Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1891-02-12
Taxation Questions.

that tho ouartioo IF yaluatiOn and taxation
~ .ho mos. ;unor,.n+ ora
pioili'eu ~ Nv wv
before the legislatures III iace' ne 4"es-
ton of the present session. Subsequent
,levalonments corrohorste the truth of the
49,. 5o Ono of .ho
s'''e'n'n' We .'ien MAN.
knotty phases OF the taAatioh question Is
the valuation and assessment of railroads.
An Augusta special to the Portland Express,
hoar;nr data Fob . vary Clearly a,ncidstas
=. :
the TACT 10 "hich we nave relerfeo' IL Is
sound and well-written article viewing
the Question as railroads see it. We copy
tho folIo.inc
Aceofuihs " .iie iepoit VI toie il'ei s'aIe
Sohinielce NoiiihilsSion VI ioo'. '"e MN
pei VI hiiieo VI lam oaus III 'uo ny VI
otates, "efe io''''o'o' ih'ies. "a 'niS
l'','fo ~, iuiies arc ouNeicu W 'n. n, 20
poi'' ing. CIV enptoy 'nen' W
anu oNiue a i,1ns III az ras' VI.
niiiiion peopie ing .epoi' iui '"ei
tllae ol-o' pei oen. " the s'ooh pau no
ulNiuehus anu ,iia' io.l' pei oen'' Vi ia"-
way oohu> pau ~ tn'eies''
ne sioss eai lungs a. iePoiUeu VIZ
S'of',oo''oi ieaNins he' INCOME Vi o.
lo''t2o over operating expenses Inns
gives an average OF gross earnings per
mile OF So'zsV' anu an average OF net ih-
come per inlie Oh eZ,oo!
compare tliH Win the earnings Oh tle
Maine oehtral Railroad as returned 10 lhe
railroad commissioners Oh Malne ioT inc
year 1870. ne earnings OF TINS system
We're 80 40 per mile or $3.50 less IMAM the
average IN the thlted states ana mel In
come OF eI'oie' or 500 less thah the aver
aye income per mile I'D the nll.u states
ROOT Manuai OF Io'o lives the mileage
OF railroads IN the United states as Ioi'o
miles' aha me average Cost per hiie rs
measured os lhe STOCKS anu lhueoteuhess
70 De soo,5u9' ana Inc earnings on capital
invested % per cent Inc 1uhoed aeo,
anu capltai stoCh oi the haiie teuti d.
system are sl.'9'o,NV' or an average OF
S-4'Noo pei iulit- IL VIII therefore NC
zen NAV t'ie naine .en'i d, ha'iioau Is a!
rom pelns oNel-ca pi'al4Aeu' eiaiii tha'
Is oeing extensively hade III some quarters
he het income OF .he maine da eentfai, as
SHOWN oy theIf report LOT ie'o' was 81
DO 'o'Io, ne leiila's anu aeeiu eu iu'e
~ "eie llu''o. V''o' leaNlls oaian0e
OF eIoI.3'.:'i. FROM 'his tnes paiu a
ultiueha Oh slA per cent Vi inc auio u.
pau III !of sto.h, amounting 70 Si''oio,
~fo''oi, - " ~ Piu' az ~,
1t mas oeth urstu os petLtioa' anu olnei =,
WISE tna' 'he faiiloaus Vi "aino suouIu
Pay .aA qua " ina ASSESSED upon otnei
F.oPe! > a. '.le iiuii't 60
- IA pa ''A"''''t 10 ~ -
- iiNi' W
e'''e anu .ais 70.
t"''e ',iIA lli'' -APP't '.,7 W ,-e I4 :
.eht' d ho"H anu "Ha' " IA NC '"e
~ 'he III pa NC "ou4N "a,e ~
Nline ny 43ii 'a'ue ~ tle ioHu 70 oe a.
eH. 1t mas oeei' pupl'elH eia'ineu .na' 60
V0V'V'o' "ouIu DC IAN Naiue' ne ni '''
Ion9eI a'.Ne' put au es'iiia.e VI $1,000
W. lah4nS lhe assets ol the toau a. re,
turaeu ny llenh' "hlch are sI''t9e'oo' u
anu d IAN OF oI.oV per eIpV "ouid De III
ROUND numbers - 'ooV.
