, 1905-01-18

with full notice that here it will not be
permitted to do wrong. but that here it
will always be safe and protected so long
as it does right. New jerseys example
has been followed by her sister states,
and pparently the federal government
is about to do likewise. Let us take an
other step in advance and lead the way
along the path of enlightened public SEN
timent on this important subject. l rec
ommend the appointment Of a commission
to this end.
Taxation.
The question of taxation is not a new
subject of discussion. 1t is a problem that
grows with civilization and becomes more
acute as the demands of civilization in
crease the expense of government. The
state should have but one object in levy
ing taxes-that is, to raise money to MAIN
tain and administer the government in
order to protect the lives, liberties and
property of the people. Equality of taxa
ton in our state is the mandate of our
constitution, and if all property was now
assessed for taxes by uniform rules ac-
cording to its true value all property per-
sonal. real and corporate. would share
equally in the expense of the government.
The platforms of both parties in the last
campaign utCltItu u tquhl dAotio "a
all property and for a revision of the pres
ent system of railroad taxation to correct
whatever inequalities might exist. For
purposes of taxation railroad property has
been classified, apart from franchises and
personality, into two classes-the main
stem and the property used for railroad
purposes outside of the main stem. The
main stem is confined in some cases to
a ctrin Of land mot eXrppdin2 SiXtV-SlX
feet and never exceeding 100 feet in width.
This limitation was based upon the prin-
ciple that this property was not subject
to local tax and that it should not there
fore be permitted to absorb to any consid-
cradle extent the real property of the
municipality though which it passed. Rail-
road property outside of this main stem,
known as second class property, has,
however. absorbed and is still absorbing
part of the taxable realty of the several
municipalities and has long been recog-
nized as a proper source of taxation for
municipal purposes. With this principle
recognized, this property should bear it's
equal share of municipal tax burdens.
Equal taxation involves valuation as well
as rate, useless one without the other.
When the valuation of second class rail-
iOdu property has Dy IL proper treatment
Of review been adjusted to the standard
Of the value adopted by the local assess
Drs in each taxing district there is no
reason why it and the property of indi-
viduals should be taxed for the same pur-
poses at different rates. Let the railroad
tax law be amended so that second class
property be assessed at local rates. This
recommendation is made, and can be prop
al, 81. +. IL -c A. 49,
payer. 1t should be carried out with an
eye single to his benefit. l suggest, there
fore, that in framing the statute, in the
discretion of the legislature, it be pro-
vided that the value of this property be
certified by the state board of assessors to
the various taxing districts in which the
property lies, that this be added to the
municipal ratables already ascertained
and that upon this aggregate valuation the
local tax rate be struck. In this way and
not otherwise will the taxpayer receive the
benefit of a reduced tax rate and find relief
to this extent from the increasing burdens
of his annual tax bill.
Railroad Main Stem.
The main line of a railroad depends for
its value upon its continuity from ter
minal TO terminal. Property of this kim
has value as a whole. Divide it and you
destroy it. In estimating the value of
such property for purposes of taxation
1t should be valued as a whole. The sep
aration of this property into sections or
into real estate and franchises does not
conduce to the revenue of either the mu-
nicipality or the state.
In any modification of the taxation of
this class of railroad property due con-
sideration should be given to it's effects
upon the revenues of the state. Laws up
on this subject have differed at different
periods, but in all cases the income from
this source has been covered into the state
treasury for state uses. How far the state
can forego such revenue at the present
time is a matter for legislative consid-
Grafton. In recent years much of her in
come has been diverted to municipal uses.
Some sections of our state are asking for
the collateral inheritance tax; others are
asking for the tax on insurance COM
panies. The national government recon-
mends incorporating business companies
under federal laws. These influences all
tend to lessen the states income. Under
no pretext should the legislature be in
duced to forego that income to such an
extent that Il state tax be unavoidable.
To such a tax l am unalterably opposed.
The people have been free from this bur-
den for twenty-one years. Let us preserve
this happy condition.
The main lines of railroads constitute
a species OF property particularly adapted
to taxation by the state SO long as the
state needs the revenue. Railroads can
not move away; nor are they connned to
the limits Of a single taxing district, but
are the arteries OF trade and traffic for
the entire commonwealth. Nor must it