New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-24

estimate of franchises founded on STOCK Values
certainly cannot do this. Stock values are an
,udex not Of the actual worth OF franchise IA
,tse,f but Of i,s worth under the special condi-
t,ons Of its possession. which varies according
70 the expense its possession involves Inc
franchise with fixed charge attached VIII oe
worth less than gift franchise. or less tnah
franchise for which lump sum was PAID out.
right at the beginning, and no assessment paseu
ON stocks can easily get at anything more tnan
the actual value of the franchise subject 10 i's
charges. and It is difficult to discover any
ue,hod that can FIX the value of a franchise as
an abstract property and reach a standard from
which deductions may justly be made III one
con ba found II should be introduced into any
law nroviding for the deductions. OTHERWISE
,here ,s danger that any assessment, instead Oh
he,nv uneoual and In need of correction by the
deductions would at the start be Substantially
svst and then be made unequal by the de-
ductlons-
In considering this question Of the value OF
co~norate property in streets we need 10 clear
80 tho CONFUSION introduced into the discus
sion by calling rents taxes, as well as that
caused by talking Of these properly grants DO
mere permissiops. They are permisslons IN inucn
the same way that warranty deco Is per
mission to have and hold piece OF iand. IL
may seem indifferent whether we SPEAK OF such
payments to the city as are now mace as reh's
or taxes but the use Of the wrong term carries
with It opportunity for much 1usgiery Oh 'ne
part of the franchse-holders. They are iono Oh
complaining of double taxation" and II we CAL
the purchase price Of their franchises taxes
we help them to fool people. As matter Oh
fact they do not pay cent or taxes on theii
local franchises. II they themselves tnoueh'
they did they would contest the tax, ana WIN
good reason, for the Court OF Appeals mas de'
cided that under the present law franchises are
absolutely exempt from local taxatlon. Ahe
comnan,es have never dreamed that they were
having taxes on franchises and only talk or II
now In hopes to retain part or the eAenip'ion
they have long enjoyed. Nor have they paio
percentages "in lieu of taxation why shouiu
they pay anything in lieu or a tax 10 "hicn
thew are not subject? Are corporations accus-
toned to doing that? What some OF them nave
been having Is rent. Some may hold properly
IN the streets which they bought outright
Others hold property which was given TO theln'
or stolen by them with the aid OF prlped OH
ciaIs. No matter how held, whatever payment
TO a city the possession Of franchise involves
or has involved, that payment Is the price Oh tne
property. 1t Is case Of value received, ana
city is under no obligation to refund the price as
preliminary to taxation, especially as 1t Is gen.
orally utterly inadequate compensation tor the
grant. Other people pay for property they hoid'
and sometimes pay too much for it. but they are
not therefor exempted from taxation, even II
others made better bargains. But the franchlse
holders ask that the price Of their property De
deducted from their taxes.
We can see no moral or legal obligation 10
give them this favor, even IL the Ford Dill does
not. though we believe 1t does, really secure the
equality for which they plead. Nevertheless
friction may be avoided in setting this great re-
form in operation by the concession the Gov
ernor is willing to grant. Only In granting IL
care should be taken to know that the END
sought will really be secured, and not simply
another inequality quite as great as that reared
from the Ford bill. And In planning Tor de-
auctions 1t would be we'll to ask II there are any
corporations that bought franchises outright
What deduction would they get? They have no
annual payment TO be deducted, yet 1t is not
fair. on the theory of deducting from the tax
what is paid for the property, that they should
pay the same taxes as the holder OF similar
franchise who never paid the city anything.