Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-09-07
Candidate Davis on the Railroad Tax.

ton of railroads. He has had more or
less to say about the tax of other cor
porations-though he has persistently
declined to state the amount of taxes
paid into the State treasury by the 80
mammoth corporations capitalized at
500, 900, 900 in which he is a stakeholder
or otficial-but he has dwelt at great
length upon the "inadequate and insult
ficient" taxes paid by our railroad cor
poratiCns. To be sure, the railroads
paid into the State treasury in taxes
last year the handsome sum of $519, 1853.
but Candidate Davis is firmly convinced
that they should pay much more and
that to get this larger tax out of them
they should be assessed upon their val
uation, rather than upon their earn
<ings, as under the present law.
This conviction, it may be explained,
is one that Candidate Davis feels only
when he is on the stump. AS a men,
Der of the Legislature he helped frame
and pass the present law taxing rail-
roads on their earnings. The law is a
good and just one. 1t compels the rail-
roads to bear a much larger share OF
the tax burden than they used to bear,
and it imposes this burden upon them
in proportion to their ability to bear Il.
But Mr.. Davis in the Legislature and
Candidate Davis on the stump are two
very different perSonages. This mas
been noted many times during the CAM
paign, as for instance when he has con-
demned the increased salaries which
as a member of the Legislature he vot-
ed for and worked to increase; and also
when he has condemned the assistance
given the Somerset railroad by the
Legislature Of which he was a MEM
Der, and against which measure he had
not a word of opposition at the time.
1t is the same with this law taxing the
railroads of the State. AS member
of the Legislature he assisted in the
passage of this law and recognized its
justice and its adequacy to meet exist
ing conditions. Now as a stump speak
err. seeking to bluff and bamboozle the
voters, he turns a complete and char
acteristic somersault and proceeds to
abuse that law and recommend some
thing radically different.
And what is the method of taxing
railroads which Candidate Davis OPP
poses? He says that the railroads
should be taxed on their valuation
"like other property" and not upon
their net earnings. This sounds well,
like many other things which Mr.. Da-
Wis says, until it is locked into little.
railroads. as Mr. Davis we'll knows.
and as the law distinctly recognizes.
are not ''like other property" They
are one of several classes Of public SER
vice corporations which cannot be taxed
like the property owned by other cor
pora tions and by individuals over which
these corporations or individuals are
complete masters. Mr.. Davis recon-
mends that the railroads of Maine,
whose valuation he sets at $SO0OO,O DOC,
should he taxed at 20 mills on this valu-
alton. which would yield the State. ac-
cording to his cheerful estimate,
yearly income Of s160O.000.
OF course, Mr.. Davis knows in his
own heart. as anybody knows who
looks into the subject, that such tax
would completely swamp and put out
of business the railroads in Maine. Ac-
cording to the figures Of the State rail-
road commissioners the net earnings OF
all the Maine railroads in 1905 we're
$751;, 900. and Mr.. Davis plan would be
to take all Of these net earnings from
them in taxes and s745,O0O in addition.
Sensible, is it not? 1t is good deal
like a lot of the other tommyrot with
which Candidate Davis has been insult |
ing the intelligence Of the voters Of
Maine during this campaign.
There is one railroad here in central |
Maine. upon which fully 100000 in cash |
has been expended which is to be sold
at auction at the court house in Au-
gusta next week. 1t will be a wonder
if the owners realize as much as $50, 600 !
on the whole outfit, rolling stock and !
ali. Yet upon this bankrupt railroad, |
according to the cheerful theory of Can |
didate Davis, an annual tax Of $4,000 |
should be assessed! The highest court |
in the land once declared that "the |
power of taxation ends where confisca-
ton begins" but little matters like su-
preme court opinions do not bother |
Candidate Davis. Tax the railroads all |
their net earnings and then as much |
more. is his policy! Never mind the |
ability Of a railroad corporation to pay,
or whether it is earning dollar above |
its expenses or not! Tax it on its val |
uation, as a farm or factory is taxed. |
That is the theory of Candidate Davis |
as advanced on the stump. OF course |