The Portland daily press., 1891-02-17
BURLEIGH RAILROAD TAX SCHEME.
A Graduated Rate Based on Earn
Ings Per Mile.
How 1t Would Affect Some Of the
Smaller Lines.
Dividends Would Be Farther off
Than They Are Now.
Especial to the Press.1

Especial to the Press.1
AUGUSTA, February 16.-What the leeis-
lature Of Maine will do in the way Of rail.
road taxation is yet to be determined. Mr..
Hall G. Burleigh has submitted scheme to
the committee, which has been applied to
the railroads of Maine. A result Of such
application, If reduced to trial, and its effect
upon the roads, the reader can draw his own
inference. Mr.. Burleigh's plan Is as fol-
lows:
On roads whose gross earnings are under
$1,000 per mile. per cent; $1,000 ond under
$4,000, II; $1,000 and under $1,000, 81; $4,000
and under $4,000. 81; $4,000 and under $4,000,
Al; $1,000 and under $4,000. 81; $4,000 and un-
der $1,000, 81; $1,000 and under $4,000, II per
mile. and at the rate OF u additional for
each additional earnings of $1,000 mile.
But one word in relation to the criticism
on the method Of finding the value Of rail-
assessed according to their just value, and
not upon gross earnings" Here lies the diff
ficulty. The mileage of road Is divided
by the amount Of the stock and indebted
ness, by the rule usually applied. Now 1t is
suggested that II reckoned by the value Of
If the Boston 81 Maine railroad is estimat-
ed by the value Of the stock and indebted
ness, the value would be S27,S44 per mile,
and the taxes they now pay to the State of
Maine would equal or exceed municipal taxa
considered.
II we take the value of the stock as a
guide, as some suggest, the road would be
worth over $5O,0OoOOO. Very well, let us
usa these figures a moment.
The report Of the Boston g. Maine railroad
shows that they paid last year in taxes $685.
$3.50 on the whole system. This amount Is
one and one-half per cent on more than
$45,0OO,0 900, nearly the full value of the road,
as measured by the stock at S204 per share.
Municipal taxation is not based upon more
than two-thirds, or. to speak conservatively,
on more than three. .fOurths of the value of
the property assessed. Then we find, that
now, the Boston Il Maine railroad Is actually
paying one and one-half per cent on not only
S45,OO0,OOO, but as compared with values In
municipalities, on S60.000,000. In other
words, is not the Boston Sc Maine railroad
paying more than the average Of municipal
taxation? Either rule indicates that the
Boston d Maine railroad Is paying as large a
per cent as municipalities.
The Boston q Maine railroad was quoted
at 209 one day last week, showing how sem
sltive such values are, and how affected by
favorable legislation.
Under this rule the tax per mile of the
Boston & Maine railroad would be $685.
or $67, 1853. A instead Of about $4,000 under
the present statute. This would be at about
two and one-half per cent on the value of
their road in Maine, on fair valuation, as
made prOportionately with other property.
How would the constitutional provision of
equal taxation apply to this, when other
methods Of taxation in the state are consid-
cred?
Take the effect upon the Bangor & Plscat-
aquis railroad. This road has paid no divi-
dends, and last year lacked more than S12,-
600 of paying the interest on their debt, and
the report shows that there Is more than
$4,000 unpaid interest. To be sure this
rule would only put $3l37.66 to the present
burdens, but would increase their deficit by
that sum.
The Franklin & Megantic railroad would
have to pay but $75, but this road never paid
any dividend. and lacked $2948 of paying
interest. and the report shows that there Is
more than $4,000 Of unpaid interest. Last
year they paid S22. AT state taxes.
The Orchard Beach railroad die not pay
the running expenses last year by S1616 and
THIS Ty system would largely increase, it taxes.
The RumfOrd Falls 81 Buckfeld railroad
pay no dividends, and If they had to pay
even the tax this rule assessed of $685. 40.
they would have deficit of S263 Who is
there to claim that this road is not one of
tue roads that Is absolutely es:ential to the
the new Portland and Rumford Falls road
must depend?
The Bridgton s. Saco River railroad pay
no dividends as yet. but they would have to
bs taxed to the tune Of $500. They now pay
The Portland q Rochester would have to
pay S469l 20, and as that road has a valua-
tion far below its original cost, it would
seem to re better able to pay such tax than
The Grand Trunk railroad would have to
pay the round tax Of $50, ,06S, but as that road
has never paid any tax and has fought such
payments in the courts, it is hard to see what
benefit to come from that direction. Their
report showed tnat the road lacked $216,041
OF paying interest accrued last year.
The Portland Horse Railroad would be
paying more than $1,000 against 81, ,029 so last
year.
But what would be the effect upon the
Maine Central railroad? That is the road
tnat must stand the full brunt of taxation,
and feel adversely or otherwise its applica-
tlon, II Hall Q. Burleighs scheme is adopted.
Inc tax In round numbers would be 500, ,0O0
The road has never attempted methods of in
hatlon upon which to fatten the stockholders
or take advantage of the state. The road
last year paid dividends and the money due
Tor leases (rentals), the interest on debts, and
ha1 the small sum Of S46,0 900 to carry over as
surplus. The tax under the rule proposed
would oolige the road tn have deficit instead
OF surplus. and still the last year was one
OF unusual prosperity for the road, both in
business and in the good fortune Of having
no serious extraordinary outlay. More than
TWO million passengers were carried, with
Dut one receiving injury. 1t Is well known
that this road has stepped to the fore front,
and by extensive advertising, mutual arrange
ments Of ra es with other roads, the leasing
CT new roads, so as to divert business
into the state, and by the outlay of every
dollar available has given the State a new
era Of prosperity, and by this enterprise our
people are Just beginning to understand the
great Importance Of our natural resources.
We nave been shown by this effort of the
Maine central that our forests, lakes and
coast have prospective value that the state
cannot afford to forget, or fail to make the
basis of future advantages. Take the one
instance OF pushing its line to Bar Harbor
Millions OF taxable property were added to
the state. Is It time to cali halt in the
work the road is doing? Towns quickly
vote exemption from taxation manufa ctories
that will locate within their limits, simply
because they believe that they will promote
their prosperity. Are our railroads at pres
ent to be considered beyond the care and en-
couragement Of the people? So important
are they considered that counties are asking
that they be allowed to loan their credit for
the building of the same. The Maine Gen.
tral paid last year to state and municipalities
more than $83,000.