Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-03-27

ASSETa.
S1q Q22 13q
s19,933, l39
NO EFFORT TO TAX STOCK.

Nj Deavitt stated in answer to a ques-
on by Mr.. Cook that no attempt had
cen made to tax the stock or bonds Of
be company, but their value had been
onsidered as representing the value Of
he property owned by the Central Yer
mont.
Mr.. Writer'S, for the company. cross
Examined Mr. Deavitt at length, trying
o bring out that the stock, having no
narket value ought not to be considered
s determining the value of the road.
but Mr. Deavitt held that even If the
took had no market value of itself it
houd be considered as determining the
Ealue of the franchise under which the
Toad Is being operated.
Mr. Writer'S also tried to bring out that
Fome of the bonded debt of the company
toud not properly be considered an
sset for purposes of taxation, and that
ebts owing the company should not be
considered when the company had bor-
fowed the money to loan TO subsidiary
companies for improvements and better
nents
Mr.. Writer'S: 'If the road which last
Jear had net surplus of $1,000 had been
axed 100000 upon such a valuation as
you propose. instead Of $4,000 what would
nave been the effect?"
Mr.. Deavitt: There would have beer
ess money put into betterments.'
Mr. Writers: What would be the effect
bn the bonds?'
Mr.. Deavitt: eff there was an ac-
kual deficit it might reduce the value
bf the bonds; but for several years
many thousand dollars from the in
tome fund have been placed in better
ments.'
SAYS PRICE PAID RIGHT BASIS.
Mr.. Writers claimed that the method
of valuation adopted by the state
treasurer was incorrect and that the
krue valuation of the road could be
ascertained by what was paid Tor l
and the improvements since made ii'
Differed in evidence the charter, tn
Heed of sale, the mortgage, and als'
financial statements showing that TN
kalue of the bonds had ranged from
Sc to GA in January, 1883, 30 TO b. II
hlarch, and SO to 80 in April that a1te
an agreement Of sale had been reach
ed with the Grand Trunk, the prlc
rose to so to 81, which he consldere'
the true measure of the value of tn
B., 900, 900 of bonds.
William q. Crabbe. auditor OF the con
pany, claimed that the SUo,OO OF stoc
and S7GS, $3.50 of bonds should be eliminate
from consideration That part of tn
working liability representing advance
made TO other roads for construction 4
thought should be eliminated since none
was borrowed and the company now owe
for it, Other items to which he obJecte
were S2l5,Sl3 advanced for the constru'
zion Of new boats, s92,S27 due from oth'
traffic companies a large portion OF SSoo
Goa wages unpaid, etc; matured lntcres
dividends and rents; working Hablnt'
sa 600 accrued liabilities, not due; tax
accrued, SGO,93l; insurance accrued S@'o'
and deferred credits, &6,i1S'
Mr.. Crabbc explained in detail the 1851
of exchange bonds at the time or u
transfer of the property In May le'
showing a total Of Nl,00o,O0 and that IN
represented all the property at that tim
VALUE or SHORT LINES
II the old bonds were worth 80 u
price paid was ss,SOO,OO0, and this INCLUDE
several small roads in Canada
thought an amount proportional TO u
mileage should he deducted as the Nai
Of these Canadian roads Asked az
the value of these Canadian lines ne sa
the most desirable was the line from
John to the Vermont line, which y"
bought for $4,000 a mile. The Burlingt'