New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-25

N. r,en,ncrats of this power The power thus
20 he conferred upon the Republican leaders
was q Klond,ke and Anaconda copper mine
rolled into one in its political possibilities.
John whalen. the Corporation Counsel, OF
New York who sat in Senator Gradys seat
while the latter was bewailing the prospective
loss to Tammany of authority TO appraise tne
value Of franchises of gigantic corporations III
that city. looked sadder and sadder as the mar.
ration proceeded, and all the Tammahy h"'
Senators were visibly grieved.
There were almost tears in Senator Foiey
voice as he followed Senator Grady in speech
along the same lines. Senator Krum. on pehail
Of the Republicans warmly defended the enact
ment, pointing out the inequalities of taxation
which would follow II local boards all over the
State appraised the value OF franchises like the
Albany Railway. with rails running through
several cities and towns.
This political talk over. and Senator Grady's
motion to strike out the enacting clause or the
bill having been beaten without division. the
Senate turned again to the serious considera-
ton of business. Senator Armstrong. or
Rochester offered amendment to protect the
waterworks of that city and other cities from
taxation. Rochester gets water from Hemlock
Lake, twenty miles distant. Senator Armstrong
said the city now paid $1,000 yearly to the
farming communities Of Livingstone and Monroe
counties for the privilege of having the water
mains under their highways. The city did
not desire to pay franchise tax on this water
works property a municipal corporation. He
| therefore offered the following amendment as
addition Section 1 the act. and 1t was
adopted;
mo property OF a municipal corporation shall
be subject TO a special franchise tax"
This amendment probably protects the Croton
water system. Of New-York. and the Ridgewood
water system of the borough OF Brooklyn from
| taxation of franchise. Senator Ford, who was
present, although III and weak. had objected TO
the provision of the new bill which provided Tor
deducting from the amount of the franchise tax
| the local taxes now paid by corporations FOR
| franchise privileges He had declared that he
thought this would open the door TO =, such IN
equalities Of taxation to make the bill uncon-
| stitutional. In order to meet TINS opJectoh
| Senator E. r. Brown submitted brief amend
ment expressly declaring that the deducuon
| must not be made unless the payment was IN
| the nature Of a tax This amendment was
| adopted and Senator Ford expressed his satis-
| faction with 1t. He subsequently sent wora 70
Senator Ellsworth that he should vote TOT .he
| bill tomorrow. The amendment declares thd'
| IT, when the tax assessed on any speclai ran nan
chise is DE, II shall appear that the corpoiaton
| affected has paid to the city for its exclusive
! use ANY sum based upon percentage or gross
| earnings or any other income or any ncehse
| fee. or any sum of money on account OF sucti
special franchise granted TO or possessed by such
| person, copartnershp association or corpora
| tion which payment was in the nature Oh a
! tax: all amounts so paid for the exclusive use
of such city. except money paid Tor paving -, -,
| repavins street shall be deducted from any
| tax based on the assessment. mace ny the o'a'e
Board of Tax Commissioners.
| BILL ORDERED TO THIRD READING.
After this amendment had been made the bill
was ordered to third reading. and the Senate
| adjourned till tomorrow. At the caucus OF the
Republican Senators which followed, Senator
| Malbv made an argument in opposition to grant
| ing any deductions for payments for franchlses
| but nevertheless. consented 10 support the ui.i
although expressing his disapproVal OF inns ie1
ure of it, Senator Humphrey offered an amend
| ment to the BILL which was adopted, declariiis
that tangible property subject TO specia I
franchise tax" shall not be taxable except upon
! the assessment made as PROVIDED by the o'"'e
| Board of Tax Commissioners. .,
! Governor Roosevelt warmly commenced the
! Franchise Tax act to-day. ana salo lhdt tiie
addition which had been made TO IL since II te,s
| the Executive Chamber had improved H. When
| he was asked why the words special rranchise
had been used in the bill, he SAID tne woIu
| special had been inserted at the suggestion
| of Professor z. K. Segman. OF Columbia COL
| Iece "a avoid repeated references to a subdlVl-
| sion Of section Of the bill The Governor was
| told that some members of the Legislature hau
| EXPRESSED a fear that this word would give a
| Ioonhole nv which some corporations would
escape taxation. In reply, the Governor salu
he had consulted a Judge OF the Court OF APP
peals about this of the word special. ana
had been told that 1t was correctly used, ana
| there was no danger of its afording chance
| for corporations escaping taxation. The Cover
nor stated that an additional approprlation Oh
$4,000 would be made for the State Tax Com
missioners. Their salaries OF SZ,oOO year
! ought to be increased. but this could be done
! next year.
The Republican leaders expect to pass not
! only the Ford Franchise Tax act tomorrow, but
also bill approprating SIo,OU Tor the Admrai
| Dewey celebration.