The daily morning journal and courier., 1895-03-29

| to come, are vastly greater in propor- | tion than the increase in the popula- tion of the state. The people of Con- necticut are increasing in number at a rate a little less than per cent. per annum. If the expenses of the state since 1887 and 1888 had increased only in the ratio in which its population has l increased, your committee could safely | reckon the expenses for 1895 at $1, ,S5S,-
 900, and for 1896 at $1, ,781 ,O0O, or, for the
 two years, at S8,S49,OOO, including the interest on the bonds. This is sum less by s651 O0O than the estimate which your state officials and your commit tee make to-day. If it were not for
 this inordinate increase in the eXpen- ditures of the state, there would have
 been no resolution directing an investi- gation; no suggestion of increased tax ation in any direction; no cloud of a state tax looming up above the flnan-
 cial horizon, for, under existing laws
 the receipts of the state would be am-
 pie for it's expenses.
 If the present laws remain unchanged
 it is reasonably safe to estimate the re-
 ceipts of the state for the year 1895 at
 $1, 300, 900. There seems to be reason for
 the belief that for the following year
 there will be in receipts an increase of $1OO, 900. Opinions. based upon a
 thorough knowledge of the present law and existing conditions, agree in the conclusion that the receipts of the state for the next two years will be about S, 100000. This shows a deficiency in expected receipts for two years as com pared with probable expenditures, for the same period, of $600,000.
 REASON FOR ALARM.
 There would be reason for alarm in the situation if the key to safety were not i'm the hands of the present legisla- ture.
 The question for this general assem- bly, to consider and to solve is this: How can this threatened deficiency be met or how can it be ayerted?
 In the view of your committee there are three ways of meeting this deficiency One way is by increased tax upon cor porations in certain lines of business. But increased taxation ian these lines should be based on equity and justice If in this state there is any kind of business which is not bearing it's full and equal share of the burden of taxa ton, its taxes should be increased, be- cause such increase is right and just in itself and not because the expenses of the state exceed its revenue.
 TAXING INSURANCE COMPANIES.
 The tax rate on mutual life insurance companies has been decreased from one-half of one per cent. in 1881 to the present rate of one-fourth of one per cent. The annual revenue now coming to the treasury of the state from this source exceeds S25O000, The re-enact- ment of the former rate on these com panies would presumably add $25O,00O to the annual receipts of the state. Of the justice or the wisdom of such a re- enactment your committee expresses no opinion A bill in that direction has been referred by this general assembly to another committee. It is not within our province to anticipate the report of this bill, or to speculate concerning it's adoption. There are other kinds of business in which increased taxation is possible, but it would be of doubtful while ingenuity in devising new lines of taxation is rarely states  THE STATE TO BORROW MONEY.
 Another way of meeting the impend- l ing deficiency would be for the state to borrow money. Beyond doubt state bonds could be issued to an amount | many times this deficiency, and, bear l ing a low rate of interest, could readily | be sold at par but borrowing money | to pay current expenses ls contrary to | the settled policy of the state. It is felt that the credit of the state should | be used only to tide over a temporary 1ifticulty, or to meet some great ener- 5ency, which is of supreme importance 10 the future. No party would dare to Issue new bonds in 0 condition which required only the exercise of the )ld economy
 The third way of providing for the |. threatened deficiency in revenue is for his general assembly to order a state | ax on the towns This tax has not )een imposed for the last four years, md its levy now would be counted, ar more than ever before, as a hard Ihip by the people. The hard times or the last two years have greatly in- 'reased that poverty which has been edeved and must be relieved by the owns themselves There is hardly a axpayer in the state who has not felt hat from his lessened income he must lelp some needy neighbor, of whose poverty the town has known nothing f a. state tax must come let it come IS a necessity, known to have been reated by the weakness or the care sssness, or the eXtravagtant generosity f past legislation, If this general as- ernbly, by it's action sterniy checks the to lavish appropriation, if all ts legislation is in the line of wise it can fearlessly order tate tax, if the necessity seems press ag. In such a case the odlum of the ardship will be laid at the door of the asst, rather than at that of the pres mt.
 ,IGTD INVESTIGATION A NECEs-
 SITY.
 With this report your committee sub its bill for a state tax, but we do ot believe in it's necessity, and we do ot recommend its passage. We rath- r recommend that before any appro- riation for any purpose is voted, rigid and full discussion shall now it's justice and its reasonable me- F1I,a,o is ,ard1u 1ira of ,to to l