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

ttph ol Tue Dusihess VI any uc'ihqucht raw
road corporations, 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 80
light tax. when 1t Is unquestionably IN
| the power OF the legislature to authorize
municipalities to make the same assess
| Iseut upon the real estate OF the corpora
ton that is made on other property, which
| In the case OF all the companies assessed
under the act of 1874. would be at least
| twice. aud in the cases OF several conpan-
les from tour TO eight times As large as the
| tax whose payment Is refused. Aud even
| such AN assessment would be just aud
equal, for taxAion proceeds upon the prin-
ciple of the well-seitled maNim that he
who receives the protection and ad'an-
tages OF State. ought To sustain the bur
dens In proportion To lis ability. Certain
ly railroad corporations created. protected
and given extraordinary power, aud privi-
| leges by the State. ought To willingly con-
tribute ~ the public expenses ia propor-
tion TO their property. TO what ever ex-
tent they escape just and equal taxation.
to that extent every other Taxpayer fn''st
bear more than his share vi the public
burdens.
1t is claimed. however. that several rail-
| OF the last legislature are legally exempt
| ed from the just ,'iigatioa 10 bear their
propoi ton OF public expenditures. by a
provision of their charters. that Is alleged
| 10 be Ia the nature of contract The
character vi this provision, aud the cIr-
cum mstances under which il was introdsc.
| ed. conclusIycly show. A. IL seem, TO me.
| that there was no intention on the part OF
the Legislature ahich granted the charter.
To more than temporarily exempt the cor
porstious IRON taxation. tf II had hren
supposed THAT the provision was 50 con
trIved as ~ exempt such corporations
| from all taxation for at least a quarter OF a
century ard practically tor an indefinite
| period IL not forever. no one believes that
! it would have received the least favor.
| There certainly can be no further equita-
Bile claim under 80 remarkable charter
exemption. Neither do | believe that
there can be any substantial claim for eX-
/ emption in law; Tor any provision la a
| charter which prct-nds 10 exempt a cor
| poration from taxation. must be held Ia
b, yoid-i-st because Il Il no. in the pow
| er OF one cgI.isturc to bind successive
! legislatures not ~ exercise in behalf OF The
| people 50 essential "A sovereign power a
| the right To inposc tax, aud secondly be-
cause such a provision i, Ia cOntravcntiou
! OF the constitution Of Maine. which de-
\ clarcs that all take, upon real estate, as
se-sed by authority OF thi, Stale, shall be
| appointed aud assessed equally. accOrdsnS
I 10 :he Just value thereof"
TAX OK INSURANCE CoMrANiEs
/ An aci oi the last Legislature requires
I the State Treasurer, between The first day
4 of April and the iir>t day Of May annually,
/ TO assess tax at iva per cent. on the pre-
miuns received by Insurance coHpsnie,
! on contracts made IN tuis state Tor the Ia
surailcc %! life or properly during the year
| cndiug tie 3lst oi Dec, nber next previous
/ after deduciing losses paid and certain
! other items; aud IA the case of life com
! panic-. alter deducIing also the legal re-
| serve on policies issued In this State dur
ing the year. a careful examination OF
! this act, the first assessment under which
| ~ill be made In April next, will prob4b
sussest the Importance oi amendments ~
order To re move all doubt, a, to the con-
struction OF certain provisions. aud 10
more efectuslly accomplish the object
which the legislature had la view. ~ The
| returns OF insurance companies for the
year cndin; December 81. 1874. have not
! yet been received by the Insurance Com
/ missioner. aud especially is some drduc-
/ tlons OF "A very uncertain. aud it seems to
/ me unwise character, are allowed under
/
approximately estimate the revenu. which
will accrue To the State from this source.
For the year ending Dec. lst, 1873. the
excess OF premiums received over losses
| pad 10 this State. was "A little more than
one million dollars, about three-tiilhs al
| which was on account OF life companies :;
but the returns for that year afford little
light as TO the probable amount OF drduc-
lions To be made under the act.
OF the twenty seven States which tax the
! business OF life Insurance, and OF the thirty
two which tax the business oi lire aud ma
! rine insurance conpanie,-pn the jl,t
| principle that whoever Is Protected by the
state should contribute towards the public
expenditures-scarcely one of Them iGnpos
es 80 light an assessment as that prov .ded
/ by this act. Undoubtedly 81 moderate au
exercise of the just and necessary power
of taxation, will lead TO a CORE pondiu1
moderation In claims for deductions. and
! TO prompt repon>e 10 the requirements
of the act. The license fees imposed by
the statute on insurance brokers' aud uu
foreign insurance companies-aDd nearly
nine-tenihs of the insurance business at
Maine is done by out-oi State companirs.-
are so meager a. TO fail to meet The eX-
penditures OF the Insurance. depat tIucnt
and leave a fair balance 10 90 into the
much as the balance now paid into the
treasury fails 10 meet the payments by the
State for the printing OF the department
recommend, therefore, that these fees be
moderately increased.
EQUALIzING BURDENS OF TAXATION.
| While it is incumbent on legislators to
| restrict the State expenditures within the
narrowest limits consistent with due re-
gard to the public welfare il Is at the same
time their duty 10 seek 10 SO distribute and
equalize the heavy taxation growing ont Of
| the war for national existence, as to avoid
making the burden tail in undue degree on
those employnents and productive indus
tries on which the prosperity OF the State
! So largely depends. Without such raui-
cal reformation rs will lead all men To be
honest and truthful In rendern. state
ments of their property. il i OF course
impossible TO devise any system of taxa
| tion which will be abs biuLly equal; as
cspital which is represented hy stocks.
bonds, loans and currency cannot be
| reached by the assessors as readily as thar
| Invested in farms. houses. stores. mills.
workshops, ships and other visible prop
| erty. AT the same time, this liability to
Inequality should be corrected So far as
it possible. So far as capital is invest
ed directly or indirectly In banking, rail-
road, telegraph, express and insurance
business. it may be aud should be reach-
ed. The last legislature inaugurated
steps ia the right direction with reference
to part Of these interests. | earnestly
hope that you will continue to press for
ward measures looking to such system
Of taxation as will tend to equalize the
public burdens. In my Judgment, it is
possible-certainly SO with an amend
ment of the State cohstirution-.o Ultimate
ly provide for all expenditures for State
purposes by just tax on national aud
savings banks. railroad. Insurance. tele-
graph, and express companies. wild lands.
and few other interests, without assess
ing q single dollar on the several towns
and cities.
RRvkNuR POR THE PRESENT YEAR.
Under the practice which has always
prevailed in the Treasury Department OF
distributing the State fun1s. in moderate
sums, in banks located at couyenient