Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1908-12-23

cent. on deposits represented by invest
ments within the State This discrin ma
saon in favor of investments within the
otate seems to be the settled policy Of sue
eesoing legislatures, and we recommend
The State levies a tax Of one. half of one
per cent. on savings deposits in trust COM
panies, with the same exceptions.
Witnln recent years national banks have
opened savings departments and have
competed for this class OF accounts with
tne institutions chartered by our legisla-
ture. These deposits in national banks
a.e taxable under our statutes, to the in
tlsiuuai oeposltor, where he resides, at
the local rate OF taxation, but as matter
OF TACT, very small part, il any at all, is
listed and taxed.
uhder our laws, il thousand dollars is
deposited in the savings department OF q
trust company, the State receives an an
nnai tax OF %, but il the money is with
drawn from trust company and de-
posted IN national bank the State loses
the tax OF %.
The local assessors in turn are to notify
the state officer OF the amount of the de-
posits returned to them. On these de-
posits the individuals are to pay tax OF
seven-tenths of one per cent. Greet to the
state. The law provides, however, that in
lieu OF these returns by the depositors,
the banks may elect to file an affidavit
STATING the aggregate amount of such J.
posits, and voluntarily offer to pay the tax
deducting it from the depositor's account,
and upon the payment OF the same the
accounts become exempted from local
taxation the same a. deposits in trust
companies and State banks.
We recommend that such q law be en-
acted in this State, except that the rate be
liked ct one-half Of one per cent. instead:
Of seven-tenths, thus putting such de-
posits on parity with like amounts In
savings banks and trust companies.
We also recommend q law requiring
cashiers to return to the board OF State
assessors an itemized list Of such deposits
which shall include the name, residence
and amount due each such deposition, I'M.
less the bank itself shall elect to pay the
tax.
MERCANTILE CORPORATIONS.
Under this heading We include all cor
porations other than public service COR
State exacts certain fees ct the time OF In
corporation and small graduated annual
franchise tax. Tho corporations of this
class, to our minds, are the only corpora
tions that pay what may be strictly called .
franchise tax, inasmuch ~ the payment
of the State tax does not carry with 1t any
exemptions in respect to their property,
tions. During the year 1907 the State re-
ceived from the organization OF new cor
porations e135, 7Sz.6O, and from the annual
tax on the franchises Of such corporations
e145, 316, making total Of 4281, 07.50. As
to the advisability Of granting charters to
this class OF corporations 1t is not within
our province to discuss, but from the
point OF view Of producing revenue, we do
not advise any change in the rates.
We would suggest the advisability OF
levying q small annual tax on foreign cor
porations doing business in our State, and
also provision that such foreign corpora
tions appoint by power OF attorney some
State official upon whom legal service may
be made. This is for the protection OF
Maine citizens doing business with such
companies.
MAKE AUTOS PAY FOR ROADS.
At the present time the State requires
owners of automobiles to register their
machines and at the time of registration
to pay a small license fee-the registration
remains in force until the machine is sold
| We would suggest to the legislature the
advisability Of requiring an annual gradu-
power OF each machine, the amount sc
| collected to be added to the so-called
estate road fund.-. 1t must be conceded
| that the larger the machine the greater is
the injury to the highways and it there
! fore seems to US that il an annual license
| is to be exacted, the owner of a 40 horse
power touring car should pay more for the
use OF the road than the owner OF light
runa bout.
The existing special provisions spplIca-
BILE to dealers should be revised to CORE
spond with the foregoing recommends
ton.
WATER POWERS.
The taxation of water powers should BIZ
carefully and thoughtfully considered by
the Legislature. We have not sufficient
data to make a recommendation on this
subject. We would suggest, however, the
advisability Of ievying annually special
State tax on each developed horse power
and Of expanding the amount SO received
in the execution of broad general scheme
OF scientific storage of these waters and
the regulation OF their flow.
MUNICIPAL TAXATION.
Should the legislature adopt our recon-
mendations for raising State revenue
the taxpayers in the cities and towns
| will be benefited the additional amount
to be assessed against wild lands
and all taxpayers will be equally
benefited by the additional amount.
The increased amount to be assessed
on public service corporations will be
determined by the rate fixed by the
legislature. An increase on S200, 900 would
seem to be an ultra conservative estimate.
The inheritance tax ought to yield an in
crease of 5000, 900; the tax on savings de-
posits in national banks, $50 900; the tax
on insurance companies, $4,000; the auto
mobile tax, $4,000, making a total in
crease of revenue from indirect taxation
of $780, which with the additional
amount to be assessed on wild lands
should reduce by at least one-half the
present aggregate amount of direct State
tax to be levied on cities and towns. This
reduction is based on the assumption that
future Legislatures will not appropriate
sums in excess of the amount granted by
the legislature of 1907.
The result of our recommendations will
be a largely increased State revenue with
out depriving our cities and towns of any
Of the present sources OF revenue.
We shall now consider under appropri-
ate headings the taxation of certain clas-
SEES of property from which cities and
towns derive revenue for purely munici-
pal purposes.
LIGHT, POWER, GAS AND WATER.
Electric light, heat and power compa-