Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1874-12-11
The Fairbanks Bim and the Governor, Veto.


/ The Fairbanks Eli and the Governors Veto.
Hon Horace Fairbanks addresses a letter
TO the Cqiedoujea in relation to the veto. by
Governor Peck, Of the first bin to incorporate
the E. a 7 Fairbanks Manufacturing Com
pany. \ bin amended 80 as to obyiate the
Governor objections. it may be promised,
was subsequently introduced and became a
law. Mr. Fairbanks says
The impression generally obtains that the
/ firm of which lam a member, was attempt
/ ing, by the bill, to secure some special ex-
cmptiou from taxation. and some unjust st-
/ vantage over other Ike corporations and
over taxpayers generally. This Is entirely
! incorrect. and an incomplete statement OF
/ the Governor objection 10 the bill. as a
careful reading 81 veto message viii show.
! The facts IN the case axe a> follows
In the establishment and prosecution Of
! our business, II has become necessary for Us
| to establish, in the principal cities of the
/ United States. and in some foreign c0un-
1 tries. stores or houses for the sale OF our
scales. In these houses We keep constantly
on hand a large stock OF our manufactures.
and ON them we pay taxes yearly to the
amount of severa. thousand dollars We
/ do not complain OF this. -
/ long a. We pursue our business a. partners.
| our laws do not ask Us 70 pay taxes on such
manufactures permanently removed from
/ the State. and which are taxed in other
/ States or countries.
70 pcrpetuate our business permanently
| in this State, and that 1t might not be
| broken up by the deccase Of a partner, we
/ desire an act Of incorporation. The general
/ law in relation to the taxation of manuiac-
turing corporations We found TO be. that
/ the machinery and real estate owned hy
such corporation Is taxed 10 the corpora
| uun, and the Stockholders are then taxed
/ for the value OF such capital stock above the
/ value OF the real estate and machinery. Sec.
! II. chap. 3. general statutes. This l. Just
/ and equitable where all the corporate prop
/ erty j. within this State for protection,
| which is the condition of most manuiactuT-
! ing corporations N this STATE. A. the capl-
tai stock in our company would represent all
/ the property which We hold permanently FOR
| sale IN other States and countries II would
subject Us u double taxation on all the prop
erty on which we are justly taxed IN other
States and cJuntrIts-ur IN other words,
compel Us 10 nay yearly penalty OF ten
thousand dollars or upwards Tor the priv
lege of becoming incorporated. We thought
this unjust Hence in the bill it was proyi
dec that the property Of the corporation
should be taxed to the corporation rs such,
the same a. II would be it owned by an in
dIyidual That We might have no advantage
over any corp0rtl0n, IN similar circum-
stances with OURSELVES. II there were any
such in the State. We caused at the same
time a bill 10 be introduced providing tor
the taxation OF the property OF all manuiac-
turing corporations IN the same manner.
The Governor objected To our act. not be
cause 1t gave any exemption from taxation,
but because 1t created a different method
for taxing the property Of the corporation
from that provided by the genera, law and
would relieve the corporation from double
taxation and would not furnish the same
relief to all other corporations similarly cir
cumstanced i. any such there were or should
be in other words because the legislation
was special rather than general. Immediately
on learning OF the Governors objection and
veto We amended theact OF Incorporation, OBJ
tanned its re-enactmont by the Legislature,
and also obtained an amendment to the gen
eral law Tor the taxation OF Incorporated
manufacturing companies, 50 that it such
company Is taxed on Its property represent
ed by Its stock and situated In another state
or country, by such other State or country.
the value OF the property 50 taxed Is 10 be
deducted. a. well "a the value OF the real
estate and machinery. from the value OF its
capital stock in determining the amount for
which the stakeholder Is To be taxed in this
State. See sec II, chap. 50 general statutes
As now amended.
By this amendment double taxation OF the |
property of such corporations is avoided /
and no exemption secured to such corpora |
tons. and by this amendment to the gener
al law, and by the act of Incorporation as !
now passed both Of which have received the (
approval OF the Governor, We have secured !
the same result we sought to secure in the
original bills.
This Is in harmony with the laws of most
if not all of the States in regard to taxation.
BY Sec. ), Chap 50 General Statutes,
person resident in the State is not taxed on
stock in foreign corporation, if the pro-
oerty Is taxed to the corporation in the
state where the corporation Is located.
Ii 1t is the policy of the law to secure a
person against double taxation, who invests
n the stock OF foreign corporation, much
more should 1t be to secure the same prOtec-
ion to person who is willing to invest his
property in corporation in this State, and
hus establish and carry on permanent
business here. If an earnest and honest
ndeavor to secure such protection to our
elves and others in like circumstances.
objects us to the charge of attempting to
ecure special exemption from taxation, we
re willing to plead guilty and abide the
esult. But if 1t is simply demanding and
ecuring what is just and equitable, and
hat which initiates policy which will
end to foster and render permanent the
interests of ;he State and
hich will invite capital to remain in the
tate for such purposes by fair and Just
Tvs, rather than drive it to other States by
nirlendly, not to say unjust. legislation,
e are unwilling 10 have our efforts to that
Id bring upon US the imputation of having
tempted to secure an exemption from the /
lyment of our full share of the public t
lrdens.
By organizing under the general laws of
lie State of New York, where such property
taxed to the corporation, which we could
I've done,a we have large amount of our
'Operty located there permanently, we
uld have secured all we have secured TO Ii
Irselves by this legislation, and by section
/
ty except tthe real estate and machinery
ould have been relieved from taxation
re.
Except for our strong and lifelong at
chment to the State and earnest desire for
prosperity, and that its laws should be a,
st and equitable and such as to invite y
Their than to drive capital from perma-
mt investment in manufacturing corpora
ms in the State, we should have withheld
ese efforts and also this public statement.
Very respectfully yours,
HORACE FAIRBANKS. =
An English paper gives an account Of an
Mess woman of lexington who was mar
d recently. 1t SAYS she is a very good
der, writes very nicely and rapidly.
a member of the parish church, and has Al
rned to play upon a concertina, her feet,
d especially the left foot, taking the
zee of hands. Among other things she
nages to do fine needlework and fancy
broidery, which she offers for sale. She