Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1915-04-08
TAXES DUE CITY FROM
COMPRESSED AIR co.
Counsel Want to See Them Paid If
Charters Are Granted to New Power
Companies.
Especial to The Bulletin.)

gave a continued hearing Wednesday
afternoon at the capitol upon the acts
and the Rex company, and
to amend the charter Of the Norwich |
Compressed Air sompany, the oppo- |
nents being given opportunity to be |
heard. Those favoring had been heard /
at the first hearing.
Wants Taxes Looked Out OR.
William H. Shields. representing the |
town of Norwich, said the claims were |
similar to those presented by Mr.. Fan |
ming, counsel for the city of Norwich, |
in the matter of taxation Of the Com |
pressed Air company to the amount of |
Sc, 404 81, back taxes, in addition to |
the city taxes. This is a peculiar mat |
ter and the legislation was peculiar. |
The first compressed air company in |
the United States was inaugurated in
Norwich by Joseph Mack Of PhiladeI-
phia, and this is the plant upon which
taxes are due. The plant was intend
ed to encourage industry and the pow
er sought was on the Quinebaug river,
located in the towns of Lisbon and
Preston. There was o tremendous out
ley, and the users were located in the
town of Norwich. the amount ex?
pended being about $500, 900. Pipe lines
were laid in the streets to the city
and town. Conditions were peculiar
as to taxation as the plant was in
two towns and not in Sorwich A
contract was made with the city of
Norwich, or agreement, and by leg
islative enactment. There is effort to
have appealed the section that gives
protection in the matter Of taxes. The
Rex company, through Mr.. Comstock,
if chartered. is willing to take care
Of the taxes. Under the statute the
plant shall be set on the tax list of
for which Mr.. Comstock could have
purchased for not less than $195, 900.
Mr.. Shields said that every effort has
been made to collect the tax, but
without success, although the town
pays to the state the tax due the state
on this plant. At present the Com
pressed Air company has no right to
manufacture electricity, but they now
ask for the privilege and they come
to the committee as defaulters. Mr.
Shields said there were legal taxes
brought for the taxes before the legfs-
lature agreed to take care Of the taxes
due. Mr.. flaming wanted some pro-
tective clause written into the char
ter of any company that may take over
the Compressed Air company. Nor
witch has paid to the state these obli-
cations and ought to be made good.
Emphatic specifications should be
made in these new charters that there
should be no competition with the Nor
witch municipal plant. and that the
safeguarded.
Not Competing with City.
Edwin W. Higgins said it was the
intention not to compete with the city
of Norwich municipal plant. but was
a clause to that effect. Objection was
made to the compressed air feature of
the Cooperative proposed charter and
Mr.; Higgins agreed to have that
stricken from the BILL
Mr.. Tanning said the legislature
gives the Norwich plant authority to
extend service and to sell to existing
companies and he believed there might
be competition. He felt obliged to cali
the committees attention to the neces-
sity for protection of the taxes to the
amount of s5,22O.20.
Christopher L. Avery asked If the
Connecticut Power company or any
Hike company could not now take over
under their charter the Compressed
Air company. The reply was that not
pressed air.
Changes in Cooperative Co. Rights.
Mr.. Avery, counsel for the Cooper
the substitute bill with reference OF
allowing the company transmission
rights and to make contracts with
| manufacturers on the Quinebaug river
| AL IcII1lOTy not covered by 6XSt1ng
electric companies, and not sell to any
concern except to mills, without the
consent Of municipality or other COM
| panies.
Mr.. Tanning of Norwich, who had
| the floor when the hearing was adj
journed last week, said that Norwich
was interested to the extent Of taxes
| due Norwich by the Norwich Com
| pressed Air company, as Charles w.
| Comstock would have done had the
| Rex company been Incorporated.
Mr.. Avery said If the Cooperative
| company took over the compressed all
| company it would assume all legal
rights. There would be no moral OBJ
legations to meet, only legal.
Protect City Of Norwich.
| Mr.. Tanning stated that agreement
| was made between the compressed air
company and the city of Norwich in
| regard to the payment Of the taxes
engage in the manufacture of electrici-
| ty it becomes a new company and
would ignore the city of Norwich
claim. The property of the company
| is now there and will work automatic
| ally and without the employment of
help, except two men. The earnings
| were $4,000 a year, more or less. To
avoid litigation, the state should come
to the rescue of a part Of the state
| and see to 1t that these taxes are paid
| ny WndIeNST company takes over the
| existing company.
Mr.. Comstock had assumed that he
| would pay these taxes If the Rex COM
pany was chartered, but 1t was not
written in the charter of the Rex COM
pany. Mr.. Shields asked that the
gentlemen seeking changes should be
| required to meet all legal claims and
that the town Of Norwich be made
| good it's taxes.
Windham County Companies Object.
Charles e. Searls stated that the
| clients he represented objected to the
bill under consideration and If char
| ter should be issued he desired to offer
| amendments to the proposition. He
| represented the Plainf1eld and Daniel
/ son and the Putnam Electric Light and
Power company and wanted protection
to those companies. The companies
| did not want to be circurnvented unless
| there WAS good substantial reason fol-
/ the interference Of outsiders.
Charles H. Phelps, representing the
Rockville and Willimantic Electric and
Power company, opposed the charter
| proposed, as he did not want it in the
| territory, and objected strenuously the
! granting Of any such charters as are
| asked for, as it would give power to
/ encroach upon the territory of the COM
| Danv he renreHertad