The Portland daily press., 1889-10-23

The question of method of taxation, long
unstudied because taxation was too small a
burden to be obtrusive, and, now that taxes
in more highly organized society begin to
bear heavily, studied less than it should be
because OF its repelling difficulties, has re-
Gently received consideration from special
committee Of the Boston Executive Business
Association. The most prominent and infiu-
entail business men of the city are members
OF this Association; and the report of their
committee upon this subject Of taxation is
worthy the attention of every taxpayer and
every tax-gatherer. There are few original
recommendations embodied in their report,
as the ground has already been covered by
the able work of President Ely, of Johns
Hopkins University. But it is not the less
important on this account, since it is the en-
dorsement by committee Of practical bust
ness men OF the soundness of views put forth
by student, who, like all students, is liza BILE
to be regarded with suspicion as a doctrinaire.
In the first place the committee recommend
the abolition of the tax upon personal prop
erty; for the reason that. with the present
tendency for concealment, the assessment is
so inequitsble as to be plumber rather than
taxation. But they do regard collateral in
heritance and bequest tax, reaching as it
does, only such persons and objects as have
no claims upon the estates of deceased per-
sons, with limitation In favor of small be-
quests, as eminently reasonable and Just.
They believe also that another and more inn
portant substitution for the ordinary tax
UPON personal property would be direct
succession tax upon the personal property
of every estate in the commonwealth, as it
should BE- properly appraised in the probate
court, with limitation in favor of small es-
tates. Turning from personal property to
corporations. we find the Boston business
men endorsing policy upon which Presi-
dent Ely has laid great stress-the municipal
control of natural monopoles," as he calls
them. Such are street railways, gas and
electric light plants, and other works, which
from the nature Of things must be monop0-
lies. The Boston business mems committee
commend to the consideration of the govern
merit Of their city the duty of self help in the
way of utilizing "those natural and most
profitable resources, which, although the
birthright of the city or town, are at tine
present day,iwith an almost criminal folly
and neglect, given away to private corpora
lions in spite of the circumstances of the
wlsest political economists and the whole
some examples of other cities in our own and
o.ker lands" The city of Bangor in this
State might be cited as an instance where a
municipality owns and manages its water
and lighting systems with an economy and
success that can probably be surpassed by
none and equalled by few of the private cor
porations that supply most Of the cities and
villages of Maine. The concluding words of
this interesting report have special bearing
upon question that has been agitated in
Maine In the past; and is without doubt des-
tined to renewed agitation In the future.
Before the last legislature met there was con-
siderable talk about the abolition of double
taxation" that Is, the taxation of real estate
and also of the mortgage which may be based
upon It, This double taxation was abolished
In Massachusetts some time ago; and in re-
gard to the results of it the committee of the
business men express themselves forcibly in
its favor. "Real estate relieved from double
taxation" they say. "has become one Of the
most popular and profitable investments and
year by year increases in value the rate of
interest upon mortgages has fallen to SO rea-
sGnable a figure that nobody complains;
even the well-to.d do business man can hardly
afford not to have a mortgage upon his home,
for present methods of doing business re-
quire so much capital that it is rare that he
cannot make it earn more than the or Al
per cent. of first class mortgage. and the
poor man who used to be so victimized by
the money lender, even on his small lower
class mortgage. need not pay over 6 per cent
Massachusetts mortgages have become the
best possible investment for trust funds, and
the scanty income Of the widow and orphan
from this source is not required to be divided
with the town and city; and lastly, after
the readlustment to the new order of things
mad taken place, there was no perceptible in
crease In the rate Of taxation. and this re-
form which puts millions into the pockets of |
the people in the reduced rates of interest |
upon mortgages and increased value of real |
estate, to all appearances, costs the general |
taxpayer nothing"