The Portland daily press., 1899-08-05
Question Of Exempting Company
From Taxation.
Aroostook Docket TAX
en- Up Yesterday.
Murphy Murder Case To Be Ar
gued in Writing.

| IN tne law court yesterday morning was
begun the argument of the actions of the
Town Of Winterport VS.. The Winterrort
Water company and the Water company
vs.. the Town OF Winterport.
The suit of the town ngainst the Water
company is brought to recover the tax
assessed against the company on its real
and personal estate for the year 1897. The
suit brought by the Water company
against the town is to recover, under a
contract existing between the town and
company, the amount OF the annual tar.
| The contract between the company and
the town provides that In consideration of
the construction and maintenance Of a
| system Of water works aud the supplying
of the town with 20 bydrants and fur
nishing water for same; and furnishing
water for school houses and drinking
fountains. the town shall pay the Water
company the SUP, of $1,000 per year dur
ing the term Of 20 years, and such fur
ther sum each year as shall equal the
amount OF the tax assessed against the
company.
The charter granted by the Legislature
provides that the Water company may
make contracts with the town for such
exemption from public burdens as the
town and company may agree. At spec
ial town meeting held In April, 1895, the
| town voted to contract with the Water
company for hydrant service, and chose
a committee on the part OF the town to
enter into such contract. In 1897 the
town assessed and undertook to collect
the tax, but refused to pay the company
the amount of the same named in the
contract.
Hon. @. A. Bailey of Bangor and
Dutton s. button Of Belfast appeared for
the town of Winterport and N. & II. b,
Cleaves and Ellery Bowden for the Water
company.
Ex-Governor Cieavcs, who argued the
case for the Winterport Water company,
contended that the contract was legal
contract, and that the town had author
ity, under the legislative grant, to enter
into the same; that the effect Of the con
tract was not to relieve the company from
the pay ment Of taxes at the expense of
the tax payers, but the amount OF the
annual tax was adopted as partial
water supply; that the Winterport Water
company, relying upon the authority
granted by the legislature and upon the
good faith of the town In. entering into
this contract, established It's water works
to meet public neels.
Governor Cleaves said that on the faith
of this enactment and relying on this
contract, the Water company invested the
money necessary to erect It's works.
Without this authority and without this
contract, which would assure the COM
pany some return for the capital invested.
the works would never have besn con-
structed. The Winterport Water company
is not seeking to evade the pay ment OF Its
taxes, but to ask the judicial department
| of the government to compel the town TO
keep its COD tract which 1t made In good
faith and thereby induced the construc-
ton of the water plant that is now Civ
| ing them public service.
The governor further argued that the
question involved here was of graat I'm
portanoe and the principle was broader
than the single question at issue in this
case. If the contention that, is urged here
In behalf Of his town Is to be sustained
it involves on the part OF the company
an enforosd population of the very bonds
that were issued and negotiated in good
faith TO procure funds with which to con-
struot system of water works for the ac-
eommodation OF the citizens Of Winter
port Not only this. but 1t involves the
stability and safety of vast Issues of water
bonds In this state for 1t will be found
that nearly all the contracts of the yari-
Gus water systems operating In Maine
contain similar provisions; provisions en-
grated in the various contracts by legis-
lative authority and by the sanction of
the city or town. The provision in the
contract here In question relating to tax
alton was necessary to secure the con-
struotion of the water works on the part
of the town; was part of the consider
alton which induced the construction OF
the work..
Yesterday morning the Kennebec ooun-
ty docket was resumed. The action of
Inhabitants of Fsrmingdale va Berlin
Mills company will be argued ON briefs.
A. n. Spear for the plaintiff; Heath s.
Andrews for the defense.
Charles j. johnson assignee vs. John
II. Eveleth, viii be argued in writing.
G. j. johnson for the plaintiff W. 4.
Haines for the defanss.
David ]. Howell, in equity va. Weston
Lewis ct nj win be argued in writing.
S. 8 4. Titoomb for tine plaintiff; M. s.
Holway tor the defense.
Aroostook was next taken up. Dom
worth vs.. Sawyer, very important ao-
| tion, was passed until next W eek.
Moses Smargousky vs.. Klein was orally
argued. Louis q. 6tsarns. K. A. Holmes
Cor 49, s,lainfifI. a e naonant Il q.