The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-03-14
HEARINGS ON TAX
APPEALS Be GIN
At MONTPELIER
Governor Fletcher Springs Sur
prise on Attorneys
OUTLINES POLICY FOR STATE
Recommends That Tax Commissioner
Take Into Account the Market
Value of Railroad Stocks.

Montpelier, March 13.-The state
board of appeals on railroad valua-
ton made by the retiring tax commits
sioner, j. T.. Cushman, met in the sen
ate chamber at the State house at 10
o'clock this morning and spent the
first days session in trying to get the
ship of state in shape to proceed TO
business in regular order. The most
important part of the days proceed
ings was the appearance OF Governor
Fletcher at the hearing and state
ment made by him in which he out
lined what he considered should be
the states policy for the equitable val
uation of railroad properties.
The board of appeals under the sta
tute comprises the lieutenant COVER
nor, Frank E. Howe; the state audi
tor, Horace F. Graham. and the Sec
rotary of state, Guy w. Bailey. Mr..
Howe being chairman. About rs at
torneys and representatives of the
steam and electric roads were pres
ent. The members of the board re-
ceived the oath from X. K. Brown, at
torney general, and Immediately on
starting business Governor Fletcher
made his opening statement, in which
he briefly outlined what he believed
should be the policy of the state on
railroad valuations.
He suggested that in order to obtain
a fair and equitable valuation of such
properties the commissioners should
take into account the capital stock,
the market value of the bonds and
other securities, the floating debt, etc,
on which they should base their con-
illusions. He went on to say that 1t
was practically impossible to make a
physical examination which would re-
quire engineering experts and take
months of time on account of the out
side ownership of railroad properties
by two great corporations the earn
ings could not be taken as safe bar
ometer to determine the valuation.
The small roads and electrics were, in
his opinion, valued as high as they
should be. The governors suggestion
came like a clap of thunder out of a
clear sky. Some attorneys intimated
afterwards they had hint of what
was coming, but the majority express
ed surprise and most of them, when
asked when they would be ready to
have their cases heard, pleaded for
time.
The Rutland Railroad case was TAX
en- up first and the state put in its
side. +. W. Lawrence and John G..
Sergeant, counsel for the road, asked
for continuance at the afternoon
hearing on the ground that the state
had presented such novel case they
must have time to prepare and meet
the argument The state objected, but
continuance was allowed until tomor-
row morning only after which come
the cases of the Bristol Railroad, Cen
trail Vermont and Boston and Maine,
with other railroads set for Tuesday
and Wednesday of next week.
II he suggestion of the governor is
carried out 1t will mean an increase
of $26,000,000 in the valuation of the
railroads of which $4,000, 900 will be
the increase of the Rutland Railroad,
like amount for the Central Yer
mont, SS,000,0O0 for roads in the Bos-
ton and Maine system In this state
and so on.
Most of todays hearing was taken
up in parleying between the lawyers
for the state and railroads and the ex-
pressions of surprise on the part OF
the latter over the line the state was
pursuing in establishing its valuation.
Substantially all Vermont roads
were represented at the hearing by
counsel or officials, the Boston and
Maine and Rutland interests by f. w.
Lawrence of Rutland and J. G.. Sar-
geant of Ludlow; Central Vermont by
c. w. Writers Of st. Adams; Della
ware and Hudson and Rutland Light
and Power company by T. w. Molon-
ey Of Rutland; Berkshire Electric rail
road by r. f. Healy Of Bennington
and the Hoosic Tunnel by II. G. Bar
Der OF Brattleboro. Fully 25 attor-
neys we're present. The hearings may
last four weeks.