The Owosso times. (Owosso, Mich.) 1897-1926, 1906-10-12

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nnu tney are Ill ". N. u Dy the COVER
nor of the state.
Now let me see, it isn't always how
much money you spend but how much
you get back for what you spend, that
tells the tale. Until about
ten years ago the constitution provided
that railroads should be taxed upon
their earnings, that is to say at tire end
of the year the income of the railroad
was figured up and the state was paid a
certain portion of that income in lieu of
taxes. A few years ago they began to
think that the property should be taxed
upon its value and not upon the earn.
ings, the same as the farmer or mer-
chant; they are not taxed according to
their earnings. The farmers are taxed
upon the value of their property and it
was thought by those interested in this
question that it would be better to tax
the railroads upon the value of their
property and SO about ten years ago the
question begun to be agitated. BY and
by the constitution was changed per-
mitting the taxing of railroads upon
their value instead of their earnings.
And as result of that change the rail
roads taxes increased from about $780,,
900 to SO. $50, 900 under the new system
of the present year.
Now from $4,000, 900 to So. $50. 600
in the language of boys upon
the street, is ''going some. "
Now the railroads said that was too
much and wouldn't pay their tax; 1T is
more than we ought to pay in proper
ton to the value of the property" and
so they resisted the collection of the tax
except what they thought they ought
to pay. They paid what they thought
was proper and resisted the collection
of the rest. Well, now it was up to the
state of Michigan to say whether they
would pay and whether that tax would
be collected. Suit was begun and when
the railroads have lawsuit involving
millions of dollars they employ the best
counsel they can find, you know that,
if you ever had lawsuit with rail
road company, and so they hired the
best lawyers they could find. The at
torney general had to have help to carry
on this great lawsuit with the railroads
SO he was given authority to hire such
help as it was necessary for him to have
to protect the interests of the state. So
the fight began right away. 1t started
in our lower courts in the state and we
won the suit when they appealed to the
supreme court of our state and we won
again, then they transferred the case to
the Federal courts and started at the
bottom and the state won there, and it
was appealed to the supreme court of
the U. S. and the state won again and
there wasn't anything higher they
could appeal to so they had to stop, and
then as result of that litigation the
state settled the controversy for all
time. How much was paid out for
legal services to protect the interests of
the state and settle this controversy?
$50, 600. How much did we get in re-
turn in the Judgment against the COM
panies? So, 10000 Any time any Of
you can show me how we can make
IS, 500, 600 by investing $75, 200 we will
hustle around and get the $75, 900 to in
vest.
That wasn't ALL they paid the money.
Paid it into the treasury of the state.
We have it,
After that was disposed Of the at
torney generals Office and the governor
said there is one thing more that we
almost forgot to call your attention to, "
and the companies said, what is
that?" when farmer or merchant or
a manufacturer refuses to pay his taxes
and let's them run on from month to
month he has to pay a penalty of one
per cent for every month in default"
and they said-"you are not going to
make us pay that penalty" and the
administration said why notg Why
should we exact it of farmer who
doesn't pay his tax on time and let a
railroad go free? Why make fish of one
and fowl of the other2" And so the
railroads of the state had to pay the
money and they put one million and a
quarter more into the state treasury.
That money has all been paid into the
treasury of the state, and goes to the
primary school fund. The balance in
the treasury is two or three million,
making eleven million in the state
treasury.
$4,000, 900 goes to schools in Novem-
Der as primary school money. That will
make eleven dollars at least for every
child in Michigan between the ages of
five and twenty. That means district