The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1907-01-11

a proposition to amend the constitution
so as TO provide that from the primary
school interest fund all I'm excess OF three
dollars and half annually for each
child OF school age In the state shall be
apportioned on a just basis among the
university. agricultural college, college
OF mines, the three normal colleges and
the several county normal schools.
This plan would give to the primary
school interest fund from year to year
even larger sums than have ever been
credited TO II in the past save during the
year just closed, when the fund was
swollen TO abnormal proportions by the
payment OF back taxes which had ac-
cumulated pending the final adjudication
of the railroad tax case in the supreme
court of the United States. 1t would
also provide for the maintenance, on a
scale fully as liberal as has obtained in
the past, of the several institutions OF
higher education named.
Use For Entire Revenue.
Thus would the entire revenue from
specific taxes be used for educational
purposes and the direct tax levy be re-
duced by over 100000 annually, and,
in large majority of school districts,
the total amount OF money to be raised
by direct taxation would be reduced. In
the thousand or more Districts, where,
under the present system, the money is
piling up and lying idle i'm their treasur-
ers' hands, the apportonment suggested
would pay their share OF the direct tax
they are now required to raise for the
support OF the higher educational insti-
one-quarter mill tax now provided for
the university, the one-tenth mill tax
now levied for the support of the agri-
cultural college, and the direct tax levied
under the existing system for the main
tenance of the other institutions specific
ally mentioned, can be paid out of the
primary school interest fund, and the
direct tax levy reduced to that extent.
II concur in the recommendation of the
state tax commission that the law gov
erning the taxation of express companies
be amended To eliminate from the
computation on which the tax Is based
the ocean mileage OF these companies.
The inclusion of this mileage renders
the result little less than farcical.
The satisfactory. operation of the ad
valorem system of assessing railroad
property suggests the desirability OF eY-
tending this system so as to include the
property of telegraph and telephone COM
panies. The present method of taxing
the latter corporations Is uncertain and
unsatisfactory. These objections can be
overcome and greater justice attained by
the application of the ad valorem system
to these corporations
THE ad valorem system OF assessing
railroad property for taxation is so firm
ly established as the policy of the state
that the general subject Of taxation OF
railroads does not cali for any extended
treatment in this message.
"One of the most important cases in
which the state has been directly inter-
ested and which has been finally con-
cluded i'm favor of the state, except in
one instance, is referred TO as the rail-
road tax case, in which the supreme
court Of the United States upheld the
constitutionallty of our present method
OF taxing railroad property. AS a re-
suit of this decision, the various railroad
A.7S7. 1875 and penalty thereon 81, l5S, 32l.-
rs; total amount of $5945-S09.i3.
Railroad Taxation.
IAN important point in railroad taxa
ton was determined in Attorney Gen.
eral V. State Board of Assessors, 143
Mich. 70. The legislature of 1905 (Act No
2S2 OF the Public Acts of 1900, attempted
to lay down rule that would govern
in the determination of a valid rate OF
taxation upon railroad property. The
attorney general attacked the constitu-
tionality of said act, and our supreme
court determined that the manner of de-
termining the rate, as prescribed in said
Act No. 2S2, was contrary TO the Ian
guage of section eleven OF article four
teen OF the constitution, and that to such
extent the act was Unconstitutional.
Michigan Central Railroad company
for the repeal of its special charter. is
pending. The final hearing In the case
has been delayed, owing to the. steps
particulars than that furnished by the
| plaintiff.
THE so-called Michigan Central de-
| liquent tax case Is also pending. The
case is ready for trial and will probably
DO determined in the Ingham county
circuit court at an early date, II being on
| the calendar Tor tne January Ierfn.
The governor recommends that the
| railroad companies be made common
| carriers OF live stock in justice to the
| farmers OF the state
Legislation that will make the issu-
ance OF all railroad stocks and bonds
| subject to the scrutiny and approval
OF state authority. for, the purpose of
preventing manipulation. is recon-
mended, as also state supervision OF
| electric roads
on the subject OF freight car short
/ fl.a arfo lant f1a
peated recurrence of the trouble, year
after year warrants thorough inves-
! tigation as TO the responsibility OF the
| railroad companies. He recommends
| that a committee he appointed to in
Vestigate the matter
With reference TO railroad passen-
| ger rates the governor says:
For the year 1906 there were in
| Michigan 1866 miles of road on
which the legal passenger fare was 4
cents per mile; 492O.1S miles on which
the legal fare was cents; $3.50 miles
J on which the legal fare was 2i5 cents;
| 1,071.62 miles on which the legal fare
was cents. The scent rate is con-
| fined. as provided in the law. to the
! upper peninsula.
| IAN examination Of the reports OF
/ the railroad companies discloses the
| fact that. with a single exception, the
/ passenger earnings OF the various
companies, which have reduced their
] passenger rates during recent years
| increased in volume Immediately fol-
] lowing the reduction. comparison be-
| ing made with earnings for like
period preceding the reduction.
There has been steady increase In
| passenger earnings of Michigan rail-
roads during the past ten years. the
| average increase being about 60 per
cent. for that period. The reports
show that about % per cent. of the to-
tai receipts of these companies rApre-
| sents passenger earnings. One impor-
| tant company whose track mileage has
not been increased in ten years shows
! increased passenger earnings in excess
| of 80 per cent. The exact figures In
| this case are that in 1894 the total pas
| senger earnings OF the company were
| S5S6.4S9.79. while In 1904 they increased
to $1.O93. 23r.75. Another company re-
ported passenger earnings of $3.499,-
| 341.34 in 1894 and $4.S1S,763.54 in 1904
The increase in this case was 40 pei
| cent.
Would Amend Law.
II am of the opinion that the law OF
| this state should be amended so as &c
| make the maximum passenger fare
! that may be charged in the upper pc
| ninsula cents per mile, and the maxi.
| mum rate in the lower peninsula, with
| the possible exception of that charged
by a few Independent companies whose
passenger earnings are less than 81 ,0O(
per mile, 2 cents per mile. The legisla'
ture can. I think. be depended upon Il
deal Justly with the smaller independ
ent roads to which reference is made.
| Il "a IN thu