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

The St. Johnsbury & Lake Chanplain
railroad has for years been operating un-
der an annual deficit. which Is In some
way made up by the Boston & Maine mil
road. That Is, all its revenue from all
sources has not been for years sufficient
to pay operating expenses For the year
ending June 30. 1911. Its deficit was $685.
237.7; and the deficit for the previous year
was $5S.50.S3. Its capital stock Is 1885,.
$40; and it's mortgage debt is $2.boO,0O0 OF
course nothing is ever paid to the stock
holders I have no time to tell you about
the other railroads But none Of them are
paying their stockholders but very little in
the way OF dividends. The Boston &
Maine, Of course. has only a small part
Of It's system in Vermont; and you also
know that It has recently been Obliged to
cut down It's dividend rate. 1t has Just
finished installing 10 new steel bridges and
enc granite arch bridge between Newport
and White River Junction. and is still In
stailing others in tho place Of the old
wooden bridges
Now Is there man or woman in this
audience who cannot see that 1t would be
both inexpedient and unjust to appraise
the property Of the Central Vermont rail-
road and tax It at the same rate that your
property Is taxed? Unjust. because all Of
It's property Is devoted to a strictly public
Use, the maintenance OF great public
highway, and it's stockholders never have
Lad one cent Of income from that prop
erty. The same thing Is true Of the ST. j.
&. l.. c. railroad; and substantially the
same thing Is true Of the Rutland rail-
road. 1nexpedient, because all the money
that we force those railroads to expend
must be taken from the people by a tax
as truly as the money used by this city
is taken from the people by tax.
Now our legislators have not been the
dull and tame men that Mr.. Howe would
have You think They perceived that the
State Of Vermont must have certain
ment, provide for good schools, and make
permanent highways. They perceived
that the best way to raise that money was
by indirect taxation. rather than
by direct tax on the people Of this State
They perceived that. If they should tax
the railroads. the railroads would tax the
people that used them to get the money
wherewith to pay the tax. and so the
State would get the requisite money with
out any direct tax. This has been done by
the existing scheme OF taxation. And the
consequence is that no direct State tax
has been imposed for years: that We get
from the railroads and other corporations
money enough to run our State govern
ment not only but during the last two
years we paid from that fund $215. 900 more
for schools. and $4,000 more for highways
than in any other two years OF our his
tory. So, you see. the railroads are not
! only keeping up their own public high
ways, but also helping to maintain our
| common carriage and automobile roads.
and our schools and colleges.
| But suppose we should treat the rail-
roads just as we treat an ordinary in
dividual In this matter Of taxation. Then
those railroads would have the right to
offset all of their rolling stock and other
personal property against the debts that
they owe. and the result of that would
he that we should not then get so much
| In taxes from the railroads as we do
under the existing scheme. Oh no.
my friends, our legislators, and our
executives for the last twenty-five years,
have not been quite the foolish and
corrupt people that Mr.. Howe would have
you believe. Mr.. Howe we'll perceived the
force OF the point lust made, namely.
that on his theory of taxation the rail-
roads could Offset their personal property.
And. in a speech that heard him make
at Newport he ridiculed that point say
Ing that the Legislature Of 1910, hood
winked again by the interests" and the
"bosses." passed statute exempting
| from taxation all railroad bonds and
notes that were not drawing interest at
rate to exceed four per cent. "How
then" exclaimed Mr.. Howe. could the
railroads swear Off their personal prop
erty They could not swear 1t onto
the holders of their evidences Of debt
for such holders are exempt from taxa
ton In respect Of that debt; they can not
swear II off onto the devil. for the devil
would not stand for 1t. They must then
swear II on onto the people," etc
Now Mr.. Howe knows. or ought &c
know, that neither the Legislature OF
1910. nor any other Legislature. ever pass
ed any such law as he described. The Law
that he must have had In mind il No
30 Acts OF 1910 and manifestly applies
| only TO the exemptions from tdXatlOT
of county and municipal Indebtedness I,
REQUIRES no lawyer to see this. That act
lis as follows:
Notes bonds. or orders issued after
February first. nineteen hundred and
seven. as evidences OF obligations TO,
money loaned to a county town. village
Incorporated school or fire district, at g
rate OF interest not exceeding four pei
cent per annum. for the purpose Of con-
structing. purchasing, or repairing water
sewer or lighting systems. permanent
highways, bridges. walks or public build
ings, or for the purpose of aiding In the
construction OF a railroad or for the pur
pose OF refundng debt contracted fol
any of the foregoing purposes" shall b'
exempt from taxation.
That Is the only statute that Mr.. Howe
could possibly have had In mind. and onl,
a very hasty reading of It could have
made hin, believe that 10 exempted from
taxation the bonds or other evidences O.
indebtedness of a railroad.
II Mr.. Howe advocates that railroad
property shall be appraised and taxed II
the town where It is. as he seems to do
II Ia sufficient to answer, besides VIVA
has already been said, that this woul,
result In giving the benefit of all tina
to those cities and towns where It Il
situated, and depr1ving all the othe
towns of the benefit thereof; while unde