The Portland daily press., 1901-01-19
sCHEMEs OF TAX REFORM.
70 the Editor Of the Press:

70 the Editor Of the Press:
Can equalization Of taxation mean
balancing OF she tax on corporations
against the demands upon the stats
treasury II so, why not fix upon the
amount of the demands TO DO allowed
nrstY The equalizati on may then be at
tempted at leisure
Stockholders, carrying the dead
weight OF III advised enterprise. are the
visible debtors. Bondholders ars the IN
visible creditors, who unssltishly keep
out OF sight, leaving the debtors to "en-
Joy the franchise" to bear the stats eX-
penses. Tnis Is the only kind OF mort
gage debt where the creditor Is not al
ways in sight of the debtor.
Taxation without elaboration presents
to the deliberativs body, in a new form,
the old question Of taxation without
representation" Tho Grand Trunk and
Canadian Pacific railways are the proper
ty OF foreign corporations. The stock
holders number some 70. coo. The COM
mon stock exceeds $3.50, OO0,0 900, to say
nothing of preferred and debenture
stocks. These corporations do business
in the state and under the "McFadden
biil'' would be required to make returns
showing the name, residence and amount
OF stoc held by each OF the above stock
holders, In order to enable the state
officials to make an equitable distribution
of the tax collected on the capital stock OF
these corporations. Ihe Grand Trunk
stock may have market value some
wnere. The Canadian Pacific stock has
a quoted value of ninsty Per cent. As
the bill does not contemplate equalization
of market values. the Grand Trunk may
be left out of the rough calculation OF re-
suits. Allowing that some Inhabitants
of some towns held $500 In Canadian Pa
oitic stock, that town would be entitled
to II cents in the distribution.
Referring generally to returns req uired
as a basis of distribution, IL anything
needed beyond the name, residence. ana
holding of such stockholders as reside
within the state, and the total stock and
mileage of the reporting companyG
What might appear to be another form
OF attack on the corporations is tAa~ pro-
posed bill, entitled AN act relative to
the issue of capital stock anu bonds by
quasi public corporations. placing them
under the guardianship OF the railroad
commissioners, so far as their ability to
pay their debts 10 concerned, but putting
no restrictions IN their ability TO contract
debts. Why not put the state under the
protection of the commissionersr
But the statement that the bill Is in
line with the recommendation OF the
bank examiner, and "designed to make
more secure the investments OF the
savings banks, transfers the insinuation
OF indiscration from the railroad man.
ayers to the hank managers. It also opens
the way for the suggestion that II the
trustees Of savings banks have less dis
cretion with regard to investments than
the railroad commissioners have, why
not put the trustees directly under the
guard of the commissioners When the
state, In its supreme power, has put the
interests OF the thousands of people,
whose money is looked up In quasi public
enterprises, under the guard Of the rail-
road commissioners, who is to guard
the guards themselves
The established oonHdencs OF the de-
positors in Maine savings banks reses up
en- the "eon ssrvativs, conscientious, and
able business management" referred to