Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-04-28
THE RAILROAD TAX.

The tax upon railroads in the State pro
vidsd for by an act passed at the last ses-
sion Of the legislature, having been as
sessed at the recent meeting Of the
Governor and council, will soon be in the
WAY of collection. Objection is made on
the part Of some of the corporations taxed
to the measure, while others make no re-
monstrance and will readily pay. In
other States similar tax is paid. Since
the railroads will finally make those who
travel and do freighting business upsn
them pay this tax. we imagine their OBJ
jections if they have any are not very
serious and will not amount to much. The
Lewiston Journal in an editorial gives the
following interesting facts:
Aggregate valuation of franchise of roads
lying in the State, 4s,770,l9l. This was as
csrtaincd under the act. BY multiplying the
number Of shares by the market value of each
shsrs; and in the case of roads lying partly
in and partly out of the State, by taking the
proportion Of the mileage in Maine. From
this estimated valuation was deducted the as
ssssed valuation of the depots and other real
estate taxed By towns. such assessed valua-
tion being 4l,4ll, 245. Roads whose stock
has ne market value-such ~ the Knox &
Lincoln, Belfast & MOosehead Lake, and Eu-
repean North Amsrican-have no value
vhish can be taxed under this act. This left
o7,O49, 622 - the valuation to be taxed. OF
courss the method Of determining the valua-
ton, provided by the act, makes the amount
much less than the real value of the roads.
For example, the valuation of the Maine
Central il only 81 ,94l ,67S, while undoubtedly
their real estate and equipment 10 worth at
least twelve millions Of dollars. On this
twelye millions, that corporation has hereto
fore poid atax on valuation of only $780,
$50, exclusive of the small amounts Of stock
taxed.
The State Treasurer will forthwith notify
the several railroad corporations assessed
who are required to pay their tax one-hslf on
or before the first of July and the other half
on or before the first of January. TIE Bos-
ton q Maine company have indicated their
purpose to make prompt payment. The
Maine Central and Atlantic & st. Lawrence
roads protest against the tax, and claim that
under their charter they are exempt from tax
stion BY virtue Of an act Of 1867, exempting
the shares of that road. All the other roads,
it 10 believed, win promptly pay; and perhaps
that it 10 wiser to pay this slight tax, as just
eenpsnaation fer the protection afforded them
By the State, rather than contest the matter.
The governor and council did not consider
the constitutional question raised by these
three roads, but deemed it their duty to assess
oil the reads 90 far a. their shares had a mar
ket value. ~ required by the law, leaving to
the courts the settlement Of the constitution.
ality Of the act.
should the Maine Central decline to pay
the tax, - intimated, the State Treasurer will
commence . suit against the corporation,
which will raise the constitutional question OF
the power Of slegislaturs twenty Ave years ago,
to bind oil future legislatures not to exercise
90 high q right Of sovereignty a. that Of taxa
ton, and to practically exempt large amount
ef property from the common burdens which
all property should bear as the price of pro.
lection BY the State. Undoubtedly the gov
efnor and council will be prepared to assert
the claim of the people through the legisla-
ture, that railroad property should bear its
proportional burden of taxation. We can
hardly believe that any railroad corporation
win contast this right after carefully looking
over the ground.
OF the el05 ,444 assessed on railroad cor.
poratieas, only about one half Of the sum is
ON roads that claim exemption. Such pro-
portion oi THIS lax ~ represents enares owned
10 any town in this State, is to be placed to
the credit Of such municipality; and the bal.
ancs. which represents shares owned out Of
the State. goes into the State treasury to
meet State expenses. The returns Of stock
holders Of our railroad corporations show,
however, that not exceeding one fourth of the
sfock ef such corporations 10 owned in the
Ntate, % that not over S25 900 will 60 to
municipalities 10 case the whole tax IL paid.
OF about 81 900 shares, at currency valuation
in the Atlantic and st. Lawrence Railroad,
only aboat 800 are owned in the State. Near
~ III the stock 10 owned 10 England and
CanGaA. Thee -lourfhs OF the stock Of the
Maine Central 10 owned out of the State, and
the control 10 in the hands Of gentlemen in
tesestsd 10 the Eastern Railroad. OF 10000
shiSpai 10 ths. Boston 6 Maine, less than 900
shares are owned 10 this State. Thus it viii
b seen that the railroad system OF Maiae 10
ssisr the control Of capitssists outside OF this
0te1s.