The Barre daily times. (Barre, Vt.) 1897-1959, 1912-12-27
TAXATION CHANGES
AND WATERPOWER
Must Cease to Discriminate Against In
tangibles Declares John w. Gordon
by Taxing Them on
Full Value.


Charity should begin at home" bu
home charity, TO be effective, must b
well regulated and properly organized
In Vermont We have approximately $50,
600 undeveloped horse powers in ou
streams and 10000 horse power deycl
oped. In this age Of industrial develop
ment the proportion of the developed &
the undeveloped seems small. Tw
causes have especially contributed I,
this result. One was the holding of on
court that the constitution prohibited
the exercise of the power of eminent
domain for any but strictly "publi'
uses" The term public uses" is in
capable of precise definition but one may
get an idea of its restricted application
in our state by an illustration.
| In 1871 the court held that land could
not be condemned for the purpose oil
ilowage to accommodate a grist mill, al
though commissioners had found that
such howage would be of public beno-
| fit" because the owner of the grist mill
was not obliged to receive and grind the
grain that any member of the public
might offer. The taker must be under
compulsory obligation to serve the cub
lie before he can take. The public benc-
fit of the taking was not to be consid-
cred If there was no compulsory service.
The individuals right TO the title and
use OF particular piece of land was,
in the eyes of the constitution, more sa-
cred than the public's right to the de-
yelopment of any resource and the os-
tablishment of an industry. This view
of the constitution was in keeping with
the extreme indiyidualistic theories of
the last century. We say extreme"
only because the two other states in The
union have constitutions so restricted.
If the constitution is wrong as thus
interpreted, whose fault is it that it 20
remained Certainly not the courts II
its decision was conscientious as no one
will doubt but what it was. 1t is the
peoples fault, ii fault there is. They
have had over 40 years in which u
change the constitution If they had
wished. They have apparently been sat
listed with its narrowness for they have
adhered to the policy that our water
power development for the benefit Of the
public, when a public USE was not
shown should be dependent upon the vol
alienation of property. So far
as we know only one attempt has been
made to change the constitution in this
respect. Two years ago an amendment
WAS offered to articles of the declaration
of rights that would have added the
words "or benefits so that it would
read that private property ought to be
to public uses or benefits
when necessity requires" etc The amend
ment was explained in the press, but
neither the press nor the public appar-
emily took an interest in it and the Sem |
ate rejected it. In some recent decisions |
The court has inclined to more liberal |
construction of the constitutional pro-
vision referred to, but the constitution
should have been amended for it will re- /
main uncertain how far legislation eau
70 until special cases have been lit.
rated.
But q more serious handicap to our
water power development has been our
ystem of taxing ntangibles. We have
lad surplus of money sufficient to
evelop every water power in the state
nut have placed statute between our
money and our water powers. 1t has been
5 real barrier to our industrial progress
s a piece of glass may be to the current
hat drives a Twentieth Century
United. Industrial enterprises to-day
re largely corporate and are eontinu-
lily becoming more so. The advantages
/ corporations for establishing and con-
ucting enterprises are many Stocks
nd bonds are the instrumentalities by
hitch capital is secured. The law does
OF rest very heavily upon stocks in
mercantile or trading
because the value of the
took does not often exceed the APP
raisal on which the corporation itself
avs the taxes. But it is quite diff
srent matter with the bonds. They
0 into the list at their full value. The
lcome from them is limited by the
Nv of usury to six per cent. and the
rect tax on the average takes nearly
ne dollar of every three dollars of that
mited income. No resident of the state
in afford to buy and hold an indus
'ial bond to promote Vermont enter
rise. Enterprises, therefore, that ought
, be a part of the birthright of Yer.
onter pass now into the hands of non
sidents and the incomes thereof are
mt away and disbursed outside of the
ate.
To what extent has this happened in
speet to our water powers Nearly
| of the important water powers of
e state have passed to foreign owner
lip and control and the remainder will
on do so if we continue to exclude
ermonters as we have done by our
ethods of taxation. We are now try
g to secure to Vermont the energy
our white coal". Would it not
wise to secure Vernon ownership III
ID control? Should not the native
I'm have an equal show with the out
Ter to become an owner and manager?
n outside capital means imported III
and exported profits.
To accomplish the desired result we
ust abolish the unscientifc and unjust
lssiicstion of intangibles whose in
me is limited by law, with tangibles
lose income is not limited. We must
sse to impose the same tax upon ev-
y species of property irrespective of
nature, condition OF class. In dis
ssing the classification of intangibles,
T. Ely, the eminent American econ
list. has truly said, "The one uniform
K on all property in direct taxation
yer has worked well in any modern
or state in the civilized
rid, although il has been tried thous-
Is of times and although all the men,
resources of able men have been
ployed to make il work well.' III
We must cease TO discriminate against
angibles by listing them at their full
lue while listing tangible property, |