Michigan state gazetteer and business directory, 1877 Volumme III (v.1), Part 11

Author:
Publication date: 1877
Publisher: Detroit, Mich. : R.L. Polk
Number of Pages: 1088

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RAILROAD GRANTS.

I regret very much to state that, even with i . very liberal gran made by the Legisla- ... of 1875, no action has been taken ! ward the construction of the Marquette and Mackinac Railroad.

The Board of Control entered into a con- tract in May last with the Marquette, Sault Ste Marie and Mackinac Radroad Company,

for the construction of the road within the the specified in the act, but there seems to be no hope of its being built in the present depressed condition of railroad interests. The grant to the Menominee River Railroad Company made in 1875, of seven sections of swamp land per mile, has expired, owing to the failure of the company to construct the road within the time prescribed by law, and the land has reverted to the State.

ST. MARY'S FALLS SHIP CANAL.

The tonage passing through this canal for the two years ending September 30, IS; 6, has been 2,573,728 tons, an increase over the preceding two years of 298,426 tons. The receipts for the same time were So,- 514.37. The tolls were reduced in July, '73, front 4% to 312 cents per ton, and in July, '75, to 3 cents. There is standing to the credit of the Canal fund on the books of the State $54,611 54, and outstanding of the canal bonds, issued by the State, due in 1879, $49,000.

One set of new gates are in place, and the other will be ready on the opening of navi- gation. The mouth of the canal has been dredged, the piers and banks repaired, and canal-house and office put in complete repair. The Board of Control have ordered an extension of the pier at the east end, to be completed next season. The inventory of State property at the canal is $12,036. The repairs being so nearly completed it is hoped that a still further reduction in the tolls can be made the coming season.

The clerk of the canal absconded in Au- gust last, taking from the safe by means of a false key the mumD of $1, 114.77. The super- intendent being responsible for the safe cus. tody of the canal funds, he must pay the amount unless relieved by you. As he was in no wise to blame in this matter, the Canal Board agree with me in asking the passage of a joint resolution directing them to allow the amount to the superintendent.

SPECIFIC TAXATION.

The assessment of specific taxes for 1875 was $577,995 : for IS76, $573.533, a decrease for this year of $64,462. Of this decrease $26,000 was in the tax on life insurance companies, reduced by the Legislature in 1875, and $34,000 in the decreased earnings of railroads. Specific taxation on real prop- erty for State purposes is a system that combined in it more mjustice to the people, more inequalities and megulerities, then any other system that was ever devised. It is unrepublican, because it divides the com- munity into classes for purposes of taxation ; because it is always and invarially lower than general taxation; because being in lieu

MICHIGAN STATE GAZETTEER

of all other taxes, it deprives our municipal- ities of their legitimate revenue. A careful analysis of the system in this State shows a disparity in the amount of taxes paid by those taxed under it, and other parties, that is simply astonishing. The total value of the taxable property of the State, as fixed by the State Board of Equalization, is $630,- 000,000. The total taxation levied in the State for all purposes is about $15,000,000, or 23/8 per cent. on the valuation, though I believe our taxation is really about 2 per cent.

A hundred dollars in bank stock, farms; houses, lands or mechanical industry pays in Michigan $2 taxes; the telegraph property in Michigan pays 23 cents on $too; the street railroad pay 25 cents on $1oo; other railroads pay 27 cents on $too, Making their own valuation as a basis. The telegraph lines in the State are worth $1,000,000, and pay an annual tax. of $2,366; the street railroads cost $785,406.27, and pay an annual tax of $1.421 ; the railroads of the the State are worth $150,000,000, and pay an annual tax of 400,000. If these cor- porations paid the same tax that other property does, they would pay over $2,000,- ooo annually, instead of $405,000 .. I can see no reason for this great difference. Arguments may be made that this or that business does not pay, but this is no cause for exemption or decrease of taxation. A farm may be unproductive, a store or house may be without a tenant, a manufacturer may not make a penny, but the taxation on these investments remains the same. There is no system of taxation that is fair, just, and equitable, except that which taxes all prop. erty exactly alike. Specific taxation should only apply to foreign corporations who, earn- ing money in the State, have no property in the State, such as insurance companies and. the like. Occasional exceptions, temporary in their character, may be made to this rule for the purpose of building up some new enterprise, or developing some new industry, but the well governed community is that where the burden of taxation, be it heavy or light, rests equally upou all property and its owners.

