The voice of freedom. [volume] (Montpelier, Vt.) 1839-1848, 1845-12-04
From the Boston Atlas, Nov! 20.
Vermont Rail Road Charters.

tlICI III SCSolOl'i uANOuS OthCt
things, says, that "a resolution was intro.
duced, by Loco, the first week in the
session, 10 repeal that section in the Cen
trail Railroad Charter, which exempts the
stock from taxation. 1t received no favor
from The Wings. and it was ordered 10 lie
upon the table, which is equivalent to a
rejection" This is all true. except ORDER
ing i, to lie upon the table is, BY no means,
equivalent to q rejection; as resolutions,
bills, or other propositions, so ordered,
may, under our rules, be called up at any
lime.
The resolution in question, however,
was not called up, and for the best .! all
probable reasons, that the mover ascertain
ed, on sounding his brethren, that pro-
position to alter. amend, or repeal a char
ter, where that power was not specially
reserved in the original act, would fnd
very little favor, even with the Loco por-
ton of Vermont Legislature. But,
your correspondent greatly misappre-
bends, or wlliulIy misrepresents the well
known construction which our Legislature
have given to all their acts granting char
lers, by the distinction made between the
stock. property, or effects of such compa-
MES and the shares of stock holders therein.
Thus, all our banks chartered since the
year 1910, are required, by the provisions
Of the general law Of that year, 10 pay a
lax of one per cent. seml-annualv on
their capital paid in--of course, on their
corporate or company property, unless
they comply with certain other provisions
of that act, in which case "such corpo>
ration shall be exempt from such ray-
ment." (Sec. oath of act entitled an act
in relation to banks, passed Oct. %, l84O.)
Notwithstanding this proviso for taxing
the company property of these corpora
lions, all stockholders therein, residing in
lhi. State, are taxed on, their shares, and
il is N ,de "the duty ofthe cashiers Of the
several banks. and Of the clerks Of all OH
er corporations within this Stale, 10 trans
| mi! to the clerks Of the several towns,
| within this S!ate, in which any stockhold-
err of such bank or other corporation may
reside, a true list of the names of all such
stockholders, with the number of shares,
amount paid in," SC, (Sec. 20 of act en-
titled, an act relating TO The Grand List,
passed Nov. II, l84l.)
1t is clearly seen, therefore, by this gen.
eral law, that all stockholders in any
monied or other corporations" (sec. Of
act last referred to- are liable 10 pay tax
es on their respective shares. Exempt.
ing a company, therefore, from taxation
can in no wise exempt stockholders there
in from their liability, under the provis>
ions of the general law, unless they are
specially exempted, as stockholders. in
their act Of incorporation.
The importance OF this distinction be-
tween the properly of chartered compa-
ny and the SHARES OF its members, is APPS
parent, from the fact, that taxing the
"sock, property, or effects" of such
company, affects alike all stockholders
therein, whether resident in or out Of the
State. The policy of Vermont has ever
been 10 invite the investment Of foreign
capital in the Institutions of the State
Hence, there is no general law requiring
corporations to pay taxes on The capital or
property of such chartered companies,
with the single exception of banks, and
condnionalNy as to them.)
1t must be clearly seen, therefore, ,hat a
special exemption OF company from tax.
alton on their corporate property, by the
terms of their charter, is of no sort OF
practical importance, as none could be
made liable to such taxation, unless made
so by the provisions OF their charter, or
the power reserved therein to alter or a.
mend the same, by future Legislature.
i Whatever honest doubts, therefore, may
have been felt on this subject, exempt
ing stockholders in the Central Railroad
from taxation) will now to most efeclu-
ally removed, by the act passed at The last
session of the Legislature; entitled ian
act relating to the Grand List" (same
title as that of l84l, 10 which it refers J
which declares that call shares in Rail-
roadComp anies, that heretofore have been,
or may hereafter be granted, shall be sub.
f ject to taxation, and shall be placed in the
! lists of the several towns in which they
may be owned" &C.
The shares 10 no Railroad Company
are excepted in this act. There is a pro-
, vision in this act, beneficial TO the stock.
holders in these companies, exempLing
J their shares from assessments for taxes,
until The road, or some portion Of it, in
which such shares are held, shall be fin
ished and in use for the transportation OIL
t freight and passengers.
3 The of repeated assertion of the friends
} ofthe Central road, that the stockholders
in that company, were exempted from tax.
! alton, by the Terms Of their charter, was
most conc'osively falsifed, ('faei before,