Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1875-01-14


iourihs of mill on every dollar OF State
valuation, aud set apart the SUN so paid
and the income thereof, as a sinking fund,
TO be invested in bonds Of this State or OF
the United States. This is known ~ the
sinking iund of 1865, which now, including
premium on U. $. bonds and cash. amounts
to 81 .047.0 .0s7. Again, to provide for the
payment OF the municipal war debt of e3.-
0s3.9oo, negotiated in 1865, at its maturity
Oct. !, 1883, the legislature in 1868 direct
ed another annual assessment to be- made
sufficient for that purpose. aud set apart
the SUN so raised In a similar manner.
This is known as the sinking fund OF 1868.
which now amounts To sis0,2i7. Both
funds aggregate 81 .527 1874, OF which Sl,-
1880 H. Invested IN state bonds, and
$500, including premium. in b,ads OF
the United States.
Obviously nothing is gained by sinking
fund. except so far As il may be rendered
necessary where public debt has been
contracted 80 a To mature in larger sums
than can be provided for by taxation in
any one year. There is nothing In the ma
chincry of a sinking fund which can add 4
single dollar TO the amount paid by the
people through taxation. sn account OF the
public debt. On the contrary il Is . conI-
plicaied aud by no means ccono micai n d An
Cial device, having In IL the elements of in
security; and should be avoided whenever
feasible. by authority of An act Of the las,
legislature, the insecurity has been guard
ed against in the case OF the sinking funds
of this state. 80 far as possible; but expe-
rienc- shows that SO long as such funds
exist there Is some danger OF their misap-
preparation.
Under the acts creating the sinking
funds OF this State, by which Investments
can be made only in bonds Of Maine and
OF the niicd STATES, another difficulty has
manifested itself during the past year. aud
Is likely to increase from year to year.
Under the influence of frequent purchase
of bonds OF this State for the sinking fluids
their market price has advanced so that 1t
Is now impossible 10 obtain our securities
without pay ing from one TO two per cent.
premium. This may be a good thing for
the holders OF Maine bonds. but hardly
just TO the tax payers who faithfully dis
charge every obi alton when they provide
means for pay ment of Sat. bonds at their
par value. IL either or both OF the sinking
funds are 10 be coutinued-and the sinking
fund oi ls6S cannot he entirely dispensed
with without an amendment OF the con-ii
tuition that Will admit OF renewal OF the
municipal war debt loan which IL was
created To meet recommend that the
last difficulty TO which have referred he
obviated :" far as possible by authorizing
the treasurer to make investments also
in the securities OF other New Enyls ud
States.
Should th" legislature concur with me
in the adyisabiIity OF renewing that part
OF the public debt nttur,ns On or before
June 1889, the sinking fund of ls6J may
be abolished. the State bonds in the same
cancelled. and the small amount of L. ).
bonds in the fund transferred 10 the sink
iug iuud of 1865 All the State bond, Ia
the latter sinking fund may also ue can
crlled. together with all the bonds OF this
State maturing In Oct. 1889 which NAV
hereafter be purchased. Thus there will
remain in the sinking fund OF ls6s only
SO 300, in United States secui tiles to be
incrra ed hereafter by such purchases OF
! similar securities or OF bonds OF other New
England States n may De rendered neces-
sary by the inability TO obtain bonds OF
this state at par. The probability indeed
/, that by such an arrangement not only
the sinking fund OF lsGj can be abolished.
bat also. bv an exchange of securities
which would be feasible when bonds OF
our Stste are no higher than of the other
New England States, the maintenance oi
the sinking fund of ls5s, IN even modi-
fled form. be rendered unnecessary.
THE RAILROAD TAX.
!
legislature, the governor and council have
assessed r tax on the franchise of the fol-
lowing railroad corporations. incorporat.
sd under the laws OF this State or doing
business therein:
Atlantic & St. Lawrence, s3o,o7s 81
Boston & Maine, 26.3i2 81
Maine Central, %. il6 g.
Portland. Saco Portsmouth, ~ As %
Dexter Newport. l.ls9 81
Portsmouth, Great Falls & Conway, so 0C
81. Croix and Peuobscot, 2l0 2.
, Portland Horse Railr DAD Co., s9i %
This tax aggregates sl05. .OG9 .33. and &C.
cording 10 the terms OF the act, has been
assessed on railroad companies whose
, stock s,as a market value. That portion OF
the tax which represents stock held In
this State-abont two-ffths-soes TO mu-
nicipa.ities. and the remainder, represent
, ing nonresident stock, goes 10 the State.
: By the terms of the act one-half of the
tax was payable July lst. 1874. and the
balance January lst. 1875. The st. Croix
& Penob-cot company paid the whole OF
the tax assessed on this corporation be-
fore it became due. The Portland Horse
Railroad Company also paid the assess.
! ment on this corporation in a satisfactory
, manner. The Boston & Maine company
also promptly paid that part of the tax on
this corporation which fell due July lst
and, in a note to the State Treasurer, the
, President Of the company has indicated q
. readiness 10 also pay that part of the tax
which tell due January lst, AS soon as the
directors shall be assured that the tax OH
the other corporations assessed is TO be
enforced. The Dexter q Newport CON-
pauy appeared by their attorney before
the governor and council TO urge a claim
fnF 10 n
. queDce of a provision in their charter
: which will hereafter be referred to. anG
also BY virtue of a special act ofthe legs-
lature in 1867. exemptng the shares OF
stock IN the corportlaon from assessment.
Neither ofthe other companies has paid
any part OF the tax assessed upon them
. or given any explanation for non-payment.
From unofficial sources 10 has been ascer-
:, tsined that the Atlantic & st. Lawrence
and Maine Central companies claim that a
> clause in their charters exeiDpts them
|, . from all taxation, until the directors of the
corporation shall report to the legislature
. that the net income of the company is
a ''ten per cent. on the cost Of the road and
: its appendages aud incidental expenses,
= (which report has not been ard Is not like
J ly to be made) and even then that the on.
: ly assessment on the corporation shall be
limited tax on the net income of the
= road ABOVE SAD ten per cent. SO Tar As
/, the Portland. Saco & Port smoutl, aud the
Portsmouth, Great Falls { Conway com
:, paDies are concerned. no reason has beer
u even unofticially minated for their re-
= fusal to pay the tax assessed.
, The act relating to taxation Of railroad
), companies provides that ''if any corpora
!, ton fails to paw the tax assessed. the STATE
" Treasurer may forthwith commence ~
action of contract in the name of the State
for the recovery of the same. with inter
est" BY advice Of the attorney general
concurred in BY the executive council anG
myself. the treasurer has deferred com
!, mencing actions against the delinquent
= companies for the taxes due the State. un
y iii the legislature can have An opportunity
y to provide . method Of enforcement Of
= tax assessed by State authority ~ prOmp
: and effective as is given to municipalitie.
!. for'the collection Of local ssessments. ant
" as other Sta.es have authorized tor the col