Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-04-02

gency mas been so great and SO i'm
portant that whether or not it at
tracts the attention of this Legisla-
ture 1t has attraced he attention of
the President of the United States
and he is going into the matter.
Coming back to the first PROPOSE
ton, you've got a big industry in
the railroads in Maine, which with
agriculture is the great underlying
industry-and you've got it on it's
knees. We are not like the cotton
mill and other industries, for we
can't go out of business. neither can
we control our income or our outgo.
The income is controlled by the In
terstate Commerce Commission and
the outgo by the Labor Board and
taxes.
The State. of Maine wants to 4 be
in a position where it can say to the
big business men we have done our
part toward relieving the situation;
to the stockholders that we have
done our best to make the stock val
liable and to the employees you
should meet the situation fairly and
be able to say we've done our part"
1t has been said: "Oh. let the
road go into the hands of a receiver"
No receiver will take money out Of
his own pocket to run the road and
it costs just the same to run it one
way as another. The Bangor &
Aroostook is the only road in Maine
that is paying expenses and at that
is not earning what it should.
l feel that this committee will look
at this matter fairly. just as though
it had come in earlier.
You will find men who will say that
they could run the Maine Central and
make it pay. There is always some
one who can do things a little better
than anyone else.
1 want to say right here that I
was much gratified by the words
spoken OF the Maine railroads at the
recent committee hearings in Boston.
Some of the great business men who
sharply criticised the Boston &, Maine
and the New Haven, said that the
Maine railroads are most economical
ly and efficiently run.
/ don't think it is generally known
that the Maine Central has never put
out a single share of stock except for
cash. 1t is and always has been a
bona fide business proposition. 1t is
in position today where 1T asks
not for much--but just as you and
I would go to our local assessors and
ask for taxation relief The Maine
Central has paid well in taxes, don't
Increase the burden.
A sixth of the Maine Centrars lines
were located in New Hampshire and
Vermont. Mr. Pattangall stated, and
the total etaX which it paid on those
States was $4,000 Taxed on the
same basis in Maine their State tax
would be about 100000. Outside of
California no State taxed railroads
higher than Maine. So long as the
roads of Maine were prosperous he
did not object. He did think that to
assess the same tax on gross earnings
when the road was operating at n
loss that was assessed when it was
earning a surplus of "a per cent. could
not be justified.
An increase of q mill in the State
tax would cost Augusta 1000, but
a five per cent. freight raise would
cost the city many times that.
There was great deal to. this prob
LEM One OF the problems was whe-
ther the railroads could be run under
private control and the most of the
people of Maine had been brought up
to believe that business was best con-
Quoted by business men. There was
one thing that must be borne in mind !;
II the railroads were forced into gov
ernment ownership there would be no
railroad tax for the State FAT all, be-
cause they couldn't tax railroad prop
crty.
It must be remembered that this
was Maine. not Massachusetts or
Rhode Island. This. said he, is a
great undeveloped State and we need
the things of a pioneer State. Maine
needs more, not less railroads. Maine
had always heired railroads.. But for
the help extended by Aroostook coun-
ty there would be no railroad there
and tie same was true of Washing
ton county.
Questioned by Rep. Winter of Au-
burn, Mr.. Pattangall said that from
his Investigations he could not re-
gard the Maine Central as a prosper
Gus road at the end of 1920, as it
showed a deficit
Under the constitution" said Mr.
Winter. ''all property is to be taxed
the same?"
That depends" was the reply,
upon the kind of property. You
don't assess a franchise tax the way
you dc & property tax. I'll ask you
if you would tax savings bank de-
posits at the same rate of your local
property tax"
Certainly not
Il didn't think you would" com
mented Mr.. Pattangail
Rep. Winter then inquired if Mr..
PattanSall. in view of the fact that
the average local tax rate in Maine
had advanced 81 per cent. he did not
think the railroad could stand the
advance. and was told that there was
different way of looking at it. If a
piece OF property had decreased in
value it would be taxed at a lower
valuation. which was a different
proposition.
Asked concerning the value of the
property of the Maine Central, MIR.
Pfttangall said that he had never had
much experience valuing stations, but
he knew that steel and ties had in
creased in value. but" said he, rail-
road valuations are not determined
hnxy i