The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-11-08


that he would favor the adoption of
law that would put the individual and
corporations on an equality. That
the Senate Bill "a does not equalIze
the taxation between corporations
and individuals is too apparent to
need much comment.
In the first place, the bill exempts
loans secured on real estate situated
in the State of Vermont. If an in
divdual holds a mortgage secured by
loan in another State he must pay
the local rate, which will average
about $3.50; while the banks, which
in 1911 had over $33,000,0 on loans
on real estate outside of Vermont,
would have to pay only seven mills
In other words, the individual would
pay two and one-half times as much
as bank. Is this equality?
Again the banks have invested in
loans on personal security, on de-
post book collateral, on bank stock
collateral on mortgage collateral,
on other collateral and in railroad,
municipal and United States bonds
the sum of $11637, 493.23. On this
large sum of money the banks pay
but seven mills while the individual
making loans on. or investing in, any
of these securities would have to pay
the local rate which averages about
$3.50. Here again is an inequality
which the Republican Party pledged
itself to eliminate.
There seems TO be neither rhyme
nor reason for the discrimination
that would exist fthe Senate Bill be-
came law. 1t would not uncover
the vast amount of hidden securities
on outside investments that now es-
cape taxation. 1t would be a shifting
of burdens without corresponding
benefits 1t would add another TO
the list of broken promises which
have fettered the Republican Party In
the past. 1t could not benefit at all
the towns where the tax rate is now
below $3.50 for in such towns money
can now be loaned probably by an
individual. On the other hand, it
would, in fact harm all towns, what
ever their rate of taxation, by de-
pleting their local treasury or reve-
nue. That real estate loans should
bear some of the burdens of Govern
ment is just and fair We complain
of our Court expenses, but a large
item of the Court expenses results
from the foreclosure of real estate
mortgages. There is almost no bur
den TO the State for chattel mortgag-
es because these are foreclosed with
out suit.
After some years of study on this
question | have come to the conclus-
ion, and | believe many others have,
that the true remedy is a uniform
rate on all intangibles. Space would
not permit me to set forth the adyan-
tages of uniform of fiat rate sys-
TEN. If there are any who think my
presentation of this subject worth
reading they can find it in the Bur
lington Free Press or the St Adams
Messenger of Aug. 10th, 1912
If We are not TO adopt the fiat rate,
| believe that the registration system
of New York would be the second
choice. All intangibles, notes. bonds
or mortgages, in that State are uni
formily assessed at a rate of FIVE mills
when they are registered and are ex-
empt from ali other taxes. In other
words, New York collects five dollars
on every thousand dollars of intang-
ibles AS the average period of real
estate mortgages in Vermont is a lit
tie over five years We would only get
one years tax under this sytem. but
ii would be something. while the Sen
ate proposition is to get nothing and
to leave all the inequalities and dis
examinations that now exist under the
law TO be bourne by other classes of
property.
John w Gordon.
Barre, Vt, Nov. T. 1912.