The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-12-31
LEGISLATIVE GOSSIP
Many Schemes Of So-Called
Reform Under Consider
alton By Leaders.
SAY THEY OPPOSE PARTISAN SCHEMES
Favor Measures Compelling
Corporations to Share Their
Profits With the Public.
Especial to .The Jersey city Newa."l

4 u NoOIltcSt like d lidl1AbNl
OF Republican Senators and Assembly
men, has an idea that the next session
Of the Legislature will be q short one.
but he does not believe tina 1t will be a
record breaker in that direction. He
shares the opinion that the necessity for
new legislation is limited, but the char
acter Of the laws required is Of SO much
Importance as to require the most care
full consideration and that will, Of course.
prelong the session.
If the next Legislature can solve the
corporation tax and franchise problem in
a manner satisfactory alike to the people
and the Interested capitalists. said Mr..
Voorhees, to a reporter, sit may adjourn,
satisfied that the people viii regard it as
having done as well, if not better, han
many Of its predecessors"
The Governor-elect is busiIy engaged in
the preparation of an annual message,
which will supplement the docu-
ment which Acting Governor Watkins
intends to submit to the Legislature upon
its organization.
On that account he is not disposed to
discuss prospective legislation further
than to say that happily the wants of the
State in that direction are limited and
that he will endeavor to include them all
in his recommendations. The Republican
leaders in senate and House are in full
accord with the views of Mr.. Voorhees,,
it is said, and this will insure due con-
sheraton of all the suggestions and rec
concentrations he may offer.
That being so, 1t is probable tina the
most important feature of the coming
session will be a law to regulate the
granting Of franchises, prevent excessive
or stwateredas capitalization Of corpora
.tions and arrange a more equitable dis
tribution Of the burdens of taxation be-
tween corporations and individuals. Tue
projectors of this plan do not want the
project viewed in a socialistic light, and
they win carefully avoid anything that
might tend to alarm or drive away capi-
talists. or in any way interfere with the.
legitimate progress of trade. They believe
that the more conservative capitalists
realize and appreciate the necessity for a
change in existing corporation laws, and
propose, if possible, to secure the cooper
alton Of those most directly interested IN
that direction.
Many plans are suggested, including the
imposition of a general franchise tax, the
repeal of all laws granting or authorizing
the grant of franchises without adequate
compensation. and the enactment of d gem
eral law providing for the leasing of all
franchises for a limited period, subject al
any time to revocation for any breach Of
the terms of such lease.
It has been eontended that many exist
ing franchises are in the nature Of con-
tracts entered into under laws which The
Legislature could not repeal without I'M
pairing the validity of such contract.
Lawyers who have the proposed iegisla-
ton in charge meet this assertion with
the statement that most of the franchises
referred to are in restraint of trade, and
consequently Illegal, according to the re-
cent decision of the United States courts
in the Kelsey-Persch suit, which grew out
of the consolidation of the old Newark
and Citizens Gas Light Companies of this
city.
In addition to the proposed imposition
of a new franchise tax and provision for
the future limited lease of all franchises,
it is proposed to limit the capitalization
of corporations and provide for a thor
ough supervision of their affairs. One
plan suggested in this direction is to de-
duct the property valuation of a corpora
tlOl1 ktc ICtAIltCd AOl tAAC Rd1 PtSS III l0CGl
taxation. from the total capitalization of
such corporation and treat the difference
as the value of its franchise.
Rather thai assume such obligations,
it is argued that corporations would be
obliged to keep their capitalization close
to the actual value of their property.
Then the supervision which it is proposed
to exercise over the operations of these
-. 4;. --o-ld e1.o-r 49, 90 x,~ = - I
their earnings and be made a basis of the
franchise tax they would be compelled
to pay. Under such circumstances it is
that gas, electric light, telephone
trolley and other public corporations
be more willing to share their prof
its with consumers through the medium
of reduced rates.
Apart from legislation of the character
outlined above, it is not considered prob
able that any very important legislation
of a general public character will be at
Few, if any, changes in the
laws win be made, it IS said,
Notwithstanding the amount of talk in
direction. The blanket ballot viii
not be substituted for the one now in use,
and it is not probable that any changes,
except such as may be necessary to cor
IEEt ElttlItttA1 olA4SS10iASt ffiA& AZ tAd a.
The general election law adopted last win
ter.
rhe Greater Newark scheme may come
for discussion without an effort to Sc
cure its enactment, and the changes sug-
last session in the taxation OF in
surance companies may be revived.
The majority leaders in both Houses,
ais well as many of the most influential
Republicans in the State. have expressed
as opposed to anything in the
line Of partisan legislation, and while eff
forts in that direction may be made,
there is, it is said, little prospect of their
success. This, however, will not deter
local leaders in Essex and Hudson from
endeavoring to secure the extension of
terms of certain officials, as they tried
through the A~nti-Spring Election bill,
which was declared unconstitutional by
the courts.
While the Republican Assemblyimen
will hold another caucus on the eve Of
organization, there is no probability of
any change In the list of House officers
agreed upon at the last caucus. The Re
Senators will probably nave a
carcus here on the eve of the session and
select Senator Reed Of Somerset for
OF the Senate, and Senator
Of Bergen as leader. The Dem
ocratic Senators will probably give Sem
xrs r3<zr ~ NFisft7Iacax 4l,s nn,ns3f2t