Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1921-04-05

| UuQof LQ6 O6Cl6lOQS VI Iu6 oupk0i1c
Court of the State water powers
altho they represent great value, are
not taxable as property. This de.
cision Is not In conformity with the
law Of many other states but Is bind
ing upon our courts until the State
Constitution is, changed. These
water powers today virtually escape
taxation and It has been well said
"for the State to receive no com
pensation of any kind for the util.
ization of such great wealth pro.
ducer (water flowing over dam, or
horsepower develOped) is to bring
into existence the greatest possible
injustice in the matter of taxation"
In Maine there are about 400, ,000
developed water horse power the fair
value of which is not less than 500
per horse power and in some devel-
opments its value is even larger.
There also is / 200, 900 horse power
undeveloped in the State. These
great values should become source
of revenue to the State. If the Leg
islature adopts this amendment and
if the people later ratify it the leg
islature of 1923 will be in a position
to pass some reasonable tax laws
under which these valuable rights will
share in the burdens of taxation.
Prof. George F. Swain of the Har-
ward Engineering School. water
power expert, in lecture delivered
in the Maine House of Representa-
tives of March 10th, 1921, stated that
every developed horse power in
Maine can do the work Of at least
3 tons of coal, He stated that this
means q saving of at least $50 per
horse power per year on coal basis.
If each horse power will save $50 per
year in coal 1t is easy to compare
what the annual saving to the people
of Maine would be If our water
resources were fully developed anu
gives an idea of the value Of Names
water-power. With the ever increas-
ing demands tor appropriations now
made upon our legislature, some
new sources of revenue must be oh.
tanned, else the burden of taxation
can no longer be borne by our
citizens.
It was my intention to submit this
amendment to you at an earlier date
but circumstances over which I had
no control prevented my doing so.
This Legislature in my opinion will
act wisely if it passes this construc-
tive legislation, for under the first
paragraph Of the amendment the peo-
pie can derive direct benefit from the
development of storage reservoirs
and water powers If they later deter.
mine by proper legislation that they
desire to do SO and under the second
some relief from the crushing burden
of taxation can be obtained without
injustice being done to those who
will be called upon to pay.
The amendment follows:
Constitutional Amendment.
''The conservation, storage, con-
troll and use of waters, and the de-
velopment, improvement, transmits
sion, utilization, electrical intercon-
nection, control and sale Of water
powers, by the State of Maine, either
directly or thru such public district
or districts, as the Legislature may
authorize and not otherwise are de-
clared to constitute paramount public
uses, for the accomplishment of
which right of eminent domain may
be exercised, and in furtherance Of
which the right Of taxation may be
employed; and the Legislature may
also provide therefor and for the
apportionment to, and assessment
upon, the lands and property which
shall or may be benefited thereby,
and according to the extent Of such
benefits, the whole or any part of
the cost of such conservation, stor-
age. development, improvement,
transmission, control. electrical in
terconnechon, and utilization Of said
waters and water powers, including
the cost of maintenance and opera.
ton thereof"
"For the purposes Of taxation
water powers and water privileges
within the State. and hydro-electric
energy generated therefrom, may be
treated by the Legislature as prop
erty distinct from the land or struc.
ture to which they may be appurte-
nant, or from which they may be de.
rived, and such powers, privileges
and energy may be assessed for tax.
alton in such manner as the Legisla.
ture may determine, at rates differ.
ing from the rate imposed upon real
and personal property within the
State: and such powers and pdvi'
leges may be classified as developed
partially developed. and undevel.
oped and different rate Of taxation
may be imposed upon each class pro
vided. however, that all such taxes
shall be apportioned and assessed
equally at uniform rates Of taxation
thruout the State upon the same
class Of property"
Respectfully submitted,
PERCIAL p. BAXTER
Governor of Maine.