The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1884-10-01

counts of the roads in its system jan
uary and July |. Under its system of
bookkeeping the earnings of the Yer
mont Central from April to July could
not be distinguished from the earnings
for the entire six months. So the pres
ident of the road, by the decision of
the directors, declined to pay the tax
on the receipts of this particular road
for the first six months, and the COM
missioner believing that the intention
of the legislature was to impose a tax
upon the earnings of the road, under
any condition of operation or manage
ment, brought suit against the company.
President Smith displayed the friendly
and willing spirit that actuated him by
paying the taxes upon all the roads UNI
der his management except this for the
first six months and including this for
the second six months without protest.
The Central system paid into the treas
ury during the first year $43 ,901 ,6S, and
for the first half of the second year S2l, =
S39.2 %. The course of the Central
management has been honorable and
patriotic, and in the matter of the
above suit, which is referred to the leg
islature, that body should, as of course
it will, deal justly with the corporations
appeal for relief Suit was brought
against the Troy & Boston railway for
delinquency in making its returns for the
first six months. BY singular fatality
this company did not know till it was
sued that the state of Vermont had a
claim against it. AS soon as it had be-
come informed it promptly complied
with the law and disclaimed any dispo-
sition to evade it. The penalties ac-
crued against the company during
the period of its delinquency amount
to about sd 900. The Southeastern
railway was also sued for non-compli-
ance. Its delinquency grew out of en-
barrassments and changes following the
failure of Bradley Barlow. 1t has paid
its taxes promptly since the assessment
for the first six months. The penalties
amount to about S26 500. In these
two cases the suits are for recovery of
the penalties. The companies offer
to reimburse the state for all costs,
and the legislature, as a matter of
course, will, under all the circumstances
remit the penalties. The case of the
ST. Adams Trust Company is not so
clear, but in its behalf mercy, if not
justice, may fairly be invoked. No
suits involving the validity of the law
are pending, and those which the COM
missioner reports will doubtless be de-
termined by the action of the legisla-
ture.
The commissioner suggests for obvi-
Gus reasons that the law be amended so
as to require the corporations to make
their returns to him at least fifteen days
before the tax is made payable to the
treasurer. He calls attention to the
manner in which the purpose of the leg
islature in assessing a tax on railways
graduated upon the returns for the year
was defeated by section thirteen of the
law, making the tax payable seminar
nually and basing it upon the earnings
for each half yearly period. The effect
of this section upon the revenue the
law would raise from the railways is
illustrated by the commissioner. One
hundred miles of railway earning Sd 600
a mile pays under the law tax of S.
900; based upon the earnings for yeai
under the graduated scale of percent
ages, the road would pay $l1 900. One
hundred miles of railway earning 50 ,00C
mile pays under the law 81 900; based
on the earnings for year the tax would
still be 81, 200. Based upon the half.
yearly earnings the tax is two per cent
upon each road; upon the yearly earn
ings it would be two per cent upon the
poorer and two and three-fourths pei
cent upon the more prosperous road
Upon the first years business tax
based upon yearly earnings would have
raised from the roads about 1914, 500
more revenue than was paid under the
law as determined by section thirteen
1t will be question for the Legislature
to consider whether it will amend the
law to make it conform to the original
intention of its trainers or whether sec
ton thirteen shall be allowed to stand.
This matter will doubtless be decided
according as it shall be made to appear
that the railways are or are not taxed
proportionately with property entered
in the grand list, or with reasonable
approximation towards the average ag,
gregate rate on such property. The com.
missioner's recommendation of amend
ment to section eighteen, relating tC
savings banks and trust companies, that
the acreage amount of deposits in eX
cess of 81 800 be deducted from the
average amount of all the deposits in
obtaining the basis for the assessment
of the tax, doubtless interpets the in