The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-03-14
RAILROAD TAX
HEARING OPENS
Gov Fletcher in Favor of Increasing
Valuation Many Millions on Mar
ket Value of Securities.

MONTPELIER, March II. - The
board of appeals, composed of Lieut.
Gov. Frank E. Howe, Auditor of Ac-
counts H. F. Graham, and Secretary of
State Guy w Bailey, met in the senate
chamber at the state house yesterday
to consider the appraisals of all the
railroad properties in Vermont, steam
and electric from which appraisals
made by the eX-taX commissioner, j.
f. Cushman, the state has taken an
appeal in all cases, with about 20 rail
roads, also appealing.
Twenty-Five attorneys were present.
The hearing was continued today.
Governor Fletcher opened the hear
ing with a statement in which he Sug
gested that valuations be established
in accordance with the market value
of the securities of railroads, such as
the bonded Indebtedness, floating debt
and the capital stock. The governor
stated that two large corporations own
ed substantially all of the railroads in
Vermont today and that the amounts
paid for these properties gave them
/ ideas of their values.
PHYSICAL examinations. he said, were
/ impossible and would take months to
secure. If carried out by the board,
the governor 5 suggestions would in
crease the appraisals of the railroads
! $4,000, 900 He said the purpose was
not to materially change the appraisals
of the small roads or the electric lines
which were III the main about right.
On the part of the state an even half
hundred cases will be presented by
State Treasurer Edward II. Deavitt OF
Montpelier, assisted by Attorney Gen
eral r. f. Brown of Burlington and At
. = I In, L., .
Warner \. Graham of Bellows Falls
OF these appeals. four are in cases OF
steamboat companies. About p more
cases will be presented by the rail
roads through small battalion of le
gal talent.
The appeals follow the act of the re
cent legislature providing that take.
be assessed upon physical valuation OF
: railroad property. Heretofore the com
panies have enjoyed the privilege OF
- choosing for themselves whether OF no.
4 they would pay taxes upon physical
p valuation or gross earnings, and have
e generally chosen to pay upon earnings
10 the difference under this alternativ,
, being considered in their favor.
The income to the state from rail
. road taxes has in the recent pas
: amounted to about $500, 600 annually
anu Iilt tOHLtIi E'iiAEt4 IlIt ttt>t VI sunni
u $4,000 would bring the total incom
t up to about 100000. The state woul,
. increase the assessed valuation Of tn
+ property, this being its chief ground
: of appeal. The railroads claim tina
d they are already over-taxed.
e The larger number of railroads in
volved has proved to be something o
surprise, and is due to the fact tina
some of the larger companies includ
several subsidiary corporations, rail
roads rarely mentioned by name. Som
= railroads from other states Operatin
they are already over-taNed.
Although the board of appeal ha
been in existence many years, it ha
seldom been called upon to sit in exer
else OF its functions. According to tn
" law, the board acts not only As
Il board of appeal, but also as a boar
l. of appraisal, from whose decision
IS there is no appeal. The hearing prom
Uses to be an extended one.