The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1890-09-18
Tax Commissioners Report
CONTINUED from First Page.l

| g !: :: :o: cuu, 8
Tax Commissioners Report
| CONTINUED from First Page.l
COLLATERAL INHIRITANCEs.
This Is also new departure for Maine
and one upon which the commission evil.
IDENTITY ventured after much elaboration.
The report, after citing the various laws
Of the kind throughout the country and
economists and law writer's In support of
such tax law. examines at length the
constitutional objections to 1t that have,
In the several States. been raised and set.
tied by the courts and concludes that, as
= privilege tax, there can be no valid con-
stitutional ground upon which 1t can be
| attacked.
SAYINGS BANKS.
The proposed law subjects the accum =
ulations as we'll Is the deposits of saw
ings banks to taxation by the State
These accommodations now amount to
several million dollars. As q measure
for the encouragement Of home invest
ments by savings banks . difference In
taxes Of one-half Of one per cent 10 pro-
posed In favor Of such Investments.
This should meet with general favor.
The report says concerning the taxing Of
accommodations,
"This large sum 10 not reached at all
om,taxation by State, county or town.
| Was 1t the intention Of the Legislature
that 1t shonld pay No tsxes? The !sss..ss
lature has not 80 express itself In any
law. 1t Is only by implication again that
such exemption can be claimed. and the
implication, even, seems to us somewhat
strained. Maine has recognized the ben
efts Of her savings banks In these re-
spects and the people have learned to re-.
| lY upon their conservative. wise aud reli.
able management - absolutely safe pla-
ces for their earnings. Safety, indeed, is
the first and main object Of their crea.
ton. Large dividends from such institu.
tions are not for the best interest of the
State. The Legislature has wisely limit
ed them to not exceeding five per cent.
per annum. Several savings banks paid
up to the limit last year, the average for
all The banks being four and half per
cent. With dividends above per cent.
per annum, capital Is attracted toward
these banks, and, although the statutory
limit for q deposition Is $4,000, there are
many ways In which the law is evaded.
We think, therefore, that, without Grip.
pliDg these excellent institutions or 10
the least impairlng their soundness, the
State tax should be extended to their &C.
foundations. We make NO recommend
atoms as to the taxation Of stocks held
by these banks a. Investments, but would
certainly Recommend that II the millions
Of accommodations are not to be taxed
that the national bank and other stocks
purchased BY these accommodations and
which, but for their ownership by the
savings banks, would be taxable BY the
several towns where owned, and thus
bear share Of the burden. should be tax.
ed. By far the greater part of the In.
vestments Of the funds OF these banks In
the aggregate, are made out of tho State
Such loans yield larger rate Of interest
than home Investments. A. . measure
for the encouragement Of home loans and
investments the bill makes the tax
one half OF one per cent on 80 much Of
ono per cent on the amount invested out
Of the State.
CORPORATE FRANCHISE AND ORaANrzA.
TIoNs
and the report will meet with general ap-
proval of the pc ,ple, II not Of the cor.
porations, In what 1t says ON this sub.
ject:
There IL no State, we believe, whose
laws afford greater facilities for the or.
ganizAtiOn Of corporations, than do ours.
By general law, In this State, three or
more persona may form . corporation to
carry on any lawful business with capital
stock to the amount Of two millions Of
dollars-excepting only banking, In
surance, deposit. telegraph and telephone
companies. No scheme Ia so visionary,
provided it, purpose ID, ostensibly, law.
full business that 1t may not become
vested, BY virtue Of our laws, with or
gan!zation powers and, In sense, SUP.
ported and Endorsed thereby. 1t IL only
necessary to organize, fix the amount Of
capital stock which the company may sell,
record certificate Of organization and
receive the approval Of the attorney
general. No money is required to be-
paid In. The shares Of stock constitute
the basis OF business and the merchandise
10 which the corporation 10 TO deal. The
State has therefore become the fayorite
organising ground of corporations by
spsculators from other States and Il g
not uncommon that ct least 4 dozen Of
them, repreo4pting millions Of stock, are
born In day. For the six months ended
July !, corporations, with an aggregate
Of more than e8S ,o00, 900, were crganized
in this State. While our laws Afford such
anusnal facilities for The inception Of
such corporations they are singularly de-
ncient In provisions for degiving any ID.
equats revenue from then. Corporations
formed for manufAc11ring aad mining,
for banking. for tran6postation, tsls
graph and tslephons business, h fact I'll
legitimate corporations Whieh engage In
business resulting b Pablo welfare and
owning property ~ su65eos 70 taxation.
Such corporations genetnlly consists Of
citizens Of the 0tats, hat ofton Of citissns
Of Other STATES who sesk l1vestmsathAre.
The corporations which asu not taxed
ars The hundreds formed Tor parsly spec.
ulattvs purposes, 80 ~ Or may nos
have Legitimate basis e opegation, Of Z
place OF buelnoeD u TIL ooneo other than
nominal. OtAee oealDe Arrive large
revenuss from seeA cospoGntIoas, annual.
y. besides . large anoant iron orgasis-
We have iaelude4 = ooy IN provisions
with Ne eosldset beliss M, u ~
Of rsvsaae 70 ~ etesev \ Nm q least
ousAsoon aD6 neHieeo veae1rse which
or gsasral cospeee1idp - sncossags."
TAX On RnsvAsD - 1RnuIAL Acrs o.
Lnom&a1QnG
"Msay otae1s $500 q Ssss
= ncch necS17 n 4 r.. r. ~ 3 + 51ii1 n = :