The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1882-12-02
THE LAW DEPARTMENT.
THE REPORT OF ATTORNEY GENERAL
CLEAVES.

CLEAV ED.
Excellent Showing Made by Names
prosecuting officer.
The annual report of Attorney General
Cleaves was filed with the Governor and
Council yesterday, and will be found in full
below:
STATE OF MAINE,
ATTORNEY GENERALS OFFICE.
PORTLAND, December !, 1882.
othe Governor and Council Of the State Of
In compliance with statutory requirements,
have the honor to submit the following re.
port Of the business of this office fer the pre-
ceding year:
TAXATION OF RAILROAD AND TELEGRAPH DOM.
PANIEs
At the date of my last report, the following
suits, involving the right of the State to tax
the railroad and telegraph companies, were
pending before the courts:
State of Maine VS.. Maine Central Railroad Com
pany.
State of Maine vs. Boston & Maine Railroad.
state OF Maine Vs. Portland, Saco Portsmouth
State of Maine VS.. Western Union Telegraph Com
pany.
State Of Maine vs. International Telegraph Com
pany.
In these suits Messrs Drummopd & Drum
mond appeared for the Maine Central Railroad
company. William L. Putnam for the Boston
q Maine Railroad, Messrs. Webb and Hask ell
Ior the Portland, Saco & Portsmouth Railroad
company, and Messrs. Baker & Baker for the
western Union and International Telegraph
Companies.
These several suits were brought to enforce
the payment of the State taxes due from the
corporations under the assessment of $780,
Inc TAX against the railroad and telegraph
companies was assessed under separate acts,
and though suits were brought against all OF
the foregoing corporations, and pending in the
Sup eule Judicial Court in Cum berland Cum
ty, It was deemed an unnecessary expense 70
the State to carry more than one of each class
forward to the full court. Tbrouehthe courte-
sy OF the President of the Maine Central Rail-
road, Hon. George e B. jackson, and Messrs.
Drummond & Drummond, counsel for the cor
poratlon, who expressed desire to have the
constitutionality of the act determined without
unnecessary delay, the case against the Maine
central was submitted to the full court with
out the usual delays accompanying similar
cases
In the suit against the Western Union Tele-
giAph Company the testimony was taken be-
fore Judge Virgin at the April term 1881, and
the case went forward to the law court upon
full report of the evidence. The eases were
most ably and elaborately argued by counsel
for defendant corporations, claiming that The
tax acts under which til g assessments were
made, were in violation of the constitutional
provisions requiring that call taxes upon real
and personal estate assessed by authority of
the State, shall be apportioned and assessed
equally, according to the just value thereof"
mat the tax was property tao; that it was
not uniform or proportional either in mode or
rate; that it was not spportioned and assessed
equally. That the law undertook 10 tax prop
erty by CLASSES; lone per cent. on railroads,
two and one half per cent. on telegraph lines
against ofae-hG!f of one per cent. on the general
property of the State"
hat it was "not enough that one railroad
pays the same as another one telegraph line as
another, and one land owner as another; but
the tax on railroad, telegraph line and land own
or must be alike and uniform in rule and rate,
varying only in aggregate according to the
just value of the property
On the contrary, it was argued for the State
that, ss the property of these corporations
was exempt from all municipal burdens and
taxes, the State had the power to subject such
property to general State tax, to be paid
directly to the State, and before such tax act
should be declared unconstitutional, it must
9tfrndtiyely appear that the tax was dispro-
psrtional aud in excess of the valuation and
assessment of the various towns where the
property was situated.
That II these assessments were disproportion-
al and unequal as property tareS, and could not
be sustained, the law should be upheld as
tax upon the business and franchise of the cor
porations That the tax of two and one half
per cent. upon the value of the telegraph line,
including the poles, wires and insulators was
not intend as tax upon the value of the
property as SO much wood and wire, but tax
upon its capacity TO reap profits, determined
by the length of line, the number of poles and
amount of wire used, and other circumstances
which affected its value as telegraph line.
That 1t was tax upon given employment,
imposed upon its business transacted in the
State of Maine. The State had the right to
exclude foreign corporations altogether, and if
the power to exclude existed, the right to inn
pose a tax upon its business transacted within
the limits of the State, must follow: and SO
long as such tax applied alike to all engaged in
the telegraph business, it was equal and uni
form and obviated all constitutional objections
as to uniformity and equality of taxation,
In the case of the railroad tax, it was claimed
for the State that 1t was competent for the
Legi stature to require these corporations to
paw tax for she support of the State Govern
ment which gave the m trete ction. That if it
coul notsbe upheld as dire ct tax upon the
real and personal estate of the corporation, it
was to be presumed the Legislature iDteded it
as franchise tax. The right of the State to
tax the franchises of the railroad corporations
as property, in proportion to their value IS I'M
q estioned, and the imposition of the tax was
but proper exercise of the power granted un-
der the constitution.
The suits were sustained by the full conrt.
tn Q laws declared constitutional, and judg-
ment ordered for the State for the full amount
claimed and interest,
Resulting from this litigation, the following
amounts have been collected and paid to the
State Treasurer.
Maine Central Railroad Co........... 1924, 967.1O
Bottom g. Maine Rail- DAD .......... BOBCATS
esteIn Mon Telegraph Co. 1Aoee,
mt. nationa Telegraph Co. 't'
The SUIT against the Portland, Saco and
Portsmouth Roilroad Co., for 1000, is still
pending in court. believe an adjustment of
the suit will be Effected and the pay ment Of
the tax secured to the State Ii not settled
the Case will BE- in order for trial at the next
January term of court.
The act relating TO the taxation of telegraph
companies is still in force, and all State taxes
now levied against these corppfations are un-
der the provisions of that act. The line of the
Internat' onal Company is controlled and oner-
ated by the Western Union and under the
terms of the contract, all taxes assessed against
the International are payable by the Western
Union.
The favorable decision of the court, sustain
ing the constitutionality of these acts, cannot
be overestimated. 1t is of vital and paramount
importance to the people of the State and ss-
tablisbes governing principle for future as
sessments against all telegraph companies ex-
ercising their powers and franchises within the
posing State tax upon telegraph companies, a
charter has been granted the Eastern Telegraph
Company of Maine, and line has been con-
strucied from Boston to Portland, Bangor,
Lewiston, Augusta, Bath, Belfast and other
important points.
The statute relating to the taxation of bust
ness of this character has been applied to this
new corporation.
In this connection it will be observed that
numerous charters have been granted by the
Legislature, authorizing the construction and
| operation Of telephone lines within the State,
granting authority to these corporations to To-
| cate and construct their lines along any public
highway or bridge, or along and upon any line
| of railroad, but in such manner as not to in
commode the customary public use thereof.
Various lines have been constructed and are
now In successful operation within the State.
Other similar corporations have been organ
| lied under the general law with limited pow
ers.
The act rel Ating to the taxation of telegraph
lines is not construed as applying TO these cor
| porations. They subserve in many respects
| the same ends and purposes and are endowed
| substantially with the same powers. II upon
| examination it is deemed advisable that these
corporations shall bear their proportion of the
| public burdens in return for the privil sges
| granted, the subject will receive the favorable
| consideration of the Legislature.
| All State taxes against the railroad corpora
| tions are now assessed under the provisions OF