Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-13

1894 have reduced it by $475. 900. No
bonds ever should be issued for
longer period than 20 years. and
none should be refunded or geissued.
1t is we'll to remind ourselves that
once debts are incurred somebody
must pay them and interest runs
rapidly into large figures. Future
generations will have their own
problems to meet. problems as acute
as our own, and except IN grave
emergencies such as war or like ca
tastrophies the present generation
has no right to place mortgage
upon the property and prosperity OF
those that follow.
Taxes
1t should be borne in mind that
taxes come from the people, for cv-
erv dollar paid in as taxes has been
earned by omebody, somewhere anu
somehow, and that the only way TO
reduce taxation is to cut down eX-
penditure. When this is done every
body is benefited.
We would all like to see lower
taxes and the railroads are WORKING
for them and have entered upon an
active campaign to secure them. III
this they are supported by the news
papers and the banking interests.
Our principal Maine railroad is con-
stantly increasing its freight rates
and curtailing its passenger service
IL railroad taxes are reduced should
there not be some assurance that
freight rates will be lowered and
passenger service restored?
II you lower the taxes or one
group YOU either must increase those
of others or reduce expenditures.
lNN 10
round reduction of taxes l doubt the
wisdom of making any change at
the present time. Every well inform
ed citizen appreciates the need OF
proper railroad service. TO furnish
which the railroads must be accord.
ed every proper consideration. IL
their taxes, however, are lowered II
means that others must be called
upon to make up the deficit, either
through an increase in existing taxes
or through the imposition of new
ones,
An interesting comment on rail-
road MANAGEMENT is disclosed by the
recent report of the Sandy RiEer
Railroad. When this was under
Maine Central management II was
operated at a loss and the situation
became desperate. AFTER diNorclhE
itself. however. from Maine Centfai
control the present manaEers haNe
turned a deficit of $JI,134 into a
surplus of $16.7Sl.
Management is everything IN
railroad and the Sandy River situa-
ton calls attention to what can DC
accomplished through sound pIu-
dent and busincss-like methods. ms
furnishes n much needed object les
Ironfrnl 'Ehe OUcS-
tion naturally arises in the inquirinS
mind. why cannot the Maine Ne''-
trail do likewisc?"
Special Mill Taxes
There arc movements under way
10 nro>idc special mill taxes for Ger
tain specific purposes. This is welt
enough for the recipients, but III my
ouinion the special mill tax system
is unsound for it places a binding oh-
LEGATION upon suCct eding legislature"
and to a considerable extent deprlNeS
them OF their power to control thr
affairs Of state. Once special TAX
is established il virtually is lmpos-
sihle to change or repeal Vt.
Mill taxes now are asked for "ad-
ycrtising the State" for the lniNCf-
,ity of Maine ard other purposes.
We already have them for our roads
and schools and Tor other purposes,
and = Is mills out OF the prcSch,
State tax of & "a mills is obligated
in advance Of The meeting OF the
LEGISLATURE. This means that az per
cent of tho money raised from the
state tax is pledged before the leg
iSlatura ConVcncs.
1t would be III the public interest
if continuing appropriations were
abolished and IF ever special mill
tax were limited by law TO two
year period, Affirmative action by the
legislature being required before
these could he extended for another
two year period.
E:xtrancous Activities
II Maine is to build up institute ms
like the Springfield. Mass, Fair and
the Pier at Portland there is little
hope for. the reduction of taxes, OF
even for keeping them as they are.
We have all we can do to take care
Of our affairs within the State. III
my opinion the Springfield Fair is Of
comparative little consequence to
Maine. and of doubtful value to our
agricultural and manufacturing in
terests. The Pier at PoIt land is still
far from paying its way"
The Legislature appropriated SIG.
600 annually to pay the interest on
the Pier bonds. The state appro-
priated 81 313, 900 for building III"
Tier. not including about SlWOOU
appropriated by the cities of Port
land and South Portland for the land
and flats.
Nothing is being earned by the
lier to pay this interest on the bonds
to build up sinking fund or to pro-
vide for deprcCiatiOn. Wharf pro-
pcity dCtcriOratcs rapidly and the l..
5. Government considers > per cent
annually a fair wharf depreciation
charge. In view of the excellent
construction of.thc Pier, a three per
cent annual charge is reasonable
and on 1.3lJ 900 this would amount
to SOD. No provision is made
for a sinking fund of at least | per
cent. or l1.1JO. on the total cost OF
the Pier and land under it., approx
mately Sl.I1J,WW. There shohld be
such fund to retire the bonds.
retailing these customary business
expenses. interest on bonds SAG. 600:
depreciation SD,4JO. and sinking
1und SlI,1D makes n total of S1O2,-
'D OF fixed charges. Before the
az i'dliN can ne Sdld 10 be 'e3rnin"
It's way It should earn sufficient to
Fay this sum together with all it's
other ordinary expenses OF MANI
tenance and operation ANY ordin-
ary business would have TO face this
situation, ont in the case of the Pier
the tax payers Of Maine are taking
this S1O2.9JO out of their pockets
every year to support 1t. These fig
Lrcs are conservative.
i believe the people arc entitled TO
the facts. The Pier IL "a heavy ex-
penSe and many persons doubt If ~ 10