Daily Kennebec journal., 1922-06-19

TlSlS. Sr1Ah =. f1IS n OohN
or Augusta, Elected President of
National Bankers Association of
Maine
the Interstate Commerce Commission
IN its decision in the rate case. We
might naturally expect that similar
concessions in the matter of taxation
and otherwise would be made by the
public in this territory. But unfor-
tunately our own state, which ought
to be the most liberal in the treatment
of its railroads. is the most severe.
Excessive and unreasonable taxation
is one of the heaviest and hardest
burdens the railroads of Maine are re-
quired to bear.
The railroads Of Maine pay tax
upon their station buildings and other
real estate. exclusive of right of way,
in the city or town where located.
This property is assessed by the local
assessors at the same rate and in the
same manner as other taxable prop
ortN therein. In addition to these
taxes the railroads are required to pay
an excise or franchise tax to the state
equal to five ana one half per cent Of
their gross revenue. The constitu-
tionality Of this tax has been stis-
tanned on the ground that it is a tax
urOn the franchise or privilege grant
cd TO the railroads as common car
riers. 1t is probably safe to say that
there is no legitimate business in
Maine which could stand 4 tax Of fixe
and ono half Per cent Of its gross re-
ccipts for tho privileges it enjoys in
addition to local taxation ana the
not income.
In principle the excise tax is fair
and reasonable and has been extern
sivcly adopted by the different states.
hUt no state has ever imposed SO
large tax unon the franchises Of its
which imposes the heaviest excise tax
outside Of Maine, and whose railroads
are extremely prosperous tho tax is
three and onc-quartcr per cent of
gross revenue. but is in lien of all 9TH
/ or taxes, while in Maine the tax is five
and one half per cent in addition to
Other taxes.
\ We have to cross the continent 10
I find a state whose excise tax on rail
roads approaches our own even TO
this extent Whom We make Il COM
palIson With the other Now England
states tho difference is much greater
]" Vermont the maximum tax is -four
p0r cent. Of gross earnings and is in
! lieu of all other taxes In Rhode Is
l&nd II is ono per cent in addition to
. local aSseSsmc cnts. In Connecticut it
. IS three and onc-haIf per cent. from
/ which all local taxes are deducted.
/ T"cnty-One per cent. Of the total
taxes Of the Boston and Maine Rail
road is paid to the state Of Maine, al
/ though less than seven pcr cent. of
\ ITS tracks arc in this state. If taxed
I'm the other Ncw ENGLAND states in
which it's tracks are located on the
basis Of tho tax in Mainc, ii annual
taxes would he Increased more than
! Sf,750000.
/ The excise tax now imposed not
/ only places an unreasonable burden
upon the railroads. but it also retards
\ the development d our industries
dcpriVcs the public Of TRANSFORMATION
facilities which ate needed ANA is in
dcfenSible upon any ground Of public
I policy.
Since the present rate of taxation
was established in 1911, enormous
sums have been expended bv the
state in the construction and main
tonancc Of permanent highways. with
The results that a large part of the
tourist travel ana freight business of
me railroads has hCcn diverted to au-
!tomohiles ana motor trucks. Thus are
tho railroads taxed for their own de-
structiOn.
In Wow Of tho great increase of
tafihc now moving by motor trucks
over the highways butt and maintain
ga hy the state the question naturally
dliseS whether the owners Of trucks
DONG business as common carriers
should not also be subject to a fran
chlSe tax and to some regulation BY
the public utilities commission.
we are giving much attention lust
now 70 advertising the RESOURCES and
attractions Of our State. The Maine
| IuhNcltN Bureau and other bodies arc
performing excellent service and de-
serve the encouragement and sup
/ port of all citizens. We are all in
terestod in the development of Maine.
! In this connection let us not forget
that the agricultural. commercial and
| industrial growth tf Maine is largely
dependent upon transportation.
\ Hon. Herbert Hoorer the secretary
! Of Commerce. recently made this
statement: We tall. glibly of giving
billions of credit to foreign countries
to increase our farm exports. I wish
TO say, with all responsibility for the
statement. that a billion dollars spent
| upon American railways will give
more employment to our people. more
advance to our industry, more assist
ance to our farmers than thrice that
sum expended outside the frontiers of
the United States
| The prompt restoration of the credit
of the railroads of this section so that
needed improvements and bettermen:s S
may be made. improved service pro-
vlded and greater efficiency of opera
| ton secured is a matter of public
icnncern and should underlie all Of our
efforts for the development of Maine.
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