The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-05-10

the legislature to place limit on the
| taxing power OF cities.
The legislature. in passing the
I home rule bin, thought II was placing
an absolute limitation on the cities In
| the matter OF taxation" said Mr.
Hally. Representatives from some
or the smaller cities objected. They
said the cities simply could not exist
under such a limitation. The legis-
lature told them TO raise their yalua'
tions. You see, they were trying 10
escape their just proportion OF the
state taxes by low valuation, and q
high tax rate.
II contend that the two per cent
tax limitation applies TO all the funds
of the school board funds as far as the
purchase OF land and the erection OF
school buildings are concerned"
Judge Murfin interrupted at this
point to ask:
Suppose do find that you are cor
rect in your contention. Mr.. Hally,
then what happens"
"Mr. Bakers idea is that the COM
mon council and the board OF esti-
mates may be ordered 10 cut from
the budget a sum sufficient TO bring
the budget within the limit" said Mr..
Hally
Mr. Baker added that the common
council would be compelled TO carry
out the decree Of the court.
Court Doubts Authority.
I'm other words, would direct them
TO do the work for which the board
OF estimates was specifically created"
replied the judge. II don't believe |
have the power"
In opening the arguments, Tuesday
afternoon, Attorney Baker started out
with the contention that inasmuch as
Detroit has not had a general charter
revision or taken any other action 10
Mace itself under the home rule act,
the two per cent tax limit in that act
does not apply TO this city. The only
limitation, he said, was that OF one per
cent for the general fund, and other
specific funds stipulated In the char
ter. and he claimed that the appro-
priations for these various funds this
wear are all within the one per cent.
Even II the two per cent limitation did
apply, he argued, II could not anect
the school board appropriation. The
city, he said, constitutes school dis
trict. entirely separate from the cor
poration, and appropriations Tor school
purposes are wholly independent OF
the city appropriations. and are not
subject to any limitations. according
to his view.
Mr.. Hally took exactly the opposite
view on every proposition. He DID
not agree with Mr.. Baker that the
specific funds he enumerated are
| within the one per cent charter lin
itation. Several sub funds had beer
created, he said, without any author
ization, and IL these were included 10
the general fund. where they properly
belong, the latter. as passed by the
board of estimates, would exceed the
one per cent limit by about 100000
Mr.. Hally went back TO the time when
Detroit. az a village, was governed by
the old town meeting to show that
/ the control OF all the appropriations,
including schools, had always been
under the control OF the municipality.
On motion of Aid. Vernon, the com
mon council, Tuesday night, voted
CORPORATION Counsel Hally permission
to appear In support OF his own con-
tentions in the tax budget case. IL
he acted as counsel for the board OF
estimates, Mr.. Hally would be obliged
to take a stand In opposition to his
convictions. Controller Heineman.
named as a respondent in the suit.
was also given permission to ME
separate answer in the case.