The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1906-05-10

Special assignments hdJOIleS anu
Minority reports of Committee on
Taxation, reporting fought not to
pass and ought TO pass in new draft,
on Bill, To amend Revised Statutes
relative to taxation of railroad com
panies.
Speaker and Gentlemen of the House:
The bill under consideration, that of
increasing the tax on railroads, is one
of great Importance, not only to the
railroad interests of the State of
Maine but it is also of interest and
Importance to every individual citi-
zen within the borders of this great
State; and / approach this question
with a great deal of timidity because
il is one that involves a very large
amount in it's consideration. A very
large amount of money is involved in
the consideration of this question,
and it is enc that should be carefully,
candidly and fairly considered by the
members of this House, | have pre-
pared table showing certain things
and | will ask that the messengers lay
upon the desk of each member of the
House printed copy of the table.
say it demands careful and candid
consideration, and nothing but us
tice, and even handed justice should
be allowed in any manner to control
your votes upon this question. 1t IS
undoubtedly the most important
question financially that has, or will,
come before this session of the Legis-
lature 1t involves nearly quarter
of a million dollars; and if the pro-
posed bill which is before you this
morning should become Il law, 1t Will
add to the treasury of the State of
Maine by the increase of taxation
upon steam railroads in this State the
sum of S225, 900.
This may seem to you at the first
blush a very large amount of money.
Indeed it is But you must consider
that it involves a very large amount
of capital and assets owned within
the State of Maine, or controlled
within the State of Maine, and doing
business here to be taxed, nearly one
hundred millions of dollars worth of
railroad property within the State of
Maine Now, one of the first and
most important principles to be con
sidered is the revenue of the State.
How is that revenue to be raised?
You will all answer, by taxation. But
upon what shall that tax be levied,
how shall it be levied, and what
amount shall be levied upon the vari
Gus kinds of property in the State of
Maine? The general idea of taxation
is that the tax shall be assessed upon
property; and our constitution pro-
ydes that all property within the
State of Maine shall bear its fair and
equal and just rate of taxation. Upon
all real estate, upon our personal
property, generally speaking, the tax
is assessed according to it's value
different rule prevails in relation to
the taxation of railroads, and for two
reasons. and | think it is generally
admitted by learned financiers and
writer's upon economics that the best
method of taxing railroads is by tax
ing them upon their gross receipts.
Four wears ago in this very hall |
heard President futile, President of
the Boston & Maine, President of the
Maine Central, President of the
Washington County Railroad, say
that he believed that the method of
taxation adopted by our State upon
railroads was the best yet devised.
Now, the present bill does not change
the method of taxation in the least
1t simply changes the rate of taxa
ton upon the gross income of the
road. If you will look mt the table
which has been placed upon your
desks you will see that the reading is
as follows: "The following table
shows the gross assets of each rail
road operated in the State of Maine,
gross transportation receipts in
Maine, the gross transportation re
eeipts per mile, the proposed rate of
taxation, the proposed tax, the
present rate of taxation, the present
tax, the increase of tax under the
proposed bill and the amount of tax
each road would pay on the basis OF
valuation based upon average rate
paid by other property assessed in
the State of Maine"
call your attention to the heading
of this table. All railroads not earn
ing in excess of $500 gross transpor
tation receipts per mile pay five mills
on the dollar of their gross transpor-
tation receipts in lieu of all other
taxes payable into the treasury, eX
eept that their real estate is taxed in
the localities where the same is stu
ated and taxed the same az other real
estate. This tax, under the present
law and under the proposed bill, is
what is called an excise tax. Now,
when they earn more than $1,000 gross
transportation receipts per mile they
are taxed under the present law, and
not exceeding $1,000, three fourths of
one per cent upon their gross trans
portation receipts, and that rate is
Increased one fourth of one per cent
as the gross earnings per mile in
crease each $500; so that at $1,000
they pay three -fourths of one per
cent, at $500 gross transportation