Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1882-11-01

was no good reason why the railways should not
help support the state government. They had
the benefit of the protection OF the laws OF the
state and should bear a just and reasonable share
in the burden Of maintaining the laws. The
early legislation by which perpetual immunity
from taxation was given the Vermont Central
company, and the reasons, wise or unwise, which
led the legislature to grant that immunity, were
reviewed. The legislature reserved no right to
repeal the exemption. The immunity was abso-
lutte and neither himself, legislature or court, had
the power to change the relation ~ regards TAXA
ton, between that company and the state 1t
was evident that Vermonts material interests
are on the wane. The agricultural interest is
beset, the manufacturing interest is beset. The
burden Of taxation falls on a class least able to
bear 1t and this, doubtless, Is one OF the reasons
which has tended to depression in Vermont
His judgment was and has been, that the corpo-
rations Of the state should be willing TO come
forward and relieve It OF this burden, and that
they could do this without injury to them People
should be reasonable, the basis of taxation a
sound one, and the corporations will be willing
to bear their share OF taxation, and can, without
impoverishing themselves, help those interests
on which they depend for their support. As to
the best method of taxing the railways there is a
great deal to be considered. The present method
is not a good one 1t does not give equal relief,
and is not just TO the railroads On the basis of
this present law taxes are paid to the towns on
the roads These may be content but 1t Is not
right The back towns get no benefit from the
the full benefit OF the tax, and now to add this to
the advantage derived from the road passing
through the towns, makes the inequality more
conspicuous and oppressive. II the legislature
could devise plan which would bear the test of
law by which the railways could be taxed for the
benefit OF the state, all the towns sharing in the
benefits, this would be sound policy. There was
a time when he was operating roads in New
York, New Hampshire and Canada and he was
paying large taxes in those states looked strange
to him to be paying taxes all around the borders
and his own state receiving no benefit from this
source. 1t was not right or just In reply to an
inquiry by Colonel Hooker, chairman of the COM
mittee, Governor Smith said, If it could be legally
done, tax on gross receipts, equitably arranged,
would be the soundest and best plan. In answer
TO questions an explanation of the classification
Of receipts was made and the distinction between
local, joint and through traffic, was explained
for the information of the committee and to
guide it in the preparation of a measure relating
to taxing this kind of corporate property.
Governor Smith urged the Importance of good,
thorough study Of the subject, that whatever
measure was adopted should be equal in its bear
ings. That IL 1t were equal and reasonable,
barring the reserved right of every man to
grumble about his taxes, there would be no dis
satisfaction among the roads lie was not able
just and equitable tax. The Connecticut system
OF railway taxation, one per cent on market value
OF stock and one per cent on par value of bonded
debt, was elucidated and shown to bea- exceed
ingly hard on the poorer roads. In reply to Mr.
Wing of the committee, Governor Smith was of
opinion that a tax on the market value of the
stock and the market value Of the bonds would
be most equitable, as these values were always ac-
cessible. Many questions were asked by the
committee and answered by Governor Smith with
that clearness and intelligence which show the
expert railway manager. full report OF the
hearing would far exceed our limits. 1t was re-
plete with information impaired with candor and
courtesy, and all who listened to this exposition
of railway affairs could not fail to have clearer
and more just views of the difficulties Of railway
management and the benefits derived by Vermont
from these corporations.