The Detroit times., 1912-05-22
NEXT STEP TO GET THE
PENNSYLVANIA is TO HAVE
STATE TAXES tQUAlIlED
MAYOR THOMPSON.
Executive Asks Council To In
vestigate Railways Claim
of Discrimination
DELEGATION CONFIDENT
Sure Road Can Be Induced To
Build Into Detroit-Homer
Warren's Figures
DELEGATION CONFIDENT

"The next step toward inducing the
Pennsylvania railroad to extend It's
tracks to this city is for the city to
get the state tax commission to
equalize assessments said Mayor
Thompson, Tuesday morning, on his
return from Pittsburgh with the De-
troit delegation which urged the COM
pany to build to Detroit THAT does
70: mean that the assessments on
railroad property should be reduced"
continued the mayor. THE Pennsyl-
vania company does not insist on such
condition. But II does mean that
other property In the state shall be
assessed on the same basis as the
railroads, that Is, approximately its
full value. That would automatical-
IL reduce the taxes paid by the rail-
roads"
Mayor Thompson wrote a com.
munication which was sent to the
council, Tuesday night, requesting
that the special aldermanic commit
tee be kept intact His object Is to
have the committee confer with the
tax commission in an endeavor to
have the tax assessments equalized.
There is Very good prospect of bring
Ing the Pennsylvania railroad to De
troit, but not until there is readjust-
ment of tax assessments. which are
now conceded to be unfair to the rail
roads" said the mayor IL consider
the need OF additional terminal facili-
ties In Detroit serious enough to war
rant taking this matter up with the
~ io 1,a
time to do 1t, il we want quick re-
suits"
= Homer Warren, president OF the
Board Of Commerce expressed him
self to The Times as very hopeful that
the city will get the Pennsylvania
railroad. He, like Mayor Thompson,
took the view that the state must
equalize assessments so that the rail-
roads will be relieved OF portion OF
their burden. He cited an interesting
example showing just how the rail-
roads are assessed in Michigan. He
said:
I'VE shall assume that 81 900 Is to
be raised by the state. To obtain that
sum the railroads are assessed $40.
900 and the remainder OF the state
assessed at $4,000, making a total
dSSeSSUlGnl Vi 4OO,OOV. ANOW ~ dloE
$1,000 would mean a tax levy Of 2
per cent, which, in turn would mean
that the railroads would have to pay
I, $500 and the remainder of the state
$500. In other words, the railroads
pay almost as much as the remainder
of the state. The railroads are as
sessed at approximately their full
value. Now we shall assume that the
hol IF ha az ic acCnGQan Qf It's
actual value. That would mean an
increase OF so per cent in the assess
ment for the balance of the state, or,
in this example, 100000. instead of
10000. Adding 100000 to $4,000 We
get $4,000. To raise $1,000 in an
assessment of 100000 would mean
levy OF 1 IA per cent. That rate on
an assessment of $4,000 would mean
that the railroads would have to pay
$3.50 and the balance of the state,
$3.50. making UP the $1,000.
"The railroads are not asking us
to lower their assessments. They are
asking that the balance of property
in the state be assessed to nearly its
full value, which, of course, as have
shown In the example cited, would
mean a reduction of the taxes paid
DIV the TdllTOuuS. HS ihCNuoi
ity applies TO Detroit. Detroit is as
sessed almost up to full value, while
other parts OF the state are assessed
way down. In some portions OF the
state an acre of railroad right-of.way
is assessed at $50, while an acre of
farm land abutting it is assessed at
S25. 1t seems as though an effort had
been made to assess the railiroadsion
their earning capacity rather than on
their physical value. Imagine assess
ing one store on Woodward-ave. twice
as much as another of the same size
and worth simply because the first
is making twice as much money!
"what we really need is broad re-
adjustment OF relations between CAPT
raj and labor, farming and railroad in
terests. We all need one another, and
instead of antagonizing one another,
a. ia 10 our mutual interests that we