The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-04-28

posterty should bear a portion OF the
burdens for improvements and con
veniences. % which our descendants
will receive the benefits lie argued
that IL is possible TO still maintain
the high credit OF the city and at the
same time reduce the tax rate by is.
suing bonds on an equitable plan.
After making some interesting com
PARSONS with Buffalo. Cleveland and
Milwaukee. ana pointing out that the
tax rag here is very much higher. IN
proportion than in any of the other
cities mentioned, even though the
bonded indeb,ness is much less, Mr.
Macpherson continued:
An examination OF the red bool, of
the city of Detroit Tor any recent year
will show that the tax payers have
annually been paying In current taxes
hundreds of thousands of dollars Tor
permanent improvements. the life OF
which would be ten. twenty, thirty
or more years. and these improve.
ments are being paid for by the tax
payers in single payment
In the year 1909 the items includ-
cd under the head of improvements
aggregate Sl.45J.0o0, Tor the payment
OF which $4,000 OF bonds were pro
vided leaving approximately S9JO.00O
which was raised by current taxation.
II is possible tha, thorough analysis
OF the items entering into this large
sum would indicate that there are GER
tain expenditures Includes in these
improvements for which bonds could
not properly be issued and to cover
such items as these suppose SIC re-
duce the S900 GOO by 100000 or say
S100000 Had provision been made
for the issuing OF bonds FOR these
municipal improvements. the benefits
of which ar" 10 be enjoyed by the
taxpayers OF Ten. twenty thirty years
hence. and for which they ought prop
eriy 90 bear their share OF the bur
den. the TAX rate for 1903 would have
been about $1,000 per thousand in
stead OF SlS.0I.
During the year 1909 some $500
coo worth Of construction WORK was
performed by the water board. all of
which with The exception OF a $3.50,
600 bond issue, must necessarily have
ueen provided out OF the water rates.
This would leave a balance of $570-
000 odd for permanent Improvements
paid for ont or the current water
form SO far as The consumer is con
cerned.
Assuming for the purposes OF
argument that bonds might have been
issued for $500 600 of this expenditure
and that the HE Of these improve.
ments would be thirty years. $27 900
would have been the sum Chargeable
against the current years water rates.
including principal and interest and
the halarce. or about $4,000. would
have been saved TO the water consum-
ers for the current wear. II We as
sumo for the moment. that the water
rates had remained the same and
that the issuing Of these bonds would
have reduced the rate of taxation.
there would have been total de-
crease in the Ia rate of 1909 from
$780, uer thousand 10 slightly less
than $500 per thousand
Il well understand that the methods
have outlined has not been the
policy of either the city council or of
-tht-xater- i1t,erfAtil3ttt FIJI Aiefft
hes been said to show YOU that the
policy which has been followed is in
equitable. and the fact that unfair and
impolitic methods have been followed
in the past is no excuse for nor does
Il Justify "A continuance of these meth
DDS. when II Is found that they inure
to the disadvantage OF the city as a
whole
Mr.. Macpherson contended that
there is from 100000 TO S500.oe0
more money in the sinking fund at
the present time than is necessary.
which means that the taxpayers have
been taxed excessively in this connec-
ton. he said. adding
The thought | want TO express
here Is that the authorities charged
with the duty of issuing these bonds
and providing for their ultimate re
payment have not proceeded upon
equitable or scientific lines.
The speaker pointed out that some
of the bond issues call for no pay
ments on the principle until long in
the future.
AS remedy he suggested the IN.
stallment bond plan, common in Eng
land and Canada. which calls for the
raising nf an equal amount OF taxes
each wear during the life OF the bond
issue which takes care OF the tull
amount or the Interest," and a portion
OF the principal Toward the end the
payments arc nearly all principal,
while the interest continually dimln-
fahqe