Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-02-09
TAXATION
Distribution Of Railroad Stock Money
Among Towns and Cities

Distribution of Railroad Stock Money
Among Towns and Cities
! Hearing on the Swift resolve to dis
| tribute among the various cities and
towns in Maine where owners of
Maine Central stock reside the sum of
$1S401505 of the Maine Central tax
| for the years 1915 and 1916. on account
of the stock held by the Maine Rail
ways Cos. in trust for the benefit OF
the Maine Central and its sharehold-
ers, was held before the committee on
taxation Thursday afternoon. James
! NJ Gilln appeared in favor of the re-
solve, representing the city of Bangor,
and Frank l.. Dutton appeared in be-
half of the city of Augusta. The re-
solve was opposed by Attorney Cen
eral Guy III. Sturgis on behalf OF the
State, by Senator Albert A. Burleigh
of Aroostook and by State Master w.
j. Thompson of the State Grange.
No one was present for the propo-
nents when the hearing opened at 1.30
so Attorney General Sturgis spoke for
the State. He reviewed the conditions
surrounding the formation of the
trusteeship known as the Maine Rail-
WAYS Companies to take over, with its
own notes and s3.000,000 of capital fur
nished by the Maine Central Railroad.
the 159,601 shares of Maine Central
stock held by the Boston & Maine. He
also told of the written opinion given
last year by Attorney General Will
liam r. Pattangall. when Portland
was seeking to get the whole of the
distributable portion of the Maine Cen
trail tax on account of this stock. if
any, that nothing should be distrib-
uted by the State on account of this
stock but that it belonged in the State
treasury.
Under the taxation statutes the State
returns to the municipalities where
railroad stock is held a sum from the
State railroad tax equal TO 1 per cent.
Of the stock so held in the town, in
lieu of the municipalities taxing this
personal property. Under the ruling OF
Attorney General Pattangau that
nothing should be distributed on ac
count of the Maine Railways Compa-
MES stock, Attorney General Sturgis
explained. all of the sum called for IN
this resolve had been turned into the
State treasury and had been expended,
so that if the resolve were to pass 1884.
900 would have to be raised from all
the municipalities by general taxation
to be paid over to those municipalities
where Maine Central stock is held.
"If you're going to cut a melon it
might as we'll be a good one" he said.
"you might as we'll make at 81, $4,000
Mr.. Sturgis, who explained that he
had only an impersonal and official in
terest in the matter said he believed
the Maine Railways Companies was
merely a method of retiring certain
stock and that he did not feel like dis
putting Mr.. PattangalIs opinion that
no return should be made upon it. He
pointed out that before the Maine
Railways Companies took the stock
over there was no return to the mu-
inequalities on it because 1t was own
ed outside the State.
Rep. George II. Allen Of Portland.
secretary of the committee. read
statement of Harry NJ. Verrill of Port
land, who, with Charles o. Bancroft
and Morris Mcdonald formed the trus-
teeship known as the Maine Railways
Companies, showing the method by
which the trusteeship by its notes and
sale of stock raised credit to purchase
tral stock, and that this stock has now
all been disposed Of by distribution,
cancellation or sale.
If the money belonged anywhere,
said Mr.. Sturgis, it belonged to the
municipality in which resided the trus-
tees who held the stock, that is, to the
city of Portland.
Mr.. Gil:n of Bangor made q very
-.
solve. pointing cut that this return of
1 per cent on the stock owned in each
municipality was the only return towns
and cities receive in lieu Of the taxa
ton they otherwise might impose upon
this valuable personal property to en-
ablo them to bear the heavy burdens
which are placed upon them. The mu-
inequalities were entitled to this re-
turn. he claimed. and the minute the
stock came into the State it became
subject to the statute providing for a
return of l per cent. of stock to the
municipalities where stock is owned.
Mr.. Gillin asserted that the stock
held by the Maine Railways Compa-
MES was not treasury stock, but the
title to Il was h ID by the trustees. The
stock was held for the benefit of the
J other stockholders or the Maine Cen
trail Railroad, was not to be disposed
Of without their consent, and he claim
ed therefore that the equity to it ac-
tually belonged to the individual stock
holders and that the l per cent. tax
return on it should be made to the
municipalities where the stockholders
resided
Senator Merrill questioning Mr.. Gill
lin about the basis of stock ownership
on which this one per cent is paid out,
asked him.
Where was this stock owned? Was
it owned in Bangor, or Augusta or
. Skowhegan?'
No" replied Mr.. Gillin.
WAS it owned in Portland
The attorney general says not, and
I'm inclined to agree with him. answer