The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-22
TAXES TO BE MADE EQUAL.
PROPERTY ~ VIVA TEvER FORM TO BE
MADE TO PIY IT'S SHIRE.

MADE TO PII ITS SHfRE
Franchises or Enormous Value Declared TO he
TnxabIe-Foreian Capital Not TO EnIcy nn
UtJust Advantage Over that Of New York.
ALBANY. March 2l.-Tho report submitted
to the Senate yesterday by its special Commit
tee on Assessment and Taxation tMcssrs. Ses-
sions Marvin. and Ecclesnel s paper OF
exceptional interest and suggestiveness Natur-
ally the committee dwell at the outset upon
tho contrast between the New York Of
flfty years ago and tho New York
OF to-day. In those earlier times. they say the
property OF tho citizens consisted chiefly OF real
estate and such personal property rs agricul-
turai communities usually posscss-stock for
the farm. tools and implements OF husbandry.
and household goods and furniture. Under
such conditions real estate was properly made
the basis Of assessment and taxation for gem
eral purposes. while ample provision was made
for tho assessment and taxation OF what little
personal property there was.
Now. new factors must be considered We
have to deal with vast aggrcgatons Of capital.
OF which the fathers had no provision. There
has grown UP n new species Of property. nearly
equal in value to the whole body Of real estate.
Although this is chiefly responsible for the new
necessities and tho extravaganza which yearly
wiring such grent sums from tho people II has
assessors. from thcir situation and their In
ability TO ascertain the real facts regarding
chses immunites. and privileges Of which
they nrn without Information. are cntire-
" unable to cope with them. and would
be equally 30 under any system which
left the assessment to local Boards.
whose action must necessarily be either
inefficient or oppressive. Yet the Committee.
IN view 81 the fat that much the larger portion
OF the State is still agricultural and pastoral,
and deprecating sudden aud radical changes of
Spttleu law. have concluded that. after mixing
very few changes To- mCct gross evusions and
iousV crept into the statutes, the assessment
laws and the laws for the laying and collection
ot taxes upon the species Of property for which
tact
on the principle Of treating all taxpayers
alike. tho Committee have decided that in
sessing both real and personal property dcduc-
tions should be made 10 the extent Of the actual
,e; 9i Ihe 9wner But tney are IN
taxation by fraudulent trick. United States
| bonds cannot be- taxed. 1t ia n common prac-
| tice for men engaged in business to buy the
| amount Of their capital in euch securities and
! then pledge OF hypothecate them TO obtain their
/ business capital and 40 become entirely exempt
| from assessment. since tho securities are not
taxable and they are IN debt for their capital;
! The Committee think their bill II adopted. will
put stop To this dishonest evasion.
So. too. they find that societies exempt from
| assessment and taxation have accumulated
| moneys beyond their legtimate wants and in
| vested the same in real estate for rental thus
bringing themselves in unfair competition with
| that many millions Of foreign capital are en-
| ployed in the stock exchanges and 10y banking
| agents and for purposes of domestic and for
| eign exchanges and discounts In ruinous COM
| petition with regular banks ana bankers Of
| this state who are now severely taxed. while
the foreign capital 20 employed Is entirely eN-
empt from assessment. In their bill they nave
| undertaken TO correct these unjust discriinina.
| ions by providing That such real estate and
foreign capital shal be assessed and taxed like
any ether Ss They haye SsS NS yHsSTsd pro
vested in other or foreign States shall be tax
able in this State. although tho securities there
As TO the great Corporations. tho Committee
say that there have been granted by the people
great and valuable franchises. privileges. and
lmmunitics-many OF them exclusive privi-
legos-have accumulated vast aggregatiOns oi
capitnl earned by virtue of the franchises So
3u. rated ,r from the tprd9ps Of te,xa'ion Will
many cases il has amounted to couns-
| cation They are cl"ar that tne corporations
provide In their hill that an SUI organizations
shall make report go the State ASS -Sors of nll
/ u correct Judgment ~ 70 me amount Wht'h
| such organization ought fairly ana ruuitalIv
! perry and franchises. II is made the duty of
| such Assessors. from such report. or from
| further examination upon oath Of the officers
| in"reot or upon Wow aud the best Information
| they can obtain. To fix and d"termine the
| amount of gross assessments for purposes Of
general taxation OF ruch ul such oisan Intio OILS.
| In the cases 0f ORGANIZATIONS doing business
| entirely within any one county II Is made the
| duty Of the State Assessors to transmit cortil-
ef,.- Of such ,-s,... ninuts to tho rnrka of .urh
| county. 90 be entered by the Board Il Super
visors upon the nsscssmrnt rolls of the pr6per
| towns before laying any tax thereon.
The Committee ind that rnilr r'ad. canal. t"lc
| graph. Insurance.. ana news companies have
eyHded taxation 10y shifting their central or
| main onie's from county TO county. or making
| terms. by nctuu'y iNng its Offices and taxable
location at the place where II can make the best
| bargains. In one notable case. an organizn-
ton with S5.OuO.OOO Of actual capital. after locat-
| ing its office in Obscure places in Western
| towns. has finally sought refuge from taxation
by lOcntlng its principal Office among the wilGs
q the Cats kills its exact locality not being yet
The Committee think that the most equitable
theory II 10 render them taxable both as Ia their
| real ana personal property and franchises IN
those counties Of this State into or through
! which uLrlr lines ot business run. They have,
Assessors in such cases apporion the gross ns-
s.-s'urnt OF egch such organization upon that
ba- VS. aud that tho several boards Of super
! NisorS cause the asses smrnt on account of tho
real estate % every such organization. TO be fur
dior apportioned 10 the several towns of the
counties in which It Is situated ana the re-
mainderto the several towns oi such county pro
ratn and In proportion 10 the amount Of the as-
sessmehts pl personal property appearing upon
the assessment rolls.
Exception, however, Is made in cases Of towns
bonded in aid ot tie construction of railroads.
the hll providing that AL assossmenis upon
such railroads ana upon all telegraph lines and
lines Of transportation and forwarding COM
panle7 op rating over or using the ra.lroad liho
shall be apporioncd TO such towns until the
| debts SO created urs paid.
In view Ol the enormous Valuo OF the fran
chses granted to street railroads and elevated
railroads the fact that highways. streets. md
| avenues, ready graded for their use have been
| provided at the expense OF the people. costing
| them nothing; that so far they have been eX-
empt from the payment of any damages on
account of loss that the use OF such streets Is
monopoly and that the courts have decided that
| such corpQrations are properly taxable for such
| streets and highways rs road bod, the Com
mittee have Inserted proNsl ia their bill re-
quiring that all streets and elevated railways bo
| assessed for the streets upon which they run as
real estate.
The Committee point out that their bill does
| not create any new offices or now machinery.
and express the belief that II will establish JUS
| tlce between the oppressed taxpayers Of the
| State and the corporations they have created
| The section OF the bill relating to deductions
provides that no person corporation, associa-
| tion. Joint stock company or copartncrship
| owning United States securities. whether the
| same be held ia his or its own name. or other
| wise, or whether the snme be pledged or hy-
pothecated, or otherwise, shall be allowed
any deduction from his or It's nssess-
mont. on account OF any Indebtedness what
| ever, nor shall any deduction hereafter be made
from any assessment on account OF the indebt-
edness Of the owner OF the property assessed,
unless 1t shall bo an actual indebtedness in
Cured in good faith and in the usual course Of