INSURANCE ..

In the creation of an Insurance Bureau the State recognized the fact that the business of insurance was of such public nature, that it demanded the supervision of the State, that its citizens might not be wronged. Under the faithful management of our commissioner the fire companies doing business in this State have been carefully weeded out, and 1 believe no losses have fallen upon var.people from the failure of a fire insurance company

in the past two years. We have not been so fortunate in the matter of life insurance. The recent failure of the Continental Li :- Insurance Company of New York City, in which our citizens hold policies amounti: s to $2,700,000, upon which they have prob- ably paid $500,000 in premiums, ought to altract the attention of our law-makers :> our present legislation upon the subject of life insurance. We have the power of ex- amination and of prohibition from doing business in the State, and that is about all, and the commissioner informs me that the examination of a life insurance company i- the work of months.

In the case of failure each policy-holder must look out for himself, and as each one's interest is small compared to the whole, the receiver or assignee disposes of the assets for the benefit of himself and the stockholders, if he sees fit so to do, and the policy-holder is left as chief mourner. But it is not only in case of failure that our citizens suffer.

Thirty-three companies of other States are authorized to do business in this State. These companies issue forfeiting or non- forfeiting policies-while companies organ- ized under our own laws cannot forfeit a policy after one payment has been made. I. this law is right as applied to ourselves, an !! it certainly is, we ought to apply it to all companies doing business in the State. The Supreme Court of Massachusetts has decided that no company, whether organized under the laws of that State or not, can forfeit a policy. Of the companies doing business in this State no two policies are alike in their provisions. The business, as conducted here, is something like this, i. e., the insured is asked an average of about 25 questions, his physician about 20, some friend about 5 ; if after death there has been an error in the answer of these questions, the company may decline payment.

After this ordeal is passed the companies make the policies void in case of death as follows; Seven, if the assured commits a felony ; thirty-one, for suicide ; seventeen, if " suicide is committed while sane or insure " : six, " if voluntary or involuntary self-destrus- tion "; fifteen, if death ensues from " intox .- cating drink "; five, from " imtemperate use of liquors"; six, from use of opium ; ten. from "impairment of health by narcotics or alcoholic stimulants." Although the table of mortality upon which the price of insult- auce is estimated, are made up of all deaths. in hunting those from above causes, payment. in case of death, are made on a self-can- structed basis to suit the company. A bis. band and father may pay Als premium Honestly and promptly for years, and Iv pis fortune or financial disaster, miss a sing.s

AND BUSINESS DIRECTORY.

sur; he may have lived a temperate and uscent life for years, and by and by have fallen n'o temptation by strong drink; he may be- me insane by any cause, and in an asylum AArstroy himself; he may, after years of Honest living, turn to evil ways and go to prison ; and, should he die, wife and chil- irer, who may have deprived themselves of any a necessity to keep up his life insur- ance, are told that the policy is void; and if compelled to sue for it, our own courts are powerless, and they are driven to the United states Court, or a compromise.

Though there are honorable companies who do not take advantage of all these techni- calities, yet our laws permit it to be done, if they should so choose.

I believe it to be the province and the duty of the State to designate a form of insurance policy, always non-forfeitable, free from all useless verbiage, as simple as a promissory Hote, protecting citizen and company alike, and to permit no other to be used in the

If foreign companies should not like it, there is no compulsory law to keep them here. In this connection I desire to call your attention to the report of Commissioner Now for 1873, and to the report of Attorney General Marston for 1874 on this subject.

Our citizens hold life insurance policies amounting to $53,000,000 for which they pay over $1, 600,000 annually, and we owe them a duty in this matter that we must not neglect.

BANKS.

There are 26 banks in the State that are organized under its laws. Of these II are savings banks with a capital and surplus of $092,845, and deposits of $5,078,759; and i5 are banks of deposit and discount, with pital aud surplus of $1,479,956, and de- posits of $2,150,732.

I deem it my duty to again, for the third trine, call your attention to the fact that our wy on the subject of banking is extremely lix and of no earthly use in protecting our «''izens from fraud and wrong if evil-minded persons see fit to take advantage of its defects. Our banks of to-day are well-managed and vi good hands, but this is good luck and not o. J laws.

