Railroad Tax Bill

Senator Charles A Ward returned to Lansing Monday morning. Before taking the train he was seen by the Argus and asked concerning the Railroad legislation  now before legislature. Said he:

"The Gustin bill, to regulate commerce which is an application of the inter state commerce law to the local railroad traffic of Michigan, which has passed the house and is now on the general order of the senate, is of more importance to the people of this state than any railroad tax law which has yet been proposed.

"If it passes the senate it will place a general supervision over freight and passenger rates in the hands of the railroad commissioner. The effect of the proposed law will be to compel the railroad managers to treat all shippers and all shipping points alike. At present there is no power which can prevent unjust and burdensome discriminations between shippers in the same town or between different towns. Until the power to fix and maintain uniform freight and passenger rates is asserted by the state, it is idle to talk of raising the taxes upon railroad property. Until a maximum limit for both freight and passenger charges is fixed it will be an easy matter for the railroad companies to reimburse themselves for any increase in taxation by raising the rates to points which have no railroad competition and when you consider that the Vanderbilt interests control the stock of nearly every railroad operating in Michigan you will appreciate the power which is involved in this proposition. Hence a regulation of rates is a necessary preliminary to any scheme of railroad taxation which cannot be shifted upon the people.

What will be done with the railroad bills now pending? In my judgement, nothing. The senate has passed a bill appointing a commission composed of some of the most eminent men of the state to examine and revise the whole tax system of the state and report to the next legislature or to a special session of this legislature as the governor may elect.

"When we consider that our whole tax system is an aggregation of inconsistencies and contradictions this would seem to be the most advisable course to pursue. There is nothing scientific or systematic in our tax system and if the commission can evolve some rational and orderly system out of this chaos which will insure the adequate taxation of all classes of property it will work a distinct advance in the cause of equal taxation.

 "If the house passes this commission bill. it will close the work of the present legislature for the general sentiment is that it is better to leave things as they are at present until a general revision can be accomplished. "