The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1900-01-12

practically it is SUCH In so far as they
use the public property to the exclusion
Of others, they may be regarded as hav-
ing a special and peculiar franchise.
Upon its exclusive character depends in
large measure their successful and profit
able operation.
The question pressing upon your at
tention and demanding answer is, Do the
franchises of corporations of quasi pub.
lie nature, enjoying special privileges in
the use of public property, possess a
value which should be the subject of tax.
alton. and, if so, are the laws defective
in not subjecting them to such taxation?
This special privilege or exclusive right
is as much an element of value as the
rest of the property of such corporations
and is so regarded by those interested
therein and by the public. Ample proof
of this fact is found in the vast increase
of the amount of their interest bearing
securities and stocks, large part where
of have been issued upon the basis of the
value of the franchises referred to, and
find their security in the possession there
of by the companies issuing them. The
rapid growth of our cities, thus affordine
greater patronage and income, the di-
minished cost of constructing and extend
ing quasi public works. inventions that
facilitate and decrease the expense OF
operation, have each contributed to the
enhancement of the relative value of the
franchise Shall that element of value
be subject to taxation?
How to Deal with Problem.
In my Judgment. the fairest and most
practical way to deal with the problem is
to classify by legislative enactment these
special franchises for the purpose of tax
alton by one of the state boards This, !
think. is particularly necessary in view
of the fact that many of the corpora
tons referred to are exercising franchises
in more than one municipality. 1t is OBJ
viously impracticable for the local assess
ors of municipality in which part of a
plant of such a corporation is located to
estimate the value of the fraction of the
franchise therein exercised. The pro,
ceeds of the taxes levied should be dis
tributed among the municipalities IN
which the property of the corporation is
situate and in which it exercises its fran,
chises, on the basis of earnings in each
municipality if practicable, or according
to some other method that would secure
substantially equitable distribution of
the money.
Some corporations exercising specia.
franchises now pay part of their receipts
to municipalities under agreements made
when the franchises were granted. Ii
order that such taxation should be pro
portionate and not open to the objection
of being double. the amount paid in pur'
suance of such agreements should be de
Quoted from the taxes assessed on the
franchises of the corporations so paying
This subject is probably the most i'm
portant that will engage your attention
during the present session, and | suggest
that it be taken up for consideration as
early as practicable, to the end that
something definite and satisfactory may
be accomplished before adjournment. III
the justice and fairness of your action
have all confidence.
Your attention is directed to the reports
of those departments in which the gen
eral public have an especial interest
notably, the department of agriculture
banking and insurance, education, geolo'
gy, health. labor and industries and pub
lie roads. In each there will be found
evidences of very gratifying advance
ment in the amount of efficient work and
results accomplished. This much may
also be said of those who have had III
charge the educational interests of the
state and the care and custody of the
delinquents and detectives.
All legislative measures of the last SEES
sion received executive consideration and
were disposed of on or before the day OF
adjournment This departure from the
old practice met | believe, with very
general approval and should be adhered
to. Your honorable bodies can. and
have no doubt will, make this much
easier of accomplishment by the prompt
consideration and early passage of such
measures as shall receive your approval
The harmonious relations which marked
our intercourse last year are recalled
with pleasure, and it will be my constan.
aim to promote their continuance during
the session upon which you now enter.
EnSrHER NJ NOOR LII EES