Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1913-04-02
RAISED SEVERAL MILLIONS.

RAISED SEVERAL MILLIONS.
The board of appeal instituted by
Gov. Fletcher to hear the arguments
for an increase in the appraisal of the
railroads of Vermont for taxation pur-
poses above the valuation gathered by
former State Tax Commissioner Cush-
man, has been in session in Mont
pelier for more than q week. has
heard several cases and already given
several decisions and raised valuations
on number Of roads.
The valuation Of the Addison rail-
road was placed at 1892, 500; the New
port & Richford, $945. GOO, and the
Rutland railroad, $11. O10. 470. The
appraisal of Commissioner Cushman
was $275, 400 for the Addison road.
$40, 600 for the Newport & Richford
and So, $50, 800 for the Rutland. These
figures raised the Rutland road almost
So, 600, 600 and the Newport and Rich
ford over 500, 900. When the de-
cisions were announced Attorney E. A.
Lawrence asked the members of the
board to state what items they had
considered in making up the appraisal
of the Rutland road. Mr.. Graham
said the board saw no reason for giving
such statement and declined to do so.
discussed. The road was appraised at
$40, 600. The state treasurer values
it at $50, 900 more, which would make
the valuation $1,260. 900. The attor-
ney for the company held that $3.50. 900
in addition to the value of the equip
ment used in operation would be fair
appraisal.
E. A. Cook opened the argument for
the state. He urged that the value of
the stocks and bonds afforded no proper
criterion for the valuation of this line.
AS a single road it is of small value.
AS connecting link in great system
it is of much larger value. The Con-
necticut & Passumpsic Rivers road
owns the Newport & Richford, and the
only outlet for the Canadian Pacific to
Boston and adjacent territory is over
the track of this road. To be fair this
road must be considered as part of
one of the great transportation systems
Alfred of Newport insisted that the
great part of the value of the bonds
was due to their being guaranteed by
the Connecticut & Passumpsic Rivers
road, and that that this guaranty which
made the bonds marketable should be
deducted from the value of the bonds.
There was no evidence that the stock
of the road was worth single dollar
but he was willing to concede that it
was worth $4,000. The company re-
ceived S18, 900 rental per year and pays
in intere SITS on bonds, etc SIT, 500.
| In the appraisal of the Rutland rail-
road property before the board of ap-
peals at Montpelier the principal wit
ness being Percival w. Clement of
Rutland, former president of the road,
who gave important testimony as to the
value of the stock and bonds of the
road which, in effect reduced the val
uation $5O0.000, as made by the form
err state tax commissioner, J. E. Cush-
man. Mr. Clements valuation was
based on what he considered to be a
fair market value of the roads securi-
ties The railroad company's attorneys
showed that only Il per cent Of div
idends had been paid on this stock in
the past 10 years.
Mr. Clement valued the stock at not
over $40 a share. He thought that the
price which the New Haven was will.
ing to pay for the control of compel.
ing line in their fight against the
Grand Trunk could not be called the
s'fair market value" Mr.. Clement OBJ
l.jected to the basis Of valuation, pro.
posed by State Treasurer Deavitt, as
being unfair as compared with the as
sessment of other property in the state
for the purpose of taxation, in that il
practically undertakes to value the rail
road property on per cent income
basis. He gave as an illustration that
while this contemplates an appraisal Of
$4,000 for every $500 Of net earrings,
no one would consider for moment
the assessment of house at $4,000
which only paid $500 year rent. Ir
the cross examination by Attorney E.
A. Cook for the state it was attempted
to show that in the operation of the
Rutland road under New York Central
control, it was not given it's fair proper
ton of through freight divisions. At
torney Cook referred to testimony ir
the suit of Untermeyer and others
against the New York Central.
On the different sections of the B.
M. system new appraisals have beer
made as follows:
New appraisal Old Appraisal
VT. Valley Sc. ITO, 900. 5000. 00l
Conn & Pass. 100000 $3.50, II!
Conn. River R. 91.321 40.0O(
Fitchburg Div. 100000 sos, 0Ot
, Beware of Ointments for Catarrh