The Republican journal. [volume] (Belfast, Me.) 1829-current, 1899-03-23
State and unicipaI Taxation.

Gan Our Present System of Taxation.
Municipal and State, be Improved?" was
the subject under discussion at the meeting
OF the State Board of Trade in Augusta
March 18th. Hon. VIM. G. Marshall of Bel
fast was one of the speakers and made some
novel suggestions as to improve ment of our
present system of taxation. He said that it
was very evident that the State needed $780,
600 more revenue. Under the law real
estate and personal property were subject to
taxation, but while real estate was fully tax.
ed, personal property largely escaped taxa
tion that the real estate valuation consti
tuted IS per cent. of the entire valuation of
the taxable property of the towns in the
State. 1t was plain that such a division was
incorrect and that large amount of personal
property escaped taxation. The problem to
be solved was how to reach this property
listing law, compelling every man to rem
der sworn statement of all his property to
the assessors of his town, had few years
ago been before the legislature, supported
generally by the farmers and opposed by the
business men, but it did not pass Appar-
emily that method could not be tried
Mr. Marshall said there was large
amount Of property that he thought could
be reached. This was bonds issued by the
railr road companies of the State and secured
by mortgages upon their property and fran
chises. There were outst anding S33 900 900
of such bonds. They were all amenable to
taxation. There We're nearly s 900 900 Of
them in the Savinus Panka and thasa paid q
tax of 7-o of one per cent. There was less
than $4,000 of them taxed in all the towns
of the State. He said if these bonds to the
amount of S28, 600 900, that now escaped tax.
alton, should pay the same tax that those in
the Savings Banks did, the State would get
$A5,0OO more revenue. Nobody would
claim that they ought to escape. Taxes were
imposed upon those in the Savings Banks,
why should they not be upon those in other
hands?
He then went on to unfold his plan for
reaching these bonds and enforcing pay
ment of the tax assessed upon them. He
SAID method similar to the one applied to
National Bank stock might be adopted.
National Bank stock, every share of it, was
TbdCutu Uy UulS meUlOu. L ne law creates a
lien for the tax upon the bank stock owned
by non-resldents OR unknown persons, and
prohibits the payment of dividends until
such tax is paid. So law could be made
that required railroad companies and their
treasurers to retain from the interest on
these bonds, as it became due, the amount of
the tax assessed.
He admitted legal objections would be
made that the railroad bonds owned by nom
residents could not thus be treated, and pro-
ceded to argue that inasmuch as these bonds
depended for their yalue-iike the stock
upon the use of the franchise conferred by
the State and the protection of its laws, they
ike the stock, should pay an excise tax to
the State-tlat they constituted part of the
capitalization of the railroad and repre-
sented so much railroad property
Mr. Marshall alluded to railroad taxes but
did not discuss them. He called attention
to the difference in the amount of taxes paid
by the Savings Ranks, representing S62,-
0O,000 Of assets, and the railroads repre-
senting much more. The banks pay $50
00U-the railroads $50 600, or less