Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-08-22

Burlington In maintaining the streets Of
this city In proper condition for public
travel. The railroads are engaged in a
governmental function that 1t is the busi-
ness Of the government to see Ia perform
ed. and which the government would IT,
self have to perform, II 1t did not delegate
that duty to private capital Because a
railroad Ia Of that nature the government
regulates Il; tells It how It shall operate
Its railroad tells It how much It shall
charge for its services, and what shall be
the quality Of its services and just what
precautions It shall take for the public
safety and convenience. So II is mani
fest at the outset that a railroad corpora
ton Is a fundamentally different person
from a natural person, from you and me.
The State cannot tell me how much
shall charge for my services In trying q
lawsuit for you. nor tell you, II you are
merchant, how much you shall charge
me for a suit Of clothes. Now how does
railroad get Its income, the money
wherewith to perform its duties. to oper-
ate Its railroad. to perform its govern
mental functions? Precisely in the same
manner the State gets the money where
with to perform It's governmental func-
lions. by taxation Of the peo-
Pile Whom does the State tax. or ought
| the State to tax, to get the money neces-
| sary to operate the government? Why.
| the people. What people? The people who
| use the State. use what the State wants
the money wherewith to furnish; and in
the proportion that person uses the
State. in that proportion he should pay
for what the State furnishes him. II he
| has $1,000 worth OF property, then he uses
the State to protect his life, liberty and
5000 worth of property, and for that he
should pay a certain amount. II another
| Is worth $500. 900, then he uses the State to
protect his life, liberty and 100000 Of prop
erty, and should pay correspondingly
greater sum to the State than the man
who has only $1,000. that Is, his tax should
be correspondingly greater. Whatever
money the State has the people have to
pay. Whatever income railroad has. the
people have to pay. The railroad gets that
money out Of the people. How does the
railroad get It? BY taxing the people.
How? In proportion as they use this gov
ornamental provision, In proportion as they
use the railroad. man who travels a
good deal on the railroad pays more than
( q man who travels little. or not at all. A
man who ships a good deal over a rail-
road pays more than man who ships
little or nothing. and all pay
in the exact proportion that they avail
themselves Of this public highway II
the railroad Is forced to raise more
money to pay taxes to the State, how
must the railroad raise that money? BY
taxing the people more. there Is no other
| 10 NV vvna
fleets on this matter in the least that n
railroad ought TO be allowed to tax the
people. to charge them large enough
rates. to raise a fund sufficient, first, to
pay the operating expenses OF the rail-
road and to keep Its property up to the
maximum state of efficiency. paying good
wages to its workmen; second. to pay
all that the State exacts of It in the way
Of taxes: third. to pay reasonable
dividend to Its Observation-Disclosures who
have invested their money in this public
utility. Now Just glance at the railroads
of this State. The Central Vermont has
a capital stock of s3.OOoooo.oo IT has a
mortgage Indebtedness OF 11.5GoO. 1t
has besides an equipment trust obligation
OF several hundred thousand dollars. 1t
has never paid a cent of dividend to its
stockholders II It should pay such a
dividend. where could 1t get the re-
quiste money: BY taxing the public. no
other possible way. Every cent that It
has earned for years, every cent that
for years II has taken from the public.
has been used to pay the interest on Its
debt, and to improve it's railroad. build
new bridges, install new and heavier
rails, purchase new and better equip
ment. In a word to make n better pub
lie highway of the Central Vermont rail-
way. For the fiscal year ending Juno
80 1911. one OF the best In its existence.
after paying all taxes, all expenses OF
operation. and interest on Its debt. It
had net income Of $50 26l. a. the year
before the corresponding figure was
so4.7HN None of this went to
its stockholders. they. as ! said, have
never received cent OF income on their
more as the Central Vermont could get
on credit has gone into improving its
plant as public highway. and the pur-
chase of new equipment At an expense
Of $3.50 10000, some of II paid In cash. and
the remainder secured by It's equipment
trust obligations, the Central Vermont
undcrframe box cars: cO new all-steel
hopper coal cars: two new baggage and
express cars: six new first-class pas
senger coaches; two new frst-class parlor
cars: three new switch engines: four new
. Pacific type locomotives. And Ia being
compelled to eliminate four grade cross
ings annually and to pay 65 per cent. OF
the expense thereof
, The Rutland Railroad company has a
, capital stock Of $9l5c,soo: a mortgage debt
r Of N0744.0Oo; and an equipment trus,
debt OF several hundred thousand dol.
, lars 1t has paid hut very little ir
dividends to Its stockholders In 100;
dividends were suspended and all surplus
5 earnings applied to improvements
Dividends were resumed In January, 1905
D by the payment of a dividend of 1 J.,
= per cent. That dividend was paid agar
In January, 1907, and In January. 1905 Nc
! dividends were paid In 1909. 1910 and 1911
! all surplus earnings going into improving
. the road. Its net revenue for the yeaI
. ending June 80. 1911, was tS72, SAT-. after
Q paying all operating expenses interest or
q debt. and taxes; and the corresponding
( figure for 1910 was $293, Goa Is, all coins
= into improvements. This year the Rut
: land Railroad company has purchased al,
new passenger locomotives; four new
= steel passenger cars; and 900 steel under
4 frame box cars. all at q cost of $500 900
: 1t 10 constantly making improvements IL
9 its roadbed. constructing many new ans
8 necessary passing sidings; and Ia erect
!. Ing new passenger stations. the one Jus
a erected At ARLINGTON heinu opa - ~