Norwich bulletin., 1909-03-17
NORWICH COMPRESSED AIR co.
Hearing Resolution from Preston Asking for Change in Charter Adjoining Town Wants to Get More Taxes-Statement of Taxes Company Pays

join the concern in fighting Norwich in the suit now in court and Preston refused to do that.
 one-third of Income in Taxes.
 If this company had to pay taxes as Judge Back and Preston desire" said MT. Freeman, it would mean that 35 per cent. of its gross income would go into taxes, and it is not fair to put upon us this additional taxation. We claim that an amendment to the charter such as is proposed is uncon- stitutional and defy Mir. Back to show where any charter has been amended in this fashion. There is no prece- dent. for it. For one thing. general law provides that before any charter amendment becomes operative it must have been adopted by majority vote of the stockholders of the company. Supposing the stockholders of the Nor wich Compressed Air Power company weren't willing to accept this ?"
 Chairman Parker of the committee differed with MT Freeman on this and said it was competent for the legis- lature to pass legislation of the sort asked for and MT. Freeman finally ad- mitted that 1t was the form in which it was asked for that was objection able and that the end sought might be attained in some other and proper way.
 ITO force this company to pay this additional taxation would simply oblige it to go into the hands Of a receiver, and then neither Norwich nor Pres ton would be any better off" asserted Mir. Freeman. s+Such action is con- fscatory and don't believe any court would hold that it was legal or con- stitutional. While I don't think the intention is to be unfair such prop osition certainly is unfair
 Offered s1oO,oOo.
 Judge Back agreed to give s1O0,OO0 for the dam and water privilege owned by the company, though he said he didn't want the compressed air conn pany, and raise the amount in two weeks. Put that in writing, MT. Back, and I think there will be no difficulty in putting the deal through" was. Mr. Freemans retort.
 "The situation is simply this" he said. "The plant Is today earning less than s10,000 a year; 1t has never paid cent of interest on its bonds or a cent of dividneds to it's stockholders, and is simply run now to pay taxes. The men who went into it are stand ing the situation like men and not trying to float securities in order to get out themselves"
 MT. BrOWn Sald rev WOrdS to snow how deeply Norwich is affected in this matter because of the expensive tear ing up of it's streets. and told the com mittee that 1t was by no means simply a matter of the physical valuation of the company's property. but that Nor wich should receive some proper re- turn in money. Even then, it doesn't.
 MT. Browning called attention to the fact that the charter of the company says that the concern Is located in Norwich" and said that it didn't sell a pound of power in Preston. Both MT. Browning and Mir. Brown told the committee they would want to be given hearing for their clients. if the pro- posed legislation was to bring Norwich in, in any way.
 While 1t cannot be said that a ma jority of the committee feels favorably inclined toward the proposition, final adjustment of the matter cannot yet be told.
 Effect of Proposed Ell.
 The statement of the effect of the proposed bill, according to tax bills presented in 1908, follows:
 Mills.