TAXATION. ^1 



dispensed with, there is no valid reason for excluding an assess- 

 ment on incomes, while there are the best of reasons in the equal- 

 izint^ of the burdens of taxation in favor of such an assessment. 

 The assessment and collection of the tax present no greater diffi- 

 culties in the one case than in the other. 



Railroads. — The real estate of railroad corporations is taxable 

 in the towns where located, but the track of the road and the 

 land on which it is constructed is not for this purpose deemed 

 real estate. Until recently no franchise tax has been required of 

 the railroads in this State. In accordance with the recommenda- 

 tion of Governor Dinglej', a legislative enactment was made in 



1874, and approved March 4, 1874, requiring that "every rail- 

 road company incorporated under the laws of this State, or doing 

 business therein," .... "shall annually pay a tax of one 

 and one-half per cent, upon its corporate franchise," as deter- 

 mined by the Governor and Council, A portion of this tax when 

 paid is to be credited to towns where shareholders reside and the 

 remainder to be retained for the use of the State. From, the 

 report of the State Treasurer for 1874 we learn that, "The total 

 amount of the tax assessed upon the several railroad companies 

 for 1874 was $105,059.23. About $40,000 of this amount, when 

 paid, will, under the act, be placed to the credit of the cities and 

 towns where the shareholders reside, the balance accruing as 

 revenue to the State." The report of the State Treasurer for 



1875, (received since writing the foregoing statement,) does not 

 furnish occasion for material change in the above figures. 



The levying of this tax has given rise to cases of litigation, but 

 when these are once settled it may doubtless be depended upon 

 as a source of increasing revenue to the State. Many of our 

 sister States raise a portion of their revenue from a tax on corpo- 

 rations, and there are equally good reasons why a part of the 

 revenue of this State should be derived from the same source. 



Insurance Companies. — By legislative enactment, approved 

 March 4, 1874, foreign insurance companies doing business in 

 this State are required " annually " to "pay a tax upon all pre- 

 miums received, whether in cash or in notes absolutely payable, 

 in excess over losses actually paid during the year, on contracts 

 made in this State, for the insurance of life, property or interests 

 therein, at the rate of two per cent, per annum." The revenue 

 from this source may not be large, but it is eminently just, and 

 to the extent of its amount will relieve direct individual taxation. 



