New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-31
WORK OF FRANCHISE TAX.
ESTIMATING INCREASED REVENUE OF
THE STATE.
CORPORATIONS NOT TO SUFFER UNDULY,
1T is sAID-TAX COMMISSIONERS. Az
PRECIPITATION NOT SUFFICIENT

1T is sAID-TAX COMMISSIONERS. AP-
PRECIPITATION NOT SUFFICIENT
Albany. MAY 80 (SpecaD-The state officials
are beginning to examine the Franchise TAX act
and TO make some estimates regarding the prop
able increased income of the state from certain
CORPORATIONS which Will pay n franchise 'aA'
There Is a decided impression that the Less-
,ature made an absurdly small appropriation
when It gave only $4,000 to the state Tax COM
mission to gain accurate knowledge of affairs
OF over a thousand corporations whose hai"e'
are on the books of the State Controller
T. u.as said this small amount OF $1,000 was
given because the law will not go into erect
until October | OF the present year In reply II
con no stated that we-informed state officers
heleve II will take the state Tax Commissioners
at least six months to gain the information they
should have before definitely declaring In each
case what is the value of the franchises 10 DE
taxed It should be added that the state lax
Commissioners before the Franchise lax ac'
, was passed already had six months or ACTIVE
work in their usual line in the various coun
ties OF the state. IT. however, the Leslsia''''
had given to them ample funds they couiu nav
put a large corps Of clerks at work gaming s'"-
tstical information which they must PosSeo'
I'm order properly to estimate the Vaiue Vi '"'"
franchise II is therefore to be apprehendeu
that the Legislature has crippled the FRANCHISE
Tax act system al the start by not giving 10 ."e
Tax Commissioners sufficient money Inc ue,
feet can be remedied in 1900, but six months
time will have been lost.
HARD WORK FOR COMMISSIONERS
One thing which greatly impresses 'ne SO
officials is the magnitude of the work peiore inc
state Tax Commlssion-hrst to learn the nun"
hor NJ corporations whose franchises are TAX
able: second, to learn the value OF eac" H""
chise which will require separate hNe'"e"
ton in each case. and. lastly, to es'api'Sh az
equal basis of valuation. There Is soou "."
~ Information which flows into the offices of the
Controller and Of the state Railroad Coi'i'iii
s,oners about the finances Of corporations out
-. g., n strgla case can the value OF a franchise
Ia dotorn,ined without further investigation
.In my opinion" said F. c. Vinton, Assistant
CornoratIon Tax Clerk Of the Controhei' W.
dow "the State Will have to create a state bu-
roam as large as the State Excise Department III
order nroperly to carry out this Franchise lax
law The financial reports or numerous vi
cornorations must be examined, ana theh III
many cases personal examination OIL "n"'
may be termed the plant of the corpora''on
| must follow The State Tax Commissioners wiz
| have TO visit every county In the state ai ''
| cities and large proportion OF us to"ns'
vinton then pointed out as an outline ol ~, .ne
| work before the state Tax Commissioners tna
"o nogos NJ the last Controllers report, whlch
| oiva merely the titles of the waterworhs, saa,
| electric or steam heating, nghtlne anu P0 -
| comnanies whose franchises come u.uei rLao
| Goinp I,,o Tax law These number 400. Then
| there are o. telegraph and Telephone 80 -
NAMES There are 426 transportation c ollla.iU
| which now pay a state tax a large PIopo'in, ~ w
W 'bnr win not pay franchise tax 1t VIII De
81 ANTI ~ the state Tax Commissioners to DIS
| cover those whose duty it Is to pay the TAX
| FIGURING OUT TAXES.
Mr. v,nton does not believe that the corpora
| ,ons are going to be oppressively taxed unuer
| tho terms OF the Franchise Tax act he dio
| some figuring to-day and then said: rake
the Metropolitan Traction Company or New
| VII for instance 1t earned in round num-
| bors for the year ending June 80 1879 'he sun"
| Of S1OOOOOOO. 1t took 60 per cent OF that 10
nav It's expenses and 1t had S4WoOoo lett' FROM
| thot should be deducted 10 per cent for such
o onnt as a new equpmcnt-say S4oo :
! 600 That would leave S3,GOoDO That woul1
: mako the franchise worth SGOO0poO, at a
per %nu Lg" nav tax of 81 5OOOOo. The road paid
$40 40 Il to the city for it's franchise FOR the
year ending June 30, lS9S. suppose you rase
The franchise at only 60 per cent or It's value as
10 customary with real estate In that case II
| IL taxed on only $36,0O0,O00. At ~ per cent
| that would bring into New-York CITY the sum
| of S,bNVbD. SubtCacllnb inc T'"p',pi' ~
| they now pay from the S9ODOOO you nave
| $500 $50 81 as the actual increase or the taxa
| ton OF the Metropolitan Traction Company.
Mr. Vinton also made some calculations re-
| snecting the Manhattan Elevated Railroad. us
gross earnings for the year ending June 70
! IS0S' ne said were in round numbers S9Wo
| 0OO II took SGO00.10 to operate It, That
| leaves S3OOO.00D net earnings. Deducting w
per cent from that S30O0OOO for contingencies
| and YOU have $2,100UO. on a u per cent basis
that would make the franchise worth Hi3'U0O'
| ono At ~ per cent that would produce Nl,ZZo'-
| 600 The road now pays SI55OOO to the city.
II the 60 per cent basis Of valuing the franchise
we're followed 1t would be worth for taxation
purposes only S27OOO000 At ~ per cent the
TAX ON that would be S615,OOO. That would ne
ioss than the elevated road now pays but the
FRANCHISE Tax act fortunately. provides that
in such cases the present taxation shall con-
tinue, and no new taxes. ,,, .,
Mr. Vinton estimated that the Third Avenue
| street Railway Company would pay about Sloo'-
OOO Increase in yearly taxation -
some of the State officers think that Mr. VIM
| ton ~ mistaken in thinking that possibly iran,
chIses will be appraised at only 90 per cent OF
their value. and argue Tint the Franchise IaS
act bv its terms indicates that the franchises
, orc m no taxed at their full value
y