Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-12-04

cannot be made to order The wisdom
of one generation is not sufficient for
succeeding generations. Taxing meth
DDS are result, a growth, develop
ment, made necessary by the history,
the experience and the general envi-
ronment of the people of state So
1t becomes necessary from time to
time TO modify our taxing methods to
fit the changes that are continually
taking place in new habits of living,
new methods of business and new
forms of property investments. The
history OF every state furnishes abund-
ant proof of this general condition.
Perhaps the best feature any taxing
system may have is its susceptibility
of easy change or modification.
Our original method of taxation in
Maine we inherited from the mother
state. Massachusetts, and during all
the years since our separation in 1920
you can trace a marked similarity in
our taxing methods,-in our general
legislation and in the decisions OF the
courts.
The constitution of Maine originally
provided that all taxes upon real es-
tate authorized by the state shall be
assessed and apportioned equally ac-
cording to the just value thereof, and
at later period this provision was
enlarged so as to include personal es-
tate. This is the uniform rule, social
ed. laid down for our observance in
this state. In the early periods of our
history equitable taxation and a uni
form method of taxation were sener-
ally regarded as Synonymous terms.
However, at a later period the Su-
preme Court of the United States in a
case in which the uniform rule was
invoked declared,
THAT system which imposes the
same tax upon every species of prop
erty, irrespective of its nature, condi-
ton or class. will be destructive of the
principle of uniformity and equality in
taxation and of a just adaptability of
property to it's burdens"
For more than so years after Maine
became a state practically all the
revenue for the maintenance of
state. county and municipal ex-
penses was derived from the gen.
eral property taxes apportioned under
the uniform rule laid down in our state
constitution. Expenses of govern
ments were very small in those earlier
periods compared with what they are
today. The first state tax levied in
1921 for the support of the state gov
ornment amounted to less than $40,-
00J,G0 and the highest rate OF any
state levy prior to the Civil War was
three mills on the dollar. The State
from time to time received considera-
BILE revenue from the sale of public
lands SO that no state taxes were
levied for the years 1S36-37-3 S and 80.
The necessary expenditures made by
the State and by the cities and towns
during the Civil War placed a heavy
burden of taxation upon our people.
Rates of taxation increased every
where. In 1860 the state rate was one
and one-fourth mills and in 1854 eight
mills and in 1866, the closing year of
the War, the rate was Is mills
There are no statistics available to
show how much the average municipal
rate increased during this period, but
in my own city of Lewiston in 1863,
when it became a City. the tax rate
was ten mills on the dollar and two
years later in 1865 the rate was 80
mills. / have no doubt our experience
many of the cities and towns.
The Civil War left heavy debt not
only on the State but in a large ma
jority of the cities and towns. The
only resource of the municipalities for
public revenue was the general prop
erty tax, but it was evident that the
State must seek new sources of in
come. The railroads of the State had
passed through the experimental or
Improbable stage and in 1874 the first
state tax on the railroad corporations
doing business in the state was i'm
posed Our railroad mileage at that
time was about one-third what it is to-
day. In 1876 the Legislature authoriz-
ed a state tax on insurance companies.
In 1880 telegraph companies and ex-
press business were added. In 1883
the first state tax on telephone COM
panies was authorized. We had in the
meantime a street railroad constructed
in the city of Portland and that was
made subject to state taxes in the
same manner as steam railroads but
at a much lower rate. State taxes up
on our savings banks were also auth
orized in 1888. In 1898 our first inheri-
lance tax law was enacted and in 1901
our general corporation franchise tax
law and tax upon the gross receipts of
palace cars were ordained by the Leg
islature. The savings departments of
our state trust and banking compa-
MES were required to pay taxes sub
stantially the same as our savings
banks by a legislative act of this ses-
sion. All of these tax measures are
still in force and in many cases, not
ably the railroad taxes. the rates have
been materially increased.
It would seem that practically every
source of state revenue is being utilized.
and yet, the much criticized general
property taxes are still our main reliance
for public revenue for in this year 1914
approximately $3.50 of our revenue from
taxation for state. county and municipal
expenditure is derived from the general
property taxation of real and personal
property. No doubt a similar ratio pre-
walls in most of the other states of our
country. A few years since it was my
privilege to make some Investigations of
the taxing methods of IA other states.
Six great states of the Middle West, five
oil nf