New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-26
TAX ON PUBLIC FRANCHISES
SENATOR FORD's SCHEME FOR RA1S-
ING A BIG REVENUE.
HE WOULD SIMPLY DEFINE SUCH FRAN
cH,sEs ny LAW AS REAL PROPERTY
AND so ASSESS THEM.

AND so ASSESS THEM.
Albany. Jan 25 tspeciaD. Senator Ford to-day
introduced a bin which. ~ passed. he said, woud
add hundreds of thousands Of dollars 10 the annual
income Of the city of New-York. IL VIII De inter-
esting TO note therefore, whether or not the ram
many Hall Senators and Assemblymen Will support
IT, The hill authorizes the taxation ~ the fran
chises Of street railway gas. electric light and
telephone companies Senator Ford sald:
Practically tho street railway and other rail-
way companies. the gas companies and other cor
porations Of like nature pay little TO the city.
Their tangible property which is In sight. Ia taxed.
but their franchises. which arc worth hundreds OF
millions are not taxed To restore 10 the schedule
OF taxable property the immensely valuable frau-
chises Of such corporations. where they were for
more than forty years preceding 1901 is the oh
ject Of the hill which introduced this morning.
This Is accomplished by a few simple changes
in subdivision 2 ~ Section OF the Tax law. which
defines the terms land. real estate and real prop
ery used in that law.
I'm the case OF wharves and piers under the law
as 1t stands. not only aN the material structures
taxed real estate but there Is included the value
OF the right to collect Wharfage. storage or dock
age thereon. Now. the right 10 collect wharfage Is
about intangible species OF real property
we'll be imagined and yet II Is subject to tax
alton real property. The definition proceeds then
to enumerate species OF property appertaining TO
railroads. electrc-light companies gas companies
and the like. which may he taxed real estate.
hut carefully excludes the franchises. which are
the principal factors Of value In the assets Of such
corporations
THE courts have uniformly held that under this
definition franchises OF street railroads. gas COM
panes and the like cannot be taxed real estate.
They have with the uniformity md una
nimity held that the franchises could not be taxed
personal property The consequence ia that since
1891 they have escaped taxation altogether
1T occurs to me that It would be simple thins
change the definition of real property given in
the Tax law so that II would clearly include fran
chses. as well the other real property OF these
corporations !, therefore. add after the words all
surface, underground and elevated railroads the
following: Including the value OF all franchises.
rights or permlssions to construct maintain or
operate the same In, under. above. on across or
through streets. highways or public places also
In another place In the section add the words: In
Guiding the value of all franchises rights. author
ity or permission 70 construct maintain or operate
in. under. above upon. across or through any
streets, highways public places. any mains
pipes tanks conduits wires or other appHte-
nances for conducting water. steam. heat light
power. gas. oil or other substance or electricity
for Geographic or telephone or other purposes
There is doubt that the class OF property with
which we are dealing is real property IN contempa
ton Of lawintangble property 1t Is true. but YET
species Of real property. that has been reeog
within the meaning Of the tax laws of the STATE OF
New York has this class OF wealth been denied us
place IN the schedule OF real estate . -,
Mr. Justice Cullen in the case OF the People OF the
State OF NeW-York ex rel Brooklyn city Railroad
Company al. reported in 10 Appellate DIVISION,
$50, suggests that this remarkable condition ought
TO be corrected by the Legislature. 80 that tnls
character of property might be subject TO the same
public burden which other property within. me
State has bear. burden which Tor over forty
years corporations have borne without cavii or
complaint and without suggesting that II was not
imposed upon them by law 49, ,,
1.-THE enactment OF this bill into a law would
have the effect OF increasing the taxable vaiua-
ton Of property in the city Of New-York alone
many hundreds OF millions of dollars. In my opin-
ion, and would certainly cause a very material de.
crease in the present tax rate on real estate II
proper valuation ia given to the public franchises
Affected ! should not be surprised II the tax rate
might he cur in two
ut was not my opinion that the so-called fran;
chises OF railroad companies which have purchased
their own right OF way to operate over their own
property should be brought within the scope OF
this measure ~,
Assemblyma Grossman to-day introduced bill
amending Section II Of Chapter sos OF the Laws or
1895 by adding a provision that the value OF the
ca pital stock Of every company or corporation ia-
bic 10 taxation shall he ascertalned annually by
the assessors and appraised a. It's average market
value during the year ending July J. The otner
personal property or every company or corporation
assessed under the act is to be exempt from taxa