New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-12-17

stitutionalty OF the Franchise Tax law VIII soon
be made in the courts. For several months the
attorneys Of prominent corporations have been
sulng together at frequent intervals both here and
in New-York, and lattery there are tokens that
they are about ready TO make a combined attack
upon the law The State authorities are preparing
through Attorney-General Davies. TO offer as
strong a defence Of the law as they can make
Former Senator David b Hill who attacked the
when It in the hands OF Governor Roose-
welt, in May, 1889. has been busy since early
in November OF this year studying the Franchise
Tax law and the decisions OF the courts bearing
upon such laws MI Tin also has been frequently
in New-York consulting with Frank II. PIatt
William F. Sheehan and Professor Charles A.
Collin about the proper method OF upsetting the
law IN the courts.
Mr.. Deyo. secretary Of the State Tax Commits
soners. said yesterday that from the information
IN the possession of the Commissioners they be-
lieved the first test would be argued early in
January in the Appellate Division OF the Supreme
Court OF this district. and he added:
The only great corporation which has paid the
franchise tax according 70 our information Is the
Standard oil COMPANY. Others may have done
for the Tax Commissioners merely certify their
appratsemeut OF corporations the local assessors
and II is locally that the TAX is paid
The State Tax Commissioners some time ago an
nounced that their reports indicated that the
Franchise Tax act had increased the taxation OF
corporations about s. 10000 This is a large sum.
and the corporations naturally win seek TO escape
its payment one or the points MI nm maze
with the most insistence against the Franchise
Tax law before Governor Roosevelt was the al
legged Indebtedness Of the taxes imposed and the
inequality in taxation which might follow the valu-
alton Of the property OF corporations. It Is be-
lieved here that Mr.. Hill and his associate coun-
sci WI! seek 10 persuade the courts that the
Board Of Tax Commissioners has erred in many
instances in appraising the value Of the property
OF a corporation. and contrasts in appraisement
VIII be submitted to the courts as proof Of the as
sertion that the Franchise Tax law cannot be
enforced impartially.
The corporation argument will be, II is re-
ported that they should be taxed on their gross
receipts and that as much as possible such board
as the State Board of Tax commissioners should
have no power 10 fix the value OF property The
constitutonality of the law VIII also he assailed,
State Board Of Tax Commissioners has no right
State, thus assuming work which belongs to
validity Of contracts has been attacked In the
Franchise Tax act. This argument will lead 10 the
testing OF the consttutionality of the law in the
II is acknowledged by State officials that some
end these they apparently will not op! Sc There
repeal the franchise Tax act II such bill should
be pressed here with any prospect OF success. II
be predicted that Colonel Theodore Roosevelt
will come here from Washington 10 give his rea-
sons why the law should be kept on the statute
report published yesterday that most of
the big corporations who fighting the Fran
chise Tax law in this State had banded to-
gether 10 evade the payment OF the tax.
David 3. Hill. William F. Sheehan Frank
H. Platt and other lawyers said 10
have held frequent consultations, presumably with
the purpose of strengthening the conspiracy. Mr..
Sheehan was seen yesterday at his home No 16
East Fifty-siXth-st. He acknowledged that he had
had several consultations with Messrs. Plat and
Hill and other lawyers representing corporations
which attacking the cOnsttutionality OF the
law, but he said they only for the pur-
pose Of getting the benefit OF one another's legal
knowledge and aiding one another in a profess
sional way 10 make the first really test
by raising all the points possible that the
courts, by deciding case might decide all. He
secuted the idea that there any combination
foot among the corporations saying that each
corporation would make its fight Individually
MI Sheehan declined say what he thought the
outcome Of the fight would be. He could clearly
see however, that il would be a long one, and
would go highest court in the land before the
corporations would acknowledge defeat. Whether
the law would be amended at the coming session Of
the Legislature Mr.. Sheehan would hazard