New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-04
RULES or FRANCHISE TAXATION.

RULES or FRANCHISE TAAAIION.
II Mr. Fieros advice is taken by the State
Tax Commission 1t will fix the value OF fran
chlses by rules OF common sense, just as other
assessors appralse other property. That Is the
sum and substance Of his voluminOus opinion.
Many hard and fast rules have been propose
and some OF them can be urged with most %
cellent reasons but Mr. Fiero discards them one
by one ns exclusive measures OF value though
he admits that the results of their application
may be properly considered rs factors in arriv-
ing at the assessment This may be disap-
pOlntment 10 some people who have been look
Ing for some short and easy method 70 be ruth
lessly applied by rule OF thumb. II may, in
deed seem TO open the way to possible abuses
Of discretion giving corporations opportunity 10
complain Of discrimination and critics OF the
State administration the chance TO shout that
the law Is being softened for political purposes.
Nevertheless the best results. particularly from
this initial attempt 10 assess franchises, are
likely to be attained by the study Of corpora
ton values from various points Of view, and the
combination In the estimate Of such knowledge
as is 10 be gained from security prices, income
and general conditions. After some experience
a simple method, rigidly mathematical in all its
steps. may be perfected which VIII make the
assessor a mere bOOkkceper
such system would no doubt, delight the
logic chopper Of taxation. and II may be ap-
Piled TO franchises as well as TO real estate and
personally some time when we have n com
pletey scientific tax law. But there IS no more
reason for complaint over the present lack of II
in the case of franchises than in the case OF any
other property. The assessor Of business
block has no calculating machine. He cannot
drop a diagram OF the property into n slot and
have It's value automatically registered He
uses-or ought to use-his brains. He considers
q dozen elements Situation, condition, pros
poets. enter into his judgment And that iudg
ment IS at the best an estimate The value Of
the tangible property OF railroads is aimed AZ
for purposes Of local taxation as the result Of
most complicated CROSSWORD Doubtless the as
scssIncnts in the case Of railroads and buildings
are more or less inaccurate. but that Is inevitable
Apprnisa Is never an exact science. If fran
elise values are determined by the exercise VI
ordinary intelligence with as fair an approx
nation 10 just figures as IS reached by assessors
generally. the corporations will bear no burden
that is not borne by everybody else. They have
no right 10 claim any less. II a surely Just rule
TO obtain more exact valuations could be found
which would meet with general acceptance It
might be desirable but in the lack Of agreement
there is some cause for satisfaction in the fact
that the enforcement OF the law begins with
franchises on the same basis rs other property
The tendency to consider Il franchise as some
thing apart from other property and not justly
subject 10 the same burdens Is carefully encour-
agcd bv the corporations and is one Of the diff
cultles 10 be overcome IN spreading clear con
ccption Of the merits OF any method Of franchise
m md Of epfT
plajnine at the Injustice Of having 10 pay taxes
On franchises when perhaps they are making no
money ont Of them They cry out AT the outrage
o. considering the price Of their stock in csti-
, mating franchise values. and point out that 1t
nav be quoted high even when II pays no dv
dcnds True But house owner Is not exempt
from taxation because he is getting no dv
dcnds Let a man tell the assessors that his
house In Fifth-ave is vacant and therefore
should be assessed lower than It's mate adjOin-
ing which has n good paying tenant. and see
what reduction he viii get Stock prices are
made by many factors and perhaps It is not fair
to accept them ms an infalbe index Of fran
chise values; but the mere fact that quotations
are not always In ratio to dividends does not IN
validate them rs one element In Judgment In
deed the high price Of n non-diyidcnd paving
stock may represent the franchise almost en-
trelv Investors value IL not for its present
earning capacity, but because Of the rights II
| commands. a railroad may not have a mile Of