Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1869-08-12

preferable to tax the STOCK OF these cor
porations to the owners thereof, rather
than to tax the corporations directly.
Soon, however, the franchise and proper
ty of these corporations, in many cases,
passed from the hands of the stockholders
into the hands of the bondholders, and
the stocks Of such corporations become
worthless No attempt was made to tax
that proportion of these stocks owned by
non-residents till 1854. During that
wear the Legislature provided that stock
owned by non-residents, yielding to such
owners profit or dividend of six per
cent on its par value, should say speci-
fic tax of one per cent of that value to
the State Treasurer.
It is difficult to see why property OF
this class having a moneyed value, yield |
ing a less profit or dividend than six per
cent on it's par value, should go untaxed,
while all other classes of property are
taxed on their value in Toney regardless
of whether they yielded profit or divi-
dend to the owner or how taxes imposed
upon this basis are justly laid.
1t was claimed that this law imposing
this specific tax upon this class of proper
ty-thus taxing it in manner different
/ from what the other property OF the State
was taxed-was unconditional, and the
payment of the tax resisted. The recent
decision of the Supreme Court OF the
United States has substantiated this
claim. Hence up to the present time
only resident owners OF this class OF pro-
perty have been taxed. Probably not
/ over one-hundredth part of the cash val
ue of the property and franchises OF these
corporations has thus far contributed to
the expenses of the State.
Tue estimated value OF this class OF
property III the State is from hftsen 10
twenty millions of dollars. Receiving
their existence, rights and privileges,
+ their own protection, and that OF their
property from the State, the Constitution
requires these corporations To contribute
their proportion of the expense of that
protection. The property and franchises
OF these corporations, valued on The same
basis on which the real property OF the
State Is now valued. would amount to
not less than five millions OF dollars, and
taxed a. other property Is taxed, would
paw III taxes the annual sum or not lar
i from one hundred thousand dollars
Nearly this sum has been, thus tar, annu
ally lost to the State, and cohseq uently
4 heavier burden of taxatiGu imposed upon
other classes of property, aud thit, too,
while, under the fostering care OF hie
State, the earnings OF these corporations
I have been steadily and yearly lncreas-
ing.
In the opinion of the committee, the
system of taxing the stocks representing
this class OF property Is unequal aud nn-
lust. Ii the resident uwneis uf stock
alone are taxed, the nun-reeldent stock
holder not only has his property protec-
ted at the expense OF the State, and con-
tributes nothing toward that expense,
but has IN undue advantage over the res
ident stakeholder. Ii both resident ana
nom resident stockholders should be taxed
alike, not only innuneraote difficulties
and coupiicatlons will arise In the coilec-
ton of taxes against NONRESIDENT stock
holders, but all these corporations whose
franchises and property have fallen into
this hands of bondholders will escape,
rendering the latter class OF oorpor"tions
more inviting TO capitalists than the for
mer.
In the opinion of the committee, the
best way OF effecting a just contribution
from ths-e "orPora.ia"" ta'',""d the "~-
uepse OF their protection, Is tor the State
treat them ia this respect rs 1t Treats
'vtiuals tax them directly, not
- l, their stockholders constitute
lister of each town through
,,.h;.l' "a 'rAuchise and property OF the
,i lends. or select number OF
80, h,,ra If assessors to appralse the
fr.n'hisa ana pro,, erty OF such corpora
,;n,, =, v,lue In m nney, and to dis'rlh-
h.,,,..n rch towns III pro-
portion to the comparati. '"iue y '"e
Lot
distributed to each town be REQ 's'' 'iot'.e, 49,,
by the listers OF that town for the soiiooi
district and highway purposes :,
The committee are aware that III
urged that the Legislature in charterins
the Vermont Central Railroad Company,
exempred the stock, franchise and pro-
perty of that company perpetually from
taxation If that exemption is cons itu-
tiou;l and valid, 1t furnishes an oblec-
tion az forcible against the taxation OF the
stock of other similar corporations as
such
The committee would respectfully raise
the question whether the Legislature In
/ granting that exemption did not step be-
yond It's constitutional power: Whether,
so long as the Constitution provides tnat
protection furpished by the State imposes
the unity of contributing TO the expense
of that protection, the Legislature mas the
power to breathe into life corporation'
endow it with rights and privileges, clothe
it with the power of holding and acqulr-
ing property protect it in its life, rights,
privileges, and property, and reiieve IL Q,
the duty and burden of contributing its
proportion to the expense OF that protec'
tion.
The committee find no occasion tor
change in the Constitution to effect the
lust assessment of taxes, but more
thorough and rigid application of the
principles of the Constitution by proper
legislative euactments for that purpose
From the report of the State Treasurer
| the taxes constitutionally laid appear tt
have been Justly collected. The com
mittee have received no Information
tending to show that the public money
I has not been properly and lawfully ex
pended.
!. All which is respectfully submitted.
JONATHAN Ross, for Committee.
= SALT LAKE-The water at Salt Lax
e is so dense that u man cannot Sink IN II
s The editor of the Corinne Reporter dc
monstrated this by standing upright i
:, the water, in which he found it impos
: sible to sink to the chin. He could lie o
n the water, stand in it, take almost any pr
.e sition, and still he would float and coul
n not sink. 1t is necessary, after swimmin
. in this briny water, to rinse OH wit
g fresh, for the salt of the water condense
- on ones person, and leaves one, when DIR!
looking as if he had been powdered q
re over with white chalk.
a. BURNED TO DEATH.-We learn from
Al special despatch from Concord, n. H.,
,e the Boston Journal, that destructiv
ID fire occurred in that place at about ha
r past five o'clock Sunday morning Las
We !. .,aa., bu tho mama of PatriC