The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-04-09

LANSING, Mich, April 9.-StudlouS
investigation of the relative merit OF
the specif: and ad valorein taxation
of telephone and telegraph companies
ia Michigan by members OF the .egis'
lature during the past few weeks has
resulted in a decided change OF front
In the attitude OF the legislators to-
ward the long projected proposition
OF shifting from the specific 10 the al
lalorem basis of taxation.
The Legislators have learned from
their constituents that what posed As
popular clamor for the change
was ir reality political hue and cry;
that IL is not sound economically. and
hat the rank and file OF voters are
not alone not demanding II. but arc
either apathetic. not understanding II.
or have expressed themselves to their
representatives. as opposed to q
change.
The true import OF the ad valorem
bill on investigation shows that the
public and not the telephone and tele-
graph companies must bear the bur-
den in case the bill should pass.
The general taxation committee Of
the case given the bill the most con-
sideration and gone into IL to such
an extent that IL Is opposed 10 the
bill as IL now stands and Is not as yet
ready to report IL out.
Il has been stated that by changing
the taxation of telephone and tele-
graph companies from a specific TO an
ad valorem basis II would increase the
revenue OF the state at least $lIo,Ooo'
These statements suggest the tact
that this $4,000 would correspond
ingly reduce the taxes OF the people
and the widow and orphans Such.
however. are not the facts.
All taxes from telephone. telegraph,
railroads and similar corporations, re-
eardless OF the basis of taxation, go
into the primary school fund, accord
Ing TO the constitution. The primary
school fund can only be used in the
payment OF teachers salaries. II Is
also shown that the primary school
fund has az the present time consider
ably more than si.000000 on deposit
AT the various banks throughout the
state TO the credit OF the several
districts. There are school districts
where no school tax has been levied
within FIVE years.
Thus il IS shown that by increas-
Ing the taxes of the telephone AMI
telegraph companies. IL will not de-
crease the taxation Of the people. This
increased tax must OF necessity go
into n fund that Is already full TO over
flowing.
I'm changing the basis OF taxation
from sperifc 10 ad valorem II will
nece ss .tato TIE state going 10 an ex'
pense OF a good many thousand doi'
.ars each year, 10 be drawn from the
geae.ll fund. In employing experts "a
i1veAtcTy the properties OF the sew
feral companies which means increas'
cd taxes to the taxpayers. IL also
means thai the assessed companies
will haze TO go TO large additional
expense 10 procure this data and SUB
NIT II 10 the state each year, which
means additional expense to them
with no benefits in return 10 them
or TO the state.
General property OF the state is as
sessed at 80 TO 60 per cent OF IT,
value II the telephone and telegraph
companies are changed from a specific
tax basis (three cents on every dollar
Of gross receipts) the constitution re-
quifes that they shall be assessed ut
true cash value. or about twice as
much. This would be manifestly un-
fair TO the companies concerned and
would place a serious restriction on
the future development Of this bust
ness, which means so much TO the
PIC, 900 telephone subscribers I'm Mich
! igan. and especially TO the indepeno.
ent companies who are operating un.
der franchises which specify just what
rates shall be charged.-(Adv.l