The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1875-01-08


be cancelled, together with all the bonds of this
state maturing in Oct 1889, which may hereaf-
ter be purchased. Thus there will remain in
the sinking fund of 1868 only $83, 300, in United
States securities, to be increased hereafter by
such purchases of similar securities or of boIds
of other New England States as may be rem
dered necessary by the inability to obtain bonds
of this state at par. The probability indeed is
that by such an arrangement not only the SINK
ing fund of 1865 can be abolished, but also, by
an exchange of securities which would be feasl-
BILE when bonds of our state are no higher than
of the other New England States, the mainte-
nance of the sinking fund of 1868, in even a
modified form, be rendered unnecessary.
THE RAILROAD TAX.
By requirement of an act of the last legis-
lature, the governor and council have assessed
tax on the franchise of the following rail
road corporations, incorporated under the laws
of this state or doing business therein:
Atlantic q st. Lawrence. $50, ,01S 81
Boston g. Maine -. ................ 26,342 %
Maine Central. Observation-Disclosures. 23,4l4 AZ
Portland, Saco q Portsmouth. ....... 22,42S 20
Pertsmoatb enssr SeSpSa' Great Falls Conway SO 90
st. Croix and PenObscOt.. ............ 2lo q
Portland Horse Railroad Co. ....... 9si 90
This tax aggregates $1O5,O69 33, and accord
ing to the terms of the act has been assessed
on railroad companies, whose stock has a mar
ket value. That portion of the tax which rep
resents stock held in this state about two
fifths-goes to municipalities, and the remain-
der, representing nonresident stock, goes to
the state
BY the terms of the act One-half of the
ance January 1st, 1876. The st. CrOix & Pc :
nobscOt company paid the whole OF the ia
assessed on this corporation before it became
due The Portland Horse Railroad Company Y
also paid the assessment on this corporation n
a satisfactory manner. The Boston q Maine
a. ,a;I hat fnf h O
tax on this corporation which fell due July
1st; aud in a note to the state treasurer, the
President of the company has indicated a
readiness 10 also pay that part OF the tax
which fell due January 1st, as soon as the
directors shall be assured that the tax on the
other corporations assessed is to be enforced.
The Dexter & Newport company appeared by
their attorney before the governor and council
to urge a claim for exemption from taxation
in consequence of a provision in their charter
which will hereafter be referred to, and also by
virtue of special act of the legislature in 1867,
eXempting the shares of stock in the corpora
tiOn from assessment.
Neither of the other companies has paid
any part of the tax assessed upon them, or
given any explanation for the non-payment. t.
From unofficial sources it has been ascertalned
that the Atlantic & st. Lawrence and Maine
Central companies claim that clause in their
charters exempts them from al taxation, until
the directors of the corporation shall report
to the legislature that the net income of the
company is "ten per cent. on the cost OF the
road, and its appendages and incidental ex-
penses," (Which report has net been and IS not
likely 10 be made) and even then that the only
assessment on the corpo1 alton shall be lin
tied tax on the net income OF the read ABOVE
said ten per cent. So tar as the Portland,
Saco q Portsmouth, and the Portsmouth,
Great Falls & Conway companies are con-
cerned, no reason has been even nnOt1icially
xlxa,,. sal 20 70 a q.
sessad.
The act relating to taxation of railroad
companies provides that "if any corpora
ton fails to pay The tax assessed, the
state treasurer may forthwith commence
an action of contract in the name OF
with interest" BY advice of the attorney
general, concurred in by the executive coun-
Gil and myself the treasurer has deferred com
mencng actions against the delinquent COM
panies for the taxes due the state, until the
legislature can have an opportunity to pro-
vide method of enforcement OF tax assessed
by state authority as prompt anG effective as
is given to municipalities for the collection OF
local assessments aud as other states have au-
thorized for the collection OF similar tax on
railroads. The remedy provided by the act
would necessarily postpone the payment OF q
single dollar of the tax assessed on the railroad
companies, until the legal points raised by
those corporations sheuld be finally settled by
the court of last resort, which might cause a
delay of several years. As it is competent Tor
the legislature to enlarge the remedy without
impairing he validity of the tax already as
sessed, recommend the immediate passage oil
an act amendatOry of section third of chap
ter 25S of the public laws of eighteen hundred
and seventy-four, which shall authorize the
Supreme Judicial Court, on informatio4 by
the treasurer of state, to issue an injunction
restraining the further prosecution of the
business of any delinquent railroad corpora
ton, after reasonable notice, until all take;
due under the act, shall be paid, with interest,"
and costs.
