New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-23
PRICE THREE CENTS.
THE GOVERNORS MESSAGE.
AMENDMENTS RECOMMENDED TO THE
FORD FRANCHISE TAX BILL.
THE ADvIsABILITY OF STATE ASSESSORS
suGGEsTED-BIIL TO TAKE EFFECT
ON OCTOBER 1-OTHER
CHANGES

Albany, May 22-The Governors message ON
the proposed amendments to the Ford Fran
chise Tax bill, as read before both branches OF
the Legislature tonight. was as follows:
To the Legislature:
have called you together In extraordinary
session for the purpose Of considering the SUBJ
ject of the taxation OF franchises My message
to the Legislature Of March 27. 1899. ran. In
part, follows:
AT present the farmers the market gardeners
and the mechanics and tradesmen, having
small holdings. are paying an improper and sx-
cessiVe portion OF the general taxes while 1T
the same time many OF the efforts to remedy
,his state OF affairs, notably in the direction Of
taxing securities, not only unwse but In
enicient. and often serve merely to put a pre-
MUM upon dishonesty.
Ihere Is evident injustice in the light taxa
ton upon corporations. 1 have not the slightest
sympathy with the outcry against corporations
as such, or against prosperous men Of business
Most OF the great material works by which the
entire country benefits have been due to the ac-
| ton OF individual men, or Of aggregates of men,
VINO made money for themselves by doing that
whicn was In the interest Of the people az q
"hoie. From an armor plant to a street railway.
no work which is really beneficial to the public
public save by men OF such business capacity
that they will not do the work unless they them
selves receive ample reward for doing 1t. The
enort to deprive them OF an ample reward
merely means that they will turn their energies
in some other direction. and the public viii by
just so much lose Moreover to tax corpora
IONS or men OF means in such a way as to drive
them out OF the State works great damage TO
the State. To drive out OF a community rho
men or means and the men who take the lead
In business enterprises would probably entail
as one or Its first results the starvation Of a
considerable portion of the remainder of the
population.
But, while l freely admit all this. II yet re-
mains true that corporation which derives its
lowers from the State should pay TO the State q
just percentage of its eaInings a return for
the privileges it enjoys This should be espe-
cially true for the franchises bestowed upon gas
companies, street railroads and the like. The
question Of the municipal ownership OF those
franchises cannot be raised with propriety until
the governments OF all municipalities show
greater wisdom and virtue than have been
SHOWN recently TO- instance In New York city,
and the question OF laying and assessing the tax
for franchises OF every kind throughout the
state should, in my opinion, be determined by
the State itself need not point out to you that
In foreign communities a very large percentage
Of the taxes comes from corporations which uss
the public domain for pipes, tracks and ths
like" -s,. -........
/ stated that the power OF assessing the tax
on franchises should be left with the State au-
thorites not the local authorities because, IN
my view, this was desirable both for the sake Of
providing against improper favoritism Of or dis
elimination against corporations by the local au-
thoritios. for the sake OF working equally as be-
tween the franchises IN different localities and
finally for the sake OF providing for the cases
where railroad telephone or telegraph line
runs through several different communities.
BENEFIT TO FRANCHIsE-OwNERS
Many representatives OF corporations owning
franchises heartily approve OF having them
properly taxed; and am confident that in the
end this will be OF positive benefit to the fran
chise-ow1ers and in no way oppressive to them,
save as all taxes are oppressive to all owners Of
property
The line Of cleavage between good and bad
citizenship does not follow the line dividing the
men who represent corporate interests from the
men who do not; IL runs at right angles TO "
We are bound to recognize this fact to remem-
Der that we should stand for good citizenship IA
every form. and should neither yield to deua-
gogic influence on the one hand nor to improper
corporate influences the other
There is no Intention Of expressing people
who have put their money into franchises We
recognize that, as in the case Of all Legitimate
business. they benefit not only themseiveA bot
the community at large. II a franchise Is worth
very little 1t should be taxed very little; but
where the franchise Is Of great value, 1t GER
tainly should be heavily taxed. and the value
is OF course, based upon the use Of the citys
States real estate. Such use Of the pubic
real estate should not be given without sub
stantial returns-returns not only IN the way Of
service to the public. which. OF course, street
railway or gas company gives precisely tho
proprietor OF q grocery or drygoods store gives
It. but also in the way Of bearing Just share
OF the burden Of taxation. again precisely -
the owuer Of grocery or drygoods store bears
his share. the difference being that railroad
company, for instance. owes infinitely more
than the proprietor OF big business establjsh-
ment does to the real estate itself. OF course.
this value differs greatly in different places.
Where population Is dense, as in New-York
City the real estate along which the tracks are
laid Broadway may be worth an immense
amount for every lineal foot. exactly the
real estate fronting this portion Of Broadway
is worth an immense amount for every linee1
foot. In sparsely settled districts the value OF
the real estate OF the railroad Will diminish
greatly. Just as the value OF the realty through
which It runs diminishes.
am perfectly we'll aware as CHIEF Justice
Marshall says: The power OF taxation Is the
power Of destruction" But this applies TO every
species OF property. II demagogues or ignorant
enthusiasts who are mislsd by demagosues.
could succeed in destroying wealth. they would.
Of course simply work the ruin OF the entire
community. and. first Of all, OF the unfortunates
for whom they profess 10 feel an especial In
terest. But the very existence or unreasonins
hostility to wealth should make us all the more
careful ip seeing that wealth does nothing TO