Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-02-24
T axation.

Prior to the hearing. on the Merrill
bill the committee or taxation post
pOned to Tuesday. March >, the bill re-
| ldting TO the increase of the mill fund
| and school tax. Mayor Beal of Bangor,
Senator Clark and Representative
Stevens Of Portland all opposed 10 the
bill We're willing to concur with the
! promoters OF the measure to postpone.
Then for two hours the committee
| and Il large audience including many
| representatives of the various rail-
| roads of the State listened to Repre-
sent ttite Merrill of Skowhegan, gave
| Il concise view of the workings of his
| proposed bill.
In effect he stated that the present
| tax on railroads is not consistent with
| the taxation upon other property: that
under fhe constitution all property is
| 10 he taxed ON Il just valuation there
| of. The whole system OF the tax is on
| Il wrong basis. That the present Sys-
| tenn came down from centuries ago
when il was necessary for public rev.
enle which started taxation and the
| basis was then of taxing property ac-
Cording to its value. He believed that
every man ought to pay taxes accord
ing to his ability to pay them: that the
man VIII" earns s. a day is better able
To pay than the man who earns $50
and has a little home.
Mr.. Merrill tten spoke of the present
system of taxing railroads on their
SrDSS earnings and spoke Of the legis-
| lation in this respect which was ell
! acted four years ago. "\ow ii seems
| that the more you increase the gross
| earnings ner mile the better the road
can afford to pay an increasing tax.
| When they earn $4,000 or Sl5. 900 per
| nile gross transportation receipts they
can certainly bear "a little more burden.
Mr.. Merrill considered the bill of Sen
| atOr Staples to tax railroads according
10 their actual value and said that such
| n system is not equitable. An engine
on the Maine Central may earn hun
dreds of dollars while one on the Sc
basticoOk and Moosehead would earn
dollars.
That bill introduced by him proposes
that railroads be taxed one-Quarter of
one per cent. on additional transport
tation receipts per mile of $3.50 and
that the limit of 10 per cent. instead o.
4 per cent.
MIR. Merrill then took up the case OF
tie Bangor & AroOstook and said thai
| the question arises IL the l.. & A. can
fairly and justly, in comparison with
the taxes paid on other kinds of prop
t-rty pay the additional tax of sci ,0S2. &.
and said thar if they could they should
| with =. a. \. stock today worth
$50. for q par value of 500 owned by
L? men who have made 4 million out OF
this concern. are they mot able to pay
this increase in tax?' asked Mr. Mcr-
rill. / have heard that the stock is
worth $50
. Continuing Mr. Merrill argued that Z
great portion of the railroad stock is
owned outside Of tha State, that tn,
roads are wei able to pay an increased
, tax and that it properly belongs &c
, them SO to do and that by. means OF
the bill under consideration the tax OF
the farmer and small land owner
would be very much lessened.
Hon. George y. Bisbee of RumforJ
Falls of the opposition was the mex,
speaker
Mr.. Bisbce then read :hc petition IN
Guiding statement that the passage
of the bill would mean an additional
5000. 900 to 500, 600 for the state treas.
. ury
Mr.. Hishee took uD the case of the
Tumford Fails railroad explaining why
they Should not pay . higher rate and
Vas followed by Hon. Waldo Pettcn-
gill who spoke alnnS similar lines and
by Hon. William II. Haines who rep
resented the Somerset Railroad The
mest extended remarks against the bill
were made by Hon. Seth VI. Carter o,
Auburn. 4,
Action on thu bin was deferred hy
the committee.