Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1876-01-11

the payment OF the loans maturing IN
1890 and 1888, the former Of which
amounts 10 1907 900 and the latter to
1886 200, and demonstrate that since The
State has no other liability to meet within
the period from 1878 10 1899, such pay
ment can DO provided Tor at a future date
by means OF a comparatively light tax
and temporary loans.
The extinction OF tho sinking iund oil
1865 effects a relief from annual taxation
to an extent OF about $3.50. 900, and IS
measure OF eminent justice and good
policy. The period from which this
burden has been lifted remains heavily
incumbered by State and local debt. and
the financial and business difficulties by
which the people are at present confront,
ed tend TO make the weight more anu
more oppressive. II VIC shall have
happy de!iverance from present ana
threatened ills, the spirit OF our people
sflords foil assurance for the belief lhat
they will turn this temporary alienation
TO so good account in the development
oil the resources of the State and the TO-
crease OF its wealth, as 10 render more
than an equivalent Tor The exemption
they have obtained.
The sinking fund OF 1868, which
remains and Is required 10 be maintained,
was established to pay the principal oil
the loan "ior the equalization OF munich
pal war debts" The loan natures IN
October, 1899. and now amounts 10
three millions of dollars, having been
reduced by the cancellation OF some OF
its bonds which formed part OF the
abolished sinking fund. 1t gained $500.
275. 80 the past year by taxation, transfer
and interest, and now amounts TO
1870. 7lI,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 Tor its investments,
and il is matter well worthy ei your
consideration, whether interests would
not be subserved by charging the list OF
authorized investments for the sinking
fund. by the addition Of some other
classes of securities OF undoubted value.
TAXATION.
ne nue. Ol Inc ctaNt III hNulilJh
10 the SUN procured by the Stale tax. the
levy of which is directed and the rate
fixed by the Legislature annually. il
derived from the tax on railroad com.
panies. savings banks and Insurance
companies. A tax oi one and one bali
per cent. is levied upon the corporate
franchise OF railroad companies incorpo
rated under the laws OF this State doing
business therein; the value OF the fran
chise TO be determined by deductinG
from the ascertained value OF the capital
stock of each company, the value OF its
real estate and other property actually
subjected TO local taXation-and by
deducling also,in the case OF lines extend.
inc beyond the State, the proportional
valuation of such extension.
The act imposing the tax upon
railroad companies was passed by the
legislature Of 1874. and an assessment
upon them for that year was made under
It's provisions. Several companies hay-
ing failed 10 pay the tax assessed upon
them, an act was passed by the legisia
ture OF last year to provide more
speedy aud effective method OF enforcing
payment.
While the State Treasurer was taking
steps to proceed under the new Law
against The delinquent companies. one OF
/ the stock holders Of the Maine Central
company. residing in another State.
brought Il bill in equity in the United
States Circuit Court. alleging. in
substance. the validity OF the act OF
the legislature under which tax had
been assessed against tho Maine Central
company, tor the reason that 1t impaired
/ the obligation OF the contract contained
in the charter granted by the State to
that company and praying the court TO
/ eDjOin The treasurer from collecting the
tax. A temporary Injunction was
granted by the court, and the treasurer
| is therefore precluded from further
efforts TO collect the tax, aud virtually
restrained from proceeding against the
other delinquent companies whose char
tiers contain clause similar 10 lhat upon
which the Maine Central rests lis claim
/ for exemption. A further nearing upon
| the question OF permanent injunction
will DC had at the April term OF the
court. provided the parties do not unite
in bringing one about al an earlier day.
The distinguished gentleman who acted
as counsel for the Stale in this matter, in
the absence OF the attorney general, in
his report TO my predecessor, says: Il
have entire confidence that the ultimate
result will be the sustaining Of the legis-
lative act taxing this corporation.
OF the S20.3o4 90 received from the
tax on railroad companies for 1874. the
sum Of S3.C35.o3 has been apportioned
TO the cities and towns wherein share
holders had their residence.
The tax of per cent. on the deposits
in savings banks yields q large and
easily collected revenue. one half OF
which is appropriated by law for the use
of schools. and oue-half TO the use OF the
State.
No consideration OF justice or policy
presents itself 20 my mind in opposition
to the maintenance of the tax at the
present rate. The substitution OF State
Tor local taxation effects discrimination
in favor OF deposits in sovings banks OF
at leas: so per cent. The object In
-iew IN snblecting them 10 a liked and
lower rate Of taxation was not, presum-
ably, a recognition OF the righteousness
oil such Accommodations and the promotion
OF thrift, but the encouragement Of the
continuance and growth OF a fund readily
accessible TO taxation. constituted by
earnings and surplus capital which might
otherwise prove fugitive and elusive in
this respect. The continued increase OF
the amount of deposits indicates that the
tax exercises no lettering influence upon
depositors, and so far as am informed
bank officers generally do not regard the
tax MS onerous or tending TO repel depos
its. Institutions recently organized, OF