The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-01-07

P0AoAy W So gnu dCCouht ueheiOp-
ment ofthe resources of the state and the increase of
its wealth. as to render than an equivalent for
the exemption they have obtained.
The sinking fund of 1868. which remains and is re-
qured to be maintained, established to pay the
principal cf the loan "for the equalization of mu-
nicipal war debts" The loan natures in October
1882 and now amounts to something less than three
millions of dollars, having been reduced by the can
collation. of some of its bonds which formed part of
the abolished sinking fund. 1t gained 5000, ,275.39
the past year by taxation transfer and interest and
now amounts to $676,711,72.
The state, in common with all other investors, has
of late years been obliged to pay high premium for
the securities prescribed by law for its investments
and it is matter well worthy of your consideration
whether its interests would not be subserved by en-
larging the list of authorized Investments for the
sinking fund.- by the addition Of some other classes of
securities of undoubted value
TAXATION.
The revenue of the state, in addition TO the sum
procured by the state tax the levy of which is di
reced and the rate fixed by the legislature annually
is derived from the tax railroad companies saw
ings banks and insurance companies. tax of one
and onehalf per cent. is levied upon the corporate
franchise of railroad companies incorporated under
the laws of this state doing business therein the
value of the franchise to be determined for the pur
pose by deductng from the ascertained market value
of the capital stock of each company, the value of
its real estate and other property actually subjected
to local taxation, and by deductng also in the
ofnes extending beyond the state, tie proportional
valuation of such extension.
The act imposing the tax upon railroad companies,
passed by the legislature of 1874, and assess
ment upon them for that year was made under its
To
the tax assessed upon them, an act was passed by
the legislature of last year to provide speedy
and effective method of enforcing payment
While the state treasurer was taking steps to pro-
ceed under the law against the delinquent COM
panies, one of the stockholders of the Maine Cen
tral Company residing in another state, brought
bill in equity in the United States Circuit Court,
alleging, in substance, the non-validty of the act
of the legislature under which a tax has been as
sessed against the Maine Central Company, for the
reason that impaired the obligation of the contract
contained in the charter granted by the state to that
company, and praying the court to enjon the treas
urer from collecting the tax. A temporary iDjunc
ton granted by the court, and the treasurer is
therefore precuded from further efforts to collect the
tax. and virtually restrained from proceeding against
the other delinquent companies whose charters
tain clause similar to that upon which the Maine
Central rests its claim for exemption. A further
hearing upon the question of permanent injunc-
tion. will be had at the April term of the court, pro-
vided the parties do unite in bringing one about
at an earlier day. The distinguished gentleman who
acted as counsel for the state in this matter the
absence OF the in his report to my
predecessor says, 81 have entire confidence that the
ultimate result will be the sustaining OF the legisla-
tive act taxing this corporation
Of the So, 3S452 received from the tax on railroad
companies for 1874, the sum of So OBS SO has been
apportioned to the cities and towns wherein share
holders had their residence.
The tax Of one per cent. on the deposits in savings
banks yields large and easily collected revenue
one half of which is appropriated by law for the
of schools, and one half to the use of the state.
No consideration of justice or policy presents it
self to my mind in opposition to the maintenance
of the tax at the present rate The substitution of
state for local taxation effects discrimination in
favor OF deposits in sayings hanks of at least fifty
per cent. The object in view in subjectng them to
a fixed and lower rate of taxation was not, pre-
sumably, recognition of the righteousness of
such accumulatons and the promotion of thrift but
the encouragement of the continuance and growth
of fund readily accessible to taxation constituted
by earnings and surplus capital which might other
wise prove fugitive and elusive in this respect The
continued increase of the amount OF deposits ndi-
Gates that the tax exercises no deteui1g influence
upon depositors and so far as 1 am informed, bank
officers generally do not regard the tax onerous or
tending to repel deposits. Institutions recently
ganized suffering from the failure of investments
finding themselves unable to declare the maximum
dividend allowed by law, may be apprehensive that
the consequences will prove unvorable to them. 1t
should be borne in mind, however, that low rate of
interest Is the rune uaeosla's oil s"ri.-.i
vestment and that, whle IL continues IN 1orce, de
posltors "ouiu gam no'hing py "ltnuraWlng tneir
lulas since they couio hot ootii ELSEWHERE greater
ihteres' conoineu Win equai security Aher oohi-
tion is hot one Oh exceptional nardsnlp' otner ~
terests suner more roh tne business oepressloh oi
the tlmes' ana are lar more neaVhy taxeo'
A law Oh Io'4 imposes an annuai TAX upon loreisn
insurance companies DONG business IN TINS state Oh
per CENT upon all premiums received aIter ueuuct-
ing the amount paid for losses during the year, un-
useu paiances Oh hotes CaAen ior premiums oh opeh
policies, all sums repaid or allowed for return pre-
mlums' anu tne legal reserve on iile poncies. Ane
first assessment under 1t was IN Aprh iast' anu
amounted 10 SE,fo4,"' fire anu marine COMPANIES
were assessed slo,sZe ea' lie anu acciuent conRa-
MES the remaining Si'ooo'f Oh the amount Inc IN
surance commissioner reports that the former ciass
ana was entlteu W ueouc'ions anhoun'ins " @t,0'
zOl.e3 leaving taAaple amount oi 9of'<o1 ~, 'na'
the iatter class receiVeu 9oi'iol.o' ior pleniios
dedueted So+i' 1903 ior losses paul. anu s''o'O0o
lor otner items' illus reuucinS INC 'aAaoio
S'o'zso'zi' IN Tue case Vi ie COMPANIES INC ueuu'
tions praceically ueieae 'he purposo Vi 'ne Jaw
winch was unuoup'eoiy' u ie'y JUST snie Vi .'A
atoh upon 'ne large ahioun' u oapi'ai oa"i i'on
tne state py them.
Although tne Tax Is honindhy assesseu upol
'ne company IL Is prooaoy pau Ill an oases uiee.9
- =. =. -: :. 49,. :, ~ 49,,
% ~ ,is, ao,,,o,,os u,oI,o ,rc,,;sio,, j.
g.. 49, ao1Ioot;o-, 90 a. to fro,r
,1o ,orsor,s s,,rod hx, tborn An miner d;scrim,ro
49,, - ooot l. th,,s I'D h,- +bo ,o ,rhoso ,vb,
;ns-'ro tha;r ,roror, oo.;ns+ tro nov bicher rot,
of TOW 70 tho sto+a on tbe;r exnendtnra for nrotsc
+io,, +hon rorsons Who ,rocure life insuronce no,
on ovnord;tures for recoonized value in addi
t;on 80 ,,ro+ao,ior
NJ go, 90 toxo.;,, ,os ,o+ hoo 5o,;sod ,uh;o,
o+ oo,,,onIodcoa 80 ho ;rnore,ot ord ;,oor;,ah
=; ros,,oots ord - s ot 80 ro o~raotod thot
,oara. .nrnoob 70 on oxoot oon ho mad
:. 49,. IT,. =. -. .a.,,;,,ooa r.,
- ~ e''. 49,
- = -. r. a. ,e.as !.
49, sor,, +ho o,,,n,nt o ,,rD,,irr,
-. - -, ~