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

mission and it 10 probable that relief ie
would be afforded if proper action
should be brought. :. .hss
It is not practical for rnah Us at w shis
dstsncs sn. fr m. i faced to determine
niles upon he shief railroad within
our State. but We may properly TAKE
mentioned as Ugnificant Of explana-
ticns that are due. We may also
properly consider tn. opinions Of a
Very substantial and responslpie
T T1edp demanding reformation in its
ma ma cement in the interests OF the
salvation Of the road.
These considerations may well give
us pause 5efo'e we attribute its diff
ficuities exclusively to the taxation
system of Maine. which does no,
seem to burden this property at an
in proportion to the bul den borne by
| the property Of many other citlzehs
We may also fairly take into ac-
count the following statement SUP
mittAd to the stockholders OF the
Maine Contra, Railroad Company by
of Directors. in th- spr'ng OF IVA In
submitting their annual report:
1T is our opinion that me
operating results; po possible IN t fne
dividend payments on preferred
stock -egnlarly beginning De-
cenceer ls t., 1874; : as W.T. they Hs,ie ese
come payable, ,n,,,rov we peirIF
value of the common stock at
once and will make it possible to
resume dividends on the common
stock at much carrier aare
(now expected in the early part
of The year 1880 than would be
otherwise possible.
dividends upon the preferred stock
of .he Maine Central Railroad Com
fall Of 1924 and up to November /.
1924. the surplus after charges
showed an Improvement or S4oo,0oo
ever the same period in 1928.
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
Assuming prudent investment and
competent management, we are
vitality concerned that our railroads
shall earn reasonable return.
desire to approach the problem. but
q practical consideration must also
be kept in our minds. The adoption
of the proposal Of the railroads
income for 1926 of approximately
! 100000. This amounts to almost
1ls mills upon the valuation of the
entire State. 1t is manifestly i'm
possible to levy such a tax upon the
agriculture. the industries, and the
| homes of our State.
1t is equally impossible to levy a
tax upon the automobile users of the
as all possible revenues from them
| must necessarily and properly be
| dedicated to the facilities that they
| use, with such contributions to high
! ton as may seem to be proportion
! able to the benefits that are received
by property generally from the inn
provement of our roads.
Taxes Upon IntanGtblcs
| This leaves it manifest that the
only alternative is the tax upon in
| tangibles that has been proposed by
| substantial interests within our
tax reduction upon our railroads is
not to be reflected III a lowering
by the railroads that any saving
upon their disbursements must
In the early days taxes were levied
upon property very generally in
our State upon the theory that each
citizen should contribute in proper
ton to the property that he pos
sessed. Insofar as the privileges and
the burdens of ownership of real
estate were concerned it was &C
quired subject to the burden of the
with reference to this prospect
| Personal property of tangible
nature as it was created and ac-
| quired came into being subject to
the same burden to a somewha less
extent. Most property was then in
! sight.
AS our economic system developed
increasingly large amounts of the
| possessions of many of our citizens
We're represented by shares of stocks
and bonds in companies scattered all
over the United States. These citi-
zens in many cases might pay only a
! poll tax within a municipality. al
though enjoying an income out of all
proportion to that of many of their
fellow citizens paying a heavy tax
| rms situation has grown increasingly
acute. especially since the great in
| crease in the possessions Of certain of
| our citizens incident to- the conditions
! following the World war. Meanwhile
great mass of our citizens plod
wearily upon our farms. struggling
a mortgage. They nave grown in
many cases less able to bear a tax as
a result of the liquidation since the
close of the World War.
1t would seem evident. therefore. to
the disinterested observer that in
tangible property must share an in
creasing part of the tax burden in
proper ways. 1t is to be remembered
J Nhdl tiiiS pIoptIty is Iol IRON
| taxation. but is invisible in most
cases to the eyes of the assessors, and
! tor this reason escapes the tax that
| IS in theory assessed upon it.
If this property were generally as
sessed at its full value and taxed at
| local municipal rates il would practi-
cally amount to connscation. as its
revenue does not probably average
above four to five per cent, while the
average municipal tax rate in our
State amounts to four per cent.
As 9; result of this development
several states have LEVIED a tax upon
! intangibles or the income derived
| therefrom. Our State some ten YEA RS
ago adopted a constitutional amend
ment designed to validate such a tax,
but five years ago rejected an amend :
| upon incomes within our State.
! 1t is undoubtedly true that we have
| already acquired a considerable num-
| Der of citizens attracted by our free
, uom from an income and Intangible
TAX taxo and a.; that IA, they pay substantial
sister states by constitutional amend
/ ment has recently prohibited a levy
ing of income or Inheritance taxes, as
a measure well designed to promote
/ its prosperous growth.
1t seems to me serious question
! whether we should now be well ad-
vised to institute a new form of
taxation with the complications that
1 iii"ct S,"ue III lHe EN- OTCemenl OF
SUCH a levy. New officials must finally
| be employed and inQuisitoriaI meth
J DDS must result if compliance with
| the tax is to be enforced as we per-
| force pursue our investigation into
| the possessions Of each one Of the
citizens of our State.
| In my Judgment we might moro
wisely move at this time in the direc-
| ton of further frightening of our
tax laws to reach more intangible
property in accordance with the ex-
listing system at the local municipal
| rate. One municipality in our State
today is reaching about $4,000, 900 of
! this propertV in this WAY conStitnt