Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1875-01-12

lucnt OF tue COMPANY nSs luulCaleu
readiness 10 also pay tha, part of the tax
; which Tell due January lst, rs soon as The
directors shall be assured that the lax on
the other corporations assessed is 10 he
| enforced. The Dexter X Newport com
pany appeared by their attorney before
, the governor and council TO urge claim
, for exemption from taxation IN conse
quenco OF n provision in their charter
, which will hereafter be referred to. and
, also by virtue OF special act ol the Iegis.
! lature in 1861. eXempting the shares OF
stock in the corporation from assessment.
Neither of the other companies has paid
any part OF The tax assessed upon them,
or given any explanation for noa pay
ment. From unofficial sources il has been
ascertained that the Atlantic & 81. Law
renee and Maine Central companies claim
that clause in their charters exempt
them from all taxation, until the directors
oil the corporation shall report 10 the leg
islature that the net income OF the COM
pany is "ten per cent. on the cost OF the
road and its appendages. aud incidental
expenses. (Which report has not been and
is not likely 10 be uade) and even then
that the only assessment on the corpora
tion shall be u limited tax on the net
income of the road above said ten per
cent. So far as the Portland, Saco X
Portsmouth, and the Portland, Great Falls
* Conway companies are concerned, no
reason has been even unofficiaIIy init
mated Tor their refusal 10 pay the tax
assessed.
The act relating to taxation Of railroad
conpaniea provides that "if any corpor'
alton fails TO pay the lax assessed, the
State Treasurer may forthwith commence
an action oil contract in The name OF the
Stale, for the recovery OF the same. with
interest" BY advice of the Attorney
General, concurred in by the executive
council and myself, the treasurer has
deferred commencing actions against the
delinquent companies for The taxes due
the State. until the legislature can have
an opportunity 10 provide \ method OF
enforcement of a tax assessed by the State
authority rs prompt and effective rs is
given 10 municipalities lor the collection
OF local assessments. and rs other States
have authorized Tor the collection OF u
similar tax on railroads. The remedy
prov idcd by the act would necessarily
postpone the payment OF 4 single dollar
of the tax assessed on the railroad com.
panies, until the legal points raised by
those corporations should be finally set
lied by the court of last resort, which
might cause q delay oil several years. As
it is competent for the legislature TO
enlarge the remedy without imparing the
validity OF the tax already assessed, |
recommend the immediate passage OF an
act amendatory OF section third chapter
25s of the public laws of 1874. which
shall authorize the Supreme Judicial
Court, on information by the Treasurer
OF State, TO issue an Injunction restrain.
ing the further prosecution of the busi-
ness OF any delinquent railroad cJrpor.
alton, after reasonable notice, until all
taxes due under the act shall be paid,
with interest and costs.
Ii is certainly surprising that any rail.
road company should refuse to pay SO
light 4 tax. when II is unquesIionably In
the power OF the legislature to authorize
municipalities 10 make the same assess
menl upon the real estate OF The corpor
alton that is made on other property,
which 10 the case Of all tho companies
assessed under tho act OF 1874, would be
al le1a twice a. large. and 10 The case
OF several companies from iour TO eight
tunes as large as the tax whose payment
is refused. And even such an assessment
would be Just and equal. for taxation
proceeds upon the principle OF the well
settled maxim that he who receives the
protection and advantages OF the State,
ought TO sustain the burdens in proportion
TO his ability. Certainly, railroad corpor
ations created. protected and given ex'
traordinary powers and iyileges by the
State. ought TO willingly contribute 10
public expenses in proportion to their
property. To what ever extent they
escape JUS. and equal taxation, 10 that
extent every other taxpayer must bear
more than his share OF the public bur.
dens.
II Is claimed. however. that several
railroad corperati ms assessed under the
act oil the last legislature. are legally
exempted from the just obligation to bear
their proportion OF public expenditures,
by q provision OF their charters. that is
alleged 10 be in the nature of a contract.
The character Of this provision, and the
circumstances under which it was intro
duced, conclusively show, rs il seems to
me, that there was no intention on the
part OF the legislature which granted the
charter, TO more than temporarily e1emp:
the corporation from taxation.
II it had been supposed that the
provision was so coDlriyed as 10
exempt such corporations from all taxa
ton for at least a quarter oil century
and practically for an indeliuiie period il
not forever, no one believes that il would
have received The least favor. There
certainly can be no further equitable
claim under so remarkable charter ex.
emption. Neither do believe that there
can be any substantial claim for exemp-
lion in law; for any provision in char.
ter which preIends 70 exempt corpora
ton from taxation, must be held 10 be
yoid-first because il is not in the power
Of one legislature 10 bind successive leg
islatures not 10 exercise in behalf OF the
people so essential 4 sovereign power rs
the right TO impose tax, and secondly
because such provision is in contravcn-
ton Of the constitution oil Maine, which
declares that "all taxes upon rea! estate,
assessed by authority Of this State, shall
be apporlioned and assessed equally.
according 10 the just value thereof
TAX ON INSURANCE COMPANIES.
An act OF the last Legislature requires
the State Treasurer, between the first day
oil April and the first day OF May annually,
10 assess tax OF two per cent. on the
premiums received by insurance cempa
nies on contracts made in this State tor
The insurance of lie OF property during
the year ending the 3lst OF December
next previous, after deducting losses paid
aud certain other items; and iu the case
of life companies, after deducting also
the legal re serve on policies issued in this