St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1874-12-04
A Statement of Facts.

r.. the EdIf0r ~ me IuIedOniUn:
In the account of the Governors veto |
of the hill to incorp, rate +. \ i. Fair |
banks y Co.. published in the THIcdo-
MAN of the 9Th inst. it is stated: ''lIc
considers the provision eNrmptng the
stock from taxation still more ohjrc-
tIonahlc." He SINS IF the general law
of taxation is just and proper. he can
see no reason why special exemption
should hc granted to this company.
Such exemption he considers unjust
t" other manufacturing corporations.
and other taxpayers, unwi>''. and eS-
tabli>hing Il precedent of special legi>-
lItion of dangerous and miscellaneous
tendency. The same statement has
been published by most of the news
papers of the State. From this state
mcnt the impression generally obtains
that the firm of which | am Il member.
WAS attempting 10y the bill to secure
some special exemption from taxation.
and some unjust advantage over other
generally. This is entirely incorrect.
and an incomplete statement of the
Governors objection t" the bill. aS :,
careful reading of his Vet" messing,
will show. The facts in the cast. are H.
follows:
In the establishment and prosecution
lam
Tor lis to establish. in the principal cities
of the United States. and in some for
eign countries. stores or houses for the
sale of our scales. In these HOUSES Ne
keep constantly on hand Il large stock
of our manufactures. and on them We
pay taxes yearly to the amount of >cN- /
cral thousand dollars. W., do not com ,
plain of this. The states and countries
in which we constantly keep these
stores and stock of manufactures have
the same right to tax lis for them that
this state would have to tax Il non
resident for Il store which hc should
keep filled with goods tor sale in this
state. The protection which such states
and countries give To our manufactures
and the privilege they grant t" lis of
selling them. contrI> the right t" tax us.
The fact that this state does not have
these manufactures To protect. nor
does il have right 10 project us in the
vending of them, should i'll equity take
from this state the right to lax us on
SIch manufactures, after they uc per
mancntlN removed from this state. 50
long aS we pur>tIc uur business - part
ncrS, our laws do not ask us to pay
taxes on such manufactures permanent
~ removed from the state. and which
are taxed in other states and countries.
70. pcrprtuate nur business pcrma-
ncntly in this State. and that it might
not hc broken up 10y the dcrcaSc of II
partner, We desire an act of incurp"r;i-
tion. The general law in relation to
the taxation of manufacturing" corpora
tionS we found to Ice. that the machinery
and real estate owned 10y such corpora
ton is taxed to the corporation. and
inc >lbth hoi'ltl> are lHtn IdNtu Tor the
value of such capital stock above the
value uf the real estate and machinery
Sec II Chap. ~ ten. Statutes. This is
Just and equitable whci,. all the corpo-
rate property j. within this State foI
protection. which i the condition oi
most manufacturing corporations ill this
Stat. A. tn. ,..tt,it.l SI,.l m nlIr ,.t,u-
pany would represent all the property
which we hold permanently for sal" in
other States and countries it would sub
ject rs t" double taxation on all the
s property on which we are justly taxed
in other States and cOuntrics-nr in 9th
ci words. compel us to pay yearly
penalty of ten Thousand dollars on up
wards for the privilege OF becoming III
corpnratcd. We thought this unjust
Hence in the hill it was provided that
the property of the corporation should
he taxed to the corporation AZ such. the
same AZ it would be if owned 10y III
individual. That we might have n'
advantage over any corporation. III sim
liar circumstances with ourselves. l
there were any such in The state. VI
caused at the same time IL bill to III
introduced providing for the taxation
of the property of all n,anutacturln:
corporations in the same manner. On
inquiry we found that the universe
practice III this State 81 far as w
could learn. was to tax the corporate
prnprrty of such corporations I" tn
cotpuation. and that no taxes WEI
asScssrd to the Stockholders. although
the law wis as stated. We desired T.
comply with the law, if we hecame i'll
-nrpuratcd. This latter bill failed T.
become law toI reas.n> that need no
be stated. The Governor then object
ell to our act. not because it gave an
exemption from taxation, hut beears
IT created IA different method for taNin
the property of the corporation fr"I
that provided by the general law an
would relieve the corporation troI