Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-03-20
Vermont Seeks Taxation Justice Both Railroads and People

chief steam railroads particular This
problem i'll fact involves not only the extent of increase but
also arriving the aggregate of the rail
roads should bear that the principles concerned unda
mental.
should be to deal unjusy with our rail
roads for they aid in the development of State All that
thinking people that in matters of taxation
roads shall give as well receive strict Justice
When Governor Fletcher at the beginning of his admin
raon consideration the question equang
taxation between corporations individuals intimate
knowledge of securities and of methods of finance enabled him
to that the option given corporations pay
upon their their gross earnings being abused
and that result the State not receiving the it
should from that source
All of the chief railroads of CONTROL
ed by lease otherwise by railroad corporations located other
States AMI in the freight alb
sorbed by that portion of the line outside of Ibis State by the
controlling systems earnings left for taxation in
Vermont were surprisingly small
these circumstances Fletcher insisted that
the railroads in Vermont should be deprived of the option pay
tax earnings and be confined to tax on the valuation
of their property Early in the session the Legislature carried
out the Governors recommendation in this respect by passing
law embo1ying the
That Vermont the right track and not dealing
justly with the railroad interests Indicated by the fact that
during the closing days of the congressional session recently
ended national lawmakers passed railroad valuation law
which has been praised by the Railway AseGazette the semi
official Of the great American railway interests 1t
1T gratifying that the bill passed by Congress seems to
provide fully for valuation that shall include all important fac
tors The law nructs the commission to ascertain the original
cost to date the cost of reproduction and the cost OF repro
ducon less depreciation, and to present in its report
a!s of the methods by which these several costs obtained
and the for the difference between them. if The
commission also to ascertain and report separately all other
elements of value if any This would include allowances for
franchises and going value if the commission decided such
allowances should be Included
That railroads. the other hand Gain positive
valuation from property is indicated by the remark of the
hallway AgeGazette to the effect that railroad managers and
investors are now little perurbed by this measure They
fdently anticipate that the valuation finally made will demon
the ncorrectness of the popular belief long entertain
ell that the railroads heavily overcapaed and there
fore still extorting from shippers large amounts order to
tons of railways have been made in several States and they
have exceeded them Furthermore valuations have been
made in the States where the largest values concentrated in
big terminals There large terminals the twin cities and
Duluth in Minnesota and Puget sound Washington and in
both of these States the valuations exceeded the capzons
The equity of physical valuation basis of taxation of
railroads established the problem presenting itself how
shall their true value be ascertaned Under the law which has
existed in Vermont for years the State fax commissioner has APP
praised the property of the various railroad corpoaton and
he also authorized include in the appraisal the franchise
The appraisal by Tax Commissioner Cush-
man ava9ee ID the total appraisal of all the railroads in Vc
Deav who made by law the legal representative of the State
of appeal from appraa held the appraisal to be still
shire and other States.
The question also arose whether the State might
saved prolonged and expensive litigation Of
ton if the commonwealth to promptly appeal board
of appeals body which has been in existence for but
overworked and which has final jurisdiction.
1t also desirable have the fairness of the basis
of taxation of railroads established beyond doubt far
valuation and valuation by the board consisting of the
lieutenant secretary of State and State auditor with
would the attention of noless than six the result would
public confidence well fairness and
equity both for the corporations and the people.
The railroad representatives evidently expected to meet ar
men for the raising Of aPpraa to basis somewhat similar
ton mile third higher than Vermont about
600 compared with about $4,000
Here again Governor Fechers financial knowledge and
ability served well the people, for he suggested that the
e value of the securities of the railroads be used to help fix
the valuation OF the property step emmenty fair III the light
of the Railway Ageazette assertion that other States the
appraisal a rule has Exceeded the capitalizaions
The hearing thus far by the board has vndcated the wis
dom of the appeal well warranted the superstition that full
justice will be done all parties concerned the board having
sustained apprasa by the commissioners and reduced
that of the Bristol railroad
When the board of appeal adjourned until Wednesday
the
heard
The average valuation per mile found by Mr.. Deavitt
5453 which for the Vermont proportion of 2212 miles
$2379627 which is his valuation figure The total
valuation of the 1911 miles Of the entire system 2l54962
Figured the basis Of assets and liabilities the total is
$24543070, per mile of $61S2 which
Vermont value of $l5003,367 this basis
nasmuch railroad stock listed and has
to fix the actual value Of its stock.
Here again Gov Fletcher interviewed and brought out the
questions that the sale of Rutland stock by the New Io
Central to the New Haven at the rate of los.
railroads outside Of Vermont
paying of the burden of and public
If their made to those OF ndiVi-