Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-09
THE GOVERNORS INAUGURAL
MESSAGE

placed Oh party soNclHIHeuI, lHe
clear exposition which he gave of
this in the opening of his able in
augural address to the SD, Legis-
lature, the hope he expressed of
recognition of the division of gov
ernmental powers, will crafty
many as an evidence Of returning to
fundamentals from policy of
"blocs," If that may be described as
a policy, from "a government Of
negation rather than construction"
Governor Brewster reminds us
that Lincoln was not ashamed to be
called a Republican. Those ac-
quainted with the history of that
ordeal will recognize the support
which he received from the organ
lied effort Of the party, aided by
many Democrats who accepted for
the time that agency as the best
adapted to saving the Union. Gov
ernor Brewster also reminds US that
the crisis we now experience IN
highway affairs is directly due to the
"bloc" log-rolling in the last
Legislature.
"Our country suffers from legis-
lative indigestion" Good!
Maine existed for a century with
out a state Contingent fund.
"Control of the purse is con-
troll. of the government" And "in my
judgment such a fund should be
strictly limited and scruplously safe
guarded" also good.
The need Of economy persists. evil
IDENTIFY. Here is what the Governor
says respecting our finances:
''The cash position of the State
Treasury Is not a comfortable one at
the present time. On December l,
1920, there was cash on hand to
cover the various reserve funds
On December l, 1924, there was a
deficit in cash to cover these re-
SERVES of $S40,24336.
''The State Contingent Fund on
December l. 1924, amounted to ST.
PS3.37."
There has been merited criticism
Of States and Of municipalities be-
cause the country over they have
not shown the efforts for retrench-
me4t that have been shown in ma
tional affairs. The Governor would
not have this said Of the State OF
Maine.
With regard to railroad taxation
the Governor presents his ap-
pratsal of the situation, outlines
theories for taxing railroads and
makes comparisons. OF the latter he
says:
"These comparisons seem of i'm
portance as illustrating the burden
that it bears in comparison with the
burden Of taxation resting upon the
property Of other citizens in our
State, and of many public utilities
as well. No other citizen Is ex-
cused from taxes because his
property does not pay"
This statement obviously was not
intended to include local exemptions.
under which somewhat questionable
policy some enterprises have been
established and built up. The con-
tribution by an enterprise to public
welfare is not necessarily measured
by the tax 1t pays but it is difficult
to find an accurate measurement for
this. Generally speaking it is not
good policy to kill or cripple by tax
levy, either the individual or the
corporation.
It is evident that the Governor is
not convinced respecting some
features of railroad management,
also that what he has to say will
make for controversy. Continuing
he says:
1T is not practical for us at this
distance from the problems with
which they are faced to determine
the feasibility of operating economies
upon the chief railroad within our
State, but we may properly take
into account the items hereinbefore
mentioned as significant of ex-
plantations that are due. We may
also properly consider the opinions
of a very substantial and responsible
group Of the stockholders Of this
road demanding reformation in it's
management in the interests of the
salvation Of the road.
These considerations may well
give US pause before we attribute
its difficulties exclusively to the
taxation system of Maine, which
does not seem to burden this prop
erty at all in proportion to the
burden borne by the property Of
many other citizens Of our State"
Again he says:
This is an attempt to present a
fair appraisal of the situation and
OF the equities of the case insofar as
the railroads themselves are con-
cerned entirely aside from the other
problems with which we are faced.
Assuming prudent investment an6
competent management, we arc
vitality concerned that our railroads
shall earn a reasonable return"
It is we'll he reminds the Legis-
lature that this problem should be
treated entirely aside from the
other problems with which we are
faced" We are "vitally concerned
that our railroads shall earn a
reasonable return" The States
need Of money should not blind us
to that very important fact.
The Governor, as all of US, recog-
nizes the need Of revenue, a great
need even with all the wise economy
which may be had. Taxation is a
very complicated affair at best. 1t
is evident that Governor Brewster
believes there must be an increased
tax on intangibles. especially if