The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1900-11-14
THE REVENUE BILLS HEARING.

THE REVENUE BILLS HEARING.
Very nearly the full Joint committee on
| Ways and Means was present last evening
at the hearing in the hall OF the Honse in
the matter of House bills 1913 and 321 to
| raise revenue from corporatious. Many in
terested members of tho House and Senate
we're present and large number Of citiz ms
OF the Stste interested in the matter
The hcst witness examined was Mr.. II. $.
| Ju'er, general manager Of the American
| Express COMPANY, Of New York. Mr.. FL
| field examined him as to the amount OF
taxes levied on his company by the various
| States, which varied from nothing in several
| States to four per cent In Vermont He al
| lowed the railroad companies forty per cent
of the gross earnings of the company. The
real estate and personal property OF tine
company in Vermont is taxed in the differ
ent towns where 1t Is located. The com
pany pays the largest rate of taxation in
Vermont of any State in the Union, four per
cent. Only six per cent OF the gross earn
ings Of the company was net. The capital
stock is eighteen million dollars, and it
pays six per cent dividends.
Mr.. Fiield argued that the four per cent
tax OF Vermont is not actually tax, but a
license, as the company already pays taxes
n the towns where they have any property.
This proves on the face of it that this is
Mr.. j. L. Martin explained the manner in
which the law of 1890 was made, he having
drawn the bill which was enacted into the
present law.
Tax Commissioner Bigelow explained to
the committee why he omitted any refer
ence to express companies in his report,
which was because he could not get at the
facts He thought { at the corporation tax
law has, as whole, proved considerable of
failure. He thought no proper basis OF
1
express companies with what information
was at present possessed by those having
the matter in Consideration. He quoted the
receipts from taxation from the railroad,
telephone and telegraph companies in New
Hampshire, AS compared wi h this STATE.
Comparison was also made of the three
and fraction miles tax on railroad prop
erty here now with the tax OF from ten TO
twenty-one miles on other large industries
in the State. Was enqured Of by Hon.
John Young how he would appralse rail
road property. Said he was NOT prepared
to answer. Was asked II the bonds of the
railroads were not taxed and if this is the
case, was il not double taxation? Was
asked how railroad could pay lax when
its gross receipts were less than ts operat-
ing expenses. II appears that there are
three roads in this State in this condition.
j. L. Bacon said, In answer o an inquiry
from Mr.. Wides, that about 5000 600 was
estimated as necessary to he raised for the
coming year, of which S466,00O is paid by
the corporations. Mr.. Wildes challenged
the accuracy of Mr.. Bigelow's figures. He
said that the appraisal of twelve millions
ON the Central Vermont railroad was great
ly in excess of its actual value. He said
that that railroad was paying as much pro
rata as anv individual taxpayer in the State.
The road pays hfty-Chree Thousand dollars
taxes on this excessive appraisal, and is the
largest individual taxpayer in the State.
ha EAuTral VArmnnt alaVRn l.
lion dollars today. AS matter Of fact
considering the condition of the road, its
expenses and its indebtedness, II should
properly pay on six and one-h Alf million
dollars. An average of not more than
sixty six per cent of the property through
out the State goes into the list, while every
dollar Uf railroad property is exposed and
taxed. The Central Vermont was APP
praised and taxed at twelve millions, while
the entire property sold for seven millions.
Mr.. W. B. G. Sickney spoke in behalf
of the Boston & Maine system, which oper-
stes 265 miles in the State. The Boston &
Maine pays in taxes over S37 900 on its
various branches in Vermont.
Mr.. Wilde5 added that the bondholders
would have to pay whatever taxes we're
assessed on the Central Vermont. The
men who operate the DAD are not he men
who own it, The railroads OF Vermont
have been reorganized for the last time,
The remedy, Mr.. Wildes said, was not to
increase the taxation OF the railroads. but
to reduce State expenses, as the roads had
reduced their operating expenses.
Hon. John Young said that the st. Johns
bury and Lake Champlain railroad had not
paid operating expenses in eight years
The bondholders would not foreclose be-
cause the property WAS not worth taking.
And yet, the operating expenses were less
per mile than any road in the State. 1t
costs 105 cents TO earn every 100 cents of
the gross receipts of the road. A doubling
of the tax on that road meant either rais-
ing rates TO meet 1t or abandoning the
road Manufacturing corporations have a
right to Offset all their personal assets
against their debts which the roads cannot
do. The Hardwick & Woodbury. road paid
113 TO earn every dollar IL received last
year.
Hon. j. L. Martin spoke in favor of the
system pursued in Mr.. Hale's bill, which
simply increased the vote and did not at
tempt any innovation in the method of tax
| alton.
President Clement said that the Rutland
railroad never was assessed That Mr. .Bige-
| low had endeavored to create false i'm
| preston. The quoted value of the Rutland
railroad 3 stocks and bonds is about five
million dollars, and the road pays nearly
, 1923 600 in taxes, twenty five per cent of its
net income. Not an income OF taxation, but
an income of economy was earnestly argued
| by Sena or Clement.
Hon. b. b. Smalley interrogated Mr..
Bigelow as to the rate on cotton and wooden
nanufactus, and conGroverted his figures.
Mr.. Wildes made this statemen in behalf
| OF the Central Vermont road:
q. ". ia miles in per cent
bonds, $1,000 600 90
Misslsquoi, % miles in per
cent bonds. 25O,OOO 90
b. & l. 26 miles in per cent
bonds, $50, 900 90
Webb Equipment, per cent
bonds. 10000 90
M. q w. R., (Montpelier &
Wells RiveD 4 per cent
bonds, 125 900 90
$7.975. 900 90
Less rolling stock offset
against bonded indebted
ness, 1900, 1000, 90
-
S6,475, 900 90
Bouds worth 80 cents, 80
50 S27. 800 90
Assessed at same rate rs other
property throughout the
State-say ! its true value, $685., 900 90
! per cent for list, 80 $50. %