New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-30
MR.. DEPEW ON THE BILL.
THE PROVISIONS. HE THINKS. DO NOT
APPLY TO THE NETWORK CENTRAL.
POSSIBILITIES OF THE DISCRETIONARY POWER
PLACED IN LOCAL TAX BOARDS BY THE
LAW HE LOOKS UPON As


Standardized Chauncey NJ Depew. when
asked last night what he thought of the Ford
bill so far It's constitutionality was con-
cerned and what would be it's scope Of opera
ton, said:
Senator Ford's idea. as expressed before the
Senate committee, was to provide for the taxa
ton of local corporations operating under mu-
nicipal franchises, and did not contemplate
taxation of the steam lines operating through
the State Therefore. I do not think the pro-
visions OF the bill apply to the New-York Cen
trail Railroad. The matter Of a franchise tax
is. fundamentally. all right and approve of it.
That franchise tax is just and constitutional
Is proved by the fact that there is on the stat
ute books Of the State Of New-York a franchise
tax which applies to steam railroads My recol-
lection is that this tax is under a law of 1880
In the first place, the New-York Central Rail
road pays a tax upon the assessed valuation Of
its real estate. In the second place, the road
pays direct franchise tax This tax pro-
vides for the payment of one-auarter of per
cent upon the dividends Of the company. In the
case that the roads pay no dividends the Con-
troer Is empowered to make a valuation Of the
franchises, and imposes tax accordingly. This
is Just and scientific method Of assessment Of
taxes.
AN EQUITABLE AND JUST TAX.
II believe that corporations operated under
the municipal franchises and making enormous
revenue therefrom should pay an equitable and
just franchise tax. In the case Of the law en-
acted now II provides for tax on franchises,
but 1t defines no method Of determining the
value Of franchises nor the system Of assess
ment This leaves 1t discretionary with every
local Board OF Taxes In the State how 1t shall
tax corporations operating under franchises
granted by the local government The uossl-
bilities OF this discretionary power some
thing appalling. There will be just many
methods Of assessment and taxation as there
are boards of taxes. for each individual Board
will have its own theory OF how the taxes should
be imposed. OF course the subject Of taxation
is open to revision by the courts, but the cor
porations operating under a local franchise will
hesitate to antagonize local boards OF taxes,
and incidentally the local administration by
taking their into the courts. and WILL stand
as much and heavy a taxation they
possibly stagger under. In this very condition
lies the potential possibilities that confer upon
the local government power that was never
dreamed Of by any political leader. In the hands
of an unscrupulous Board 1t becomes fearful
weapon for the punishment OF any corporation
that may have incurred the dspleasure Of a
local administration. OF course, II q corporation
Is made the victim of tax from the local ad-
mfnstration 1t has redress In the courts and
doubtless the courts will establish some scien-
tifc method OF taxation when the case comes
before them.
AS TO THE TAXES.
II do not think the taxes will net as much a..
the papers say. This tax Is on valuation over
and above the real estate valuation The taxa
ton Of the NewYork Central to-day is much
heavier than in any other State The New
York Central pays upon property and other ma
terial about equal In value to the PENNSYLVANIA
and the Baltimore and Ohio 100000 more than
double the taxes Of the Pennsylvania, and three
times those OF the Baltimore and Ohio In this
matter OF the taxes upon local corporations oper-
ating under the local franchises, as | have said
the corporation should pay just and equitable
amount of its taxes. but the law enacted
leaves the question Of a method OF assessment
so vague that II places within the power OF
local tax board the opportunity to grasp the
throat Of any corporation against which II may
have any antagonism, and throttle 1t. If the
proper tribunal to exercise such great powers
could be secured, and II scientific method Of
arriving at the vaues for the purpose Of taxa
tion could be secured. the whole matter would
stand fair. just and entirely right"