Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-29
TRANSFORMATION. TAXES AND
EQUITY

Transportation EA<ES AND
EQUITY
4 huge furniture van from Boston.
sidewalk could feel hint Of the jar.
which the hard rubber tires were
pounding out Of the pavement OF
Water street in this city. was one OF
yesterdays suggestions that the in
coming Legislature II It is TO give a
good account OF itself has before 1t
the solution OF formi liable problem.
The address OF the president OF the
Maine Central railroad before the
State Chamber OF Commerce at
Portland was another. It is safe 10
say that both require for solution an
attention. which should not be di-
verted by selfish or local considera-
ton. "a requirement obviously essen
tlal but extremely dlftlcdlt as we'll
out. service Is the product which the
railroad has to sell and that which
the public wishes to buy. The selfish
ness which would tax tina. out Of
existence. or of the highway main
tanned by the railroad onto the high
way maintained by the taxpayers.
could hardly be termed enlightened
selflshness. which is the most use
fui variety OF seldshness. And the
neglect properly to regulate traffic
upon the public highways Is proving
to be one OF the negects most costly
TO the public. 1t should help us to be
reasonable in taxing FRANCHISE 10 re-
member that due to changing condi-
tions the value OF franchises changes,
that some have reached stage
where the value Is practically nil.
What are we to tax in place OF them?
II seems TO be a well founded con-
viction that railroads should be per-
the Investment. What grounds are
there for supposlng the values de-
tcrmincd by the Federal govern
ment's survey to have been unfair?
We have LaFollettes statement that
these are unfair. though made in the
way provided through his insstenoe
on valuation. Moreover. he has not
shown wherein the valuation is un-
fair: I'm other words fails to prove
his claim. Anyhow. It would be
short sighted to prevent any public
utility earning enough on the capital
invested to maintain 1t as a going
concern. And II there be any who
think the railroads should not be
continued as a going concern, they
hate accepted the burden OF proof
and are negectins to produce It.
The Maine Central Railroad has
given and Is giving good service: we
cannot believe that Notwithstanding
all the changes in effect and those
which promise to so into effect the
public couh afford to get along with
out that service. u it would insist
on fairness from the railroad 1t
should render an equivalent Co.
operation between public and a
public utility ought not to be i'm
possible aud ought to be mutually
profitable.
Mr.. Mcdonald objects TO the
method of taxing the franchise on
gross receipts. Aside from this tax
on the franchise the railroads pay a
tax on their real estate exclusive Of
their right OF way In the several cit
los ami towns where located, as
sessed by the local assessors at the
same rate as that upon other pro-
perty In those municipalities. It is
argued that whereas there were
grounds for this franchise or right
of.way tax upon gross receipts under
the. old order >of things when the
method was first adopted change
has come about in the relations be-
tween gross and net revenue by rea-
son Of national legislation under
which the cost of operation has enor-
mously increased. Now it is urged
that: 1.-THE state has taken sub
stantial part Of the revenue found by
the Interstate Commerce Commission
to es necessary, and accordingly al
lowed, to meet running expenses and
afford fair return upon invested
capital"
We believe the railroads have
grounds for complaint against the
present State tax upon their fran
chises: that those claims should be
considered quite apart from the
States need OF more money. quite
apart from any prejudice against
railroads inherited from a previous
seneraticn and in a spirit OF equity,
in an understanding Of common well
fare, AMI in lisht Of rapidly chang
ing methods of transportation. with
which this consideration is in some
degree involved.
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