The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-03
FRANCHISE TAX In EFFECT.
BLANKS SENT OUT FROM dLBANY
TO The CORPORATIONS.

Mr.. Fiero's Plan of Collecting the Special
Franchise Tax to he Adopted by the
State Tax Commissioned Statement OF
1t. Purposes-Information Called For.
ALBANY Oct. 2.-The plan under which the
Special Franchise Tax law will be put into
operation was made public tonight by the
State Tax Commission. The law took effect
to-day The administration Of this law Is
placed in the sole charge OF the state Tax Com
mission. though the taxes upon such franchises
as real estate are to be collected locally upon
the asssssable value OF the franchises as
fixed by tho commission. The general plan
which will govern the commission in assessing
special franchises will follow the legal opinion
upon this question submitted to Gov. Roosevelt.
Attorney General Davis and tho State Tax
, Commission by j. Newton Fiero Of this city.
the special attorney appointed for that
purpose. The essential points OF Mr.. Fiero's
report were printed in to-day's SUN.
Mr. Fiero says that in his opinion the value OF
a special franchise should be arrived at by
ascertaining the value OF the entire corporate
property. taking into consideration all the ele-
ments which go to make up such value, and
deducting therefrom the value OF the personal
property OF the corporation OF so much OF the
real estate as is not connected with the special
franchise and OF the franchises not affected 10y
the new law: In fine. by deducting from the
total value OF corporate assets and OF the
intangible and and tangible property not
part OF. or connected with. the special fran
chise.
According to Mr.. Fiero. large discretion 10
left with the State Tax Commission in determ-
lining the value OF special franchise whereby
they must deduct the value Of the good will
conduct OF the business and the franchise to
be a corporation and whatever constitutes the
value OF the intangible franchise not taxable.
The State Tax Commission in making public
Mr. Fiero's plan for putting the new law into
| effect. made a statement to-day that until the
| law has had thorough trial. no cast-iron rule
for assessing corporations affected by the law
| could be adopted which would be applicable
| in all cases. The statement intmates that
| Mr.. Fieros plan will not be formally adopted
| until after Nov. l. when the reports requested
| from the corporations affected by the law re-
| garding their financial condition will have been
| fled with the com I'm ission.
| While the commissioners hesitate formally
to announce The adoption OF Mr. Fiero's plan.
| II is known that their careful examination OF
have Practically reached the conclusion that to
go further IN the taxation OF special franchises
would result in the courts declaring The ,Sw
literal carrying out OF the law without the
ndments that will he recommended to the
make it's enforcement questionable by the
courts, the Comm'siSn i disposed ito to
| OtntT upon WnlNH luo
are requested to report facts.
The com omission may most vigorously en-
franchise will not tend in. the, least 70
cripple the corporation affected by, II.
for the reason that many OF the elements which
enter INTO the question of assessabls values
regarding a special franchise are taxed in more
values Of special franchises in New, York city
| other parts OF the State need not be
made until several months later. while the
to be paid under the law until the latter part Of
1900. After the commiSson nxes the value
iGs before the commssion. From the decision
the Sp Tpea may be made
SSHa and Sse.! 'poss: sIo,. Thy
to19be; What The outcome win be Is
the law %'0f be n" decared sonsti"stonai Sy
upon which to Ak the sssessabls value OF any
special franchise until leg station is procured
gyng it sIthoTty ana the sIg TO
and report upon conditions sIrrounding theluse
oistreets by cooperation affected by the law;
how much discretion is LETT with the Stat
Tax Commission n fixing the value
Roosevelt. the State Tax Commission is on
record as favoring the assessment Of any
special franchise that its effect will not in
any degree tend TO reduce the return now
secured to Il storkholder
| The Com m isson to-day semitic every corpor-
alton affected by the law copy OF Mr.. FL gro s
opinion. outlining he genaral plan OF its
administration. together with blank calling
for information CONCERNING the financial
condition of each corporation. which will aid
the commission in reaching a conclusion re-
garding the assessable value OF special fran
chise.' This blank calls for description OF the
special franchise showing the streets or
| public places possessed or rights enjoyed by
The corporation. together with maps showing
| the location and extent OF all property subject
to taxation as a special franchise and copy OF
the law or ordinance under which such special
franchise is held and the burden under
which such franchise Is enjoyed. state
ment Of the assets and liabilities or the
corporation on June 80 last is also called for
together with the highest and lowest market
value Of the stock i%r the year and It's market
the cornoTation for The year ended Jun, June
There is request for INFORMATION re;
Gardng salaries for general officers and
clerks and fCT legal expenses, The request FOL
Information regarding legal expenses Is re
garded as significant by some 1t wouldappeal
that taxes upon lessor roads are TO bt
paid by tho lessees. Information Is also re
| quested regarding the cost OF the tangi
BILE real property included in the franchise
and the cost Of real property not Included in
tho valuation Of special franchise Other
facts suggested in Mr.. Fiero'S report as necaS'
sary to be secured by tho mission. the cor
| poratOns are also requested to furnish for tn,
| - al. g tkna Mai ion