. ] again recommend that provisions, similar 'h their character to those of the National Pathing act, in the establishment, surveil- "". and control of banks, be engrafted in "flows. No one objects to these provis- oni, and they give to the people not alone Ice Sense of security, but security itself, Af. le the banks themselves are more careful all conservative in their management. : suking is not a private business, however

conducted. Calling oneself a banker carries with it, to the common mind, the idea of a public business, governed by legislation, and I am of the opinion that it should be so governed-not in a narrow and restrictive sense, but in a liberal, careful and protective manner.

Many of the counties and municipalities of the State have suffered heavy losses by the defalcation of their treasurers. There is something wrong in a system that allows these officers first to perpetrate, and then conceal for a long time, such frauds as some of these have been guilty of.

There should be a general law, appli- cable to every municipality in the State, mandatory in its provisions, compelling set- tlements at least four times a year, by the authorities with their treasurers. Such set- tlenients-should not be on paper simply, but should include an actual counting of the public funds in their hands. Under the present law, if a community feel that their treasurer is embezzling or misappropriating the public funds they have no remedy ex. cept to wait for the expiration of his term.

.If the words "defaulter" and " defal- cation " could be stricken out of our vocabu- lary, and the old fashioned plain English substituted, it would tend to make these crimes less common. This subject deserves your thoughtful consideration.

The provisions of law in the city char. ters of the State, relating to the taking of private property for public uses, are as varied in their character as the charters are numerons. Several of these have been pro- nounced unconstitutional by the Supreme Court, and it is fair to presume that others would share the same fate, if tested. The cities and individuals suffer alike from the effects of these decisions. Would it not be well to prepare a careful, general enactment, covering this subject, that should apply ev- erywhere and to every one alike ?

MUNICIPAL TAXATION.

5 The gross amount of taxation levied in the State for all purposes is about $15,coo, - 000. Of this about one-thirtieth part is the State tax, the balance is for city, town, village, school and highway purposes. So, if we grumble at our taxes, the State gets one·thirtieth, and the other forms of govern- ment twenty-nine-thirtieths of our maledic- tions. So too. if care in legislation is demanded for the State, how much greater care should be given to legislation affecting the different municipalities of the State. The framers of the Constitution recogising this duty, have clothed the Legislature with the power to restrict in cities .on villages the power of taxation, borrowing money,

MICHIGAN STATE GAZETTEER

contracting debts and loaning their credit. The table of municipal indebtedness, sub- mitted herewith, showing a total indebted- ness of $6, 584, 540, is abundant proof of the necessity and propriety of this provision of the constitution. If our cities and villages would follow the example of the State, and the dictates of prudence-remembering that out of debt is out of danger-that debt means taxation-that debt is a mortgage, on not only the property, but the industry of the people -- they would be loth to incur indebtedness and would soon find a lighter tax roll and increased prosperity,

Would it not be well to provide for the collection of taxes semi-annually, instead of annually ? This plan has been adopted in several of the States, and works well. I can see no reason why the tax-payer should not have the use of a portion of his taxes for half of the year, instead of the munici- pality or its treasurer.

The experience of the States that have adopted this system proves that taxes are paid much more promptly, willingly and easily than under our system. The interest on $7,000,000 or $8,000,000, for six months is an amount worth saving to the people. The decreased amount of public funds in the hands of treasurers would partially re- move the temptation to speculate with them, and there would be less losses from this source. It may be some trouble to inaugu- rate the system, but I am of the opinion that it would be a decided reform,

MILITARY,

The militia of the State is composed of three regiments of eight companies each. The First Regiment, under command of Col. W. H. Withington, numbering 600. The Second, Col. I. C. Smith commanding, numbers 615. Third, under command of Col. O. F. Lochhead, numbers 577-a total of 1,792 rank and file.

No more companies can be accepted, as the law of 1873 limits the companies to 24. I ordered an encampment of each regiment during the past summer for the purpose of regimental practice drill. The attendance was large, the discipline maintained excel- lent, and the officers and men a credit to the State whose uniform they wear, and whose soldiers they are.

Under the act providing for the transfer of all insane Michigan soldiers from the poor- houses of the State to the asylum at Kala- mazoo, 26 have been so transferred. The expense of their maintenance is about 3 000 per annum. The National Sobliers' Homes have received, since their opening, 430 soldiers from Michigan.

