Year: 1875

obligation to bear their proportion of public eX-
penditure5, by provision of their charters, that Is
alleged to be in the nature of a contract. 1he
char acter of this provision, aud the Circumstances
under which it was introduced, conclusvely show,
as it to me, that there no Intention or the
part of the legislature which granted the charter,
to more than temporarily exempt the corporations
from taxation. If it had been supposed that the
provision contriycd IS to exempt such corpo-
fationa from ali iaSstion for at least quarter OF a
century and practically for an indefinite period It
not forever, no one believes that it would have
received the least favor. There certainly can be no
further equitable claim under remard sable char
ter exemption. Neither do believe that there
can he any substantial claim for exemption in law
for apy provision in char er which pretends to
exempt corpoI alton from taxation, must be hei !
to be void-irst because it is not IN the power OF
one legislature TO bind successive legislatu not
to exercise in behalf of the people SO essential a
sovereign power as the right to impose tax, and
secondly because such provision is in contraven-
ton of the constitution of Maine, which de-
clares that call taxes upon real estate, assessed
by authority of this State. shall be apportioned
and assessed equally, according to the just value
thereof"


TAX on INSURANCE COMPANIES.


An act of the last Legislature requires the State
Treasurer, between the first day of April and the
first day Of May annually to assess a tax of two
per cent. on the premiums received by insurance
companies on contracts made in this State for the
insurance of lite or property duling the year end
ing the 3lst of December next previous, after de-
Quoting losses paid and certain other items; and


in the case of lite companies after deducting slso
the legal reserve on policies issued in this State
during the year. A car, full examination OF this
act, the fist assessment under which will be made


in April next, will probably suggest the impor-
tance Of anne ndments in order to remove sill doubts
to the construction of certain provisions, and to
more effectually accomplish the object which the
legislature had in view. As the returns Of insur-
aHce companies for the year ending December 81,
1874, have not vet been received by the Insurance
Commissioner, and especially as some deductions
of very uncertain, and it seems to me unwise
character, allowed under the act, it is impossi-
bic at present to even approximately estimate the
revenue which will accrue to the State from this
source. For the year ending Dec. 3lst, 1873, the
excess of premiums received over losses paid in
this State, was little more than one million dol
lars about three-ifths Of which was on account Of
life companies; but the returns for that year afford
little light to the probable amount Of deductions
to be made under the act.


or the twenty-seyen States which tax the busi-
of life insurance, and of TIE thirty-two which
tax the business Of fire and marine insurance COM
panies-On the just principle that whoeveris is pro
tected by the State should cont ibute towards the
public eXpenditures-scafcelyo one OF them imposes
so light assessment that provided by this act.
Undoubtedly so moderate an exercise OF the just
and necessary power of taxation, will lead to a
corresponding moderation in claims for deductions,
and to prompt response to the requirements OF
the act. The license fees imposed by the statute
on insurance brokers and foreign insurance
compar es-and nearly nine-tenths of the insur-
ance business of Maine is done by out-of-State
companes,-are so meager as to 1ail to meet the
expenditures of the insurance department and
leave fair balance to go into the State treasury,
a, was intended; inasmuch as the balance now
paid into the treasury fails to meet the pay
ments by the State for the printing of the depart
ment. l recommend, therefore, that these fees be
moderately increased.


EQUALIzING BURDENS OF TAXATION.


While it is incumbent on Legislators to restrict
the State expenditures within the narrow est limits
consistent with due regard to the public welfare,


it is at the time their duty to seek to SO dis
tribute and equalize the heavy taxation growing
out of the war for ma ional existence as to avoid
making the burden fall in undue degree on those
emplovments and productive industries on which
the pro .peiity of the State so largely depends.
Without such radical reformation as will lead all
men to be honest and truthful in rendering state
ments of their property, it is Of course impossible
10 devise any system of taxation which will be
absolutely equal; capital which is presentedby
stocks bonds, loans and cure ncy cannot be reached
by the readily as that invested in farms,
houses, stores, mills, work shups, ships, and other
visible property. At the same time, this liability
to inequality should be cted so far as it is
possible. So far as capital IS invested directly OF
indirectly in banking, railroad, telegraph, express
and insurance business, 1t may be and should be
reached. The last leg islature inaugurated steps
in tae tight direction with reference to part OF
these interests. l carr estly hope that you will
continue TO press forward measures looking to
such system Of taxation as will tend to equalize
the public burdens. In my judgment, it is possible
certainly so with an amendment THE State con-
stitution-to ultimately provide for all expenditures
for State purposes by a just tax on national and
savings banks, railrsad insurance, telegraph, and
express companies, wild lands, and few Other
interests, without assessing single dollar on the
several towns and cities.


REVENUE FOR THE PRESENT YEAR.
Under the practice which has always prevailed
in the Treasury DE- partment, of distributing the
State funds in moderate sums in banks located al
convenient points in the State, without charging
receiving anything for the use of the same, the
state has received only the small revenue derived
from deposits in Boston, where most of the interest
on the State debt has been paid. see no reason
why the cash balances in the hands of the Treas
urer averaging $3.50 000 shouldnot all be depos ted
in such banks are willing to pay moderate in
terest for the use of the same; and recommend
Ley islation to this end.


Under existing laws the tax on shares in Ma
tional Banks owned out of the State, goes to the
municipalities where the banks are located There
seems TO be eminent propreiy in having the tax
on such nonresident shares go into the State
treasury for the benefit of all the people of the
State, as is the case in Massachusetts, and Rhode
ISlaOu, anu 1 TtCOullilcHu leSisldtOu " cuu
Should the legislature think it expedient to impose
q tax on the receipts of express companies and on
the property of telegraph companies, additional
State revenue could be oeI yed from these sources
1t may be reasonably expected that the revenue
derived from these sources, and from Saving,
Banks and public lands, during the current year
will be equivalent to the amount that will be re-
quirtd to meet the ordinary current State eXpend
lures.


There will then remain to be provided fol
by taxation sum equivalent to the approp' ia,ion'
on account of the public debt and for public aLG
Free High school purposes-about two mills or
the dollar of the State valuation for schools, anc
a similar assessment on account of the public deb,
in case it shall be decided to renew portion of the
loans and otherwise three mills. Could reliance be
placed on the prompt payment of the tax on rail
road and insurance companies during the year, s
State tax of three and half mills on the dollar
instead of four, would be sufficient to meet al
State expendtui es,-a reduction of one and q hal
mills from that of last year, which would eNtene
gratifying relief to the people Of the State.


THE EDUCATIONAL INTERESTS OF THE STATE
| The statistics presented in the report of the Su
perintendent of Common Schools unmistakably
indicate gradual improvement in the educa
| tonal interests of the State. Notwithstand
| ing there has been no material chang,
! in the census number Of scholars, yet thu
number Of pupils registered during the past year
! the average attendance, the average length of th'
schools, the number Of school-houses In good con
dion and the amount of school money voted b,
! ...h -t~,h tal