Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1890-10-09
that, as a privilege tax there can be no
valid constitutional ground on which it can
be attacked
SAVINGS BANKS

that, as a privilege tax there can be no
valid constitutional ground on which 1t can
be attacked.
SAVINGS BANKS.
The proposed law subjects the accumula-
tions as well as the deposits Of savings
banks to taxation by the State. These
accumulatons would amount to several
million dollars. As measure for the en-
couragement of home Investments by saw
ings banks, difference of taxes of one
half of one per cent. is proposed in favor
of such investments.
CORPORATIONS.
The report says on this subject There
is no State, we believe. whose laws afford
greater facilities for the organization of
corporations than do ours. BY general
law in this State. three or more persons
may form corporation to carry on any
lawful business with capital stock 10 the
amount of two millions of dollars-except-
ing only banking, insurance. deposit,
telegraph and telephone companies. No
scheme is so visionary provided It's pur-
pose is,ostensibly lawful business, that it
may not become vested, by virtue of our
laws. with organized powers and, In a
sense, supported and indorsed thereby. 1t
Is only necessary to organize. fix the
amount of capital stock which the company
may sell, record certificate of organiza
ton and receive the approval of the attor-
ney general. No money is required 10 be
paid in.
The shares of stock consulate the basis
of business and the merchandise in which
the corporation is to deal. The State has
therefore become the favorite organizing
ground Of corporations by spectators
from other States and it is not uncommon
that at least a dozen Of thcla, represent.
Ing millions Of stock. are born in day.
For the six months ended July !, corpora
tions. with an aggregate of more than
>s3.Hh 900, were organized IN this State.
While our laws afford such unusual faCilt-
ties for inception Of such corporations
they are singularly deficient In provisions
for deriving any adequate revenues from
them Corporations formed for mann
featuring and mining. for banking, fur
transportation. telegraph ard telephone
business, in fact all legitimate corporations
which engage In business resulting in plp
lie welfare and owning property are subject
to taxation. Such corporations general,
consist OF citizens Of the State. but often
Of citizens of other States who seek invest
ment here,
.
are the hundreds formed Tor purely >pecu-
lative purposes and may or may not have
a legitimate basis OF operation, or a place
Of business in this Starc other that nominal.
Other States derive large revenues from
such corporations, annually besides large
amount from organization or enrolment
fees. In Pennsylvania from 500 70 ST..
0No is levied on corporations by the State
for charters. according 10 the amount of
their capital stock. If the charter is 10
run more than twenty years the tax i
doubled Corporations are also taxed
three mills on dollar of value of capital
stock. In New Jersey, an annual tax OF
one tenth Of one per cent. OF the entire
capital Of corporations NJ par is required,
and the result i enormous.
Last year the State realized from 1850
corporations s2Gt, 2j5. H. through this one
mill tax on capital in addition To the 9L
400 Glib received from railroad and other
business corporations. II is unnecessary
TO cite the laws OF the several States upon
this subject. The above are enough ~
show prccedents for taxing the capital, ~
par, of corporations and for charters or
organizations. We have included In our
bill provisions to cover both form. Of
taxation and with the confident belief that,
il the law does not result in the material
increase Of revenue to the State it viii al
least have the effect 10 reduce the number
Of mushroom aud uoxous ventures which
our general corporation laws encourage"
TAN oN PRIVATE AND SPECIAL ACTS or
LEGISLATURE.
Many States impose taxes or fees for
private and speriaNpcts - legislation
There is much propriety in this. While il
is part Of the duty Of the Legislature to
enact certain laws for the bcucft of private
yet its principal function i, to enact
general laws for the people Ii has come
TO pass, however, III the multiplying con
ditlons Of business aud the peculiar circum-
stances Of communities that very large
portion of the time OF the Legislature is
spent IN Investigating The propriety Of spec
ial legislation or in the passage, or attempt-
ed passage, of private bills The consump-
tion Of time on special legislation narro"s
the time that can be devoted to the public
business. and causes direct expense To the
State for printing, and in yatious other
ways. 1t is very proper, therefore. that
parties who are 10 be benefited by such
legislation at the expense Of the public
should contribute something to the State
revenues. The proposed bill imposes a tax
OF nifty dollars upon such special acts Of
Legislature n are apt to consume most
time aud which often confer val
uahle franchises; and upon other private
act> the sum OF len dollars"
The proposed law imposes taxes on the
gross instead Of net premiums Of insurance
and gets at the unlicensed
foreign companies by requiring their III
>pector> 70 give bond 10 the Insurance
conditioned for the payment
of the same premiums on the insurance
effected ny their companies in this State as
licensed companies are Obliged to pay; it
taxes sleeping car companies whose cars
are run in this State, and makes street
railroad companies taxable locally Instead
OF hy the state, as Compenst ton for the
use of streets in villages and cities A !
great many minor changes are made in the
law and provisions relating to the enforce
ment Of taxes on lands by sale, and it is
The whole chapter of Revised
Statutes relating to taxes is Withdrawn,
and the law contains siXty-nine sections
more than the present law by reason of the
new provisions. Several tables of stats
ties supplement the report throwing light
on the new provisions.