New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-21
KEVTUCKYS EXAMPLE.

peonle who 90 wild and shout SOCIALISM, at
the thought of franchise taxation ought 10 study
n little and find out what commonplace ana
sett,ed thing such taxation Is. Because the
stata of New-York has neglected this source OF
revenue they seem to think that any attempt 10
roach II must be unconstitutional. They protest
thot the valuation of franchises Is an exceed
,noIv difficult If not impossible task But II
thev will look about they will find tax laws that
have passed the scrutiny OF the United States
sunreme Court and are in smooth and regular
oneration which tax franchises much more
strictly and inclusvely than does the Ford DILL
and appraise them by the value of their stock
In the fashion that the corporations mere pre-
tend to think outrageous.
Kentucky for instance has had such tax I'D
rorca for several years The statute provides
that call real and personal estate within this
estate. and all personal estate OF persons resid-
",ng in this State. and OF all corporations or
"eanized under the laws Of this State, whether
"tbe nronertv he in or out OF this State includ-
",np intangible property, which shall be consid-
"ered and estimated In fixing the value OF corpo-
| "rate franchises as hereinafter provided, shall
| "be subject 10 taxation" Real and personal
nronertv is assessed by local officials, but fran
| chises are valued by State board much III the
manner proposed by Governor Roosevelt for this
| State Reports are required from every corpo-
| ration showing the amount of capital stock, us
| highest price within the year, the surplus, all
assets and tangible property, all debts and all
| income from whatever source. with the data
thus obtained the assessors fix the value OF
the capital stock deduct from 1t the assessed
value of all tangible property assessed in the
| State and It is ordered that THE remainder
"tbus found shall be the value OF It's cor
"norate franchise subject to taxation as afore
"said." This value is taxed the same as any
other property In case the corporation oper.
ates In the State and elsewhere, the value OF the
franchise in the State is fixed by taking the pro
portion Of the gross receipts in the State or else
where from business done In the State TO the
total gross receipts and considering the same
proportion of the value Of the entire capital
stock. less the assessed value Of tangible prop
erty In the State as the correct value OF the
franchise for purposes OF taxation IN Kentucky
This Is n severe law but taxation OF fran
cbises under il has been upheld by the United
States Supreme Court even In an extreme cas-
whore the question OF interstate commerce ant
rights claimed under Federal and other STATE
Franchises were so involved that on those points
but not as to franchise taxation itself or The
rule of assessment. some OF the judges dis
sented. The Henderson Bridge Company has
bridge and track across the ONO two-thirds
which Is in Kentucky Its capital stock wa
$1,000 600 its bonds 100000 and as its stocl
sold at 90 the entire property was appraised
s2o0oOOO The tangible property In indiana
was SG27.6Oo Deducting this left $2,2'2,S4o