HOUSE OF REPRESENTATIVES.

Wednesday, December 12, 1900.

Pursuant to a proclamation of His Excellency, Hon. Hazen S. Pingree, Governor of the State of Michigan, the members of the House of Repre sentatives assembled in their hall in the capitol in the city of Lansing. The Speaker, Hon. Edgar J. Adams, called the House to order at 12 o'clock noon.

Prayer by Rev. Mr. Allen.

The roll of the House was called by the Clerk, and the following mem bers answered to their names:

The following members were found to be absent: Messrs. Bryan, Burfoot, Dickinson, Foster, Hart, Hatzenbuhler, Hofmeister, Keep, Locher, McLeod, Murphy, Randall, W. A. Reed, Taziman, Van Camp, Wayne, Wells and Woodruff.

The Speaker directed the Clerk to read the proclamation of the Governor, convening the Legislature in extra session, which was as follows:

PROCLAMATION.

To All Whom it May Concern,-Greeting:

At the general election held on November 6 last, the people of this State ratified and approved the amendments to the Constitution of the State relating to the taxation of corporations. These amendments were submitted to the people, for ratification or rejection, by the present Legislature, convened in extra session on October 10, last.

Under the Constitution, as so amended, it is now possible to enact a law providing for the assessment and taxation, at its cash value, of the property of railroad, telegraph, telephone and express companies, and similar corporations, now paying specific taxes upon gross earnings. The amendments to the Constitution, which make it possible to enact such a law, were ratified and approved by a majority so overwhelming as to leave absolutely no ground for doubt or dispute as to the wish of the people in this matter. Only ten per cent of the voters of the State declared themselves against the system of taxing the property of railroads and other corporations upon its cash value, in the same manner as all other property is taxed.

The returns made to me from all of the counties show that the constitutional amendments received 438,428 favorable or affirmative votes, and 54,756 negative votes, a majority of 383,672 votes.

While technically this immense majority in favor of the amendment leaves the matter of the enactment of a law thereunder to the discretion or will of the Legislature, it could not be made plainer that it is the wish of the people that their representatives in the law-making body pass, at once, a law providing for the abolition of the unfair and inequitable system of specific taxation upon earnings, and providing for the substitution of a system under which all other property is taxed, namely, upon assessment at cash value. In no other way can equal taxation be secured. In fact the majority in favor of the amendment is so large that it amounts to an emphatic and positive demand for the enactment of such a law. No one but a blind partisan, or a corruptly influenced person. can place any other interpretation upon the vote.

The present Legislature (the Fortieth), has studied, debated and discussed this subject of the taxation of corporate property most thor oughly and exhaustively. It has been the most important and most engrossing subject before it for legislation during one regular and two special or extra sessions. Its members are thoroughly familiar with the subject, and are more able to act intelligently upon it than the members. of the Legislature which will convene upon the first Wednesday in January next. They are also better able to appreciate how earnest the people are upon this subject. It will not be necessary for them to waste any time in profitless debate. They can, in a few days, frame and enact a law, in accordance with the plainly expressed wish of the people. On the

other hand the incoming Legislature would undoubtedly consume weeks in becoming acquainted with, and in debating this subject of the taxation of corporate property. It would be an economy of time, and a saving of money in taxes, to submit this important subject to the present Legislature for action.

It should be remembered also that the present Legislature, at its regular session, enacted a law, known as the "Atkinson Bill," providing for the assessment and taxation of certain corporate property upon its cash value. This is the law which the Supreme Court of the State indicated was unconstitutional. Its unconstitutionality is what led the Legislature to submit the constitutional amendments to the people at the recent general election, so that the law when re-enacted would be valid. There is no reason to suppose that the members of the Legislature have changed their minds upon this important question, nor is there any reason why they should. On the contrary, all of the evidence and facts, submitted by the State Tax Commission, as a result of its expert valuation of the property of railroads and other corporations paying specific taxes upon earnings, prove, beyond contradiction, that these corporations have not been paying their share of taxes and that the proposed change in the system of taxation, from earnings to cash value as a basis, is entirely warranted and justified by these facts. The work to be performed by the present Legislature is, therefore, namely the reenacting of a measure along the lines of the "Atkinson Bill." It should be given the opportunity to again redeem the pledges upon which its members were elected.

The situation and occasion is an extraordinary one. The demand of the people for action is so plain and emphatic that I cannot disregard it even were I so inclined.

Acting, therefore, under authority of Section 7 of Article 5 of the Constitution of the State of Michigan, I hereby call the Legislature of the State of Michigan to meet in extra session on the 12th day of December, A. D. 1900, at twelve o'clock noon of that day, to enact a law providing for the assessment and taxation, of all property at its cash value, including that of corporations now taxed and paying specific taxes upon earnings; and providing for the assessment of the property of corporations at its true cash value by a State Board of Assessors and for the levying and collection of taxes thereon, under the provisions of the Constitution relative to the taxation of corporations, as amended and the amendments to which were ratified and approved by the people at the general election held on November 6, 1900; and for the consideration of such other matters as shall be submitted by special message.

I, Justus S. Stearns, Secretary of State of the State of Michigan, do hereby certify that the annexed copy of proclamation by the Governor, convening Fortieth Legislature in extra session, bearing date the 5th day of December, A. D. 1900, is a true and correct transcript of the original, which is on file in the Department of State.

(Seal)

In witness whereof, I have hereunto set my hand and affixed the Great Seal of the State of Michigan, at Lansing, this 12th day of December, in the year of our Lord nineteen hundred.

J. S. STEARNS,
Secretary of State.

The Speaker then addressed the House as follows:

Gentlemen of the House-By virtue of a proclamation issued by His Excellency, the Governor, on the fifth day of the present month, we are again convened in extra session, to further consider the very important yet exceeding intricate problem of framing and enacting such law or laws as will bring every dollar's worth of property, by whomsoever owned, to a common level and compel it to bear its full, fair, equal and exact share of the public burden.

The wisdom of convening us in extra session for this purpose, at this time, is not for us to question or pass upon. Enough for us to know that one of the three co-ordinate branches of our State government has deemed it wise to exercise a prerogative vested in him by the constitution, and we are in session for a purpose plainly designated: the task of framing and passing a tax bill within the very limited time at our disposal, that will fully meet the demands of the people for a change from a specific tax upon gross earnings to a tax upon assessed value of property possessed by certain semi-public corporations, and yet avoid the injustice of local taxation, is one demanding our best thought and energy.

All of the members of this body have studied this problem for two years, and many, who were members of preceding legislatures, longer. Much time and money belonging to the State has been spent in acquiring the knowledge upon his subject we now possess, and if we desire to bequeath to the State any of the net accumulation, it becomes necessary for us to lay aside all prejudice and give to the framing of such a bill the best judgment and effort at our command.

It will not be strange if the bill we finally agree upon shall, in the light of practical application, develop some defects in the detail, but if it does, the legislatures of the future will have a foundation bequeathed to them by the fortieth Legislature, in its closing hours, in the closing days of the greatest century in the history of the world, that may prove of more value than we may now conceive.

I believe we owe it as a duty to ourselves, and no less a duty to our constituents who have placed their confidence in us and conferred upon us the honor of representing them in this legislative body, to pass a bill, after due deliberation, that will embody the best thought and judgment we are capable of collectively putting into such a measure.

I trust there may be no time wasted in bitter criticism, but that the work assigned us may be done as speedily as a due regard for good work and a careful consideration of the results will permit.