Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1870-03-10
,uE RUTLAND HERALD.
MONDAY, MARCH z. 1870.
roxa,ion OF Railroads,

ICOulLLD2 Il
have in view the presentation OF the lava
az tbe State aud the decisions OF the
o,rr+s in reference to the taxation OF
railroad and other property The fol-
lowing is an extract from law which
was introduced into the Legislature by |
Hon. Martin G.. Everts OF Rutland, in |
1851 and stands upon the statute books
to-day
"All bank and railroad, and other corr
poration stock, liable to be taxed, SHAH be |
appraised by the Listers and set i'll the
Grand List at its true value, whether
above or below its par value"
Now, whence do the Listers got their
instruction from vote OF town, or
from State Legislation Plainly from
the State. For all Listers derive their
powers from, and are governedsaby, State
laws. not town votes The above section
OF the law directs that the tax to be levied
onr ailroad and other corporation stock,
shall be upon an appraisal made in a
given way. The question arises here, can
a railroad be taxed in any other way than
by its stock? Stock shares are the repre-
sentatives of the property and franchise
of the corporation. Railroad property
consists of road-bed, ties, rails, cars, en-
gines, shops, depots, fuel, tools and land.
These are not separable. A Lister may
not levy tax upon the franchise of a
read, another upon its depots, another
upon its road-bed, another upon its wood;
nor can the property of road be esti-
mated, except as parts and parcels be-
longing to road. An engine, it ap-
pears, must be appraised as an engine to
be run upon the road, not as so much
wood or iron. Grounds and buildings are
To be- estimated as depots, not as village
lots This for two reasons The one as
above stated, and the other that railroads
possess land in the right of use only. The
Rutl nd Railroad holds the use of its
road-bed. not the title to it. In other
words, ii the road were abandoned, the
,o-Reeaiou al the land would revert to the
original laud owners. ii its real estate
ygrre attached, aud the depots and grounds
sold the purch tser could make no other
use of the land aud depots than for the
purposes of a railroad. This holds TO all
lands held by railroads, taken in virtue of
their chartered rights. 1t follows then
that if it were legal to tax the separate
properties of railroad corporation, they
must be taxed according to their value as
railroad properties, not according to cost
or ~aiue ~ common real and personal es-
tate.
lt il to DO doubted however, if the right
exists to tax corporation property sep
crate from its representative stock. 1t is
plaia that it's stock may be taxed. If its
real aud personal property can be taxed
~ addition, then the law permits that in
regard to railroads which is not permit
Ged in the property of individuals. 1t al
toW- it TO be taxed twice 1t is as if two
men holding farm worth ten thousand
dollars, should be taxed first as men
worth five thousand dollars each, and
then upon farm worth ten thousand
dollars We are aware that bank stock and
bank buildings are taxed separately. For
instance tho stock of bank is put into
the grand list at its par value, and the
buildings ut their appraised value. In
this case however, it must be borne in
,mnl that the stock il worth say Sl20
puttin9 it into the grand list at 500 and
it's buildings at 100000 is really not over
taxing hut undertaking the bank. In
other word- nv this arrangement $4,000
ia the case of II bank of $780, 600 capital
ssr,pas taxation. Naturally enough the
h,uk4 dnd no fault with this arrangement
and have not within our knowledge ques-
toned the rghtfulness of the method.
This much is at east evident, railroad
stock must be taxed according to its real
value. Now what is the present stock OF
the Road WORTH Value of railroad
took is determined by production. Its
.rua market value-and listers have to
40 with 20 speculative or Wall street
prioes--is that SUM upon stock that pay
"A satisf totory interest now and prospec-
tivoly. Every prudent man having mon
ey to invest, asks what income will the
proposed purchase bring. If a stock,
what dividend does it pay? What win
it pay hereafter ? Judging by this rule,
,yhat vould the average estimate of the
people of th.e town be of the value OF
Rutland Railroad stock What would
those urging this taxation pay for it ?
Now if the Stock pays no dividends
and its shares have no present productive
value, what is its property worth. 1t is
worth something. The wood might be
sold for charcoal, perhaps the owners OF
the title to the land might give something
for the Depots. Perhaps somebody might
give for the brick and mortar, something
over and above the cost of tearing down
and eartjng away. 1t is very evident that
the State intended that corporation stock
should be taxed as land is taxed, accord
ing to real values that as farming lands
ase faxed according their productiveness.
TO assume therefore for the real and per-
sonal estate of the Rutland Railroad, in
the town of Rutland, value which is not
shown in the stock is fiction, if not in
law, at least in equity. The taxation of
the road as now proposed therefore seems
to us to be an act OF simple unfriendliness
to the road, and done simply for the sake
Of being unfriendly. Simply to proclaim,
in the midst Of its present emergencies, to
those of whom it may seek &c borrow,
that the people along the line of the road
the community which above all others has
been prospered BY it, have no sympathy
for it, no friendship, and seek to Cypress
it by every burden in their reach. This
spirit manifested where above all other
places good win would naturally be look |
ed foT, We Sopine would not tend toll
holm Hnuernnr Eano In h:n -or.o4;a t;o,aa