving all of the
taxes due II. The average taxpayer too,
feels that he Is discriminate against when,
under the present law. the railroad pays
less taxes In hard times, when its earnings
are less, while he pays a larger tax as a
result Of the reduction of the railroad
tax.
Beyond all this, there Is no escape from
the fact that there cannot be equality Of
taxation, with one form of property pay
Ing taxes according to one system and the
rest OF the property of the state paying
taxes according to another system. 1t is
this which the people do not relish. They
believe that IL their property is assessed
at Its cash value, and taxed accordingly.
that the property of railroads and all
other corporations should be taxed in the
same manner. 1t Is this sense and appre-
citation of the injustice of our tax laws
which led to the adoption of the constitu-
tional amendments by majority of 3S3,672
votes at the recent general election. 1t Is
impossible to misunderstood the meaning
of that immense majority. 1t means that
the people want bill, along the lines of
the changes made In the constitution, en-
acted into a law.
In your regular session. by enacting the
Atkinson law, you decided that railroad and
certain other corporate property should be
assessed at It's actual cash value. The peo-
pie, at the recent general election, made Il
clear beyond dispute that you were right
and acting according to their wishes in
doing so. 1t must be admitted, therefore,
that the principle being settled, the method
OF determining the actual cash value of
railroad property Is not one for the legis-
lature to fix. II does not attempt to lay
down rules for the guidance of assessors
and supervisors In valuing other kinds OF
property. and there is no reason why II
should do so in the case OF a state board
OF assessors of railroad property. It IL,
therefore. not proper subject for discus
sion, either In executive message or In legis-
lative debate.
The railroad advocates claim that the
proposed plan of taxing their property upon
q w hi In 10
the people have already settled. and 1t rests
with you merely to enact a law which shall
be as nearly just for railroad and all other
property owners as II Is In your power to
frame It..
The expert appraisers employed by the
state tax commission, under your direction
and authority. to value the property OF rail-
roads and other corporations now paying
specific taxes, have finished their work,
but I am able to submit to you the valua-
tion OF the physical or tangible property OF
20 railroads.
Here a table is inserted giving the fol.
lowing totals: Present valuation of physi-
cal property, $21,S1 ,341 taxes in 1899 on
earnings, $l10.726.49; taxes on value II paid
at average rate of 1.54, 1929 12l.12; and the
Increase IL paid upon assessed value at
average rate, s21S, 39463. 1t must be under
stood. the governor adds. that these tables
are not final but are subject to slight mod
ihcations. The appraisers employed by the
tax commission have not yet finally de-
termined the value of the real estate, but
l am assured that II will not vary two per
cent. from the figures included in the above
total valuations.
/ am unable at this time to submit the
valuation of the franchises or the intan-
gible property Of these railroads, but I
may be able to communicate these valua-
lions to you before you adjourn. They
would be valuable to you, however, only
as showing that the railroads would pay
still more taxes than above indicated, IL
assessed upon cash value, than they now
do upon gross earnings.
The average rate of taxation in the state,
as computed by the state tax commission,
Is 1.5467lS. The commission reports to me
that the total of taxes In the state is as fol-
lows:
ctotc .''''''.'.....'.'.s.s.'... ZSUJ,SUl 81
nouHty, ZfJD, 40 64
hVWHsHlp '......................... b,TJ2, 5y3 81
Image ''.'.'....s............... lg,Zl9 30
lily '.'.'.......s............. S9il,UOO 10
hotaI ..'.'..................... 1876 Id
The following is a table showing the as
sessed value of the real and personal prop
erty in the state for the years 1899 and 1900,
both real and personal, the increase OF
each, and the total Increase:
Real Personal. Total
1900 ISL 006 49, l3 1910 997 Oi5 81 3l7 $50 OPS
lSss see. S2S.S5S.11 1925 0,376 96S, 1S9,0S7