The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-02-11
1T WILL CATCH THE FLIES.
But the Wasps and Hornets VIII
Break Through It.
Views of Chief Justice Peters on the List
ing System.

Two years ago, when the listing bill
was before the legislature, Chief Justice
Peters wrote the following letter in re-
gard to it. AS it is as applicable this
year as it was then, we reproduce it, and
commend it to the attention of the legis-
latnre:
To Hon. Joseph ". Porter, House OF
Representatives, augusta, Me-:
I wish to enlist your attention to the
consideration of a proposition OF limit
ing the percentage of taxation on money
and moneyed securities, SO as not to eX-
coed certain amount in case that any
thing like the bill recommended by the
tax commissioners is to become law.
This can be done by an amendment of
the bill. The plan is notsa new one, but
has been adopted in some of the States,
though the commissioners give no infor-
nation about it, evidently not being
plan in consonance with their view. Ny
idea is to make the maximum assess
ment not exceeding one per cent. or
somewhere from one-half to one per
cent.
Money at interest is not in every sense
regarded as property; and many political
writer's maintain that it is not, in a natu-
raj sense, taxable property. But our
policy and practice are otherwise.
Money at interest cannot nowadays en-
dure taxation exceeding one per cent.
1t was of course otherwise when money
would let for from eight to twelve per
cent, or perhaps even at six per cent,
and upwards. But money cannot now
be securely loaned at over four per cent,
and, on first-class securities cannot be
let for that In this city the percentage
of taxation is rarely less than two and
half per cent, and once, within few
and three mills. Is it Just that money
reaping only four per cent. or less inter-
est should pay from two to three per
cent. of it in taxes?
The commissioners argue that, under
the law recommended by them, the as
sessment would not exceed one per cent.
Just make that result as to this species
of property q 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 commission
ers can be made good only by the amend
ment proposed of limiting the amount of
assessment by law.
/ have said that money cannot be
fraction per cent. This remark may not
apply to multitude of small transac-
tions, or to current business matters
generally, or to bank discounts; but it
certainly does apply to all such invest
ments as will be reached by the pro-
posed law, such as securities held by
trustees and executors of estates, by wild
ows and minors, and by men retired from
or out of business There is nothing
that can more strongly verify the rate
which such investments pay than the
fact that our savings banks have great
difficulty in declaring four per cent. divi-
dends, 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 commodity as it now is.
The low price of money is 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. Boston & Albany and Bos-
ton & Maine Railroad stock sold at par.
While now, with money at from three to
four per cent. the same stocks sell at
double par value and beyond it.
The present legislature authorizes the
city of Lewiston to issue some four per
cents. They will undoubtedly sell alta
rate considerably above par. The legs
lature also authorizes 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 these bonds
and pay half or more than half the in
come for taxes?
I have before me the February circular
of one of the most reliable banking
houses in Boston, giving the present
prices of great variety of bonds; and
prices are at this time lower ON account
Of the late fnanciel crisis than they have
been for some years before. The bonds
Of Boston can be purchased at price
yielding the purchaser very slight frac-
ton over three per cent. Bonds of most
of the cities and many towns in Massa-
chusetts are offered at rates, paying
about 81 per cent. No bond of any place
in Massachusetts is advertised at rate
paving as much as four per cent interest
On the list the bonds of the following
places and corporations are offered at
prices paying the following rates of in
terest:
' City of Lewiston, Maine, So; Kansas
CITY 4; Minneapolis, 4; City Of Detroit,
than 4; Old Colony r. r. Company, 81;
Boston & Lowell R. R. Company. 1915;
Portland 6 Ogdensburg R. R. Com
pany, q.
No Boston & Maine Railroad bond is
purchaseable at rate that will pay even
four per cent. The bonds of both Ban
gor and Portland, and probably of most
the cities in Maine, have for some years
sold in the markets in this State and in
Boston, at rates paying less than four
per cent. The last quotation of Portland
1last June) in my possession, was at a
price paying 81 per cent
There is quite class of investors,
having no active business for the use OF
capital, who can find no other employ
ment for their means than to put it into
Understanding 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 other kind of investment.
They are the executors and trustees un-
der wills, agents for women and minors
and relatives, the men of the professions
and old or inflrm persons who have
passed out from the cares and risks of
active business; many, if not most of
them being wholly dependent on the in
49, 4rE1 1z-s.. x~k@J