The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-05-10
HALLY INSISTS TWO
PER CENT LIMIT
APPLIES HERE
Says Twas Intention of Framers Of
Home Rule Law To Put Curb on
the Taxing Power of
All Cities.
Court Doubts Authority To Order
Council To Trim Budget II He Finds
Hally's Contention Correct.

When the arguments In the Ia:
budget suit were resumed before
Judge Murfin. at $3.50 o'clock. We'd
nesday morning. Corporation Counsel
Hally launched into his main argu'
ment In support of his contention that
the home rule bill absolutely limits
the tax levy OF all cities in the state,
> including Detroit.
Outside the court and counsel the
only persons present were the news
paper men and one spectator, an at
torney. Later Attorney Henry Led
yard, representing the police depart
ment, took his place at the counsel
table.
Mr.. Hally contended that the new
constitution makes 1t mandatory on
the legislature to place limit on the
taxing power OF cities,
Tine legislature. in passing the
home rule bill, thought II was placing
an absolute limitation on the cities III
the matter OF taxation said MI.
Haily. Representatives from some
OF the smaier cities objected. They
said the cities simply could not exist
under such a limitation. The legis-
lature told them TO raise their vaiua-
tions. You see, they were trying 10
escape their just proportion OF the
state taxes by a low valuation, ana
high tax rate.
II contend that the two per cent
tax Limitation applies to all the funds
of the municipality OF Detroit, and TO
the school board funds as far as the
purchase of land and the erection OF
school buildings are concerned.
Judge Murfin interrupted at tnls
point TO ask:
Suppose do find that you are cor
rect In your contention, Mr.. Haily'
then what happens?
"Mr. Bakers idea is that the com
mon council and the board OF estl-
mates may be ordered TO cut from
the budget a sum sufficient to bring
the budget within the limit said MT.
Hally.
Mr.-Baker added that the common
council would be compelled to carry
out the decree OF the court.
'eIn other words, would direct them
to do the work for which the board
Of estimates was specifically created, :
replied the Judge. 81 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 general charter
revision or taken any other action 10
mace itself under the home rule act
tho 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
speciflc funds stipulated in the char.
tor and he claimed that the appro-
nriations for these various funds this
year are all within the one. per cent,
Even If the two per cent limitation oiu
apply, he argued, 1t could not anect
the school board appropriation. Inc
CITY. he said, constitutes school as
trict. entirely separate from the cor
poration, and appropriations for school
purposes are wholly Independent OF
the CITY appropriations, and are not
subiect TO any limitations, according
TO his view.
Mr. Hally took exactly the opposite
view on every proposition. he ala
not agree with Mr.. Baker that the
onecific funds he enumerated are
within the one per cent charter Inn
itation. Several sub funds had been
created, he said. without any author
ization, and IL these we're included In
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.
nIr Hally went back TO the time when
Detroit. as a village, was governed py
tbe old town meeting to show that
the control of all the approprlat,ons'
including schools, had always Deen
under the control OF the municipality