St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1908-12-16

Does the offset system under which we
now live benefit the poor man! Does 1t
benefit the farmer who owes $1,000 or
S3O0u? Does it benefit the honest labor
ing man who is ambitious to own his
own home? The town of Brattleboro
is not what might be called poor mans
town, and yet this town has only one
third of the grand list OF Windham
county but it has more than one-hali OF
all the offsets in that county. St. Johns
bury is not a poor mans town and yet
with one-third OF the grand list OF Gale
donna county it has more than one-halt
of the offsets. Bennington with only
one-third OF the list OF the county has
one-half the offsets. Newport with only
one-seventh OF the grand list OF Orleans
county has one quarter OF the offsets.
Bear in mind that these are towns where
the laborng man who has a mortgage
upon his home has no Offset because he
owns no personal property. One of the
opponents of the new measures stated
upon the floor OF the House that we
must not abolish offsets because it
would seriously interfere with the divi-
bends of the Vermont Marble Company,
who, as he said, were enjoying the priv
lege of offsets to the extent of one million
dollars. The member from Bethel OPP
posed the bill because he said it would
cripple the great granite concern that
makes two million dollar contracts and
furnishes granite tor state capitols
throughout the country. One OF the
largest savings banks III the state wrote
their attorney who is representative to
oppose the measure. A large telephone
company wrote their attorney, who is
also a representative, to oppose this
measure or send in his resignation as
such attorney. Two of the leading and
most earnest opponents OF this bill are
bank directors. The statistics gathered
at state expense prove that the. farmers
OF Vermont can offset only about 80 per
cent of their debts while the merchants
and manufacturers offset about 50 per
cent OF theirs.
Now, then, are we right when we say
that the honest man who owes an honest
interest bearing debt upon his farm or
upon his home would, II he understood
the matter, demand that his representa-
tive in the legislature vote in favor of
these new measures? One OF the repre-
sentatives told us in confidence 1--WE
Withhold the nance that he had several
thousand dollars III government bonds
at 312 per cent and that he had more
than $4,000 in the savings banks of
this state. He also said that il these
measures became law he should take his
money out of the banks and place il
upon real estate mortgages in Vermont
even at . per cent.
II you are convinced that the farmer
and laborlng man is not getting the
beneht OF the present system, we will
consider the situation OF the town treas
ury among the smaller towns. The saw
lngs banks OF the state pay a tax OF
seven-tenths of one per cent upon their
deposits. They pay this tax 20 the state
and the town gets nothing. The small
towns with high tax rate are sending
their money out of town to the savings
banks to avoid taxation. If they could
place their money in their own town, or
IN any other town, upon good farm
mortgages SO that it would net them
more than IN the bank, they would pro.
Dably do so. At least it would be good
business to do so, and if they did so they
Mouid pay tax upon that mortgage
he tax upon the mortgage would be
pau INTO the town treasury for the use
OF the town. Under the present system
the town gets no tax upon the money
Who then is getting the benefit Of IN,
present system which allows offsets anC
which taxes all intangibles at the Ioca
rate.
First, The Savings Banks.
Second, The man who is evading tax
alton by otfsettng. a fictitious or non.in
terest bearing debt.
Now ii any savings bank in the stat,
holds a mortgage of $4,000 it paws a Ia,
to the state of only $14 on that mort
gage. 1t any individual in a town wher,
the tax rate is ST so happens to hole
that mortgage and is honest enough Il
put 1t IN the list he must pay a tax O
$50. If he lives in an INCORPORATE,
village and school district where III,
total town, village and district tax !,
SZ.oO ne must pay tax of $50. and tn,
net income on his investment is only Al,
per cent. Is it any wonder that he mt,
his money in the bank under thes,
circumstances But if the offset anC
intangible bill become a law, the indi
viduai will pay only about the same rat,
bank now pays upon its mortgage. /
II not reasonable to suppose that tn,
ousiness-llke investor will take ad
vantage OF the opportunity to increas
MS net income from the 4 Der cent now
PAID by the banks to the Az Der cen.
possible under the new laA even If h,
loans his money at per cent. If h,
loans his money at 512 per cent his ne
income will then be per cent more tina,
ne T Sould get from any bank in the state
lhere are two classes of depositors i
the savings banks. One class NAB,
deposits of their savings. These are tn,
small depositors who put all their none,
III tne banks and may need to draw i
out IN case of sickness or accident. Thei,