The daily morning journal and courier., 1899-05-23
THE TAXING OF FRANCHISES
GOVERNOR ROOSETELT'S MESSAGE
 ON THE QUESTION.

sion of the New York Legisl"ture
 Which Convened Last Night-Recom-
 mends the Enactment of Law to Tax
 Franchises as Reality.
 Albany, N. Y, May 22.-The legisla- ture met in extra session here tonight.
 Governor Roosevelt's message on the
 franchise tax question was received and
 read in both houses. Adjournment was
 taken until tomorrow. The most inn
 portant part of the governors message
 follows: If franchise is worth very
 little it should be taxed very little, but
 where the franchise is of great value It
 certainly should be heavily taxed and
 the value is of course based upon the
 use of the cty's or states real estate.
 places. Where population is dense as in New York; the real estate along which the tracks are laid on Broadway
 may be worth an immense amount for
 every lineal foot. In sparsely settled
 districts the value of the real estate of
 the railroad will diminish greatly.
 I am perfectly we'll aware, as Chief
 Justice Marshall says: "The power of
 taxation is the power of destruction. But this applies to every species ot property. If demagogues, or ignorant
 enthusiasts who are misled by dema-
 gogues could succeed in destroying
 wealth, they would of course simply work the ruin of the entire community
 and first of all, of the unfortunates for whom they profess to feel an especial
 interest. But the very existence of un-
 reasoning 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 corporate interests which do good work for the community, when we insist that the man of means and the great corporation shall pay their full share of taxes and bear their full share of the public burden. 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 discontent, the American pub lie is sure sooner or later to cease to feel discomfort,
 The governor refers to the Ford | franchise bill passed at the regular session and declares that 1t represents long stride In the right direction and | one in which there must be no retro- gression Nevertheless, he says, 1t can ha f1xyh hpttprpH {F ap1pr5pd in tNn | important particulars in it's essential | principle that of taxing franchises as | realty. He calls attention to the fact | that in the Ford bill the assessment | will be levied by the local authorities | This would result. he says, in many | cases in dozen different sets of local | authorities assessing the value of diff ferent parts of the same franchise. It | is on every account far better that this assessment should be delegated to the | the state authorities, who will necassa- rly ascertain all the conditions affect ing the franchise and obtain informa- tion which VIII enable them to judge of the value of the franchise in the differ ent localities in which it is exercised. Furthermore the governor says the bill fails to take account of the fact that in a very unique and irregular way many do already pay certain. though usually inadequate sum in taxes. It is obviously unjust he re- when introducing system un- der which we believe that these fran chises will for the first time be fully and fairly taxed according to their re- spective values, not to allow for this existing and inequitable taxation. It should be provided that from the sum assessed by the state authorities as the tax which corporation must pay be- cause if it's local franchise, there shall be deducted the amount already annu- ally paid by it to the locality for such franchise.
 In conclusion, the governor says: Accordingly, I recommend the enact- ment of law which shall tax all these as realty, which shall pro- vide for the assessment of a tax by the board of state tax commissioners and which shall further provide that from the tax thus levied for the benefit of each locality there shall be deductel the tax as now paid by the corporatirn n in question. Furthermore as the time , for assessing the largest and wealthiest tions, those of New York and Buffalo, has passed for this year, and , as it will be preferable not to have the | , small country corporations taxed be- { fore the large corporations of the cit es l , are taxed I suggest that the operation | If the law be deferred until October 1, , 1f this year" (