Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-12-05
100000 CLAIM
Against Lewiston and Auburn
from the Grand Trunk.
Alleges that This Amount Of Taxes
Paid Was Illegal.
Matter Goes Back for Score Of Years. Both
citi.s Stirred Up.

Lewiston, Me-, Dec. A sensation
was sprung in this city and Auburn.
yesterday. by the news that the Grand
Trunk Railroad had put in a claim
against the Lewiston & Auburn Road
amounting to nearly 100000, which the
| former claims to be due 1T under a
clause in the lease of the Lewiston &
Auburn Road to the Grand Trunk,
which specifies that any taxes assessed
on the property of the lessor and paid
| by the lessee shall be deducted from
/ the rent to be paid for the road.
| The two cities of Lewiston and Au-
| burn undertook the construction of six
miles of railroad to connect Lewiston
| with the Grand Trunk, in order to give
competing line with the Maine Cen
| trail, in 1872. Before they finished it
they made a contract with the Grand
Trunk whereby the latter took the
Lewiston & Auburn and completed it.
| and on March q 1874, leased it for a
| period of SO years, paying a rental OF
6 per cent. upon the capital stock. This
gives the two cities rental of $4,000
year. of which Lewiston receives $13,-
500 and Auburn the remainder
| The last clause of the lease reads rs
follows: ''All taxes which may law
| fully be assessed upon the corporate
property or franchise of the lessor dur
ing the period of the lease may be paid
by the lessee. and if SO paid shall be
| deducted from the rent herein cove
nanted to be paid by said lessee"
iS tc nj, tl,oif tJ, ma
Trunk asks a rebate of nearly 100000
for taxes which it claims to have paid
during the period of the lease a score of
years. On the first receipt of this lease
the authorities of the two cities thought
that there was no loophole for escape,
but on Investigation they are of the
opinion that the claim has very little
basis and that if anything is due to the
Grand Trunk the amount is very small
1t is held that large part of the
claim is for interest at 6 per cent, for
which no demand has been made unit,
now.
In 1879 an act of Legislature was
passed exempting the Lewiston & Au-
burn line from taxation so long as it is
owned by the citizens of Lewiston and
Auburn.
If any taxes have been assessed on
the property since that time it is main-
tanned that they have been illegally as
sessed. and are therefore not subject to
rebate under the clause in the lease,
which specifies taxes lawfully assess
ed Furthermore, SO far as the city
of Lewiston is concerned. no tax has
even been placed upon the Lewiston &
Auburn Road or paid by the Grand
Trunk.
The Grand Trunk had payed in taxes
to the city of Lewiston from 1875 to this
year, $31 ,427.75. This was assessed up
on land and buildings owned by the
Grand Trunk Road and purchased
since the lease and not upon property
Lewiston & Auburn Railroad.
On Nov. 20. 1874. nine months after
leasing the Lewiston & Auburn the
Grand Trunk purchased of the Frank
lin Company. five and a half acres of
land for $4,000.
Since then the Grand Trunk has cree
ted a number of buildings on the land,
and it is upon this land and buildings
exclusively that the taxes have been
assessed.
The Grand Trunk has not brought
any suit or indicated any intention of
doing so as yet. The next payment of
rent is due by it to Lewiston & Auburn
on Dec. 10. and this has brought the
matter up now.