The Barre daily times. (Barre, Vt.) 1897-1959, 1908-06-06
RAILWAYS SIDE TAX Law CASE.
Central Vermont Claims Tax Commits
sioner is Wrong in Constituting.


Central Vermont Claims Tax Commits
sioner is Wrong in Constituting
st, Adams, June G--The suit brought
against the Central Vermont railway
company by the state fDr 1907 tsixes
llained due aud unpaid sis elaimed by
sthe railway to be based upon q wrong
construction Of the corporation tax
! law. The railways side Of the case Il
presented al Follows
The contention Of The state tax com.
missioner iii tha recent suits brought
against the Central Vermont and Rut.
lind railroads is not That these cor,
porations have refused TO pay The tax
KS assessed upon them under the rc-
cent tax law enacted by the last ses.
sion of the general assembly OF that
they have il amy way eyaded the obliA
cations to the state which that law
imposed The tax commissioner seeks
construction Of the law different than
the meaning which the railroads have
placed upon il and which increases the
taxes to be paid by q large sum OF
money. The impression has gained ere.
dance that the railroads are refusing
TO comply with the plain provisions
al the statute.
A statement Of The facts will clear
these corporations Of all intent to OPP
pese the collection Of the proper tax
under the law AS matter Of fact.
taking the action Of the Central Ver-
mont railroad as basis of illustration,
the state Treasurer has received from
that corporation cyery dollar Of taxes
which the Central( Vermont railway
company considers Ii due The state nns
der the provisions 81 the law and has
given his receipts therefor. The state
TAX commissioner places \ construction
upon The law entirely different than
its plain language would indicate and
demands the payment Of u large adds
tional sum. The railroad company in-
sisted that is construction Of the
language Of the law was the correct
construction, and no compromise ching
effected the tax commissioner caused
4 suit TO be commenced in order to have
the courts construe the meaning Of the
law.
The tax commissioner based this suit
upon an assessment OF one per centum
upon the appraised value Of the rail
road property in the state claiming
that the company, not having paid the
full amount of tax based upon gross
earnings, must now pay an appraised
valuation But the company had paid
np0n its gross earnings such amount as
III considered the law called for, ard
having done 10 IL now claims that Id
Il entitled To MI election az provided
bs law, notwithstanding difference
crises between the railroad and the taX
commissioner as 10 the amount To be
paid upon gross earnings.
Common sense would seem to COLI
clnde that the railroad company Isl
right as to this contention. The tax
commissioner has no more right TO con-
strue the law than the railroad com
paDy, What he says the law means is
81 no more binding force than what the
railroad company says it means. Be
cause a difference Of opinion exists the
tax commissioner sets up the claim that
HE railroad company cannot avail IT.
self Of the privilege of paying upon the
basis OF gross earnings which the law
provides and which the company accept
q when Il paid the amount Of taxes
which il considered the law called for
keith reason and common sense support
THE contention of Tho company Id isl
claim that this privilege cannot Tx tax
en away from IL merely because the
state tax commissioner place i differ
ont construction upon the law than
did the railroad company. So much
for that phase Of the case
Coming now to the different methods
computing the tax Section I'll Of
the public statutes provides that rail.
roads may pay certain per centurn
upon their gross earnings for each fs
cal year, and the per eentum fixed IS
graduated upon the amount earned per
mile eof the road bed OF such railroad
heated within this state"
Now the Central Vermont has main
line in Vermont aggegating 27074
miles; with it's sidings, spurs and
double track, its roadbed within the
state aggregates alO9. This double
track, the sidings and spurs are all as
much a part of the froadbed within
tile state as the main line They all
cost money, they ARE all used In earn
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