Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-25
From the Lewiston journal
TAXATION OF RAILROADS.

's TAAATiON Or RIILROADS.
There seems to be Misrepresentation in some
quarters as to the nature of Mr. Psine's plan
to tax railroads and insurance companies.
One of our contemporaries speaks of it as a
special extra tax, and axis why railroads
ought to pay such tax rather than manufac-
turing establishments. Mr. Paine does not
propose to tax railroads even as much as
manufacturing establishments are Eow taxed
he simply proposes that railroad corporations
which now almost entirely escape taxation,
shall be taxed to the same extent as other
property is, to aid in defraying the public ex-
penses. Manufacturing establishments are
localized, and pay tax here for every dollar
of their property, even when owned entirely
out Of the State. The property is taxed and
not their stock, because the stock cannot be
reached.
Railroad corporations are not localized, and
hence If reached to any extent by taxation.
must be taxed directly by the State and then
the tax credited proportionately to the several
towns. Their tracks are exempt by Jaw ;
their locomotives and cars are constantly
moving from one point to another and are not
reached; their station houses and machine
shops are alone taxed. 1t may be said that
their stock 10 liable to taxation. But every
body knows that it 10 not reached to any ex-
tent. Indeed, half Of it is owned out of the
State, and can't be reached. Thus it comes
to pass that nearly all of the thirty or forty
millions of railroad property in this State, es-
capes paying anything towards the expense of
supporting the government, notwithstanding
railroads are constantly engrossing the time
Of the courts and the legislature, and there
fore are costly institutions for the State TO
protect.
New Hampshire, Massachusetts,, and
three.fourths OF the States tax railroads why
should Maine exempt them? The Eastern
and Boston 4 Maine roads pay in Massachu-
sets and New Hampshire tax on their lines
in those States, and the same proportionate
tax on these corporations in Maine would
yield US revenue of $l20, 900 from these two
roads alone. And yet both these roads charge
the same rates in Maine as in New Hampshire
and Massachusetts,. Maine gets no reduction
for practically exempting so uuch property
Even if il were true that other roads would
increase their rates if taxed, this would be NO
argument against taxation of railroads any
more than it is against taxation of merchants
Three-fourths Of the people use railroads very
little. Many people out of the State use oui
roads. and would thus aid us by the contri.
buttons. just as citizens of Maine aid New
Hanpshire and Massachusetts, when they
travel in those States.
1t 10 objected that Maine is a new State,
and therefore ought to exempt railroad prop.
erty - an encouragement 70 new enterprises
That may be a reason for exempting roads
that are not, but is it any reason for exempt
ing roads that have become well established
roads like the Eastern, Boston & Maine
Maine Central, &c. New Hamshire exempts
roads that have been in operation severa
years, aad then taxes. Why may not Maine
do the same? But it 10 said that even our ole
roads do not pay profits enough to warrant
taxation. Such roads as the Boston & Maine
Eastern. &C., pay Is much as property usually
does. The Maine Central has added its pro.
fits 10 its property, 90 that the stock of the
road which was bought by the present own
ers ten years since for FIVE dollars per share,
10 nov worth sixty dollars. Even ii this were
not 80, we do not exempt other property from
taxation simply because it does not pay an in.
come. II Is said that it 10 no use to tax rail.
roads, because they will add the tax to the
rate. 30 it might be argued that the mer.
chant ought to be exempted from taxation