In the two years ending September 30. I876, 54 soldiers have been temporarily cared

for at the Soldiers' Home in Harper Hospi- tal, at an expense of $4, 179.60 for mainten- ance, and $ : 34. 15 for transportation, clothing, etc. The number of soldiers requiring care in this direction is decreasing rapidly, and I recommend that the home be discontinued, and that, in lieu of it, the Military Board be authorized to provide for their temporary wants by payments of money direct. The expense of maintenance at the home being over ȘI per diem, I am of the opinion that the system of direct payments would save the Military fund a large amount.

The balance of the Military fund Septem- ber 30, 1876, was $17, 111.78. The amount of tax for military purposes levied in IS76, was $22, 142.30. No tax was levied in IS75.

The reports of the adjutant, quartermaster, and inspector generals furnish details of military matters, to which your attention is asked.

The Mexican Veteran Association of this State, at a meeting held in Jackson in June last, requested me to ask for them the pass- age of a joint resolution asking Congress to grant their prayer for pensions.

FISH CULTURE.

Since December 1, IS74, there has been hatched and placed in the waters of the State 12.400,000 whitefish, 1, 470,000 salmcn, and 150,000 lake trout. There are now in tho two hatching houses 10,000,000 eggs to be distributed the coming spring. The total expense since July r, 1873, has been $23. - 057.20-an amount considerably less than the appropriation. The inventory of prop- erty belonging to the Fish Commission is $4,000. Sufficient time has not yet elapsed to decide conclusively as to the success of this enterprise, but I am of the opinion that it will prove a success, and should be con. tinned. It is the belief of those engaged in the work that every acre of water in the State can be made as valuable as an acre of land. As the appropriation expires July 1. IS77, if the business is to be continued, a new one will need to be made. The catch of fish in our great lakes, that has heretofore been a source of great revenue to our people', is decreasing very rapidly, and chiefly from causes that are within our own control, viz : the wholesale destruction of young fish by the present methods of Sshing-catching in season and out of season-without any regulation on the part of the Government.

The attention of our Senators and Repre- enting in Congress should be called to this subject, as the General Government las exclusive power and control over it. Michi- gan has about 30,000 square miles of fishin. grounds, and our interest in the busines is one of great pecuniary magnitude.

AND BUSINESS DIRECTORY.

CONSTITUTIONAL AMENDMENTS.

The amendments to the constitution, sub- :pitted to the people at the late election, striking out the clause that prohibited the granting of license for the sale of liquors, and permitting amendments to be voted upon herefter at spring elections, were both adop- ted by a large majority.

It is to be regretted, that with the submis- ion of this amendment there had not been wme accompanying legislation equalizing and reducing the number of circuits. The inequalities of population, business and ter- ritory are very great. Gentlemen who have lately filled the position of judge in some of our circuits, have assured me that they could have transacted all the business with case had the district been doubled. We now haw er circuit judges. and three special judges, who perform the duties of circuit indge. Wisconsin, with a population of 130.coo less than ours, has 13 circuits. Iowa, with a population 100,000 greater than ours, has 13 circuit and 13 district judges, but they have no probate courts, the circuit jadges having jurisdiction in probate cases. Indiana, with a population 500,000 greater than ours, has 40 circuit and 5 special judges, but no probate judges. Wisconsin pays salaries of $3,000 per annum; Iowa $2,200; Indiana $2,500. Our judicial system as a whole is more expensive than any of the above mentioned. Would it not be wise to remodel it ; consolidate some of our circuits, reducing the number, -- pay our judges re- spectable salaries, and at the same time save cipense ? The expenses of stenographers in the State for IS76 was $22,000.

STATE LIBRARY.

Your attention in invited to the very full report of the State librarian. The library stains 52, 819 books, maps, and pamphlets, alied at $100,000. The librarian asks an ; propriation of $1,500 for each of the years 1977 and 1878, and I respectfully recommend that the request be granted.

In addition to the ordinary duties of the position, the librarian has entire charge of the sale and distribution of the Supreme Court reports, and this of itself is a work of much responsibility, occupying much time. since the disposition of these reports has Been placed in her hands the sales have Jeily increased; the receipts for 1871-2 eng $0,414.48, while in 1873-4 they were 19. 96.55, and in 1875-76 they have been 31. 319.93. The growth of the library and 'de in reading demand upon the time of the Wetrian, its prospective removal to the new 1; . tol, make it necessary that the librarian : wld be empowered, with the approval of the tovernor, to employ a competent clerk,

and I recommend that such authority be granted,

There should be some definite action by your hon rable body on the question of fire insurance upon State property. The value, as stated elsewhere, is very great, and the trustees of the different institutions should have instructions, from the law-making power, either to insure or not. There should be some harmony of action on this subject. As it is now some are insured and others are not.

