New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-09-29
FRANCHISE TAX MEETING.
a CONFERENCE OF THE COMMISSIONERS
AND THE ATTORNEY GENERAL.
SPEAKER NIXON URGES TAKING THE GROSS
RECEIPTS OF CORPORATIONS AS
BASIS FOR THE VALUE OF
FRANCHISES
IBr TELEGRAPH TO THE TRIBUNE. J

IBY TELEGRAPH TO THE rRIBUNEl
Albany. Sept 2s.-The State Tax Commission heid
. meeting to-day 10 consider the Franchise Tax
law. The Commissioners present were Martin
Heermance George T. Priest and W. II. Leay-
craft. The Commissioners. however. took no ac-
ton on the law. partly. 1t is understood because
Mr.. Heermance will be succeeded on Monday next
as Tax Commissioner by Lester stearns. OF Ere
donia Chautnuqua County. Mr. Stearns was ap
pointed at the suggestion OF Speaker Nixon
At the Inclusion Of the meeting Of the Tax Com
rnissioners the following statement was made pub
lie by them.
The State Board of Tax Commissioners met TO-
day IN consultation with Attorney General Dawes
and J. Newton FerO. special counsel. IN relau ~
The assessment Of special franchises Inc opinion C
OF Mr. Fiero prepared at the request OF the COM
Genera W ~i,s cansiseped and the blanks prepared
for Transmission to the corporations were gone o''
The opinion and blanks will not be made pubic
until a final conference has been had WIZ 80, 80
ernor Roosevelt. 20 whom both opinion ana DihiiAs
viii be submitted. 1900,
The date when these matters will be MADE pup
Nc H. dependent upon the conference WIN tlS " ,
.rnor the time for which IS not yet hxed ana
which cannot DE held until the close OF the Dewey
celebration.
Il IS apparent from this statement that Governor
Roosevelt viii De consulted before any fur'her
steps are taken toward the enforcement OF the
Franchise Tax law. which will go into operation
On October J. Naturally the Governor does not
wish any errors made by the taxation Commission
srs IN the first steps they take 10 pat into opera
ton this important law. II IS known that Gov
srnOr Roosevelt also wishes 20 hold conference
with the members Of The Joint Committee on Tax
alton q inc Legislature. The members OF the
committee Senators Stranahan. Higgins and
Grady. and Assemblymen Aids. Collier, Murphy
AID Palmfr-arc now in New-York Probably a
conference will be held at the Governors house
nj oyster Bay early next week 10 consider the
Franchise Tax law. which VIII be attended by
~llf 10
lie Republican members of the legislative Com
,nittco on Taxation Speaker Nixon. who was
here to-day SAID;
II seems 20 me the chief thing which the taxa
ffsr Commission VIII consider In appraisng the
sine Of corporation's franchise viii be it's gross
Ems Mr. Fieros brief on this subject was
partly read to Senators Stranahan ana higgins
ana The Tax Commissioners and myself AT SYRIA
cIse last week.
The Speaker argued further that TO take the net
earnings "a "a basis as has been suggested in some
quarters would result practically in relieving cor
rorations from tho operations OF the law. net
earnings were very susceptible 10 manipulation.
a CORPORATION with gross receipts OF million
could be 50 managed that its operating expenses,
faarSes and fixed charges would reduce its net
earnings 10 n figure low that tax upon them
would amount practically TO nothing.
in support Of tho proposition 10 take the gross
receipts Of ii corporation as a basis for the value
Of tho franchise held that the gross receipts
represent the earning capacity OF the company.
which Is the earning capacity Of the franchise and
which. Consequently Is the value OF the fran
chise once this value Is determined the rest Of
the procedure would be simple. under the terms
Of the laae tho franchise is 10 be taxed as real
estate.
The Tax Commissioners. u is believed. VIII elias
Sly the corporations. in order to bring just taxa
ZION UPON the wealthy ones and protect the fran
ohises q ST al value from njuriousy oppressive
VACATION