lutely necessary that these appropriations should be made. The ordinary taxpayers of the State are compelled to meet them. The railroad companies make a profit out of every appropriation made, while they contribute a mere pittance in proportion to the general taxpayer. They make a profit upon every student who is carried to our normal schools or university; upon every prisoner who is taken to one of our penitentiaries; upon every insane person who is transported to an asylum; upon every pound of freight that is carried to any of the State institutions for their use. On what principle can it be said that they should not bear their proportionate share of the cost of maintaining these establish ments?

At your general session you were also called upon, as your predecessors have been called upon before, to provide for those who had suffered by fire and famine. The railroad companies made a profit on every pound of freight sent to the relief of those unfortunate people while paying practically nothing towards the appropriation made for them.

From the beginning these great corporations have practically evaded their duties to the State. In the war for the Union the burden of every taxpayer was largely increased. The railroad companies made a profit on every soldier who was carried to the front and upon the body of every dead soldier that was brought home to be buried. At the same time their taxes remained stationary. We cannot tell at what moment the State may again be called upon to contribute to the national defense. Shall we permit history to repeat itself and leave the whole burden of national defense to fall upon the ordinary taxpayers while the railroads reap a profit from the struggle?

Express Companies.

In my message of May 6, 1897, I called your attention to the operation of the present laws with reference to express companies, and pointed out to you that under the laws as they then existed we collected from express companies in the State, as one per cent on gross earnings, in 1895, $2,742.34, and in 1896, $2,563.36. In the neighboring State of Indiana the property of these companies was assessed in 1895 for $1,330,676. Indiana had at that time 1,336 less miles of railroad than Michigan. The business of express companies is largely dependent upon the railroads, so that it is safe to say that with our excessive mileage and exces.re› commerce the business done in this State must be at least equal to the business done in the State of Indiana.

If the express companies of this State had been assessed at the same amount as in Indiana, their taxes would have been, in 1895, $37,258.93, instead of $2,742.34. This is computed at the average rate of taxation as fixed by the Board of Review for that year.

In the neighboring State of Ohio express companies are made to yield even a larger revenue than in Indiana. The

system under which they are taxed in Indiana and Ohio has been pronounced fair and just by the Supreme Court of the United States, and I earnestly recommend the adoption of the same system in this State.

Telegraph and Telephone Companies.

Telephone companies are taxed at the average rate paid by other taxpayers in the State. This rate is determined by a Board of Review from the records in the Auditor General's office.

The following table is valuable not only in this connection, but as indicating to you the average rate of taxation in this State for several years:

Rate as equalized by Board of Review:

Aud. Gen's Rep., 1896, page 73.

The difficulty with these companies is that many of them do an interstate business and are incorporated under the laws of other states. Their property in sight in this State is comparatively small, although their earnings are very great. The Ohio and Indiana system as to express companies should be applied to them so that taxes may be levied upon the proportionate amount of their capital used in this State.

Values, not Earnings, Should be Assessed.

There is but one rule consistent with honesty and that is to place all the property of the State upon the same footing and to make every one pay his share and to ask no one to pay more than his share. No one should ask the railroads, express companies, telegraph and telephone companies to do more than they insist upon others doing. We should not be satisfied with less. We should bear in mind that we are only representatives, in passing laws that affect the interests of our constituents and the interests of unborn men and women who are to come after us. Our constituents have a right to demand a substantial and bona fide effort to equalize taxes and to make every one pay his just share.

Distribution of Taxes.

The taxes paid by railroad companies, express companies, telegraph and telephone companies under the present system are devoted to the primary school fund. I respectfully recommend to you that the taxes to be collected under any

act which you may pass be devoted to the same purpose, and
be paid direct to the school districts of the State in propor-
tion to the number of school children.

As I have already pointed out, the State has made great
sacrifices to establish railroads. Many of the municipalities
have made large donations for the same purpose.
It is only
just that those parts of the State which have no depots or
other valuable railroad property should receive something
in return for the sacrifices in which they have shared. The
return can be made in no better way than by devoting the
taxes collected to the primary school fund, in which all the
people of the State are intensely interested.

In many parts of the State the people are unable to main-
tain schools except for a few months. If these corporations
are made to bear their proper proportion of taxation and the
money collected from them is devoted to the primary school
fund it will enable districts where schools are now main-
tained only for a few months to maintain them for a longer
period, and in all parts of the State will assist the taxpayer
in defraying the expenses of education.

