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


how would you appraisc the roadway
down here. this railroad from the bridge
across the river--to idiloweil-Wouid you
take il on the per foot plan OF the ad
Joining property? ! should answer. you
could not sell IL for anything excepting
the income Of the railroad transportation.
A man on the hill with house worth
s31 O1 can sell il and skip at any time ne
nlca ses-we have got 10 stay. How are
Won going to put value on that real IS
tate, and If you DO not start with us
value as real estate. how are goa going 10
mt a value on the property? what is
railroad station good for? You cannot
keep school in it. or set up Il grocery
store in il. You are going to use 1t Tor
the convenience Of passengers who pay
nothing for IL, who pay per mile FOR
transporta ton. We build q @JDgJ sta
ton as we did ~ Brunswick-ii Is taXed
al $35 900. but il does not earn the ran
road any more than the whole station
there which somebody for tunutcly burned
up. How are you going TO get NC va!Ia
on that?
Mr.. GARDNER: Passed on the value 81
It's stock and bonds, what would it be fair
To- say is the total vaiuc of the property
Of the Maine Central Corporation in
Mr.. FUTILE: should hesitate about
saving what would be It's fair VALUATION
| as property-that might be fair vllu1
| lion upon which interest and dividends
arr at the present time paid; but If you
arc t,, break up this corporation and I'M
| iertake 20 dispose Of its property aftcr Il
| has ceased to run. doubt ~ you coulI
! get one-uuartcr Of the value OF the stock
| ana bonds in open market. Your rails In
| the tracks as they are laid IN modern
, times are anywhere from SIG 70 $l2i ton:
| Wien they hav" ceased 10 be rails an
are taken out thcY are only good for
! scraD iron and worth - or -. and th3
| ties are worth nothing. ] am trying -
/ answer to The best Of my ability. II is a
| subject which | have Thought owe" many
many times we hayc got AZ sor,a ~
! taxation III orr different states. IN one
state fin" men go together aa 4 hnard 81
/ .uuiliZaticn sit around q table ana
I smoke Il cigar, ana say: fol mink th"sc
/ fellows ought to ne taxed. Nc haV"
mighty littir 10 say about It. anG th'y iI>
it In another state "" are taxed on IN"
| mileage. and IN another state ~ ar
| taxed on Che value OF the sto,k. la this
| Stat. we are taxed upon the gross earn
| ings Go all over the United States ana
/ you viii find, in arranging TINS natl" :
/ in arriving at cpnriu&lon- t"l Wiii Htu
! tfat they have taken an 'Spcdicnt AnI
settled an that YOU mad system NJ taN-
| alton upon stock. ana in hc DAYS l"h
1 hud That Ina Maine Central STOCK was
: worth 81 Il share AT Times ron chIng"t
/ Il to grass earnings. Ay Judgment II thtt
! the most az these laws tlut have been
/ r1ndr ia th, different states have bHfI
= mad. Ia meet tn, ckig. n,.iss III the tax
piestiun and II the time. II all tn. states
! had n low stock valuation Il was hecauSs
/ of the Improbable ness Of the railroads.
| This State does not tax upon the stock
. but upon the gross earnings. hut. in Oth'r
states where The stocks v AID. by reason
! az the prosperity uf IT," railroads. br
/ hi.:h. they said: THAT Is An easy wny-!'t
/ us fix ID that way. You raw. tried bnth
| This has stood the t"st NJ years u has
I hren ~ tte Hupr' me court ~ ms 7 nit"d
States. II ryCDiir,t right, ana been pro-
4 nounccd legal: ana II YOU ask my advice
do not ike 10 IutTGtc i'll should -
! Keep your form of law. make such
/ changes as are necessary to bring an in
creased taxation. and wait. You have an
other Legislature two years hence. asa:
! If you arr not satisfied, you can make
yourselves satisfied. This IS not for all
Mr. GARDNER: Would YOU give me a
! definite statement as tO thc value IN
Maine. " thi5 Properly. based upon
Il Mr.. FUTILE. | am unable ~ 90 H. 4
cannot % III wpuld like to have some
Mr.. PATTANGALL If the committee:
DO you know the amount Of state tax
paid ny the Boston * Maine for its prop
| crty In Massachusetts?
Mr.. FUTILE: ! do not recoliect It. I
can submit it. if the committee wants T.
| Mr.. PATTA NtiALL- What is the sys-
TEN there. Of taxation?
Mr. TURTLE: The system there is
upon the value Of The stock on the first
day Of May, deuuctng the mileage ont
side Of TIE staJe, ana d,ductiug from tn
| total ampt.nt the taxation lhat Is ar
rived lit hy tht local Iaxcs uuun tnv prop
.rty owned by tho acknowledgements i'll
side Of its location. fhe location IS free,
and the value Of all property outside Of
| the ioca ton II assessed to the different
towns and IL deducted nom the total
Mr. PATTANGAG.L: The rest is a per
/ Cvntagc on the value Of the stock
I Mr. IT TILE: The rest is "a percentage.
/ about q: per cent, think that Is
. on the market Nalr' Of the stock on the
first day of MAY. ! have not felt this
| wise. hut We have Elt il. 10 not think
( the Legislature ~ MA sSach ilSy tbs took Id
because they knew IL was wsc--but they
took il as yuu have taken your pIan, ana
I A.. ~. -. .rtTt