Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-01-18
Eugene Hale Reelected
United States Senator.
Bill Presented Doubling Excise
Tax on Railroads.
important Extension Of Railroad
Through kennebec Valley.

branches Of the Legislature reasscm-
| bled at 1920 o'clock. for u short but
SPICY session, Tuesday. The bills pre-
scented i'll the House We're of paramount
interest and the peace and quiet that
mas broOded over the Hall of Repre-
Sei'ftiveS foF the past two weeks was
fui'lied somewhat. Tuesday, when
Il. \. Merrill of SkOWhegan. intro
drred IN act amending Section =, of
Cnap. of the Revised Statutes r,lat-
ing To the taxation Of railroad COM
panics. In effect the bill Increases the
TAX on the gross transportation re-
reil'ts per mile. from a limit of per
cent. to not exceeding 10 per cent. thus
increasing the taxation of all the prin-
cinal steam railroads i'm the State near
ly double what il is under the present
law. AS amended the section reads as
follows:
THE amount of such annual excise
tax shall be aScertained as follows:
The amount of the gross transportation
receipts as returned to the rail,ol
commissioners for the year ending OF
the 3Oth day of June proceeding The
levyi'IS of such tax. shall be divided
by the number of miles of railroa, op-
Grated to ascertain the average gross
receipts per mile: when such average
receipts per mile do not exceed si00
the tax shall be equal to l.. of l per
cent of the gross transportation re-
CENTS: when the average receipts per
mile exceed $500 and do not exced
$3.50 the tax shall be equal to 3. of |
per cent. of the gross receipts: ana 50
OH increasing the rate Of the tax Il Of
l per cent. for each additional $3.50 of
average gross receipts per mile or nae
tion;l part thereof provided that the
rate shall i'll no event exceed 10 per
cent. When q railroad lies partly with
in and partly without the State or is
operated us IL part of Il line or system
extending beyond the State the tax
snail be equal to the same proportion
Of the gross receipts in the State as
herein provided and its amount shall
be determined as follows:
The gross transportation receipts of
such railroad line or system as the
case may be- over its whole extent
within and without the State shall be
div ided by the total number of miles
operated to obtain the average gross
re, eiptS per mile and the gross re-
ccipts in the state shall be taken to be
the average gross receipts per mile
multiplied by the number Of miles OPP
Grated within the State"
The present law reads as follows:
sec y. The amount Of such annua!
excise tx shall be ascertained as fol-
lows: The amount of the gross trans
;,nrtatiOn receintS as returned to the
railroad commissioners for the year
In Of
ing the levying of such tax. shall he
divided by the number of miles of rail
road operated to ascertain the aver
age gross receipts per mile; when
such average receipts per mile Go not
exceed $500, the tax shall be equal to
/. Of per cert. OF the gross trinspor-
tation receipts: when the average re-
CENTS ner mile exceed $1,000 the tax
shall be equal to y of per cent. OF the
gross rcreipts: and so on increasing
the rate of the tax u of per cent. Tor
each additional $500 of average gross
cpipts per nile or fractional part there
of provided that the rate snail III no
event exceed per cent. When 4 rail-
road lies partly within and partly with
out the state. or is operated as Il part
OF :, line OF system extending beyond
the State the TAX shall be equal - me
same promotion Of the gross t"celP'S
in the state as herein DroN ihei. ana
its amount shall be determined as ioi-
lows: The gross transportation rtt'"ptS
OF such railroad. line or system Us tile
case may be- over its Wnol" extent.
within and without the Statt', snail ne
divided by the total number oil niles
operated to obtain the average gross
ra,eipts per mile and the gross receipts
IN tie state shall be taken 10 ne the
average gross receipts per mile multi
nlied By the number of miles operated
within the state.
According to the assessors report OF
1903 the excise tax Of the Name teh-
trail Railroad was $2OS,29?1l AZ per
cont rate. Under the proposed law
tho nercentage of taxation would ne
~ and the excise tax $50 i.o42.l5-
S169o43.O2 more.
The Boston & Maine assessed AT
s91S46.SO at 4 per cent. would. nnh'r
the proposed bill. amount to s229.bl' Ut
the rate of 10 per cent. This would ne
S13-.1,,O.20 more than is paid by TINS
road at present.
The Portland & Rumford Falls Rail
road assessed at so+.333.5' at Il rate OF
| nor cent. would he assessed at per
| cent. ami pay double this amount.
The Bangor & Aroostook Railroad
now assessed at the rate of IA per
cent. amounting to sa9,'l'.6S. would
he assessed ut the rate of 3 per cent
or s5O.59S3O This is s21.0S2.62 more
| than assessed at present.
At the present rate of taxation there
are three railroad companies In TINS
State assessed AT I per cent. the limit
of the rate under the present law. VIZ
Boston & Maine. Maine Central ana
the Portland & Rumford Falls. There
| are the roads which would be greatly
affected by the Merrill bill. The Ban
gor & Aroostook and the Washington
County Railroads would not be affect
ed as they are exempt from paying VI
per cent of the excise tax assessed
| Gil account of provisions in their
| charters which release them from TINS
| amount in return for free transporta-
| ton Of troops i'll time Of war. The
! smaller railroads of the State would
| no Saya,aly ,ffnrtpI hy the prOpOSpu