New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-03


Flero upon his construction and practical inter-
probation" Of the Franchise Tax act This OPINION
reached the hands Of the Tax Commis sioners OH
September Is and would then have been dlSc''9'u
by them hut fov the action o. Governor NooS'N' .'
who insisted upon seeing It before fl was published
and who also said that &c must first be submitted
TO the members Of tho Joint Committee ON Taxa
ton
Whether the Governor or the members OF the
Joint Committee on Taxation would suppress or
modify The report If IT did not please them was not
revealed
4 QUIET HINT GIVEN OFT
There WAS a Quiet hint. 1t Is to be suspected.
efyen this afternoon that the state Tax Commis-
sioners do not intend To ne bound 10y any or MT.
Fiero's opinions. Mr. Deyo. the secretary OF the
State Tax Commission making the following state
ment
It win be noted that The opinion OF IT he sT cast
iron or hard and last rule applicable TO an caseS.
The Tax Commissioners announce iDsettht,J what
sOever for fixing val Iatons upon specla.
ences with Governor Roosevelt. controller Morgan
Attorney General Davies and the JOINT IfS IN e.
days after October for the making ana hlng OF
the reports hy the corporations during ti,c current
month there are certain To be many oihclal confer
encos concerning the Special Franchise Tax law.
j is equally certain that within that period no cas-
iron rule for liking valuations can or Will be found
or declared
It is known that Mr.. Fiero's repor; was inspected
before September 3 a week previously in syria
cuse. by Senators Stranahan and Higgins Of the
Taxation Committee. and by Speaker Nixon EX-
traordinary interest therefore, was shown in the
character Of the document 10y some Of the most
"practioar' politicians in the Legislature.
When the report was submitted 10 the Tax Com
missiJaers here in Albany on September y At
torney General Davies Was present. he having des-
ignated Mr. Fiero. upon the request OF the Taxa
lion Commission. to make a desired examination Of
the Franchise Tax act and also to make report
upon IT,
BLANKS FOR CORPORATIONS.
There were also mailed to hundreds Of corpora
lions to-day from the Office Of the Tax Commits
sioners special forms for the making OF a report to
the Tax Commissioners upon their business for the
year ending June 80 1899 The forms begin with
dhe statement.
The following forms. prepared in conformity WIN IN
the requirements ol law. are forwarded 10 you Ior
use in preparing ne report Of your conpSny, re- re-
is inclosed herewith II is requested that you com
plete and forward such report within thirty da! s.
required by this act
Schedule A in the forms requires the title Of the
company whore the general Offices are located
date Of the close Of its fiscal year and where in
formation regarding tho corporation must be
sought Then come blanks for the names OF the
officers OF the corporation with their addresses
Schedule says
Description Of special franchise showing streets,
highways DpSStrHfN
same is located. and statement Of maps accom-
This report should be accompanied 10y maps show
ing the location and extent OF an property su"Jec'
20 taxation as special franchise'
Schedule c says:
Copy Of special law grant ordinance or contract;
or reference 20 general law uHuei M'1'rl 'l..'
franchise" IS held. possessed or enjoyed ana sta
nent OF any condition. OBLIGATION or burden nm
posed upon such special franchise or under which
the same ~ enjoyed
Schedule d requires statement Of assets and
liabilities June 30. 1899. Schedule the capital
stock; Schedule f the funded debt Schedule g
q statement of receipts and disbursements for the
year ending June 30. 1899; Schedule II statement
az rentals paid: Schedule statement Of rentals
received: Schedule X statement OF cost value, on
basis Of reproduction and assessment Of real es-
tate in each tax district; Schedule L a detailed
statement OF shares Of stock actually owned In
other corporations which are taxable on their cap
ital stock. and all other non-taXahle securities
owned. Schedule VI details OF roads owned and
leased. Schedule y. the final one. says SHOW
changes. if any between June 60 1893 and October
J. 1892 I'm real estate OF otherwise. affecting the
purpose OF this report
The Tax Commissioners frankly say that only
after receiving these reports of the corporations
can they appraise the value OF their property The
corporations which VIII first report will be those
of New-York City.
OPINION SUMMARIZED
MI Fieros opinion is vouminous document. con-
Stunning about seven thousand words. Under special
heads IL deals with FRANCHISES are Property,
"Franchise as Distinguished from Special Fran
chise." Valuation %, Special Franchise "pcduc-
ton from Special Franchise for Local Purposes
and Leases for Years How Assessed
The opinion brlstles with legal decisions and quo.
tationOs from numerous authorize. Under tho
head "Franchlses and Property" Mr.. Flero says:
I'm Older 10 arrive with some degree Of certainty
he Be-
ton of the act iu question relative TO taxation o.
franchise. it is not only quite desirable but abb
law on the subject previous TO the passage OF the
It IS held by numerous aqthorites that franchises
are pd 5ot,I.y' yaS orc,ed nv vorv aiL
counsel and received consideration I'm an exceeding
" elaborate opinion by chic, Judge Ruger. citin.
numerous authorities. Upon caieiu review OF IN
statues and decisions on the subject. II WITS helC
formly regarded as indestructabe boy Legislative
authority. and constituting property In the high
with reference to the right Of street RAILROAD
corporation to a franchise 70! surface road IN IN
ques ton that f.%Fcnise OF tne c4araGler 70 b
property right.
Many other cases are then cited TO substantial
this decision.
EXEMPTION FROM TAXATION
As regards the Exemption OF Franchises from
Taxation" Mr. Foro quotes from an opinion o.
Judge Gray that all property by the tax law @
this State rs made liable 20 taxation. except so IA
as il IS expressly exempted hy Jaw. That is th
general rule ana I'm order that any property shall
be taken out OF its operation the legislative enact
rnout depended upon for exemption must be i'm un
rnistakable terms. 40 person or property is i'm
pliedly exempt from taxation. ana fl IS the rul
that where exemption ia claimed the statute IS Il
be strictly construed against the claimant
lie then adds.
Rut franchises were practically exempted from
oesfssfn.u for lGca purposes BY reason or the TAG
that no method was provided by which they Shout
~. ~ssoseed and they were not regarded as Wlihl
tbo definition of either real or personal property
The definition q real property in the keFlse
again i'm the revision Of ls96. did not proyGe spe
fHcallv for the assessment OF franchises. altnouS
h, the amendments referred 10 very much Of val
liable property which had heretofore escaped a.