Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-12-28
Maine Situation Discussed
By ". R, Psttangs||
In Address Before Mems Club
OF UniveTsaIist Church.
Present Conditions Treated and
Same Unique Plans Proposed.

| the lTniVersaliSt church and THEN
| frienGs to the number of $50 for 80 min
| utes Monday evening at the vcstry of
| the church with a discussion of Tax
alton in Maine" He devoted the lirsi
| half of his speech to the outlining OF
the t:Sation problem as il exists in the
State ut present and then outlined Il
plan for Il more equal system oil taxa
ton. The speaker was introduced by
Weston Lewis, president Of the Mems
Club
Mr.. Pattangall stated at the outset
| that Maine was obliged to adopt an il
logical system of taxation based upon
expediency and the best judgment of
the subjects from which revenue is
derived. He said that the clause Of the
State constitution. which declared that
all taxes should be assessed upon prop
erty equally and in accordance with
just value thereof had come to be in
tcrpreted by the courts as meaning
only that all property of the same class
should be taxed in the same way
Continuing he said 1--WE raise pref
ty nearly s1O.O00.0O0 in Maine annually
in taxes. Practically $6OCO.oCO of thar
amount is derived from real estate in
cities and towns. s., 100000 from person
al property in cities and towns, 100000
from street railroads. 100000 on wild
lands and the remaining s1,OO0,O0O
comes from electric roads, telegraph
and telephone companies, insurance
companies, banks. direct inheritance
tax. etc. About one-third of this $10.-
100000 will be disbursed and collected
through the State treasury"
The speaker then pointed out some
OF tie Inequalities Of taxation which he
said existed. The first instance named
by him vas that of the different classes
OF rea! estate. said he: Real estate to
the value of $500 200. 900 in the cities and
towns of the State pays g, tax of $4,000, =
900, while the wild lands of the State
amounting to one-siXth as much val
uation, $50, 900. 900, pay tax of hut $780,
900, or only one twentieth as much as
the cities and towns. The steam rail-
roads of the state valued in 1904 at $780,
O0O.nGO. in 1910 will pay tax of about
$4,000 Which is less than nine mills
on dollar.
Last year the tax on the wild lands
was slightly increased by q tax as
sessad upon them for the support of
the schools and I believe that it may
be still further increased by an addi-
tiOnal tax to be applied to the high
ways Three times since 1901 slight in
creasns have been made in the taxes
upon railroads and in every instance
inn han,,
met fairly by the railroads in this mat
ter. for while they have not of course
asked for this increased taxation they
have not opposed it,
Mr.. Pattangall stated that increase
in taxation along these lines would be
accomplished gradually and not by any
drastic methods. He said there was a
popular idea that it was useless to in
crease taxes upon railroads as they
would get It all back from the people
in increased freight and passenger
rates. 1T isn't true said the speaker.
"Ralroad rates are not based upon
costs. The traffic rate is based upon
competition when competition exists
anG where there is no competition it is
what the traffic will lear" He spoke
d NOIu III ltNoi VI tIt- SS VI
taxing railroads according to their
gross receipts instead Of the ad valo-
rem basis adopted by other states.
Our savings bank tax is as large as it
ever will be, in fact there is a tendency
to reduce rather than increase it, and only
a slight increase in the taxes from cleo
trio roads. telegraph and telephone COM
panics, insurance companies and the new
direct inheritance tax can be looked for
lie continued, $50 that We must look to
the wild lands and steam railroads for
nearly all our increase in taxation for
many years to come under the present
system. SO unless some additional meth
cd of taxation is devised the bulk will
still fall in direct taxation upon the real
and personal property of the State.
Mr.. Pattangall declared that the poor
classes pay taxes entirely out of proper
ton to the property taxes paid by the
wealthy and compared the taxes upon
small and large houses and upon small
mills owned by individuals and those upon
the plant at Millinockct of the Great
Northern Paper Co., which lie said was
valued by the State assessors at but $500,
900.
He advocated for equalizing the differ
ence between the two classes an income
tax in addition to the present direct in
heritance and collateral Inheritance tax.
He declared that he would be in favor of
restricting the State in taking a direct
tax to that necessary for the schools and
highways. A slight raising of the steam
railroad and wild land taxes with fair
income tax he declared would supply the
| necessary amount to be raised for other
purposes and only make it necessary ia
take from the cities and towns a direct
tax for common schools and highways
Augusta" said the speaker, has a
valuation of about $1.O00,0O0. The State
takes tax of five mills from your city
OF this amount y mills goes for schools
and three-fourths of a mill for high
ways. The remaining Il mills is used by
the State for general purposes. This
would amount in the case of the city OF
Augusta from $4,000 to $4,000 wnicn
would enable you to do many things in
the way of municipal improvements tina,
YOU would like to do
The speaker also advocated tie exemp.
ton from taxation altogether of the
cheaper class of homesteadS for the MIR,