The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-03
FRANCHISE TAX DISCUSSED
THE GOVERNOR CONFBRs WITH STA TT
TAX COMMISSIONERS.

Methods of Arriving At the Value OF Fran
chises We're Considerod-Ths Conclu-
sions Arrived At Not Made Public-The
Meeting Took Place at Oyster Bay.
Gov. Roosevelt and Commission ers J. Edgar
Leaycratt. Martin Heermance and Geary E.
Priest. OF tho State Tax Board had two
hours conference at the Governors homo at
Oyster Bay yesterday afternoon. The
operation OF the Franchise Tax law.
which goes into effect on Oct. !. was
the matter discussed and the conference was
the first Of a numb to be hold before the final
plan Of taxing franchises Ia decided upon. In
the meantime the plans submitted and dis
cussed are to be kept secret by the Commits
soners as we'll as by the Governor.
The flrst.and what promises to be the hardest
problem for the board and Governor to decide
upon is the mode Of determining the value OF q
franchise. j. Newton Fiero. who was appointed
special Deputy Attorney general. and
was assigned to assist the State Tax Board
in launching the new law. was present
at yesterdays conference. He submitted a
plan to overcome this obstacle. The Commits
sioners and Gov. Roosevelt all refused to make
public any part OF it. however. The Governor
described 1t as mere skeleton and said that
1t would probably be used as basis for the
board to work upon. He also said that the
plan submitted by Mr.. Fiero was not at all like
Senator Ford's plan. which was to fix the
value OF a corporations franchise on It's stocks
and bonds
In conversation with a SUN reporter. the
Governor rdiculed the idea that the law was
unconstitutional and would never 60 into ef-
feet. In his opinion. he said it was the wisest
law on the statute books OF this or any other
State. The $4,000 appropriation. he said.
would not begin to be enough to put the law
into pffapt Int II would Ruf1ciant
the Board over until Jan. 1. after which time
an additional appropriation could be
secured without any difficulty. One OF
the heaviest expenses. he thought. would
be the hiring OF experts II the experts OF a
corporation file an estimate. he said. and 1t is
rejected by the tax board. without evidence to
back the rejection. the verdict OF the board Is
bound to be upset by the courts. This has
happened so many times. the Governor said.
that there can be no doubt what the courts
would do now. The board must have experts,
he said
Tho Governor expected that form er Supreme
Court Justice William N. Cohen would attend
yesterdays conference. but he failed to put in
an appearance. Mr. Cohen helped to draft tho
franchise tax law. Comptroller Colers experts
will he invited to attend the next conference.
the date for which has not yet been fixed. and
they will be asked to give their views on fran
chise values.
Mr. Hermance. the Chairman OF the State
Tax Board. said after the conference yester-
day that it was untrue that certain corpora
tions had offered to pay their assessments
without litigation IL tho assessor ents were not
too excessive. The board has had no commu-
nications from corporations on the subject
The other members OF tho board and Mr.
Fiero declined to be interviewed