STATE BOARD OF HEALTH.

The gratuitous labor of this board in behalf of the public health and well-being, though not as plainly perceptible as some practical work, I believe is of great value to the people. Their reports contain much useful information on the preservation of life and health, valuable alike to individuals, public officers and institutions.

STATE PIONEER SOCIETY.

The report of this society is submitted herewith. Of the appropriation made by the legislature of IS75, of $500 for each of the years 1875 and 1876, only half of the amount for 1875 has been been drawn from the treasury. The society ask an appropria- tion of $500 for each of the years IS77 and 1878.

I submit herewith certain petitions and correspondence relative to affairs in the county of Manitou. They show that the laws of the State and the United States are violated with impunity, and that there is no safety or protection to persons or property in portions of the county. No courts have been held for years. The county offices are vacant a large portion of the time. There is no jail. Debts cannot be collected by pro- cess of law, nor are any of the forms of law complied with.

There is no power vested in the Exec- utive to remedy this condition of affairs, and I recommend that the county organization be discontinued, and the territory be attached to the county of Charlevoix, which is in the same senatorial and representative district. .

RELIEF FUND.

The relief fund remaining in my hands at the date of my last message was $310 75. I gave to the sufferers by the tornado in Detroit, in 1875, $200, and the balance, $110 75, to the Centennial fund for the erec- tion of the Michigan building, at Podadel- phia. I hold vouchers for these disburse- ments.

.. THE LIQUOR TRAFFIC.

The law of 1875, providing for the regu- lation and taxation of the liquor trade, has

MICHIGAN STATE GAZETTEER

been in operation nearly two years. It was the purpose of the friends of this act not only to regulate, but to restrain the traffic in strong drink, that had grown to be, under other laws, the greatest evil of the day. For the purpose of ascertaining what has been accomplished under it, I addressed the treasurer of each county, asking for full de- tails of the operations of the law in their respective counties. A tabulated statement of the replies, together with a report made to the auditor general for 1875, by the same officers, is published herewith. The infor- mation is somewhat incomplete, but is prob- ably as near correct as could be expected. In 1875 the number assessed as reported to me, was 4,974; of these, 4,215 paid the tax, amounting to $461,462 92. It is altogether probable that those who Have not paid have retired from the business. In 1876 the nam- ber assessed was 4,553; of these, 3,385 are reported as having paid the tax, amounting to $384,387.

The collectors of internal revenue report the number of persons assessed in 1876 by the General Government, as dealers in liquors, as 5,33S, this includes druggists, who, as a rule are not assessed under the State law; while in 1374 the number assessed was 6,444, showing a decrease of 1,106 in two years. It is evident, therefore, that the act of 1875 has decreased the number of places where liquor is sold very largely.

As many of the persons assessed have retired from the business, and others have been assessed for periods less than a year, I estimate from the reports that there are about 4, oco places for the sale of liquor in the Site.

The official reports of the police officers of the cities of Detroit, Grand Rapids, East Saginaw and Jackson, report 3,974 arrests for drunkenness in 1874, 3,232 in 1875, and 2,228 in for IS76. This decrease of drunk- enness and of places where humanity is made barter of, and dollars traded for degradation, must be gratifying to every citizen. The reports show very generally that behind this law there stands a public sentiment that says, enforce it. There are counties, however, as shown by the reports of 1876, in which it has not been properly enforced. This is notably the case in Bay, Houghton, Ingham, Jackson, Kent, Lapeer, Marquette, St. Clair, Saginaw, and Wayne counties. Some of the officers whose business it is to enforce the law, have lost sight of the restrictive and restraining ider underlying it, and rather than close up the business, have fostered it by accepting monthly payments ou account. I find this system in vogue quite extensively. There is no time fixed in the law for the collection by the

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Michigan state gazetteer and business directory, 1877 Volumme III (v.1), Part 11

Author: Publication date: 1877 Publisher: Detroit, Mich. : R.L. Polk Number of Pages: 1088

Author:
Publication date: 1877
Publisher: Detroit, Mich. : R.L. Polk
Number of Pages: 1088