Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-04-03

dent. Prayer by Rev. w. T. LlFlils-
ston of Augusta. Journal Of previous
session read and approved.
Mr.. GILLIN of Penobscot: MIR.
President and fellow Senators: l wish
to announce the arrangements for the
demonstration at Bangor which Ban
gor is going to give on Wednesday
next | am sorry there are not more
of the members of the Senate present
But will you please communicate. and
| will also, with the absent ones, II
they are not here this afternoon, to-
morrow morning.
! There will be a special train which
! will leave here for Bangor at seven
o'clock, which will return here at five
o'clock especially for the Senators
and the same announcement VIII be
made in the House Of Representatives.
When you arrive in Bangor you Will
be taken care Of Your entertainment
will be given you at the Tarratlne
Club. all the members of the House
| and Senate together.
| The people of Bangor through the
chairmen of the different committees
specially request that every Senator
come and | extend the invitation. We
I
will furnish a special train to take you
over. AS | understand they expect to
entertain the members of the Senate
and the House exclusive of any other
people That is as they instructed me
and asked to have every member come
and special entertainment will be Civ
en- them at the Tarratine Club.
| Wednesday morning at O'CLOCK. the
Is 1alyr n
! station.
on motion by Mr.. Davies of Cumber-
land the rules were suspended and the
| following communication was received
from the Executive Department and
was read by the secretary;
To the Senate and House of Rcpresen-
tatives.
/ Gentlemen
During the next few days. YOU will
pass upon n series of taxation meas
ures which will determine how much
/ of the revenue of the state during 1917
and 1915 will be raised from indirect
taxation and how much by direct tax
upon the people.
! Fer the past few years approximate
L. one-half the total revenue of the
state has been provided by direct
tax upon the people. and the other
half by various forms of indirect tax
alton For The coming two years, be-
cause of imitation in prices we are con-
frcnted with necessarily increased ex-
renditurcs in all departments and in
stitutionS You will recall that / point
cd out in the budget message that to
grant the amounts asked for and mako
iy,Ii
rect taxation. would impose upon the
people of the State a direct tax of not
less than eight mills for each of the
years 1917 and 1918.
| suggested reduced schedule of
expenditures involving rigid economy
| in the mana cement of all departments
/ and institutions and showed, that by
| adhering to this schedule and enacting
F.. certain laws increasing the revenue
! from indirect taxation. the entire nee
essary public financial program. includ-
ing the mill tax for roads could be ac-
/ complished with direct State tax of
only five mills for each year, the same
! rate that has heretofore prevailed. This
means a saving Of more than $4,000. 600
to the people of the state in the two
years as compared with the tax rate in
dictated by the estimate filed with the
State auditor.
| The schedule of expenditures has in
fact been worked out in almost exact
accordance with the budget suggestions
The total public expenditures agreed
upon for 1917 exceed the budget recon-
mendations by only $7.292.OS. The total
excess in 1918 is s3S.oO7.67. In each
instance tho CHANCES
upon in conference with the committees
having the appropria tons in charge.
wish to express to all the members of
the legislature and especially to the
committees having the appropriations in
charge. my sincere appreciation of the
unfailing cooperation on your part that
has made this result possible.
You have also been willing. at my re-
quest. to delay action upon special items
outs ide tho budget until it should be-
come evident how much revenue would
be available. BY arrangement with the
committee on appropriations and finan-
cial affairs. these items will be provided
for in a supplementary appropriation
| bill. Only the budget items have been
included in the first appropriation bill
for each of the years 1917 and 1918.
What remains to be determined is the
apportionment of the revenue between
direct and indirect taxation The en-
actment of all the proposed changes in
/ indirect taxation. namely: increase in
the corporation franchise tax; taxation
of personal property in unorganized
townships. savings deposits in national
banks and intangible property: increase
in the tax on parlor cars. railroad. tele-
phone. and. telegraph companies and the
repeal or the railroad rebate tax law,
would make possible five mill tax for
| each year. The failure of any one of
these measures must be offset by a
corresponding increase in the direct
State tax beyond five mills. The fail
ure of all these measures would make
a six mill tax imperative and leave
scant margin for any special appropria-
tions outside the budget.
| These additional indirect taxes were
suggested with the idea that the special
interests concerned might fairly be
asked to pay their share of the in
creased cost of government. They have
appeared at committee hearings and
protested against the proposed in
creases. as they had a perfect right to
do. You are asked to remember that
the alternative in each case Is an in