Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-03-24
Total
S722,400.00

consolidated bonds, and by notes payable, increas
ing the liabilities only 1882. Since the date Of
the Treasurers report. $4,000 Of the Somerset &
Kennebec bonds have been paid, which leaves but
about Sl2 900 of these bonds outstanding.
In December last the Directors contaminated q
contract with the Boston & Maine TOR doing a
Joint business which has opened that line to the
Maine Central for through business on nearly the
same terms granted to the Eastern road by the
contract Of 1871; and the road receives from the
| Maine Central the same privileges and services
which the Eastern entitled to under that con-
| tract. All existing contracts with the Eastern
| were then cancelled, and new contract substi-
| tuted, embracing essentially the same provisions
and terms contained in the contract between the
NJ. c. and B. & NJ. These contracts are for the
term of five years.
The remainder of the report is devoted to the
consideration of what President Morrill, is pleased
to term the "extraordnary" railroad tax law of
1874 He denounces the law and the Chief Mag
isratc of the State for recommending its enact
ment. lie says that this tax imposed upon the
Maine Central has not been paid for the reason
that it is believed to have been assessed in direct
violation of the plain provisions Of its char
ter and is therefore unconstitutional and
void. For quarter of century there have
been no conflicting opinions in regard to the man
ner and extent of taxation to which the Maine
Central Railroad Company was liable. The pro-
visions of the charter so plain and unambigu-
ous and just witha, considering the vast work the
Corporators bound to do for the State that it
is difficult to how intelligent person fail
to understood just what the legislature that grant
cd it intended to give. The charter is published
| in full in the report.
The report continues
eve have been anxious to have the question of
| our liability decided by the courts with the least
possible delay, and have offered to make up case
for that purpose. The tax was assessed by the
Governor and Council, as the laws directs, but 1t
| appears the Treasurer was advised by the Cover
! nor not to bring an action of contract IN the
| name of the State for the recovery of the
same with interest," as provided by said act,
but wait to procure legislation that His Excellency
would recommend to the legislature, that should
be prompt and effective, and secure the payment
Of the tax without permitting the legal points
raised by the corporations, to be settled by the
courts, as the law of 1874 contemplated.
| II is not so much the amount of the tax that we
resist payment the violation Of our charter and
the Reputation of the contract honestly made with
| the State which has been faithfully kept and per-
| formed on the part Of the corporation.
The corporation has been taxed annually for all
real estate purchased under the fifth section of its
charter, by cities and towns in which said real es-
tate may lie, amounting to quite large sum an
nually. The shares owned by the respective stock
holders arc made taxable to the owners thereof as
personal property, and these shares have not es-
capped taxation generally when they have been
deemed by assessors as having specific value.
Moreover the road has very large bonded debt,
amounting to over six millions of dollars, for the
payment Of which its entire property and franchise
is mortgaged. These bonds are largely held in
this State, and like the stock Of said corporation,
open to taxation. In view of these facts can it be
truthfully asserted that the Maine Central Rail
road Company claim exemption from all taxa
tom! Is It not gross libelf Would it not be
branded as such if emanating from any ordinary
source and aimed at individual characterl And
vet the Governor reiterates the assertion and sends
It broadcast over the State in official form, that
such is our position. Charity would induce the
belief that His Escellency had been misled and
beguiled into writing this paragraph, by seeking
information from unofficial sources, but inc
manner in which he pursues and elsborates the
subject, compels us to abandon such desirable
hypothesis and seek an explanation from Other
standpoints."