The Detroit times., 1909-03-26
SPECIFIC TAX BILL
WOULD Be An
INJUSTICE
-ATrY.-GEN. BIRD.
AND TELEPHONE
COMPANIES HAVE DopoED PAY.
ING TAXES FOR SOME TIME. OF.
FlCiAL SAYS.
(From a star correspondent)

LANSING. Mich. March 26.-There
were lively sessions in the house and
senate yesterday over the bills TO tax
telephone and telegraph companies
on the ad valorem system. In the
senate the Fairbanks-Anhut I'D val
orem bill went through the committee
OF the whole by vote OF 81 10 ana
then an attempt TO make II the speciai
order for next Tuesday failed.
The house judiciary committee had
q warm session over the Fouch al
valorem bill to tax the telegraph and
telephone companies. II had nearly
concluded its report for SPECIFIC tax
as strong pressure was brought 10
bear against the ad valorem system.
The debate became TOO hot for pub
licity and representatives or the press
were ordered out Of the room.
After learning that the specific tax
plan might be reported out, Attorney
General Bird was visited and gave out
the following statement:
IF the committee reports out the
measure with that recommendation,
they will report It out Just as the tele-
phone and telegraph companies want
II reported. To report out the ad
valorem measure Will be In the In
terest Of every other taxpayer In the
state. T report II out on the basis
OF gross earnings will be In the In
terest OF those companies only. The
telegraph and telephone companies
have had soft snap with reference
TO taxes for several years. and | do
not suppose they can be blamed II
they fight TO retain IL. II they do re-
tain II, the legislature Is more easy
than | think il is. To illustrate how
| IT is TO the companies advantage 10
pay taxes upon the present basis, We
will take the taxes for 1907. The
average rate of taxation which every
other corporation, farmer. business
man working man and widow paid In
1907 was $1762 per thousand. The
same year the Western Union Telc.
graph Co. paid 1896 per thousand on
million and half OF physical prop
critics. The Postal Telegraph Co. paid
s1.07 on four hundred thousand ply
steal properties, and the American
Telephone & Telegraph Co. paid 20
cents per thousand on 100000 o.
physical properties. The Bell Tele
phone Co. paid about $3.50 per thous-
and on approximately ten millions Of
physical properties.
Had the Western Union paid tho
same rate of taxation as the working
ment did II would have paid $26.43O.O0
instead of s2,940.50. Had the Postal
Telegraph Co. paid the same rate Of
taxation as the industrial corporations
il would have paid $1,000 rather than
1928 SO. Had the American Tele
graph & Telephone Co. paid the same
rate as the man who works in the
shop or mill il would have paid $5.'
2s6 instead of $7S.Sl. Had the Bell
Telephone Co. paid the same rate OF
taxation as did the farmer with a
mortgage on his farm 1t would have
paid $4,000 rather than $4,000.
IF the ad valorem bill Is passed By
the legislature 1t will be justice to ev.
cry other taxpayers in the state and
will compel the telephone. telegraph
and express companies to pay into the
treasury for the benefit OF the school
children $4,000 a year more than
they are now paying and when they
pay than sum they will be on an equal
ity with every other taxpayer"
This information was given the com.
mittee and instead Of reaching a CON
clusion, the members postponed the
matter until next week.