Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1874-12-02
A Statement of Facts.
ST. JcHNsBURY. Nov. %,

ST. JoHNsBURY. Nov. %, IA.
TO the Editor of the Caledonian:
In the account of the Governors vet
Of the bill to incorporate L. & T. Fail
banks a. Co., published in the Caledonia
Of the 9th inst, it is stated: 'Ele cor
Q siders the provision excnpiing the stoc
5 from taxation still more Objectionable
lie says "if the general law oil taxation
is just and proper. he can see no reaso
why special exemption should be granite,
to this company" Such exemption b,
considers "unjrst TO other manufacture!
corporations, and other taxpayers, uuwise
and establishing a precedent of speca
legislation Of dangerous and mischievou.
tendency" The same statement has beer
published by most Of the newspapers o.
the State. From this statement the i'm
preston generally obtsins that the firm Of
which | am member, was ATTEMPTING by
the bill to secure some special exemption
from taxation, and some unjust advantage
over other like corporations aud over tax.
payers generally. This is entirely incor.
rect, and an incomplete statement of the
Governors objection to the bill, as a care.
ful reading Of his veto message will show.
The facts IN the case are as follows:
In the establishment and prosecution of
our business, i; 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. La these houses We keep con-
s'antly on hand a large stock of our mao.
uiacturcs, and on them we pay taxes year
y to the amount of several thousand dol.
lars. We do not complain Of this. The
states and countries in which We constant
y keep these stores and stock of manu-.
factures have the same right to tax us for
them that this state would have to tax q
nonresident for store which be should
keep filed with goods for sale in this state.
The protection which such states and coun-
tries 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 manu!ac-
lures 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, af.
ter they are permanently removed from
this state So long as we pursue our bus
mess as partners, our laws do not ask us
TO pay taxes on such manufactures per.
manently removed from the state, and
which are taxed in other states and coun.
tries.
10 perpetuatc our business permanently
In this State; and that il might not be
broken up by the decease of partner, we
desire an act of Incorporation. Tho gen.
eral law in relation to the taxation Of man
ufacturing corporations we found to be,
that the machinery and real estate owned
by such corporation is taxed to the corpo-
ration, and the stockholders are then taxed
for the value of such capital stock above
The value Of the real estate and machinery.
Sec. ID Chap. SO Ger. Statutes. This is
just ana equitable where all the corporate
property is within this State for protec.
ton, which is the condition of most man.
ufacturlng corporations in this State. As
the capital stock in our company would
represent all the property which We hold
permanently for sale In other States and
countries it would subject us to double
taxation on all the property on which we
are justly taxed in other States and coun-
tres-or in other words, compel US to pay
a yearly penalty Of ten thousand dollars
or UPWARDS for the privilege Of becoming
Incorporated. We thought this unjust.
Hence in the bill it was provided that the
property Of the corporation should be
taxed to the corporation as such, the same
as it would be if owned by an individual.
That we might have no advantage over
any corporation, in similar circumstances
with ourselves, If there were any such in
the State, We caused at the same time
bill to be Introduced providing for the tax
alton Of the property of all manufacturing
corporations in the same manner. On in
quiry we found that the universal practice
in this State 50 far as we could learn, was
to tax the corporate property OF such cor.