Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1899-05-01
NEW YORK CORPORATIONS TO
FIGHT THE FORD BILL.
SAY 1T is UNCONSTITUTIONAL
ROOSEVELT SAYS HE WILL SIGN IT
TODAY OR TOMORROW.
Chauncey VI. Depew Says New York
Central VIII Not Resist the
Mcasure-Chfcago Much In
tcrested in the New
York Scheme.

NEW YORK, April 3o-Had bombshell
burst in their offices the corporations hold
ing public franchises could not have been
more surprised than they were at the pass
age of the Ford BILL, under which fran
chiseS will be taxed as real estate. Ihey
had received assurances and had taken
measures which they were confident would
kill the bill.
Governor Roosevelt has announced that
he will sign the bill Monday or Tuesday.
While the officials of none of the corpor-
ations would discuss their plans to-day or
give any opinion in regard to the coming
law, it is regarded as certain that 1t VIII
be bitterly fought in the courts, on the
ground that it taxes the same value twice
once as real estate in the shape OF the
franchise and once as personal property
in the shape of stocks and bonds.
The view that this makes the law un-
constitutional is not generally shared by
lawyers Charles Steele said the fact that
the law might impose a double tax would
not prove it unconstitutional, though 1t
might prove unpopular. David B. Hill has
expressed the belief that the bill can be
proved unconstitutional from beginning
to end," but he has not specified the GROUND
for his opinion. Former Judge Dlilon ana
other lawyers familiar with the tax and
corporation laws said they had not studied
the bill sufficiently to give an opinion on IL
Chauncey NJ. Depew said the New YORK
Central would not contest the constitdIon-
ality Of the law.
81 think the matter will in time pe au-
justed in a reasonable way" said he, and
that II will have good results. Many cor
porations which have not heretofore PAID
their shares of taxes will probably be
forced to do so.'
Vice President Alfred Skitt, of the Man
haitian Elevated, said the law had come SO
| unexpectedly that he had not had time to
consider it.
.I for one. did not think the bill would
pass" he added. "The Manhattan COM
pany however, will be less hard hit than
the other large traction companies De,
cause its structure is already taxed on
| $50 600 900 as real estate, which Will pe OH
set against its assessment, under the new
law. No other company pays such hea'y
In the opinion of the city officials the
| law will stand the test of any attack tnat
may be made upon It, ana IN tney ynoints aTe Which
bill.
There is some uneasiness in the tax de.
| partment over the rumored intention of
| the corporations to raise the contention
that their franchises must be assessed py
der the law 1t would be extremely diff
icult to estimate the value of portions
| of franchises located in the various wards.
Another question of Importance Is wheth-
er the new law will go. into effect TINS
| year or whether its operation will be defer
red until the second Monday in January
| when the new tax year begins. President
Feitner of the tax department believes
that the law will not apply to this city
until the beginning of next year, though
Whalen to get an explicit opinion. There
is a provision in the law. Mr.: Feitner said,
| Nav h1lt yyha will hp
in view of the advanced progress OF this
years levy remains to be decided.
1e ored m ON at ths
point. He gave an impression. however,
that no assessment would be made under
the law until January.
! CHICAGO, April SO-"The New York tax
on franchises seems to me to be another
method of getting compensation for public
This is what Alderman Charles NJ. Walk
er said yesterday on the Ford bill passed
by the New York legislature Friday.
cannot venture much & Of an opinion i,S on n
continued the alderman There must be
many, points which as lawyer 1 would
consider important, but which are not alb
solutely necessary in newspaper article.
But from what have read it is evident
that the New York law indicates the
gr1Wfh OF the principle Of compensation for
Ing for this principle in Chicago for a long
time and the battle is not over. Whether
tne new 1OrR law, Whlch CompelS COmpen-
sation through revenue officers, will be bet
ter than direct compensation through mu-
nicipal authorities Is hard to tell
:. The law seems to be to be a step in the
direction of the principle that corporations
holding franchises should bear their just
proportion of taxation as well as paying
cities for the right to public utilities. The
| situation is different in Greater New York
than 1t is in Chicago. Before the incorpora-
ton of New York franchises were obtained
for long term of years, some of them
passed recently limiting the term of fran
chises to twenty-five years, but this does
The. new law taxing franchises will, 1
think, equalize matters somewhat between
the old and the new franchises. It may
| of New York"
| Alderman Walker is greatly Interested In
the new law, as he is student of munici-
pal affairs. In the council he has always
| fought for compensation to the city for
public utilities, and knows more about the