Vermont farmer. [volume] (Newport, Orleans County, Vt.) 1870-1877, 1874-12-11
The Fairbanks Matter.

The following is u part Of Mr.. Fairbanks.
letter published in the CdledORidn and other
papers last week.
In the establishment and prosecution of
our business, it has become necessary for us
to establish, in the principal cities of the
United States, and in some foreign countries,
stores or houses for the sale of our scales.
In these houses we keep constantly on hand
n large stock of our manufactures, and on
them VIC pay taxes yearly TO the amount OF
several thousand dollars. We do not COM
plain of tins. The states and countries in
which we constantly keep these stores and
stock of manufactures have the same right
to tax us for them that this state would have
to tax II nonresident for store which he
should keep filed with goods Tor sale in this
state. The protection which such states and
countries give to our manufactures and the
privilege they grant to us of selling them,
confers the right to tax us. The fact that
this state does not have these manufactures
to protect neither does it have the right to
protect us IN the vending of them, should in
equity take from this state the right to tax
us on such manufactures, after they ARE per-
nOncnlly removed from lulS Stttc' ~ ioHB
us we pursue our business rs partners, our
laws do not ask us to pay taxes OH such man
ulacturcs permanently removed from the
state, and viii Oh are taxed in other states
and countries.
To perpetuate our business permanently in
this state, and that it might not be broken
up by the dccease of n partner, VIC desired an
at Of hn laxU i'm
relation TO the taxation of manufacturing
corporations we found TO be, that tho ma
chi merry and real estate owned by such cor
poration is taxed to the corporation, and the
stockholders are then taxed for the value Of
such capital stock above the value of the real
estate aud machinery. Sec. ii Chap. 80
q en-. Statutes. This is just and equitable
where all the corporate property is within
the state for protection, which is the condi-
tion of most manufacturing corporations in
this state. As the capital stock in our COM
pany would represent all the property which
we h old permanently or for sale IN other
| stat es and countries it would subject us to
double taxation on all the pr operty on which
we are Justly taxed in other states and coun-
tries-or in other words, compel us to pay "A
yearly penalty of ten thousand dollars or
upwards for the privilege of becoming in
corpornted The Governor obi cct-
ed to our act, not because it gave any ex-
emption from taxation, but because it crea-
ted different method for taxing the prop
erty OF the corporation from that provided
by tho general law and would relieve the
corporation from double taxation and would
not furnish the same relief TO all other cor
porations similarly circumstanccd If any
such there were or should be; in other
words because the legislation WAS special
rather than general. immediately on learn
ing of the Governors objection and veto we
amended tho act of Incorporation, obtained
ITS re- enactment by the legislature, and also
obtained mn amendment to the general law
for the taxation of Incorporated manuiactur-
ing companies, so that IL such company is
| taxed ON its property represented by its
| stock and situated in another state or cOun-
try, by such other state or country, the value
| OF the property so taxed is To DO deducted,
as well ms tho val ne of the real estate and
machinery, from the value Of its capita
stock IN determining the amount for which
the stakeholder is Ia be taxed in this state
See Sec. IA Chap SO, Gen. Statutes as now
amended.
BY this amendment double taxation of the
property of such corporations is avoided anC
no exemption secured to such corporations
and by this amendment 10 tho general law
and by the net OF incorporation rs now pass
ed, both Of which have received the approx
al of the Governor, we have secured tn,
same result We sought TO secure in thu
original bills.