Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-02-18
Taxation.
Hearing on the Report of the Tax Conn
missioner,

tSttu Ill tAc SUBJECT OF lie report OF Hon. "A
W. Paine, the special Tax Commissioner
There were present the representatives o
railroad, insurance and ice companies.
Mr.. Paine made some explanation in regaE(
to his position on the subject matter OF hit
report. The system which he advised CoulC
be summed up as foilows:-
1stTaxaton is the price of government rrotcc
ton, and whatever o: business character receive;
the benefits OF government, should help pay It's cX
| penses according to its ability
2d-The tax should be uniform, according 70
classes OF subjects.
3d--When Tor purposes OF couvonicncc indvdu.
| ais combine under corporate powers 10 10 business
there should be no distinction between the corpora
tim and as individuals; the party in either 10
| be charged with uniform tax property and
| business at its actual value.
4tl-When corporations having property, real or
personal, representing their capital, that ioperty
with its adjanct of franchise and business should
| AFFORD the measure or rule for taxation.
lth-lf the corporation is localized, having its
capital invested within any single municipal limits,
then such municipality should receive the tax to its
| Gth-Whcrc such corporation having its capital
| SO represented by tangible property, is of pubic
| character, involving different municipalities, work.
| ing under charters giving especial favors and
rahts then the State should receive the tax TO ITS
| use, to be assessed according to the true value
thereof all things bein: considered,
| 1th--ill corporations now described and taxed
| according to the foregoing principles, FOR their
property and franchise, should be exempt from all
|
| stock Of their stockholders
eth-O her corporations not having their capital
represented by tangible property Of actual value,
should be taxed Tor their actual worth, according
to The best mode in each case OF arriving at It, in
| case OF baAbs, telegraph companies, ferries &c,
| whcre the value OF its capital stock generally af.
| iOrds the best measure, !thc company be free II om
! debt.
| Telegraph companies are exempted be-
cause they now pay tax on their stock. The
plan is 10 make all property help support the
| government. Among the important items is
that Of railroads. We have 900A miles of
railroad in this State, costing some S30,000,
0OO Whether the property is rcmunerative
or not, railroads should be taxed. What
! shall be the tasis of taxation The true val
ue OF the property Everything taken as a
whole and valued as 4 unit. 1t is a simple
thing. To establish rate is more difficult
five mills tax, the same as the State tax,
will be low enough.
| Secondly, comes the business Of insurance.
On this question he had some deicacy, on
account of his past relations with the insur-
ance department. He had stated IN his re-
port as far as he was able what lie conceived
to lie the fair principle to decide this ques-
ton. He knew the cry would be raised that
he was trying to swindle the insurance COM
| panies. There are no industries in the State
that receive more protection from the State
can well afford to be taxed. 1t is said that
| this is a hard State for insurance. The fig
ures show differently, as they have been off
cially gathered. This SANDER against Maine
should be stopped.
| Next, the subject of ice. He had been
misunderstood on this subject While in
, other States oyster flats are taxed, why
shouldn't Maine have somewhat of the value
of her ice fields: 1t may be argued that the
business is not profitable, but from the APP
| pearance On this river, he thought that intel
| iigent men would not so claim. He spoke of
the hopeful prospects of the ice market the
ensuing year; thought that ice would bring
| IS so per ton this year.
He next considered the p.opriety OF charg-
ing SIS ca acts OF incorporation and private
bills, and also the tax on collateral inheri-
lance.
Gel. j. w Spaulding of Richmond,
appeared Tor the ice companies. He said
that il would be shown that Mr.. Paine is en-
tirely mistaken in regard to the profits of the
ice companies. Thought there was quite a
difference between a tax upon oysters for the
home market chiefly, and ice that is wholly
for expectation. The true basis of taxation
is not upon expectations. It's a wise policy
| to bring in the money by these expectations.
The ice companies here have to compete with
ponds in the vicinity of Boston. Latest in
telligencc shows that o. 900 tons of ice are
being gathered daily on the Hudson. The
only way we can compete with these lOcaii-
ties is to make the people believe that Maine
ice is superior to all other ice; and some have
been very slow to believe this fact. The re-
port discriminates against the companies
doing business on tide waters, and this he
thought unfair. He gave statistics showing
that the company with which he is connected
had lost in three years SG14l, and not dollar
has been paid for officers or clerk hire. The
President of the kennebec and Boston
Company had written that his company had
shipped from the Kennebec 5000 tons at a
price less than it cost to house the ice and
ship it. Another company that had houses
in Pi.tston, had done losing business. All
property in the ice business is already taxed,
the same as other property.
j. Manchester Haynes, Esq, Of Augusta,
addressed the committee on the same subject.
He thought the main point of objection to
taxation was ths-it discriminates against an
industry that is now in its infancy, and that
is competing with other fav orable localities.
1t is possible for Massachusetts and New
York to take in their own localities all the
ice they need, should they be compelled to
do SO. The reason they come here is because
tity EGt ICE HSIc CuSdpel. lSc ouaS Is
being sent into New York from the inland
ponds of the northern portion of New York
and Connecticut. The same thing is true of
Pennsylvania. Put high price on our ice,
and you stop the business. The ice that goes
out from Maine is just so much gain to
Maine, to its labor and its capital. The cost
of a ton of ice under favorable circumstances
is 81 the proposition is to tax the business
ten per cent. The Knckerbocker Company
of Philadelphia have spent 100000 on this
river for ice houses; and yet they can get ice
at their very doors if compelled to do so.
With the exception ofthe "good year'-lS70
no money has been made on ice on this
river. He gave the figures of the losses of
several companies, in competing with South.
ern ice, showing conclusively that the bust
ne ss has been a losing one.
| Some of the companies on the river, to save
their houses, have sold their ice at price
barely sufficient to pay the expense of taking
| it from the houses. 1t should DO the policy
of the State to foster and encourage the BUSH
| ness rather than to cripple it. A tax of ten
cents ton would be enough to stop the ex-
penditure Of single dollar more on this
| river.
| MIR, Hunt, agent of the knickerbocker COM