The Barre daily times. (Barre, Vt.) 1897-1959, 1911-02-02
TELLS STORY
OF TAX BILL
Senator John W. Gordon on
lntaDgibles Subject
GOV. MEAD'S VETO OF BILL
Senator Believes That Vote Of the House
on the Last Day of Legislative
Session Showed Strong Con-
viction for Change.
GOV. MEAD'S VETO OF BILL

/ tnOse VINO KNOW inc lhclS ludt hOAue
newspapers are claiming that II. bill
! sol, providing for fiat rate on intan-
/ gibles, was little considered by the recent
/ legislature Prior to and from the open
/ ing of the session, many members were
considering such measure. They had
| in mind the discussion of our tax system
that had been going on for years. They
/ had studied the report OF the eommis-
sion that reported in 1908 in favor OF
such law A town had, indeed, made a
poor selection if it had sent a member
who had not given the matter much al
\ tention Some members were in the leg
islature two years ago, had heard the
measure debated at length, and came
| back this year TO vote for it, although
/ they had then voted against it. A large
majority OF the members, | believe, telt
that something should be done with our
present unsatisfactory tax system The
] abolition OF offsets, the exemption Of
mortgages bearing a low rate of inter-
1 est, and fate rate measure were the
principal remedies proposed. A quite ex-
tensiye canvass showed that the fiat rate
proposition met with the most favor
On the opening day of the session, the
! tax commissioner was consulted. He
/ stated that he first desired to have a
/ law enacted that would enable him to
examine the inventories in enough towns
/ to show more specifically what would
be the effect of such law AT his re.
quest. Senate bill No. ~ was introduced
+ Nov 7 and passed under a suspension
( Of the rules. The bill was delayed in
I the House and when passed was vetoed
+ because an imperfect copy had accident
4 ally been used II was then too late
I for the purpose, but a correct copy was
| introduced January TO and became law
In the meantime the friends of a fiat
rate bill had not been idle They had
( discussed IL frequently during the delay
The fact that the newspapers did not
I give it more prominence is no proof
that there was little consideration OF
the measure While many newspapers
were deyoting a large amount OF space
\ to such catchy subjects as the remain.
ling Of Otter creek, Rattlesnake noun.
4 tain, or to the bounty on hedgehogs,
many members were seriously invest.
4 eating the fat rate proposition ] doubt
iif any measure received as this did SO
much OF that kind OF consideration that
enables one to vote intelligently IL
4 certainly had received as much consid-
Grafton as House bill 900 and in my
4 Judgment more. House bill 800 took
OF the limit on deposits in savings
banks and was not introduced until Jam
uary 20 and had to be passed through the
Senate under a suspension of the rules
/ The fiat rate bill had been before the
4 legislature in printed form for a much
7 longer time and had in fact previously
passed the Senate. As early as January
10. Senator Scribner introduced Senate
I bill l42, for which Senate bill liz was
/ in fact substitute. The difference be.
I tween the two bills is that the latter
4 provided that the tax on intangibles
\ should be paid into the state treasury
I and be distributed in place OF our pres
/ ent state school and highway taxes,
while the former provided that the taA
should be paid into the town treasures
and left the school and highway taxes
undisturbed. The two bills are alike
so far as taxing ntangibles is concerned
/ and only differ in the mode OF collection
and distribution. The fiat rate bin was
4 therefore. before the legislature in print.
ed form Is days before the bin for
taking Off the limit on bank deposits
/ was introduced, and 20 days before the
4 legislature adjourned.
/ II the friends of the fiat rate bill
had not supposed that their measure
I would have become law concurrently
with the one taking Off the limit on
bank deposits, the latter measure would
+ probably have met with opposition, IT
not defeat. The purpose of having the
/ two measures go together was to put
/ the individual on an equality with the
Corporations. The individual can supply
certain financial needs for the develop.
ment OF our state as no bank can or
ought to try to do. The measure re.
/ specting bank deposits may increase
somewhat our revenue. That is the
only effect it can have. But the fiat rate
bill has twofold purpose. 1t viii
/ both increase our revenue by uncovering
sequestered intaugibles and help 20 de-
velop our state by supplying enterprises
with financial assistance that cannot be
obtained under our present laws.
While our space is too short to go
4 into discussion of the bill that came
so near to becoming a law, it may be
/ of interest to your readers to make
/ brief statement of the facts that led
iup to the governors veto. The final
draft of the bill was not completed until