Fair play., 1901-02-23
Cookery TAKES 4 HAND.
He Sends a Message to the Legisla.
ture Urging Franchise
Legislation.
PAR1rs PROMISES MUST Be MADE GOOD.

| The Governor Draws the Line Between
| Private Business Corporations and
ThOse Owning Public Utilities. Per.
| forming Public Services and Possessing
| Special Privileges.
| jefferson City. Mo-, Feb. 13.-Gov. A.
NJ. Dockery sent the following mes
sage to the general assembly on the
subject of franchise legislation:
| To the Senate and House of Representa-
tives: We are pledged to the enactment
Of a just, fair and equitable law. impos-
Ing franchise taxation. The people Of
| the state demand. and have right to sx-
pect appropriate legislation for that pur-
pose. l am fully convinced that each
| senator and representative realizes the
| Importance and necessity of immediate
| action to accomplish that result.
Widespread interest In the subject mas
been awakened. and individual prefer
ences for this or that measure might rea-
| sonably be anticipated. 1t is not sur
prising. therefore. that differences Of
opinion exist concerning the proper scope
| OF such a law and the details to be in
| serted In the dill. But more than one
half Of the allotted time for this legisla-
tive session has already elapsed and the
time for action Eas arrived. II anything
Is to be accomplished it must be done
| without further delay. therefore most
| earnestly invit. your immediate attsn-
ton to this most important matter.
In considering legislation Of this char-
acter the difference between private bls-
iness corporations and those owning pub
| lie utilities. performing public services
and possessing special and peculiar priv
teges. conferred upon them by the state
| or its municipalities. must not be over
looked. Their. Is an obvious distinction
between the cnarIctef and nature Of the
franchise conferred upon a private cor
pOration. formed TO conduct an ordinary
business enterprise. and the franchise
| conferred upon u Quasi-public corpora
ton. The difference is not merely in de-
gree, but also in kind. There is no con-
stitutional obstacle TO prevent the classi-
ficatiOn of ob,ecIS for the purposes OF
legislation. provided such classification Is
natural and not merely an arbitrary
one.
A private business association receives
from the state the privilege ITO be a cor
poration." This Is ALI that is conferred
upon it. 1t is a ''iranchise'' in the gen.
eral sense OF that term, Such a fran
chise. however. IS worth just what it
would cost to relncorpOrate. The mer-
camille establishments may be engaged
In business. side by side. and be equally
one may be conducted by u private cor
poration, the other by 4 partnership
What would /; cost the latter to be placed
upon precisely the same plane as The
other. so far as this franchise Is con-
cerned? Simply the amount of the statu-
tory fees necessary t. be paid into the
state tTedSuTs, COHuitloH pTtCeucul
to the issuing of the certificate of incor-
poration. That which any one may OBJ
tain for the a:kins, by the payment IF
a certain sum into the treasury. can only
! refer. of course, only to the franchise
granted BY the state, and not to the prop
erty Of the corporation. which is taxed
under presen, laws.
II is no. 81 how ever with corporations
possessing tn" privilege OF using the Tub
lie streets, exercising the right of eminent
GRFrnl fnT o.
ceiving and collecting tolls, and perform
ing other puo!ic services and functions,
under the permission OF the state and its
municipalities. Franchises of this latter
nature are vastly different from ihat
merely Ito bc "a corporation Such .pe-
cial privileges add greatly to the value of
and constitute intangible property which
has real. substantial value. Whatever
adds to the ,alue of property upon the
market should enter into the estimate of
Its value for taxation. 1t is not in such
cases the right or privilege ''of being a
corporation that should be taxed (which
poration. and can be obtained by the
proper number of citizens at any time,.
but the special privilege Of exercising
public functions. using public property
and managing public utilities.
If the mere right ITO be n corporation
Is not taxed. either in case of private cor
porations or Of t:.lasi public corporation; t
leges-enJuy.,. 1y the latter. II certainl.
can not BE- claimed ii,a; any discrimin.-
tion is made. Such PRIVILEGES or fran
chises are valuable. and although intan.ii'
bic, constitute property"
Hon Thomas A. Sherwood. the senior
justice of The supreme court of Missouri
pronounced tE: unanimous opinion of that
court in the case Uf the Associated Press,
recently deCi.ied, and therein clearly
points out the distinction between private
liar and special privileges and exercising
public functions and shows that different
rules can be properly applied to these uif-
ferent classes OF corporations
As heretofore suggested. If neither is
taxed upon Ihe right Ito be corpora
tion.' but only Upon the intangible prop
unjust discrimination. 1t seems there
fore clear to mc that Ii a tax based npoa
value Is to be Imposed 1t should be Ipon
the franchiseS-jha tangible property of
quasi public corporations, from which the |
value of the capital stock of such cOrpor- |
ations in lary" r'"asure arises.
1t has heretnfOre been assumed that the |
sum required to be paid at the Organiza- |
tion of a corporation for The purpose Of |
securing the certificate of Incorporation
was sufficient compensation for the mere |
corporate right to exist. But If 1t is de- |
sirable to make an tSaction from private
in addition to the taxes Daid |
upon their property, II should he done by |
a separate measure and upon a different |
entirely from an assessment dp- |
on franchise valuation. and should be |
in The form of a special annual license |
tax or duty upon such corporation A tax |
of this kind should not be cOnfounSed |
with an assessment upon special public |
which constitute Intangible
property and have real substantial
value.
In view, therefore. Of the commanding |
of this subject, j renew the |
assurance that ] will earnestly cooperate
with YOU to secure the enactment Jf
franchise law that will fully meet the
of the people, and at the
same time de lI:Stly with the great cor
porate interests of this state.
a. NJ. DOCkERT.
Executive Ofiice, City of Jefferson, Fep-
ruary 13 1901.
Gov. Dockery's idea OH the subject
of franchise legislation was presented
to the house and senate ways and
means committees tonight in The
form a bill drawn along the lines
of the message he submitted to the
legislature. The governor appeared
before the two committees in per.On
upon invitation.
DAILY Bank and Trust Go.
St. Paul, Minn., Feb. IA Helena
(Mont.) special says: Margaret
DAILY, widow of .be late Marcus DAILY.
is the chief stakeholder in two bank
and trust companies chartered here