Morning journal and courier., 1883-05-11
Railroad Taxation.

 Governor waller Returns without Ills Signature the BIn Reducing the Tax
 Especial to the JOURNAL AND CouBER.1 NEW LONDON, Conn.,, May 1o.-Governor Waller this evening returned the bill relative to the reduction of railroad taxation to the Secretary of State without his signature He has filed the following reasons
 STATE OF CONNECTICUT,
 EXECUTIVE DEPARTMENT,
 HARTFORD, May 10. j.
 The bill entitled "An act concerning the taxstion of railroads" |" 1883, passed by the General Assembly on the third inst, the last day of it's session and within few hours of it's close, and presented for executive con sideration five days after the adjournment of the Assembly, is returned to the Secretary of State without nay approval, and I herewith file some of the reasons for my refusal to a D. prove.
 While regret that the Legislature cannot consider and act upon my objections can- not for such reason refuse to perform my constitutional duty in withholding my sigma ture from bill that careful examination satisfies me ought not to beco me law. Ih1s bill is objectionable in the object it aims at the reduction of railroad taxes-and in the manner it proposes to accomplish the object. It seems an inopportune time. with 8 State debt of more than four and one-half million dollars and town debts in the aggre- gate of about seventeen million Of dollars, to consider the reduction of any tax not aDso- lutely oppressive. The people of the State pay an average tax of about fourteen mills on a dollar on the value of their individual prop erty, while railroad corporations pay only ten mills on dollar on the value of their corporate property. The difference amounts, in the aggregate property of railroad corpo- rations to about two hundred thousand dol lars less than the people pay on the same amount of property and this difference would be largely augmented by the operation of this bill. If any differences should be recog- nized in the proportion of taxes that rall- road and individual property should bear IL ought not, in my opinion, to be any greater than it is. It is claimed that railroad cor porations are now taxed on their lnoepted- ness as well as their property ana tnas Inls bill proposes to partially relieve them from such obvious oppression. This clam, so de- lusive, is entirely unfounded. The State ina poses taxes on property, but never on 1n- debtedness The market value of the prop erty of railroad corporation is indicated by the market value of it's stock and bonds and the State adopts such value as rule for the assessment of taxes upon the property such corporation possesses. The bill to accomplish it's object contempIates the taxation of the same prop. erty at different rates dependent upon the manner in which such property is helden. Such discrimination is pernicious. It pro- vides that property if represented by stock shall pay one per cent, but if by bonds only ne-half per cent Such policy if pursued in the taxation of individual property would permit the large portion of the real estate subject to mortgage to escape half the taxation it now has to pay. It is urged that the object of this bill that changes the mode of railroad taxation is to charitably aid poor corporations. If this were so discrimination for such reason in matters of taxation is as obnoxious between corporate as individual taxpayers, but I am advised that the effect of this bill will be to give in the course of year nearly as much of the proposed..reduction to the rich as to the poor The refusal to approve this bill will result, hope, in the adoption by the next Assembly of. some comprehensive scheme that will fairly distribute the burden of tax ation on the property of the State.
 Signed THOMAS M. WALLER,