The Portland daily press., 1871-12-13
PRESS.
WEDNESDAY MORNING. DEC. 1s, 1871.
Municipal Aid to Manufacturers and
Manufacturing Corporations.

Whether towns and cities will grant ,,,,,
nicipal aid to corporations and persons e,1as,
ed in manufacturing, is question much Sis-
cussed at the present time in Maine. It il
claimed that this can be done in three ways
1st, by direct gift, as in the case of Augusta,
which made the Messrs. Spragues nice little
present of $250,000, as an inducement to op-
crate their water power; I'd, by towns and
cities ''taking stock'' in private corporations,
-as in case of Newport, under act OF March
1, 1907; and Sd, by exempting manufacturing
property from taxation for term not exceed
ing ten years, under the general law of 1864.
Whether the Legislature of this State has a
constitutional right by the enactment of laws,
to compel its citizens to pay other peoples
taxes, and pay for shares in stock companies
entirely owned and controlled by others, and
whether whole municipalities, including large
numbers Of poor, but honest laboring men
are to be ground down to taxation, and the
money so raised giuem away to ''bloated" cor
porations, are grave questions l do not here
propose to discuss
Waving all constitutional objections for the
time being, let us briefly consider this matter
as question of State policy.
lit is said by its advocates, that it brings
foreign capital into Maine. As an abstract
question, this is true. Who would not come
into Maine and apply themselves to the Wig
Orous operations OF "brick" making and Law
ing foundations" and even running few
thousand of spindles, provided the people
would make them the magnificent ''present"
of quarter of a million dollars, and exempt
them from all taxation for a term of ten or fif-
teen years, a. was the case with the Messrs.
Spragues'?
every man lit has been said) has his
price,, and men and corporations engaged in
business, as a general rule, go where they can
realize the largest profits. No doubt there
are hundreds of capitalists outside of our
State, who would gladly follow the Spragues
into Maine, provided the people would gire
them hundreds of thousands of dollars for
the privilege of beholding their august pres
ence in their midst occasionally, with no
corresponding obligations on their part as an
equivalent. Hereafter there will be no lack
OF foreign capital coming into Maine; only as
the people in their folly refuse to pay tribute
to the moneyed Caesars, already gorged with
wealth, rolling in luxury, and "faring sump-
tuously every day."
But what do the people get in return, as an
equivalent, for the Onerous, burdensome tax
alton which inevitably follows these 'encour-
agements" granted manufacturers? 1t may
be answered, that it Improves their water
powers, and as a legitimate result, builds up
cities and villages, adds to their aggregate cap
ital, and increases population. Men who are
fortunate enough to own real estate in the
immediate vicinity of manufacturing locations
undoubtedly realize benefit from the rise in
the valuation of this kind of property; but
comparatively, their number is few. The
great mass who are taxed to pay these subsi-
dies, get nothing in this direction. 1t may
be said further, that it increases trade, and is
benefit to other branches of industry
This may be true, but even this, has its
cnrsi long 6rax rs To fpvx
lages have in their midst floating transient
population, poor and irresponsible, and
many of them dishonest. They get trusted
at the stores and mechanics shops, and ere
their creditors are aware, they have secretly
gone to parts unknown and the men who
trusted them, are compelled to pocket the
loss.
Aside from all these incidental matters, the
whole theory oftaxing the many for the ben
eft of the few is all wrong. To compel the
laboring masses of moderate means, who toll
from one end of the year to the other, to give
themselves and families, barely comfortable
subsistence ito pay taxes to go into the
pockets ofthe rich and opulent, is such an
outrage on their private rights. as ought nev-
er to be tolerated in a Republican govern
ment.
Again, by what right can majority of vo-
ters in city or town, compel the minority to
become stockholders in private corporation,
entirely beyond their management and
control9 And yet, after the Supreme
Court of Maine gravely decided all
such acts unconstitutional the Leg
islature of 1870 defantly, with certain re-
strictions), las"ed several acts placing every
mans property in certain towns, at the mer-
cy of popular vote.
Some of the best legal talent in the country
are of the opinion, that the act of 1864 au-
thorizing cities and towns to exempt certain
property from taxation for a term not exceed
ing ten years, lis unconstitutional, but pass ov-
er this phase of the question ;of the three prop
ositions under consideration this is certainly
the most reasonable-yet nearly all the towns,
which have granted these exemptions, now
find themselves in a snare they little antici-
pated. The law of 1864, under which these
exemptions have been granted provides. Sec.
i. THAT all property so exempted ~ shall
be returned with the valuation ofthe severalcit-
les and towns, when required by the State
for the purpose ofmaking the State valuation"
Prior to the last State valuation, this exempt
ed property in several towns was simply left
out Of the ualuation, and the taxes were asses
sed upon the other property in town. The
Legislature of 1870 in making new State
valuation placed all this exempted prop
erty in the valuation of the several cities and
towns where it belonged This action of the
Legislature obliged these several cities and
towns to include all this kind of property in
their valuations for State and County taxes
and the result is the property holders in there
several municipalities have to pay State and
County tares, not only on their o,on property
but each their proportional part, on this
exempted property. know of town in this
State, whose State valuation is fixed at about
$500, ,000,-one hundred thousand of which is
exempted property
The result is, the property holders, outside
OF these. exemptions, not only lose the tocn
tax on this property, but their State and
County. taxes are increased one fifth each
year, so long as these exemptions last. The
people of these towns not only have to bear
these burdens, but many of these exempted
corporations and persons contend that this
kind of property is not liable to be taxed for
the erection of District School-houses, and if
this doctrine shall be sustained by the Courts,
then the people will be forced not only to
lose their town taxes, pay the State and
County taxes on their property, but build the
school-houses in which to educate the chill
dren of these aristocratic privileged classes.
Among factory operatives there is a class
of "cheap help so called, which is continu-
ally floating round from place to place, and
woe to that place or village where it gets en-
ployment. A majority of it is composed of
ignorant, worthless, carpet-bag operatives,
incorporate and immoral, such as neither
fear God or regard man. The moral influ-
ence of these vagrants in any town or village
where they stop can be easily imagined.
The policy of this kind of legislation clearly
stands upon debatable ground. These are
great and important questions connected
with it which should receive a careful consid-
Grafton at the hands of the people. 1t is
comparatively new question, and in its prac-
tical operations, is very imperfectly under
stood. JOHN SMITH, JR.
UTILIZING PRESENTS.-The occurrence of
this trying weather at the opening Of the hol-
iday season is well calculated to suggest the