Unfunded debt for construction, $1,041,254. $3,381 00 1,041,254 00 10 $100,000 00 None $100,000 00 All rock from the mine carried free, the mining company paying any deficit. Unfunded debt for construction and equipment, $192,990, which, added to stock, approximates the cost. ESCANABA & LAKE SUPERIOR. No report filed for 1899. Total mileage, all in Michigan, 41.5. ADDENDA. As already stated in my report, hereinbefore contained, the act of the Legislature of this State creating the Board of State Tax Commissioners, known as Act No. 154 of the Public Acts of 1899, became a law almost at the close of the session of that year, and that the members first composing that Board were appointed by the Governor of the State after the Legislature had closed its session and in the month of July following. Among the duties devolving upon the Commission, set forth in subdivisions 6 and 9 of section 150 of the Act, are as follows: "6. To inquire into and ascertain the valuation of the properties of corporations paying specific taxes under any of the laws of this State, and to ascertain the actual rate of taxation as based upon the valuation of said properties that is being paid by said corporations, and to this end said Board shall require reports from, and make investigations, as to the properties of such corporations in the same manner and to the same extent as if said corporations were paying taxes under this act. "9. To further report to the Legislature at the beginning of the regular sessions, specifically, the true valuation of the properties of corporations paying specific taxes and the rate of taxation actually paid on said valuation and the true valuation of all other properties of the State and the rate of taxation the same are paying, to the end that the Legislature shall have the information necessary to rearrange the rate or system of taxation on said properties, so that all taxable properties of the State may be taxed uniformly." There being no regular session of the Legislature under the law whereby "Report to the Legislature at the beginning of the regular sessions" would become necessary at the beginning of the year 1900 and in view of the magnitude of other work upon the Board for the first year, the Board did not undertake to fulfill the duties imposed under the law above quoted until about the month of September, 1900. The actual work in the performance of the task of gathering data or information whereby the true valuation of all the properties and corporations paying specific taxes to the State, under then existing laws, commenced about the 15th of that month and continued with much detail without interruption until the last days of January. This included the valuation of all the railroads, telephone companies, express companies, and all the other corporate properties of the State yielding a revenue to the State by the specific method. It was indeed a stupendous undertaking and really engaged more time than was thought Three plans were employed, or rather data was gathered under three distinct heads whereby valuations from the mass of information collected could be made by the Commission, in the performance of duties imposed as above noted, namely, the Cooley-Adams plan, so called, a valuation of the physical properties of these corporations by Mortimer E. Cooley, Professor of Mechanical Engineering of the University of the State of Michigan, and his staff of employes; to which should be added the valuation of the non-physical elements found by Henry C. Adams, Professor of Political Science of the University of Michigan; the "Earning power" plan whereby net earnings of these corporations would be capitalized at a given per cent-employed by ex-Commissioner Robert Oakman; and the "Stock and bond" plan, as commonly understood, which ex-Commissioner Milo D. Campbell had caused to be worked out for the use of the Commission. About the first of February, 1901, the results reached by these three different methods were given out to the Legislature and to the people in an informal way and through the public press, but not through any formal or public report, as such, by the Commissioners; so that it may be said the Commissioners composing the Board of State Tax Commissioners, as formed in the year 1900, have not, as a Board, "Ascertained the particular valuation of the properties of corporations paying specific taxes under any of the laws of this State," etc., except as the three methods employed would show this and the results show different amounts, while the Board, as such, has not formally adopted any one plan or particular sum as the value; although the respective amounts are not so widely apart when considering the magnitude of the values reached by the different methods; in other words, the data collected can be said to be none other than a report of the employes of the Board of Tax Commissioners from which valuations could be determined by such Board. The situation, no doubt, has been brought about, in part at least, by the fact that the tenure of office of the respective members of that Board having expired, under the law whereby the appointments were made, on the 31st day of December last, or at least when their successors were appointed and qualified, while only one of such members, the writer, having succeeded himself. It might also be said that the necessity for that valuation has, in a great measure, now passed, although of inestimable benefit for future · use; for the reason that the Legislature for this year passed a law, as is generally known, taking these properties, or the most important and greater ones like the railroads of the State, from specific tax paying properties and made them to respond in taxation on an assessment and value made by a Board of Assessors under the ad valorem system, and whereby the Board of State Tax Commissioners, ex officio, are the members of that Board, the membership of that Board having also been increased to five in number. Manifestly, of the plans above mentioned, the Cooley-Adams plan is the most extensive or voluminous in detail and has required the highest grade of technical skill. Indeed, the work accomplished is a marvel in completeness of detail, in accuracy of results reached through the plan employed, and in engineering problems solved of the highest type. The results were completely rechecked and very elaborately com piled in several large volumes, the final work completed about May first, except some extra time employed in indexing, arranging and classifying whereby the work and data might more readily be found or made more comprehensive. The report of the Commission heretofore contained and submitted, aside from the work and duties performed respecting the specific paying properties, has been ready for general distribution, save binding, since about the month of January last and advance sheets thereof have been given to the members of the Legislature. At that time it was contemplated by the members of the former Commission to incorporate the reports of Professors Cooley and Adams, to be made by them to the Commission, with this report of the Board, all in one volume. Unavoidable delays have taken place in receiving the text of these reports, now said to be voluminous as the formulation of same proceeds, to that extent it has been thought an unhandy book would be made, to have the same all in one volume. But more than this, such a pressure has been brought to bear upon the writer for the information contained, required and contemplated by law in this report, especially in view of the State Equalization which occurs every five years under the law, and this year in August next, that he can no longer, in fairness to all, withstand that pressure or demand of the people, and the duty seems clear to have bound and issued, as required by law, the report of the Tax Commission for the year 1900 without further delay. However, we have also concluded to add to this report the grand total results reached by the three different methods mentioned respecting the specific tax paying properties, exclusive of the compiled data, and accordingly same will be found incorporated herein. We beg the indulgence and patience of the public, in view of all the surrounding circumstances and herewith respectfully submit the report mentioned. Dated, Lansing, July 24, 1901. Obediently yours, A. F. FREEMAN, Member of former Board of State Tax Commissioners for the year 1900 |