The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-05-23
While the Great Corporations, I'm
Many Cases, Do Not Pay for the
Privileges They Enjoy.
WANTS FORD BILL AMENDED
SO FRANCHISES MAY BE TAXED AC-
CORDING TO VALUE.
DemagOgues and Ignorant Enthusi-
asts Who Would Destroy Wealth
Conde mned by the Governor.

ALBANY. N. Y, May 22-The New York
Legislature, called in special session by
Governor Roosevelt to amend the Ford
franchise tax bill, met tonight, lis
tened TO the reading of the Gov
ernor's message and adjourned until
tomorrow morning. The Governor gives
his views on improvements to the Ford
franchise-taxation bill. and suggests lines
of Improvement. Concerning the equity of
the proposal to tax corporations, the Gov
ernor will say: "1At the present the farmers,
the market gardeners and the mechanics and
tradesmen having small holdings are paying
an improper and excessive portion of the
taxes while at the same time many Of the
efforts to remedy this state of affairs. nota-
bly, in the direction of taxing securities, are
not only unwise, but inefficient, and often
serve merely to put a premium on dishon-
esty. There Is evident injustice In the light
taxation of corporations. L have not the
slightest sympathy with the outcry against
corporations as such, or against prosperous
men of business. To drive out of COM
munity the men of means and the men who
take the lead in business enterprises would
probably entail, as one of its first results,
the starvation of considerable portion of
/ freely admit all this II yet remains true
that corporation which derived its power
from the State should pay to the State a
just percentage of its earnings as return fof
the privileges it enjoys. This should be es-
pecially true for the franchises bestowed on
gas companies, street railroads and the like"
Relative to the proposition to place the de-
termination of the tax in tine hands of the
wise that the power of laying and assessing
the tax on franchises should be left with the
state authorities. not the local authorities,
this being In my view desirable both for the
sake of providing against dishonest favorit-
ism or of discrimination against corpora
tions by the local authorities, and also for
the sake of working equity as between the
franchises in different localities.
NO OPPRESSION INTENDED.
There is no intention of expressing peo-
pie who have put their money into fran
chises. We recognize that as in the case of
all legitimate business they benefit not only
themselves but the community at large If
a franchise is worth very little it should
be taxed very little. but where franchise
is of great value it certainly should be heav-
lily taxed and the value, of course, based
upon the use of the citys or States real
estate. Such use of the public real estate
should not be given without substantial re-
turns. returns not only in the way of serv-
ice to the public, which, of course a street
railway or gas company gives precisely as
the proprietor of a grocery or dry goods
store gives it. but also in the way of bear
ing just share of the burden of taxation;
again. precisely as the owner of grocery
or dry goods store bears his share, the
difference being that a railroad company,
for instance. owes infinitely more than the
proprietor of big business establishment
does to the real estate itself. OF course,
his value differs greatly in different places.
Where population is dense, in New York
city. the real estate along which the tracks
laid on Broadway may be worth an
immense amount for every lineal foot, ex-
actly as the real estate fronting this por-
tion of Broadway is worth an immense
amount for every lineal foot. In sparsely
settled districts the value of the real estate
of the railroad will diminish greatly just
as the value of the realty through which 1t
runs diminishes.
IF demagogues or ignorant enthusiasts
who are misled by demagogues could sue
ceed in destroying wealth they would, of
course, simply work the ruin of the entire
community; and, first of all. of the unfor-
tunates for whom they profess to feel an
especial interest, but the very existence of
unreasoning hostility to wealth should make
us all the more careful in seeing that wealth
does nothing to justify such hostility. We
are the true friends of the men of means;
we are the true friends of the lawful, COR
porate interests which do good work for the
community. when We insist that the man of
means and the great corporations shall pay
their full share of taxes and bear their full
share of the public burdens. If this is done,
then, sooner or later, will follow public
recognition of the fact that it is done and
when there is no legitimate basis for dis
content, the American public is sure, sooner
or later, to cease to feel discomfort.
REASON FOR SPECIAL MESSAGE
Towards the end of the session il be-
came evident that the influence against the
taxation of franchises would be contented
with nothing save the defeat of any meas
ure of substantial relief, and "A measure of
less than substantial relief | would not ar
cept. Finally. IL became evident that the
Legislature could pass only one bill and
that without amendment. I. therefore, sent
in a special message asking for the passage
of this bill. 1t was passed on the last day of
the session. 1t represents a long stride in
the right direction and one from which there
must be no retrogression. Nevertheless. IL
be greatly bettered If amended in two
important particulars. In its essential prin-
cple, as that of taxing franchises as realty,
it is right and proper.
After much study Of the question / am
convinced that in this way can come
nearer TO doing justice than In any other
which has yet been proposed. 1t is no new
thing to treat franchises realty. but
under the laws of New York as they are