Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-11


you feel. Contains pure vegetable ingre-
dents approved by Physicians. Helps
nature cleanse and tone your liver
strengthen your digestive organs
brace up your system and purify
a deduction of $4,000 being allowed
as an exemption. The capital stock
tax is based upon the year ending
June Goth.
New England Railroad Taxation
New England taxes her railroads
by two principal methods: 1, The ad
valorem method; 2, Franchise tax
method. (A) Based upon gross re-
ceipts; OBJ, Based upon capitaliza-
ton.
1.-THE State Of Maine assesses: /
Il. A tax upon the capitalization
of each corporation on the basis OF
SIS, if not exceeding 81 100000 and
$50 for each million or fraction
thereof in excess of one million.
"2. The buildings of every rail-
road within or without the locared
right of way and its land and fix
lures outside the right Of way are
taxed locally.
"3. Franchise tax. The principal
source of income from the railroads
arises from the tax of the franchise
privilege of exercising it's railroad
franchise. The amount of gross re-
ceipts returned to the Public Utilities
commission for the year ending De-
cember 31st is divided by the num-
Der of miles of railroad operated to
ascertain the average gross receipts
per mile. When such average re-
ceipts per mile do not exceed $500
the tax is equal to one-half of one
80 ,1I, fy.nr, Or$,
ton receipts. This is increased at
the rate of one fourth of one per
cent. for each increase of $500 per
mile, with the provision that the
rate so received from the railroads
in no case shall exceed 51a per cent.
per mile, and in case of railroads
used exclusively for the transporta-
ton of freight, three per cent.
"The railroads lying partly within
and partly without the State arc
taxed upon basis determined by
ascertaining the proportion Of lines
within the State and dividing the
gross receipts of the railroads by
such number to obtain the average
gross receipts per mile; the tax rs
then applicable agreeably to the RUE
to which I have adverted.
Maine Supreme Court Decision
The supreme court of Maine in
q recent decision entitled estate VS..
Boston & Maine Railroad Co." re-
ported 121 Atlantic Reporter 54I, has
decided the tax to be paid to the
State of Maine by railroads operat-
ing partly in one state and partly in
another, is not to be predicated upon
electric lines owned by the railroad
, and operated beyond the borders or
the State of Maine. The effect of this
is materially in the case before the
court to increase the rate Of excise
tax derived by the State.
ut is interesting to note that the
annual report of the Maine Central
Railroad for the year 1923 shows a
book Investment amounting to $45,-
156,212.70, including investments in
! improvements on leased roads. On
the basis of the average tax on pro-
perty throughout the State for the
year 1928 amounting to $3S28 the
! tax on this railroad would have been
| S1,72S,571.6S, while it actually paid
to the State of Maine for the same
period under the provisions of the ex-
else law, we have been considering,
| the sum of $928,036.50, little more
than half the amount that would
have been received by the State upon
the average rate of taxation through
out the State. During the same
pcriod the Bangor & Aroostook
RAILROAD paid an excise tax to the
state of Maine to the amount Of
I$4O5,132O4. Both railroads are now
paying the full 51a per cent. maxi
mum of the statute.
States Adopting Ad VaIorem Tax
! THE valuation basis or ad valorem
tax has been adopted by the follow
ing "a states: Alabama. Arizona,
Arkansas, Colorado, Florida, Georgia,
/ Idaho, Illinois, Indiana, Iowa. Kan
/ 'sas, Louisiana, Michigan, Missis
sippi. Missouri. Montana, Nebraska,
| Nevada, New Hampshire, New Jer-
sey, New Mexico. Forth Carolina,
North Dakota. Oklahoma, Oregon,
South Dakota, Tennessee, Texas,
Virginia, Wisconsin and Wyoming.
"The mode of application Of the
laws Of these various states is differ
cnt. some states requiring an APP
praisal at full value, other states
taking a taxable value from one
fifth to one-third the full value.
Notable Changes in Railroads
with the return of the railroads
by the government, experience
showed that notable changes had
taken place not only in the equip
ment of the roads themselves. but in
| the methods of operation and in the
attitude of the employees towards this
enginry of commerce. The Bangor
! & Aroostook Railroad, for instance,
cannot be expected to look with COM
| placency at the portentouS fact that
! from 1911 to 1922 it's state taxes had
| increased 1854 per cent. Material
was higher, the cost of equipment
had scared and the classifications of
labor as well as the increased amount
required for wages uncompromising-
| ly required seither an increase in
rates already almost prohibitive or a
diminution in the cost of operating.
| The year 1922 was the outstanding
year of all railroad performances,
characterized by the maximum VOL
ume of traffic at the highest rates
ever known, nevertheless % Class
One railroads, which are railroads
| whose gross receipts exceed one mil
lion dollars, representing a track
mileage of more than 5000 m;;es,
failed to earn the expenses OF mann
| tenance and operation by a deficit
/ approximating nine or ten millions of
dollars.
"Some states, noticeably New
| Hampshire, Vermont and Massachu-
sets. have written into their statutes
their intelligent appreciation of the
| tains to street railroads.
New Hampshire has provided IN
/ Chapter 139 of the laws of 1919 that
any corporation owning or operating
a street railway within the state,
| which under proper management Is
incapable of earning its operating