Recommendations.

I recommend that you authorize the appointment of a State board of five, to be non-partisan if the Constitution permits, which shall be empowered to make a just and equitable valuations of the franchises and other property of railroad companies, express companies, telegraph and telephone companies at their true cash value, and to ascertain the average rate of taxes paid by the other people of the State for State, county and municipal purposes, and to assess the property of these companies at that rate, the moneys collected to be paid directly to the State Treasurer and by him distributed in the same manner as the moneys now collected from specific taxes.

In conclusion I desire to earnestly urge this duty upon you in the name of equality and justice. I trust that prejudices for or against corporations will have no part in your deliberations. Michigan should be absolutely just. Natural and artificial persons, whether rich or poor, resident or non-resident, are entitled to the same treatment before the law.

After which,

The Governor, the State officers and the justices of the supreme court retired.

Mr. Gillam moved that the joint convention do now adjourn,

Which motion prevailed.

The Lieutenant Governor and Senators having retired,

The House was called to order by the Speaker.

Roll called; a quorum present.

The Speaker announced that the House and Senate had met in joint convention, and listened to a message from His Excellency, the Governor. Mr. Sawyer offered the following:

Resolved, That the message of the Governor in relation to the taxation of railroads and other corporations be referred to a special committee of fifteen to consider said message, its recommendations and suggestions, and report to this House with all convenient speed such measures, bills and resolutions as said committee may deem advisable and that all bills and resolutions relative to said message and said bills offered by any member shall be also referred to said committee; that said committee shall be appointed by the Speaker:

The question being on the adoption of the resolution,
Mr. Atkinson demanded the yeas and nays.

The demand was seconded and the resolution was not adopted, by yeas and nays, as follows:

The Speaker announced the following:

I hereby appoint Mr. Grant S. Bennett of Detroit, press clerk, to fill vacancy; also Mr. Milton W. Guy of Washtenaw county, assistant cloak room keeper, to fill vacancy.

Wm. D. Gordon,

Speaker.

Mr. Chamberlain offered the following:

Resolved, That the daily sessions of this House shall begin at 10 o'clock a. m. and 2 o'clock p. m. during the period of the extra session; Which was adopted.

Mr. Atkinson, unanimous consent being given, introduced

House bill No 1, entitled

A bill to provide for the assessment and levy of taxes upon the property of railroad companies, express companies, telegraph companies and tele phone companies.

The bill was read a first and second time by its title, and

On motion of Mr. Atkinson,

The bill was ordered printed in the Journal and referred to the Committee on Revision and Amendment of Statutes.

The following is the bill:

A bill to provide for the assessment and levy of taxes upon the property of railroad companies, express companies, telegraph companies, and telephone companies.

SECTION 1. The People of the State of Michigan enact, That it shall be the duty of the Governor, within five days after this act shall take effect and be in force, to appoint four resident freeholders of this State, and their successors thereafter as their terms of office shall expire, who, with the Auditor General of the State shall constitute the State Board of Assessors, of which the Auditor General shall be the president. The persons so appointed shall hold their offices for the term of two years from and after the day of their appointment respectively, or until their successors shall be appointed and qualified. A majority of said board shall constitute a quorum for the transaction of the duties prescribed for said board under this act.

SEC. 2. Said board shall elect a secretary at a salary not to exceed two thousand dollars per annum. The secretary so appointed shall hold his office for the term of two years and shall keep a record of all the proceedings of said board, which record with all other papers or proceedings of said board shall be a part of the records of the Auditor General's office, and of which the Auditor General shall be the lawful custodian. The secretary shall devote all his time to the duties of his office, and when said board is not in session shall perform such duties as may have been assigned him by said board or as he may be directed to perform by the Auditor General.

SEC. 3. The members of said board from time to time appointed, and the secretary so elected, shall take and prescribe the constitutional oath of office to be filed with the Secretary of State.

SEC. 4. Said board shall hold its sessions at the office of the Auditor General. It shall have access to all books, papers, documents, statements and accounts on file or of record in any of the departments of State, subject to the rules and regulations of the respective departments relative to the care of the public records. It shall make an assessment roll each year containing a list of all property by it assessed, which assessment roll shall be filed with the Auditor General and be open to inspection like the other files and records in his office. Said board shall have the right to subpoena witnesses upon a subpoena signed by the president of said board,