Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1898-10-13
Gov. CIRCUITS Message.

The retiring message of Gov. Grout
is certainly not open to the charge OF
undue brevity. 1t contains thirty pam
phlet pages and requires about an hour
to read. II has, however, the merit OF
being interesting throughout, and if
all the recommendations do not COM
mend themselves as practical, the mes
sage loses nothing in instructiveness.
1t will pay anyone to read it.
| The first paragraph deals with fnan-
ces and.state expenses. 1t is rather an
argument for increased expenditures
than for retrenchment. Our state ex-
lpenses, though larger than formerly,
are still less than the average of most
states and the direct tax aside from
the corporation and inheritance taxes)
is less than years ago. The governor
| fails to note, however, that we have
not only the direct tax, but an indirect
tax. the revenues of which, though a
few years ago sufficient to meet all our
needs, are falling further and further
behind each year and the deficit must
be made up by steady increase in the
direct tax.
Gov. Grout dwells at length on the
question of double taxation and shows
its injustice to the mortgaged real es-
tate holder. He thinks it would be
mistake to try to remedy it by lifting
the load from the mortgage in the
hope that he would pass the benefit on
to the debtor, but believes that the
proper solution is to tax the mortgage
notes in the town where the real estate
is located, allowing the mortgagor to
pay the tax and deduct it from the in
terest and also allowing him to Offset
his debts against his real estate Thus,
if A owned farm in Braintree that
was appraised at $1,000, which was
subject to mortgage of $500, held by
B, living in Randolph, instead of both
paying separately on these amounts, as
at present, Gov. Grout would have A
pay on his net possessions (S600) and
ON the mortgage notes $4,000 or 1920,
the same as at present, but deduct the
taxes paid on the mortgage notes from
the interest due B. The latter would
net as much from his loan rs at pres
ent, providing the tax rates in both |
towns were the same. Gov. Grout |
would get around this difficulty by hav-
ing the tax rates on such notes the
same, based ON an average of all the
towns in the state. OF course the
town where the notes were held would |
lose them as taxable assets. This plan
would practically cancel all the reve-
nue. derived by the state flom taxing
savings bank deposits, since banks
could not accept net rate, less taxes,
from their mortgages, pay seven
tenths of one per cent state tax and
still pay depositors four per cent.
That would be a bad case of double
taxation. We commend Gov. Grout
for approaching the present evil and
working hard to do away with it, but
we think a better remedy than he pro-
poses can be devised.
The governor makes special men,
ton of Norwich University at North
field and hints that further appropri-
alton to that institution would be a
wise and merited outlay.
He makes no recommendations
about the Normal schools, whose char
tiers, some of them, at least. expire this
year.
He has high words of praise for the
work of the state reform school at Yer
gennes. Some additions are advisa-
bic at the state prison.
Gov. Grout has a tender heart and
his plea in favor of prison reform is a
strong one. He believes in conditional
pardons and would have the practice
more common. He believes in educa- I
ion of convicts and favors a prison
school. He thinks the state is too I
much concerned in making the prison
'ay in dollars and not duly concerned
bout the reformation it accomplishes. 4
A saving of $1,000 to $1,000 can be
made by having commitments to the
Iouse Of correction made by a warden. I
nSfaad of hr- no,.n4.-a a.