Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-01-23
RAILROAD TAXATION.
Continued from page S.

| A.eh IL is operated.
IN the beginning railroads were first
ioil INKS, taking the place of stage
ih,es' ana doing that business practi-
Nans as the stage lines did theirs. Ex-
peiiehce quickly taught that for an
e'uaiization in the distribution of the
ofouucts of the country, something diff
rent must be found, and then began
.ae consolidation of the short links or
mes or railways into the greater sys-
Terms. The enormous growth of the
! franc OF the railways. which is vofr
franc, which is nothing but the selling
Vi transportation to you and others. is
uue TO the widening and charging. by
merging and consolidation. of their
"oiiitE 10 DO more, and it is in this way
''i"t they nave given the present wide
opportumties for reaching the. world s
mar kets at the lowest rates consis-
| tent with the cost of operation and a
| reasonable return upon investment.
NOW, everything that goes into the
| ohcfaton of a railway, whether it is
1Cel that is purchased or the labor that
Is employed or the interest upon the
deDt or the taxes. State town or ma
tional, are part OF the first cost Of the
oct of the net receipts. provided they
are any of them fixed charges. 1t
makes no difference TO the railway as
to the cost of it's operation whether the
rate is 25 cents hundred pounds. or
% cents a hundred pounds. it makes no
difference to the cost of operation
whether the taxes are two per cent, or
four or six. These fixed charges that
must be borne come first out Of the
gross receipts, but they really come out
Of the net receipts of the railroads.
Take for instance the Maine Central
Railway and the question OF how ii
shall be taxed fairly BY your State
and ! think that is the meat Of the
question which YOU have had under
discussion for two years. There are
varying ideas. Some say that a rail
road. being property. should be assess
ed as property Some say that be-
cause it is 4 corporation having stock
the stock should be assessed Others
say that perhaps the gross earnings
method is the one. | am inclined to be-
lieve that, Notwithstanding the fact
that many states have different ways
Of doing this thing, | am inclined to
railways upon their gross earnings is
the true enc. The foundation idea is
that you shall tax The property upon
some fair estimate Of it's valuation.
ana that Immediately raised the qucs-
ton how YOU Will arrive 1T the vaiua-
ton Of railway property for taxation.
If you were to ask me what is The
value of the Maine Central Railroad, or
the Boston & Maine. or the Rumforl
Fails. or any other railroad in this
State. ] should say To YOU that | should
be unable To answer that question I'M
less you tell me upon what basis the
valuation shall be made. If you We're
to pick 20 men. all experts. ana set
them to value any railway property in
your State. | will guarantee that You
would have 20 different results unless |
you fixed. for the whole %. that they |
should work on the same basis from |
the start.
Il seems to me that the true basis. |
as | have said. is the basis Of gross |
earnings. The railway liz entirely diff |
ferent from the Individual. the manu- |
facturer or the single person. in the |
matter Of the ownership of it's properly. |
The citizen Of Augusta who decides |
that he does not care longer to live in !
Augusta whether it is because he feels |
that he is taxed too high or because |
the water is bad or because the So |
ciety is not good enough or anything |
else. can sell his property at fair |
valuation at any time that he pieases |
ana can move away. and that is the |
end of it. 4 man who is carrying on |
IN Maine can sell ont his |
ana move away and ask no.
body's permission. and his property |
has a valuation which you can arrive |
at by the ordinary processes OF APP |
oraisement. taking into account the |
value Of surrounding property, what |
his machinery is capable OF producing. |
and other things; but how is it with |
the railway?
The railway has acquired large !
amount of real estate for its roadway. |
and il must permanently operate that
roadway and it has 4 public duty OF so !
onarating under the laws of the state |
ana is subject to all the laws generally |
it's work. and therefore the
reaI estate upon which its tracks are
laid are subject always to the cas-
mont that they must be used for that |
nurnosa and no other. and therefore |
ynI cannot appraise that real estate
as Won would adjoining real estate. any |
more than you would appraise tne Zee
of the third or fourth or fifth genera
tior vet to be born in some ehtalieu
which should be used for 'i'e
next 100 or 200 years by the present o.
Cupants. -.,,.
suppose the city Of Augusta uld Pe'-
nil the Maine Central Railroad 10 :.
n,nv ground for the tracks of IT'S man
roadway which, BY an appralsemeht -
the adjoining property. would De Sai"
IN he worth 50 or $40 square ioot'
That property to the railroad Is %
no more use. other than for railway
nnrnosas. than bridge across me
i nnnebec river or any other part Of me
rcodwav. because it cannot dispose OIL
II INIT must continue to use it whether
# ;s high priced or low priced
Let me give you an Illustration a9
10 the Boston 6, Maine Railroad III tlie
CIV Of Boston. where the Union st"-
tio1 now stands. The property Wheie
that stands was. much of II, early
bought at probably not more thah ~
cents a square foot. 1t was nat iaii'
.rd If was filed. 1t has been useo ever
si,,ca tha purchase for railway station