Daily Kennebec journal., 1911-02-15


one step at time and SEQ how il
would come out.
Representative Pat;angall then outline
his bill before the committee. Ills meas
ure simply changes the rate Of taxation
applied to the present system. making the
rate per cent instead of per cent Iit
thought that the change would only eff
feet the Grand Trunk, the Boston &
Maine and Maine Central railroads and
would add about $4,000 increased rcvenu,
| In the State.
Seth T. Carter of Lewiston appeared
| for the Maine Central Railroad before the
! committee and with him was George S
| Hobbs, auditor of that road.
| The Maine Central did not appear In OPP
| position to the bill in the sense that il
antagonized the measures, but these Two
men brought with them the reports and
returns made to the interstate railroad
commission and laid the figures and facts
before the committee.
The question. as far as the railroad was
concerned was shown to be simply this;
In the past year the Maine Central Rail-
road has increased its operating eS-
penses through increased wages, addition
al train service and cost of fuel $451"",
and its increased earnings have been only
$4,000 1t is now paying the state tax
OF $4,000 and in 1911 will pay n tax of
1885,, 100 if the railroad merger bill does not
pass or n tax of ssa3,Ono If the merger bill
il asks for does pass. The question
which Mr.. Carter put up to the committee
was: rs it good policy for the State TO
place additional burdens on the railroad
al this tine when all around us railroads
arc being forced to increase their rates
and the Maine Central has not increased
its rates ut all although II is costing very
much more to operate the road today
than ever before and increased rates
might be justified. 1t comes right down
TO this" said he. I'm not here to say
that the Maine Central or the Boston d
Maine can't pay Increased taxes. They
probably can. But If You say to these
railroads for every mileage hook you sell
where You now are paying out In taxes
sl2l for every $50 taken in You shall in
the future pay I'm taxes sci. and for ev-
cry carload OF freight you haul you must
pay Sc In taxes. aren't you taking the
money out OF the people? The money to
pay these taxes must come from some
I'll
reduced. at a loss to the people. or the
rates must be increased. There are Ger
tain things which the railroads must do.
They must pay the interest on their bonds
and the people Of Maine Will be fair
enough to acknowledge that the stock
holders should be entitled TO something
on their stock, The question for the
members of this committee to ask them
selves is this: At what point must this
increase of tax cease and where must It
end for the greatest benefit TO the great
est NUMBER"
Mr.. Carter in briefly discussing the
proposition of Senator Staples that the
roads be taxed on their physical valua-
ton said that railroad property was not
like farming property or other property
The railroads had duty to perform to
the public. 1t is essential to the public
that transportation be provided in an ad-
equate form. and anything which might
cripple good transportation facilities
would be an injury to the people OF fhe
State. All Of the money which goes to
operate a railroad or to pay interest on
its securities or its taxes comes out or
the people and IS an indirect tax upon
them. One thing for the State to consid-
er, and consider carefully, Is what the
policy of the people towards the railroads
shall be. There must be limit somo-
where, he said. and this committee Hiust
determine where that limit is 10 be found.
Mr.. Carter also made another point
before this committee. II was that the
management of the Maine Central ana
Boston * Maine Railroads have shown
disposition in this State To do all
that they possibly can for the State.
They hava improved their train ser
vice so that today it is many times
better than il has ever been before.
The railroads have in addition laid out
a great deal OF money, something like
$4,000. 900 in the past year. to improve
facilities and bring additional business
irto the state.
why shouldn't it do these things,
you may ask, said Mr.. Garter. 1T ls
for the railroads interest to do these
things and it is doing them. What is
for the interest IF the state is also for
the interest Of the railroads. When
the state grows rapidly the railroads
increase in value, IL is some different
laying larger tax on me, gentlemen,
he argued. than it is laying an addi-
tional tax burden on 4 railroad. III you
put q bigger tax ON me or on my farm
can sit ND nights perhaps and work
harder and make enough money to OH
set M tax but in the ease Of the rail-
road this cannot be done. 1t must Eet
its money from hauling freight and
passengers. There Is oaly' SO much of
this business anyway and il cannot
earn more than naturally comes to 1t.
only so far as it can by the eXpcndi-
turc of larger sums OF money bring
about additi >n1l business TOR H."
state. There is only one way 10 get
money to meet additional taxes and
That is from increased rates.
Aq far as the bill of Senator staples
| is concerned Mr.. Carter said ne
couldn't sec how it could be consid-
cred seriously The states where they
| tax railroads in that way are differ
| entity situated than is Maine" he said,
In New Jersey for example. they tax
| railroads on ad valorem basis. The
Teople Of New Jersey don't pay the
tax. 1t comes out OF the through traf-
hc which passes through that state.
II is a temptation to New Jersey leg
inslators to tax this trafic for its costs