IL must not De forgotten lhat TINS CLASS
OF property can never De cia>seu with o'hff
property
ne service they render TO the people al
large cannot pe estimated lhey are IL
Inc business OF the state ana 10 every inter
e>t connected with and dependent upon
mat business what the ar IS TO breath ana
lie'wlthout II there could be no existence
10 properly measure our dependence upon
'NeA4,' mag ny ~ poe3i''e "na' ing "ta'.
out and cease to be.
~, ~ -,
a,a,nert rndarS,anI. tha. ~ ironnsida-
shIe nar, of IT, ,rair saryica ,oldar nsrs
ro,binn 10 ,h, 80 d;rac,,,, br, - -, -,
IN err, ,h, ,pbIic tha ax,.,rsa of !, ha;nn
,alan frorn ~ a.,aro1 -. Tba ~
evitable respIt of tho nronosed ,aystion
wonld he q re- merton in tho ex.ant ard
character of that service nuttinp the
STAT. hack in that narticnlsr hsIf a score
ar more Of vears Tbap too tho rod.
arc common carriers and as Snch ars
liable to lose. that no other nronertv "a
II cost per cent of their EARNINGS las,
wear ia nav damages for freight and nsssen.
gers
Take from this the tax they maid last
wear of SIS 900 and We have left s23a nof
IN take from tbeir NOT income ~ soe1 a.
4I Tins /, viii he seen that no dividends
al all could he maid How cuicklv m.
road would sink in vslue and caas. ~ ha :
factor in the deycIonmen, nf tho indns,rie.
of the State,
AnD}v another method of reasoning
How rruch canitaI haze tho cor,oro,ors
and owners invested in tbis enternrise,
Ioos... rlai. &c, .,
Psi5 for caosir T@pitHi seo 90 -
Paid for equipment........... ....... I,s3ba51 5,
-,---------.
<4''-+'''o'-'
NAV "ouiu De Ialr compensation loi
.he investors 10 get upon the amount IN
ousipees' ~ costs ahhua!ly' or IL COST
!aSt year LOT expenses 81 sos 'oo6.". Ihe
income was ot'z-o4"o 10 Net income
above operating expenses, 81 ,367, l9s Go
ih's u aoout ~ per cent. OF investment
ana SUN out OF inns they PAID tax to the
STATE OF more than hfty-eight thousand
dollars. and various taxes in munich
Palltles'
IL your morse Is frightened by the steam
Whlstle OF some mandatory down town
ana runs away you get no damage for
Dreakage OF llmo or loss OF life. A rail
ROAD runs over you or you get hurt In al
most any way, and the road Is in for dam
age
But suppose we apply this tax rule sug.
ges'ed' 10 some OF the smaller roads II
Maine lake the bangor flscataquls
toaG' aier denucting the interest on
Iunueu ue"l' anu reutals' the income from
operating expenses was sufhclent by sl2,-
o-o.vl W meet the expenses. lax the
loau on us assets SI.oo per Sl0O, and they
Mouiu na'e carried over denclt OF more
'nIu o..,ooo.
xh. .ioiaon NAM oao iaC heu So'fZS.'o
" na'ihs suillcienI 10 pay Inc interest on
iuuuou anu otner ueot' alter deductlng
tnT operating EXPENSES
'ue pl ION anu naco river Rall-
loau ndiio" gauge ROAD largely oullt
anu 80 Nc y lle Town oI brldgloh- IL
va aoIe y 'ie lhost economical manage
- 20 ~ pao 'he interest on pohos' ano