Year: 1868

would not be secured by prescribing some


penalty for their neglect or violation of the


requirements of the laws.


The right of appeal from the listers lies
: only in the party whose property is appraised.


1t has been suggested, that it would be bene-


fetal to give the right of appeal to any tax


payer, for if any part of the property in a
town is assessed at less than its true cash


value, it is u matter of interest to all tax


payers to have it corrected. This right of
appeal would also ensure more faithful dis
charge of the duties of listers.


The taxation of personal estate. invested


in this State by non-residents. has frequent
ly been the subject Of legislation, and. as yet,


without any satisfactory result. An attempt


was made at the last session of the Legisla-
. ture to enact a law to regulate the taxation
Of stock in railroads held bv on-resdents.


The bill passed both Houses on the last night
Of the session. 1t was concurrcd in by one


branch after the other had closed its business
and adjourned. On examination OF the act,


| deemed it my duty to withhold my approx
al, believing that had the attention of the


Legislature been called to the questions in


volved the bill would not have been passed


At the session of 1854, the law was passed


to which the bill in question was an amend
ment. While neither affected the tax on the
stock Of residents tho two acts being ideu-


teal in that respect. the bill of the last ses-
sion changed only the manner of assessing
and collecting the tax upon nonresident
stockholders, and repealed without rcserva-
ton the law of 1854, (sections ~ and SO,
and 90 of chapter Is of the General Stat
utes.)


By the direction Of a former Legislature,
proceedings had been commenced to enforce


the collection of the tax upon the stock of
non-residents in the Vermont and Canada Rail
road Company. a bill in chancery in be half
Of such stockholders, was, therefore, brought
against the State Treasurer, and an inJunc-
ton procured restraining that officer from
collecting the tax. This suit is now pending 2
in the Supreme Court of the United States,
and it is expected Will be heard the present
winter. | deem it the part of wisdom to
postpone further legislation on this subject
until the courts have passed upon the ques
tiOns now under consideration.


| am advised by eminent counsel, that
should the decision of the court be in favor
Of the State, the enactment of the bill of
last session would render quite doubtful the
! power to collect the accrued taxes now in
arrears ESTIMATED To amount to over one
hundred thousand dollars. The inquiry from
interested non-resdents in regard to the fate
of the bill. since the close Of the last session,
inclines me to the opinion that there
design in the amendment not apparent to the
Legislature when the bill was under cOnsid
Grafton, and it aptly illustrates the evil that
may grow out Of legislation under suspen-
sion Of the rules during the closing hours of
. Il session.


There was in my mind another serious OBJ
lection to the bill The law of 1854 required
the tax upon the stock Of non-residents to
be paid into the State Treasury where all
the people Of the State would receive a pro-
portiOnate benefit. The proposed amend
ment gave the advantage from taking stock
. VI non-resdents to the towns in which the
railroad corporation might keep its princi
pal Office


While nothing should be done to affect the
validity Of the law Of 1854 until final de-
csion Is reached IN the case now pending, it
may be well to consider whether it would
not be sound policy to adopt a system Of tax
alton which shall be consistent in it's various
parts and do equal justice 10 all.


Neither the existing law. nor the proposed
amendment, applies to railroads built
owned by bOndholders. The holder Of a
bond, who may receive his interest regularly,
is not taxed. though he is nonresident.
bat the nonresident owner Of a share is to Be
taxed, although the bond is practically as
much part Of the railroad capital as the
stock.


I | am unable to see any sound reason why
stockholders and bondholders in possession.
should not stand on the same footing in this
respect, why railroad corporations should
/ be subject to u different rule in regard to
taxation from other property holders. There
can be no doubt Of your power to tax the
real property in this State owned by corpo-
rations. 1t is the present rule TO tax it
such. except in the case of railroads and bv
! including the real property of railroads under
the general rule, we should reach alike the
resident and nonresident stock and bond
holder. and should work equality and Justice
to all


The only difficulty. if any. in the applica-
ton Of such rule. would be found in the
exemption from taxation granted in its char
ter to the Vermont Central Railroad Company,
which privilege is not enjoyed by any other
railroad company in the State.


/ Nor is it apparent why VIC should apply.
as we now DO, to the personal property of
residents in other states, Il rule Of taxation
different from that which we adopt for our
own citizens.


Our laws consider personal property
( following the domicilc of the owner, and
require that all personal estate Of an inhab
liant shall be taxed where he resides. While
we recognize this principle in the case Of our
own citizens. shall we seek to impose taxes
on the personal property of non-residents,
4 for which, by the same rule. they should pay
taxes where they reside? This seems TO me
clearly unjust and should it be insisted upon,
will tend to prevent the investment of for
eign capital in those enterprises so essential
to our prosperity as the extension Of our rail
roads, the Improvement of our water powers
and the development Of our quarries. mines
and other resources.
One step towards the removal of these
objections, is to tax the real property of cor
porations in the several towns where such
property is situated, upon it's actual value,
irrcsp pective of dividends. By this means all
the towns on the line of the railroads, or in
which any corporate property is situated.
will receive their Just proportion OF the taxes.
In this connection | would renew the rec
ommendation of the last annual Message, in
reference to the collection of taxes. This
matter one Of Importance to taxpayers,
and should NOS be passed without that
consideration its merits demand.
UNITED STATES SENATOR.


The provisions of law require that you
should proceed. on the second Tuesday of
States Senator for the term of six years from
the 4th Of March next.


NATIoNAL CEMETERIES
1 transmit herewith the report Of Major
William Rounds, Trustee of the Antictarn
National Cemetery Association and have, as
therein recommended, certified to the Audi
tor Of Accounts the proportion to be paid by
the State. ! liavc, also, communication
from the Board of Commissioners having
charge of the National Cemetery at Gettys-
burg, requesting the adoption. on your part,
of a resolution recommending the transfer
of that Cemetery to the care of the General
Government These papers are placed at