The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1901-01-08

cqllare. whion ersrybody mus oonoeue 10
too small margin Tor safety. The
capital stock and bonded debt Of q
railroad company represents the cost
means OF carrying on the business con-
slsts In the daily earnings. and tbs ability
TO borrow in cases OF emergency. Any
legislation which adds to the burdens OF
the company may prove Injurious to the
Interests Of the thousands OF people inter-
ested In the securities OF the Maine Cen
trai and its leased lines. The fact that
corporations created under the authority
OF tne state, ARE subject to the control OF
the State Is undeniabief Is it unnecessary
TO pounce on them every time the state
gets Short" TO prove the claim. Inc
statuts OF Limitation does NOS apply IN
their caee.
Railroads may fairly come under the
head of visible property" In bis inau-
gural address, Gov. Hill as -erts that the
owner OF every form OF visible property,
already bears too great share OF the
public burdens.
grant existenoe implies tae right TO tax
out OF existenos. The State should foster,
instead Of destroy, Its own creatures.
EquaIiz alton OF tax on the statute books
Is vastly different from equalization OF
the real burden OF taxation. The equaliz-
alton OF the burden can never be effected,
OF honesty. State, cou atty, city and town,
as we'll as corporations, congratulate
themselves on the commercial agency
standiog which makes 10 easy 90 float o
low rate bond. The ugly fact IL. that the
basis of credit Is the ability OF the pur-
CHI aser OF the bonds to evR1e taxation,
The one policy which all free born Ameri-
can citizens are united upon, 10 the up
holding of the right to eyade taxation
and shift the burden upon some one else.
Corporations, being In sight, become vio-
tins OF the natural tendency TO be "a
zatherer and sdisposer OF other mems
stpff." -
Lest this communication may be con-
sidersd as inspired, II may be proper
for me to say that It Is not. IL Is an In
dependent presentation OF convictions es-
tablished through twenty eight years OF
service with the Portland ~ Ogdensburg.
and tan years with the Maine Central
Rsiiroad 90. which latter service rr ina
ed more than a year ago. have had no
communication with any OF the Maine
Central or Boston Il Maine people relat-
ing to this matter. Nor have L any psr-
sonal interest through holding securities
Of either corporation. l have referred TO
them because my lire OF WORK has
brought M into a knowledge OF the mat
ters discussed. i may perhaps 60 farther,
and express the opiuion that the expeDse
of lobby and the resultant irritation,
antagonism and misunderstanding, might
be saved. Everybody spelks OF lobby
In terms OF condemnation, unless he
wants to use one, The ''Third House" is
organized for one Of two purposes, either
to corrups or to instruct the legislators
In the case under consideration, the first
may be dismissed. Nobody has ever De.
come so excited as to charge the railroad
companies or the Legislators N this State,
with such degradation. The second Is Tor
D IL. kw.fo tad n
ropsr ties to do, either personally or
through their representatives. The In
form alton comes primarily Trom the offi-
cials of the corporation. Why not take
it direct from the sourcsY
In the contest before the Massachusetts,
legislature over the lease OF the Fitch
burg Railroad to the Boston 81 Maine
RAILROAD, President Tuttle presented the
case OF the Boston a. Maine, saying to
the railroad committee, I'm any matter
In which the public Is vitality interested,
l believe the truth to be better than
mystery" He Is now president of the
Maine Central. IL any Information ie
wanted, why not meet him man fashion
as he met the Massachusetts legislature
and come to an agreement on some basis
which may be endurtngl Constant agi-
tation un5sttles and creates uncertai uty
in the minds OF investors. $1,000, OOO of
bonds or the Maine Central Raiir Dad
est, from seven psr cent down TO four per
csnr, TALL due ApriI LIST, 1919. whatever
Is done In the reimbursement OF taxation
by the present Legislature, the rate OF tax
alton on railroad companies shru ld have
such careful consideration that, when
liked, 1t Will by common consent remain
fixed until those bonds have been refund
ed.
inclose extracts frem annual reports
of the Maine Central Railrcad Company,
made by Presidents kice, Morrill,, Coburn
and jackson touching upon the matter,
trusting that you will have space for
them In your PAPER. kasS
I referring to the general question OF
taxation, invite attention to the report
OF the state Board of Assessors, which
shows that only So, 249 in railroad bonds
and $5S,230 in other bonds were found
for taxation" as Bank Examiner Timber
lake smoothly puts it. The report further
states that the bonds issued by railroad
companies OF the State amount to over
SO, 900 090 In addition to State, county
and municipal tonds, ana the bonds of
watsr and electric light companies, and
other corporations. OF course, nobody
expects these bonds to be- found for taxa
tion." state county, city and town issue
low rate bonds knowing full well that
the ability to do SO rests upon the general
understanding that they are not to be
found for taxation.
Notwithstanding the fact that the stat
utes require every psrson TO make re-
turn to the asses sor5 AMI pay tax on all
taxable property, .he fact that these bonds
could not bs sold II they were tn be found
for taxation, creates an awkward situa-
tlon. The shrinkage IN the income re-
celyed from Investments has reduced
great numbers OF worthy people to
Strengthened circumstances, ana In many
cases to positive want. The shrinkage
goes steadily on. Every refunding OF
maturing bonds, increases the distress
of such persons, and ft sometimes seams
as though their little all' Is the only
INVISIBLE property found for taxation,
Quoting the admission or a prominent
judge that Flaw Is not always JUSTICE"
l submit that the issue of bonds bearing
an interest rate OF from three or four per
cent, subject TO a reduction OF two PER
cent by taxation, brings many worthy
people to the necessity OF eVading the
present tax law or greater suffering
through loss OF income. 10 give time to
think 1t over, suggest the establishment
of "oonsoience fluid, TO be held by the
State treasurer to meet the present neces-
sitiss. The contributions of Anonymors
ana others, who own the millions OF