The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-11-08
EXCESS TAXATION PLAN
WOULD HIT CONSUMER,
INSISTS ALEXANDER DOW
Head of Detroit Edison Co. Pro-
tests Against Proposal To
Tax Corporations.
SAYS 1T is UNJUST,
Hearings Are Practically Ended
and Commission Will Pre-
pare Final Report.

LANSING, Mich, Nov. S.--That the
proposed plan TO put in effect the
proposed corporate excess plan OF tax
alton would affect the consumers, was
the contention made yesterday before
the state tax commission by Alexan-
der Dow, OF the Detroit Edison Co.
He appeared with Frank A. Bell, of
the United States Steel corporation
and William p. Belden, of the Cleve-
land Cliffs Mining Co.. to protest
against an increase of taxes against
corporations.
Mr.. Dow pointed out that in de-
termining the rates which are
charged consumers, the amount OF
taxes paid must necessarily be con-
sidered. and when the tax runs above
a certain per cent, then the consumer
is affected seriously as the tax inter
feres with the securing of certain
business in which the margin OF profit
is small. but which enables the cor
poration to keep down it's rates to
the small consumer.
I'm my observation" said Mr.. Dow,
the assessment on tangible values
runs from 55 to 80 per cent of the
book value of such public service cor
porations as mine, and we are paying
taxes at a rate OF $l4 per $1,000 on
book values.
Il think this proposed tax would
be unequal, unjust and discrimin-
atory," Mr.. Dow continued. The
state. in authorizing corporations,
creates nothing. II merely permits
individuals to exercise the right to do
huo 40
anything an individual cannot do. The
state simply provides a convenient
highway for commerce. II the state
should depart from a reasonable toll
for the use of this highway, II would
be following the custom OF the knights
along the Rhine who extracted all the
toll travellers on the river could pay
We pay about 5h per cent of gross
earnings In taxes and about 13 per
cent OF the net
Again he said: I'VE are Indifferent
as to how you tax us so long as you
do not obstruct our developments nor
affect our business to an extent that
will reduce the earnings 10 a point
that will deprive customers of the
service. We are absolutely transpar-
ent as to taxes: anything affecting
the tax rate Immediately affects our
customers"
In Mr.. Dow's opinion the corporate
excess tax would be such an increase
in taxes as would seriously affect the
business and seriously affect the
rates charged customers.
Mr. Bell said he thought the COM
mission should tell the people OF the
state that the mines are now assessed
up to and even above their cash
value. The situation Is serious one.
he said. and the mine owners be-
lieve they are entitled to a fair deal.
Mr.. Belden said he favored sep
aration of state and local taxes, but
would bring that about by using the
railroad taxes to support the state.
None OF the three suggested methods
of taxing the iron mines were salts
factory to Mr.. Belden, and he pointed
out at length the alleged fallacies
and Inequalities which he believes
would result from an adoption OF any
of the systems. Some of them, he
said, are against home rule and would
work an exceedingly great hardship
and injustice. He contended that any
proposal to tax the mines higher than
other property would De most uls-
criminatoryAand unfair.
I'VE are Now assessed at our full
value Of the intangible and tangible
property" said he, "and yet you pro-
pose TO add a tax on our intangible
value
The hearings yesterday conclude
all those for which the commission
has dates, and unless new applications
are filed, the work of preparing the
final report will be started