Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-10-27

OF the State. He referred to what
had been accomplished in years be-
fore and declared that there Is more
need now than there had been in the
past for mutual savings banks as
means Of investing the earnings of
people who were not in a position to
determine questions Of investment.
He emphasized the duty Of officials Of
banks to educate the public in saw
ings banks. He referred to some Of
the other states where the savings
results in the education Of the peo-
pie and the development Of thrift.
Commissioner Lawrence spoke
| with emphasis on the duty Of officials
| Of banks to guard against unwise and
| wildcat investments, pointing out
| that the State bank department had
| up to date refused approval Of $780,
| 100000 Of various kinds Of invest
ments under the provisions of the
| Blue Sky law. Times have changed
and the changes must be recognized
by the banks. he asserted
The Taxation Of Railroads
1 Two matters OF great Importance
| to the association and the public
were on the program. the FIRST being
| the question OF amending the state
1 - v, "A~A ASiSAShSC " kuc IdAdllOu VI
| railroads. A special committee of
the Maine Central railroad. consist
| Ing OF Ex-Governor William T. Cobb
| OF Rockland. Edward W. Wheeler Of
| Brunswick and Percy V. Hill of Au-
gusta, has been appointed by the
| directors to present this matter to
the legislature. The association ex-
I tended an invitation to this commit
tee to be present and all members
| were present.
| Governor Cobb gave a very
concise, lucid and convincing state
| ment OF the present situation OF the
railroads and Of the serious effect of
the present law which lays a 51a %
tax upon the gross receipts. He
| pointed out the urgent need of relief
| from the point of view Of the public
and the railroads and declared that
the railroads are united upon Il
I, change which seems to be equitable
and fair and to meet the needs Of the
problem.
| Under the plan the railroads will
receive this relief in times of advers-
| ity and the tax will be equitably and
proportionately increased in times OF
/, prosperity.
3. G. A. Representative
Henry J. Hart of Bangor. general
counsel for the Bangor & Aroostook
railroad. showed that while the pro-
| posed changes in the law would not
make n great difference at the pres
ent time in the taxes paid by the
railroad he represents. nevertheless
the rule was theoretically and Scien-
| tificallv sound.
Hon. Edward W. Wheeler
Hon. Edward W. Wheeler of Brun-
swick spoke not only as director OF
the Maine Central railroad. but also
as a trustee Of one Of the member
banks Of the association. He con-
sidered the details Of the changes
which will be sought.
The proposed law is known as the
gross-net method Of taxation. the
amount Of the tax to he paid being
ceipts. which proportion varies ac-
cording to the net receipts.
| A special commission of the stat,
of New York. appointed to consider
all methods Of railroad taxation, af-
ter a careful two years study decid-
ed unanimously in favor of this
method as being the nearest ap-
proach to a scientific and equitable
method. They were assisted by en-
inent professors Of economics and
railroad transportation problems
The plan was brought before the
National Tax association and that
organization voted its unanimous APP
prevail.
The sneaker concretel illustrated
the application Of the plan to the
Maine, Central railroad and also ex-
planned concisely and clearly the fun
damental PRINCIPLES which are IN
volved In the railroad taxation prob
lem.
The railroads. whether or not they
are to receive great relief are all
united on this plan. The question
will be laid before the people Of the
state with the confidence that when
understood it will be approved by the
people.
Hon w. 3. Shelton
The last speaker was Hon. W. B
Shelton. n former state bank COM
missioner. one Of the first members
Of the Maine public utilities com
mission. president Of one of the large
electro railroads and Il trustee OF 4
member bank Of the association. Ht
asserted that the time had come
when this acute problem must be
met, that relief must be granted &c
the railroads or II not the transpor-
tation service Of the state would be
so seriously affected that the bust
ness of Maine would be seriously re-
tarded.
He pointed out that in these days
about the only consolation to be had
In the reports of the transportation
companies Is that the deficit is
smaller. This cannot go on. Instead
Of deficits. the reports must show
that the additional requirements of
the road are met. that the indebted
! ness of the railroads is paid and
that there shall be fair return to
the investors in the roads.
Meeting ut Augusta House
The session was then adjourned TO
the Augusta House. but previously
vote Of thanks was given to the
| renrnSnnfafiuesn f tho railrnnda fo,.