Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-01-23

or for the purpose of va,r;r,s .,--.
railway property except the GROSS
earnings that it produces. Soma mon
say. why not take net? Recausa nat
| is a movable quantity. mora CT ~,
gross. and if a railroad made 10 ~
earnings and paid no dividends yo,,
would get no taxes. and that would be
ridiculous and unfair. You have cot
always the sum OF gross earnings and
nearly flXed sum. and as that js q
portion of the produce of the railway
company, il seems to me that undar
the definition of taxation. a norton Of
that produce is the right result md
that your plan of assessing unon gross
earnings can never be satisfaotorilv
improved upon.
The Maine Central Railroad pavs
taxes TO you upon gross EARNINGS Of
a bout $6.0O0,00o. Its net earnings are
distributed among it's stockboIders
$500. 900 year. And suppose the earn
ings of the Maine Central ehould
shrink Sl.OO0,o o0 a year and the net
earnings should decrease until they
vanished. you would tax the railroad
nothing because its stock would not be
worth more than SIS or SO a share. II
seems to me. therefore. that the true
principle upon which you shonId con
tinue to act in taxing railroads is on
the gross earnings upon the operation
OF their roads.
If you increase abnOrmally the taxes
of any of the railroad corporations-
they are simply your servants. carry
ing for you your products. carrying
yourselves from time to time as you
need to go-H you increase abnormally
the burden of their taxation for the
purpose of relieving another portion of
Your citizens from their fair share of
taxation. you simply shift the burden
temporarily by putting an indirect tax
upon your people. because. as the rail-
way has no income whatever except
that which il derives from it's selling
Of trans portation. if you increase aD-
the cost Of doing its business,
whether in taxes or otherwise, it has
bur two ways TO recoup and reimburse
itself.
One of these ways is to increase the
rates Of fare and freight which then
puts the indirect tax again upon the
tea ana coffee and other things imper-
-eptibly comes out of the pockets of the
user: or else the railroad would have
to diminish its facilities given to the
public prcpOrtion2tely so as to save
ara in either event the public
would suffer moro, in my judgment,
han they would gain from the slight
increase in the amount Of taxes that
might be levied upon the corporation
simply because the Legislature had the
power to DO it.
! saw in one of the newspaper re-
ports of some discussion of this sub
iect. matter which is foreign to this
ne of railroad taxation, and perhaps
me about which have no business to
speak but I cannot help saying a word
n regard to it. | saw it stated that in
-FOUR State you still maintain the habit
If taxing land upon which mortgages
Ire made, and taxing the lender who
puts his money on that mortgage. If
hat is true. it seems to me that it is
survival of the ideas that prevailed
n the days Of feudal barons or roo
Ter barons when might made right,
When mortgage is put upon property
t is a sale of that property. conditions
"a. and the delivery is only effected
~ certain conditions. the fulfillment of
which leaves the title in the hands of
he mortgagor. But it is Il sale pure
md simple. and the purchaser buys it
or so much money, and if the mort
yagor does not pay the principal and
interest at a. fixed time he becomes
he possessOr.
It seems to me when you tax the
armer or the villager or the citizen of
| town the full value of his real estate
after he has sold portion of it on
mortgage. and then turn around and
AK the man for The money that has
,een loaned on that. you have not only
loubIe taxation but you have put nc
+ hole burden Of the taxation on the
'armer or the citizen who has mort
gagged his land. That is your hunt and
lot mine. In Massachusetts we Used
o have it in that way. but they have
grown wiser.
Now | am saying very little about
he. Eoston & Maine Railroad in this
natter because no matter what
scheme you provide Of taxation. the
Boston & Names earnings are so much
above the limitation which you ny, $"
much above il per mile. that we shall
20 into the highest class anyway we
save got to take whatever medicine
.ou rive us and look pleasant about
+. and we shall probably look pleas
mt: but ! want to say, under the law
lnder which you tax the Boston n
Maine at the highest limits the gross
awnings Per mile which amount to
like $4,000 q mile. not $4,000 |
, mile. is earned upon the lines in the
State Of Maine. The excess from which.
.ou derive this taxation has been out
side of the State of Maine and the re-
emf ACQUISITION Of the Fitchburg road
some $50 miles. Will put. for the year
ending June 80 1901. 4 further addition
% the gross earnings per mile OF the
DostOn < Maine. so that the State OF
Maine. without a single penny OF that
Increase having been earned within us
borders. will find an increase in the
cost0n AZ Maine earnings, per mile,
which will give about 10 per cent more
If taxable returns TO the state OF
Maine upon the Boston 4 Names
earnings. although earned without the
state of Maine.
AS to the Maine Central. it is differ
mt. That lies mostly within the borders
# YOUR State. At the beginning it was
,re of &hoSe little links of railroads
,-h:n, hova described which was built