New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-12

Q long array Of figures taken from the annual re-
ports filed with the State Railroad Commission 70
show that small and medium-sized railroads are
struggling along under discouraging circumstances
and arc unable 10 bear more taxation.
Two years ago the Legislature passed cross
Earnings Tax BILL" continued the speaker I'M
posing tax upon street surface railroads OF Po'
cent upon gross earnings while the tax law anee.-
ing steam railroads remained unchanged Ibis
measure imposed a serious additional burden upon
provincial street surface roads, particularly INC
non-dvidend paying companies. The street ran
road companies of the smaller cities OF the state
are entitled TO consideration and rehel rather 'ns
additional burdens In fact, they mus, recs"e
such consideration and relief. otherwise the num-
her OF street railroads In receivers hands will be
materially increased Furthermore. the impos-
ing OF additional taxation upon street railroads
viii thwart the splendid growth and development
which they have successfully inaugurated through
out the State. and curtan the convenience ana
comfort of the people and stop the increase OF
assessed valuations particularly OF suburban prop
erty they have materially assisted in building up
as II goes without saying that extensions and new
roads will not be constructed with franchise tax
confronting"
A CONTRACT IN BUFFALO
John G. Mllburn, counsel OF the International
Traction Company, of Buffalo. then spoke he
said a few wears ago the city authorities and the
railroads of Buffalo were at odds. Peace was
established. contract was entered into pc
tween the city and the railroads II was pro
vided In that contract that per cent OF the gross
earnings should be paid to the city when the rev
snues got TO be 100000 The railroads were just
reaching the g 10000 point.
"Mr Milburn" said the Governor, Il had OIL
here yesterday TO grant the privilege 10 your ran.
road Of making connections at Niagara fahs WIN
a Canadian street railway Ought not that 10 Dc
paid for?'
'You mean that this special privilege shouiu oe
paid for'"
II mean" said the Governor, that we ought 10
ret A system Of taxation which will give the state
an adequate return upon privileges OF enormous
value
franchise tax but such a contract as that speak
OF think ought 10 be kept say that such
bill as this ought to be scientifically framed or
great Injustice will be done TO various people our
railroad. for instance. paid $4,000 for paving IN
Buffalo II you have Tax Commission you can
lay such facts before them, and they can PROVIDE
for them see no difficulty in framing scien-
,,sc system OF taxation. This bill would operate
most harshly It would treble taxaton-a fran
ch,se tax 10 the State. franchise tax to the city
and now this franchise tax have had sreat
deal 10 do with assessors Of steam railroads Inc
hest measure of the value of athing Il tax on It's
gross earnings
GOVERNOR CHANGED HIS MIND.
Ny own first opinion" said the Governor was
in favor Of tax gross earnings. was per
.euaded that taxing them realty would be )uster'
How the assessors going TO assess US puzzles
ne" continued Mr.. M.lburn. Sometimes a man
Is elected to compel the railroad to pay all the
taxes Of a town. Have such men any knowledge
or experience? Go 10 court The assessors are al
WAYS smart about that. They say they have made
careful inquiry regarding the value OF railroad
You sire at their mercy. That Is what makes me
contend that tax gross earnings is the faires''
al or-f.u Ia
Haus s oa bich yn,, cannot escape and the courts
's sS!sS2s. ala Us i"e' say '"'' l'0@' Wv
"csn a special session Of the Legislature for Oc-
siSered carefully. apart from other legislation You
But that is body Of only seven men Have l.. the
whole Legislature and let us go before It's COM
raittees.
WILSON 5. BIssELL HEARD.
Ex-Postmaster-General Bissel. of Buffa.o ap
peared in behalf Of the electric lignt companies Vi
Buffalo. He said o-. ~
'I regard this bill as unfair aad unwise; unfair
because It imposes tax which makes no olstnc-
ton between capital invested and capital not IN
vested II impedes the progress Of the development
Of electrical power at Niagara Falls We sell cleo
trical power and we distribute II 10 the consumers
in Buffalo. We are in the streets and necessarily
Now. what Is our competitor? II Is steam
Coal can be taken around the streets Of Buffalo
The coal dealer IS not taxed We are taxed because
payements IN good condition for our competitors "a
W. Cary Ely, president OF the Niagara Falls ana
Buffalo Street Railway Company, said that roaa
could have been built cheaper fit had purchased
the right Of way, instead OF running through
streets which II had paved He argued that the
building of trolley roads through rural dlstrlcts
would be checked IL the bill became a law. he
would not like to trust his roads 10 the rural as
SCISSORS Real estate assessed at only % per
cent OF its value but railroads were assessed al IS
per cent more than 1t would cost TO CONSTRUCT them
Assessors had been elected in Niagara tais latelE
with the avowed purpose Of raising the valuation Oh
the Niagara Falls Power Company 10 $4,000
But that Is done under existing law, interrupted
Governor Roosevelt - -,
That is the very reason" answered Mr.. Ely.
why protest against the extension OF the power
OF these assessors. ~,
'Ysn't part Of your argument that the assessors
will not do their duty?" 49, go ,.
"Yes: and that II you sign this bill II will inter;
rupt travel between such places as Buffalo ana
Niagara Falls, a distance OF twenty miles. People
will not build such roads II they are 10 be taxed
out OF existence. The farmer can get aboard our
cars and 20 either Buffalo or to Niagara Falls.
Those very farmers have investments in our stock.
] have been president Of that road and never GOT
g cent OF salary We have paid four dividends Of
/ per cent each Manufacturing concerns demand
10 per cent dividends II II Is a proposition to de-
prve our small cities of the means of intercom-
fnuneation, this bill will be success"
QUESTION AS TO ASSESSORS.
You have made strong argument" remarked
the Governor. but II to me It comes down TO
.------------