1t is certainly surprising that any railroad
company should refuse to pay so light tax
when it is unquestionably in the power OF the
legislature to authorize municipalities to make
the same assessment upon the real estate o
the corporation that is made on other property
which, in the case of several companies as
sessed under the act of 1874. would be at leas
twice, and in the cases Of all the companies
from four to eight times as large as the tax
whose payment is refused. And even such al
assessment would be just and equal for taxa
tion proceeds upon the principle of the we'll
settled maxim that he who receives the pro
lection and advantages OF state, ought t.
sustain the burdens in proportion to his abil
ity. Certainly railroad corporations created
protected and given extraordinary powers
and privileges by the state, ought to Willingly
contribute to the public expenses in proper
ton to their property. To whatever exten
they escape just and equal taxation, to that ex
tent every other tax payer must bear more
than his share of the public burdens.
1t is claimed, however, that several railroad
corporations assessed under the act of the las
legislature, are legally exempted from the jus
obligation to bear their proportion OF the pub
lie expepditures by provision of their char
ters. that is alleged to be in the nature of {
contract. The character of this provision, ant
the circumstances under which it was intro
dueed, conclusively show, as it seems to me
that there was no intention on the part OF th'
legislature which granted the charter, to NOR
than temporarily exempt the corporation
from taxation. ii it had been supposed tina
the provision was so contrived as to exemp
such corporations from all taxation for at leas
a quarter of a century and practically for al
indefinite period if not forever, no one be
lieyes that it would have received the leas
favor. There certainly can be no further equita
ble claim under so remarkable charter eX
emption. Neither do believe that there Cal
he auy substantial claim for exemption in law
for any provision in a charter which pretend
to exempt corporation from taxation, mus
be held to be void-frst, because it is not IL
the power of one legislature to bind success
i've legislatures not to exercise in behalf of tn
people so essential sovereign power as tn
right to impose tax, and secondly, becaus
such a provision is in cOntraventlon OF tn
constitution of Maine, which declares tina
''all taxes upon real estate assessed by author
ity of this state, shall be apportioned and as
sessed equally, according to the just valu
thereof"
TAX ON INSURANCE COMPANIES.
An act of the last legislature requires th
state treasurer between the first day of Apr
and the first day of May annually, to assess
| tax of two per cent on the premiums receive
| nv insurance companies on contracts made !
| this state for the insurance of life or propert
during the year ending the 31st of Decembe
next previous, after deducting losses paid an
| certain other items; and in the case OF lit
| companies, after deducting also the legal re
serve on policies issued in this state during tn
vear. A careful examination If this act, tn
| first assessment under which will be made i
April next, will probably suggest the impol
| tance of amendments in order to remove a
doubts as to the construction of certain pr0vls
| ions, and to more effectually accomplish th
| object which the legislature had in view. A
| the returns of insurance companies for the yea
| eudiDg December 81, 1874 have not yet bee
received by the Insurance Commissioner, an
| especially as some deductions of a very uncei
| tain, and it seems to me unwise character, al
| allowed under the act, it is impossible at pre-!
| ent to even approximately estimate the reve
| nue. which will accrue to the state from thi
| source. For the year ending Dec. 31st, 1877;
| the excess of premiums received over losse
| paid in this state, was little more than on
| million dollars, about three-hfths OF which wa
| on account of life companies; but the return
for that year afford little light as to the proba
| BILE amount of deductions to be made under tn
| act.
Ofthe twenry-seven states which tax tn
| business OF life insurance, and of the thirty
tuo which tay tho hnsness Of fire and marin