Peninsula enterprise. [volume] (Accomac, Va.) 1881-1965, 1899-04-01
RO0SETEI'I'S REFORM.
New York's Governor Says the Tax
Laws Are Ineuuitable.
CORPORATIONS GET OFF EASY.
10 Urges the Legislature to Frame a
Plan Which VIII Rolieve tho Over
burdencd Small Taxpayers by Rove
MUGS From Public Franchises.

Plan Which Will Relieve tho Over
burdened Small Taxpayers by Rove
MUGS From Public Franchises.
Albany, March 2S.-Governor Roosc-
Welt last night sent to the legislature Il
message recommending the appointment
Of joint legislative committee to invcs-
tigate the subject Of taxing public fran-
chiscs held by corporations. and to re.
port to the next legislature. The gov
ernor says:
1.-THE tax laws of this state are in al
exceedingly unsatisfactory condition. and
l do not see how they can be put upon
just and wise basis save after careful
investigation by Legislative action. At
present the farmers, the market garden
crs and the mechanics and .tradcsmcn
having small holdings are paying an inl-
proper and excessive proportion of the
general taxes, while ut the same time
many of the efforts to remedy this state
OF affairs, notably in the direction OF
taxing securities, are not only unwlse,
but inefficient. and often serve merely to
put premium on dishonesty.
"There is evident injustice in the light
taxation of corporations. | have not thu.
slightest sympathy with the cutlery
against corporations rs such, or against
prosperous men of business. Most OF
the great material works by which the
entire country benefits have been due
to the action Of individual men or OF az
crcgatcs OF men who made money for
themselves by doing that which was ii
the interest OF the people as whole.
from an armor plant to street railway
no work which is really beneficial to the
public can be performed to the best adj
vantage Of the public save by men or
such business capacity that they Will not
do the work unless they themselves re-
cciyc ample reward for DONG it. The
effort to deprive them of an ample re-
ward merely means tnat they will turn
their energies in some other direction,
and the public will be by just so much
the loser Moreover. to tax corporations
or men of means in such Il way rs ~
drive them out of the state works grea
damage to the state To drive out of
n community the men OF means and the
men who take the lead in business enter
priscs would probably entail as one of its
first results the starvation of con-
siderable portion of the remainder OF the
population. :.
.'Rut. while | fairly admit all this. II
vet remains true that corporation
which derives its powers from the state
should pay to the state just percent
age of its earnings MS return for the
privileges it enjoys. This should he es-
pccinlly true for the franchises bestowed
upon gas companies, street railroads
and the like. The question of munic:-
pal ownership OF these franchises cannct
he raised with propriety until the gov
crnments of all municipalities show
greater wisdom and virtue than has been
recently showne for instance. in New
York city; the question OF laying and
assessing the tax for franchises Of ever!
kind throughout the state should IN my
opinion be determined by the state it
self
II need not point out to you that in
foreign communities very large per-
ccntagc Of the taxes comes from cor
porations which use the public domain
for pipes tracks and the like. Whether
these franchises should be taxed rs
realty. or whether it would be wiser to
provide that. after the gross earnings
equal. say. 10 per cent of the actual
original cost, then 5 per cent of all the
gross earnings over and above this shall
he paid into the treasury, or whethe:
some vet different plan should be tried.
can only he settled after careful ex
animation OF the whole subject. One
thing is certain. thut the franchises
should in some form yield money re-
turn to the government"