The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-03-09
But the Wasps and hornets VIII
Break Through II.
Views Of Chief Justice Peters ant
Judge Walton on the Listing
system.
II Will Make People More pIscon-
tented Than Ever.

Il wish to enlist your attention to the con
sideration OF proposition OF limiting tAt
percentage Of taxation on money and mon
yed securities, so as not to exceed a certain
amount, In case that anything like the bill
recommended by the tax commissioners Is tc
become a law. This can be done by an
amendment of the bill. The plan Is not q
new one. but has been adopted In some oi
no information about II, evidently not being
plan in consonance with their view. My
idea is to make the maximum assessment
not exceeding one per cent-0r somewhere
from one half to one per cent,
Money at Interest Is not. In every sense,
regarded as property; and many political
writers maintain that 1t Is not, In a natural
sense, taxable property. But our policy and
practice are otherwise.
Money at interest cannot nowadays endure
L a taxation exceeding one per cent. 1t was
OF cOurse, otherwise when money would lei
for from eight to twelve per cent, or perhaps
even at six per cent. and upwards. But
money cannot now be securely loaned al
over four per cent, and, on frst-class securi.
ties cannot be let for that. In this city the
percentage Of taxation Is rarely less than
two and half per cent, and once, within a
few years. 1t ran up as high as three cents
and three mills. Is it just that money reap
ing only four per cent. or less interest should
pay from two to three per cent. OF 1t In
taxes?
The commissioners argue that, under the
law recommended by them, tue assessment
would not exceed one Fer cent. Just make
certainty. But we all know that would not
be the result in any Of our cities or large
towns. The day has gone by when taxation
In the larger places will be less than two per
cent. at least. The promise Of the commits
sioners can be made good only by the amend
ment proposed OF limiting the amount Of as
have said that money cannot be loaned
safely at o. er four or four and a fraction
per cent. This remark may not apply to q
multitude OF small TRANSACTION, or to current
business matters generally, or to bank dis
counts; but 1t certainly does apply to all
such investments as will be reached by the
proposed law, such as securities held by
trustees and executors Of estates, by widows
and minors, and by men retired from or out
Of business. There is nothing that can more
strongly verify the rate which such invest
ments pay than the fact that our Savings
Banks have great difficulty In declaring four
per cent dividends, although they are
strengthened In every case by having some
amount OF unexpired bonds paying unusual
profit, because purchased before money be-
came so cheap a commodity as 1t now Is.
The low price Of moneyiis what makes the
price Of stocks so high, good stocks having
In some instances doubled In value When
money was worth eight to ten per cent, Bos-
ton and Albany and Boston and Maine Rail-
road stock sold at par. and even less than
par While now, with money at from three
to four per cent. the same stocks sell at
double par value and beyond 1t.
The present legislature authorizes the city
OF Lewiston to issuei some four per cents,
They will undoubtedly sell at rate consid.
erably above par. The legislature also au-
thoriZes ArOostook county to issue four or
five per cent bond, which will be put on the
market at from five to ten per cent above
par. Could any person afford to purchase
fhneQ hnnHg hal
the income for taxes?
have before me the February circular Of
one of the most reliable banking houses In
Boston, giving the present prices Of great
lower on account Of the late financial crisis
than they have been for some years before.
The bonds Of Boston can be purchased at a
price yielding the purchaser a very slight
fraction over three per cent. Bonds Of most
OF the cities and many towns in Massacbu-
sets are offered at rates. paying about 81
per cent. No bond Of any place in Massa-
chusetts is advertised at rate paying as
much as four per cent interest. On the list
the bonds OF the following places and corpo-
lowing rates OF interest:
City of Lewiston, Maine, 81; Kansas City
4; Minneapolis, 4; City Of Detroit. 81; Gin
cinnati. ct St. Paul trifle less than A; Old
Colony Il. X. Company, 81; Boston d Low
ell r. R. Company, 1916; Portland & Og-
densburg r. r. Company e.
