New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-02
VIEWS OF THE FRANCHISE TAX.

AS was TO be expected, the passage Of the
Ford Franchise bill In the closing hours Of the
session, after its opponents had made up their
minds that it beaten. has caused a
motion among those charged with the manage
ment of large corporate interests. Whatever
may be thought about the merits Of the bill,
which is certain to be made a law by the sig
nature of the Governor, inasmuch as his -sner-
getic advocacy carried 1t through the Assem-
bly,. everybody recognizes its great importance,
and many of those whom 1t most concerns are
already expressing interesting, though perhaps
rather premature, opinions as to its probable
effects. II Is curious to note a somewhat rad
ical disagreement respecting the nature and
Operat ton of the act on the part Of men who.
speaking in q more or less representative ca
paclty for large corporations might be expect
ed to hold similar views. Thus Mr.. Edward
Lauterbach sees no reason why transportation
companies should be alarmed or their stocks de-
cline except under speculative influences. though
he Is apparently inclined to dsapprove Of the
law as an attempt at double taxation. Mr.. Rus
sell Sage. on the other hand Is plainly dlscon-
certed and speaks with considerable warmth
against the proposed taxation of franchises.
He says that the law is unfair that 1t is other
wise Objectionable since 1t will bestow on those
whose duty 1t will be to enforce it immense
opportunities for blackma and fraud, and that
it cannot go into effect until determined eff
fort TO prove it unconstitutional has failed.
Whether or not Mr.. Sage has any particular
cause for dependency at this time We have no
means of knowing. However that may be- the
general understanding is that ex-governor Ros-
well +. Flower has had uncommonly good rea-
sons for feeling cheerful all winter, and 1t is
interesting TO find that the prevailing tendency
of his mind is strongly reflected in his opinion
Of the Ford bill. In spite of the fact that 1t IS
supposed seriously to affect large transporta-
ton properties with which he is conspicuously
identified. On the main question we are glad
to hear Mr.. Flower talking like statesman
with q keen sense Of public care while do
not favor the Ford bill in all Its provisions"
he said yesterday, II have for many years adj
''vocated the introduction Of a measure in the
Legislature compelling corporations holding
valuable franchises from the city and State
ito pay taxes proportionate to the value OF
"their real estate. The Ford bill Is step In
"the right direction, and believe that 1t will
ultimately result In legislation greatly to the
advantage Of the general public" Mr.. Flower
then went on to express opinions concerning
the taxation of corporations which, while not
precisely pertinent TO a discussion Of the Ford
BILL are full of interest "Let the large street
railway companies" he said, land other cor
"porations holding charters in this city be as
"sessed from to per cent Of their gross
earnings. and in hundred years the private
Owners of real estate will not be paying any
taxes" And then he added this remarkable
statement: 1T is absolutely essential that the
tax should be figured on the gross earnings
'of the corporations. as II the net earnings
"were used as a basis, the accounts of the
various corporate companies In this city would
"be so arranged as to show very small margin
'of profit"
We call this statement and admonltion re-
markable not because 1t does not correspond
10 the general understanding Of the way in
which bookkeeping is sometimes done. but be-
cause Of the source from which ii comes. For
this reason 1t deserves to be put on record.
An Ex-Governor Of the State, man Of large
affairs having an intimate knowledge of the
matter of which he speaks former and per-
haps a future light Of the Democratic party,
frankly says that any scheme TO tax corpora
tons must hold them very tight or they will
cook their accounts to avoid the burden. This
Is consideration which has been to some
tent kept In sight heretofore In drafting laws
to provide public revenue. but Governor Flow
ers candid avowal should be filed away for
| particular reference in the future when taxa
| ton measures are under discussion in the
| Legislature.