Alma record. (Alma, Mich.) 1878-1928, 1906-04-18
Michigan Wins Victory in Fan,ous
Railroad Tax Case.
MILLIONS NOW DUE STATE
Supreme Court Renders Dec sion
Against the Transportation Cooper.
ations-Justice Brewer Hands Down
the Verdict-Michissn Has $1,000.
coo Due Her.

Washington. April The supreme
court OF the United States Moodav
decided the Michigan railroad tax
o cases, involving the taxes of all the
railroads in that state for several
years past, against the railroads. The
opinion was handed down by Justice
Brewer.
Justice Brewer accepted as final the
decision of the Michigan court as to
the validity of the tax law unde. the
state constitution. He said:
There is no general supervision ON
the part OF the nation over state tax.
alton and in respect TO the latte. the
state has, speaking generally, the Tree.
dem OF a sovereign both as TO oh iects
and methods"
hemarking upon the contention of
tDe railroad companies that the liking
Oh the rate OF taxation by the state
authorities as authorized by the state
law is legislative function. Justice |
Brewer touched upon a point which |
Is now receiving much attention from
congress, and said:
The statute prescribes as thu rate
OF taxation upon railroad property the
average rate of taxation on all olher
property subject to ad valorem taxes.
IL provides the most direct WAY for
ascertaining such average rate. de.
duclng II from consideration of all
the other rates. No authority is given
10 the local assessors to apply their
Judgment 10 the question of the rail-
road rate. Their authority in resnect
TO the matter of taxation is precisely
the same as it was before and indie. l
pendently of this statute. J
why is ii necessary that the Jegis. /
nature be convened TO add its formal a
approval OF the integrity OF the action
ol the local officers? Why not Il en-. C
rust the mathematical computation To e
ne state board of assessors and if so S
may II not likewise act upon the as. /;
sumption that the local assessors will C.
ascharge their duties with an eye to n
nose duties and irrespective of the Il
meet upon the railroad rate?" 81
In closing he said h,
Unless there be some specific pro-
isions in the state constitution com. al
ching 'other action the state NAV lie
'eat lts entire territory as COMPOSING M
III a single taxing district and deal fC;
lth all property as within the dis. he
let and subject to taxation accord. he
gly." he
BY this decision Michigan's primary
'hool interest fund will be swelled
approximately $4,000, 900, which
e railroads will have to pay forth. an
tn. tat
mere were q of these cases. all a
Volving the validity of act No. ia the
the Michigan legislature of 1eo7 er
ssed under authority given by an it's
iendment to the state constitution sec
opted in 1900. This law changed acc
method OF taxing railroad and can
ldred corporations from the old
stem OF eNaeting the payment of
tam per cent of their gross earn. A
Is 10 an ad Valorem system nro- usuf
ing Tor the fixing OF the tax rate me
the railroads on the average rate sIia
"h'ch other property in the state swal
axed ,,";,i
ne railroad companies have been resin
ing since 1902 on the old svstan, fores
Using to obey the new 1au, ,,-h;at blad,
nave contested in the courts RENE
tout success. Each year since the
panies have refused to pay the Til
'rence so that the suits involved from
accumulation of about 81 500 600 a
:, with interest of one per cent per
paid over IN rho and,,nu .ne likes ing,
Zna.