No Boston & Maine Railroad bonds is
purchasable at a rate that will pay even four
per cent. The bonds of both Bangor and
Portland. and probably Of most the cities in
kets in this State and iu Boston, at rates
paying less than four per cent. The last
quotation Of Portland CAST June) In my pos
session, was at price paying 81 per cent.
There Is quite class Of investors. having
no active business for the use Of capital, who
can ind no other employment for their
means than to put it into interest-bearing
securities. They may not be competent to
otherwise manage what they possess, or
their position OF trust towards others Is such
that the law permits no ether kind Of invest
ment. They are the executors and trustees
under wills, agents for women and minors
and relatives, the men OF the professions and
old or infirm persons who have passed ont
from the cares and risks Of active business;
many. If not most, of them being wholly de-
pendent on the interest Of their money for a
livelihood. How could any Of these persons
depend or any of the before enumerated Sc
curities, receiving four per cent or less, and
paying over half OF their income for taxes?
What justice is there in the State demanding
1t?
The tax not only seems intrinsically unen-
durable, unless the limiting amendment be
adopted, but 1t Is harsh when considered
relatively with other taxable property. The
discrimination seems to be against moneyed
to take an account Of his stock, and the lum-
herman an inventory of all his lumber, or
will general estimates be made of each ac-
cording to apparent condition and circum-
stances? Was such thing ever done as
that.
Money is to be taxed in full But how is 1t
with all other property? Do we not know
that, as a rule with very few exceptions, the
property within the State Is undervalued for
purposes Of taxation? This applies to all
property. The taxation of real estate In the
State is, as whole. upon an assessment
falling far below real value. This Is not only
true In Maine, but true everywhere. and true
OF all species OF property. What trader In
the whole State Of Maine Is really taxed for
the full value Of his average stock Of goods?
What lumberman on any Of our rivers was
ever assessed for the full value of all logs
and lumber in his pOssessi0n? Usually In
such cases, a prOximate estimate, equitable
towards the taxpaper.is intended to be made.
And no one complains Of the manner or re-
suit Of 1t that know Of.
An argument has been current that it Is
better to relieve assessors from the necessity
of exercising any discretion In the assessment
OF securities. But Is such result effected,
even by the proposed bill? Are assessors to
assess four per cent bond as highly as
six or seven per cent, or doubtful bond as
much as an undoubted one, or must they not
exercise judgment and discretion on the sub
ject? And Is Ii not true that the same thing
follows as to all kinds OF property? Not
a parcel of real estate nor an article OF per-
sonal property can be assessed without the
assessors exercising discretion In estimat-
ing values. And 1t cannot be overlooked
that assessors have always been influenced
by EQUITABLE considerations In assessing pro-
perty somewhat In proportion to the profits
and income 1t produces. Unimproved real
estate is taxed less than 1t would be II rent
were ccllectible from 1t.
There will pe another inequality, amount
ing 10 Injustice, flowing from the proposed
hiii IL Is extremely unsatisfactory to re-
Guire a few persons to pay heavy assessments
on a class of property when all persons SINH
larly situated do not pay propOrtionallv AZ
much. The few will bear heavy burden
the many will contrive to escape the burdep
1t is not In human nature to expect that
men will stand the compulsion OF pavin@
more than half the earnings of their proner'
ty for taxes on such property. as long "a
such result Is avoidable. Some men will
remove from the State. Money will he in.
vested In real estate within ana without the
State, and in non-taxable stocks and secnri.
ties that Will add nothing to the bulk of fay
aDle properly. Trusts may be transferred
INTO otoer more liberal jurisdictions. But.
ABOVE al, there will be a tremendous tempta.
Iloh Y ior Suppression and concealment in the
Iisted returns. Men will often 20 great
engtn IN suppressinz the truth. or In making
;onstIuctlons favorable to their own In
.eIests, 10 avoid what they deem oppressive
of the conscience.
Dean Swift more than century ago de- |
'cribed revenue laws that were offensive to |
hose affected by them as "cobwebs that will |
,8tcl small flies huf allnu M a nc and hnrnatg