The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-01-06
CAN LEARN FROM NEW YORK.


There is much in the message of the
Governor of New York that can be read
with profit now by the members of the
Legislature who meet in biennial session
on Wednesday of this week. Governor
Odell almost opens his message by ref
erence to an extravaganza that is criti-
cal here as we'll as in New York He
says.
THE legal expenses other than those
named above have also been very large,
and could be greatly reduced If the COM
pensation OF the attorneys was fixed by
statute on percentage basis, rather
than left to the discretion of the Con-
troller. No business man would suffer
such an enormous drain upon his re-
sources for the small amount Of work
now performed"
He takes the matter up again i'll another
portion of his message and says:
1.-The abuses which have grown up UNI
der the attorney system are such as to
call for correction. There are, perhaps,
instances where the services of special
attorneys may be justified, but in most
be left to the legal department of the
State"
North Cardinals new Governor can
work a much needed reform just here and
we have no doubt that he will do it.
There is need in North Carolina to OBJ
tain new sources of revenue. Governor
Odell points out that the Collateral In
yielded last year $1,765,21 1t is a
proper tax and ought to be levied in
North Carolina.
In New York a franchise or privilege
or license tax is imposed upon all quasi
public corporations. The Governor, while
not approving the present law, approves
the system, and says: 81 have looked
forward with pleasurable anticipation to
the day when the State of New York
would no longer find it necessary to levy
Governor adds:
''All corporations receive from the
State certain rights They have, first,
the right to exist. In addition some ac-
qure from municipalities, through the
action of the State, rights to build, main
tain and operate their properties. 1t
seems to me, therefore, that capital OF
/. this character in our State should pay a
tribute to the creating power for that
which they have received. This justifies
the present laws taxing corporations for
State purposes, and all future corpora
ton tax laws should be based upon this
principle. That the present law works
hardships to some and is not fully en-
forced in other cases is apparent. This
no makeshift remedy will correct, but an
entirely new system should be framed to
meet existing conditions, and a fair and
equitable recompense from all corpora
lions enjoying State protection and favors
should be exacted. In ad-
dition to this, corporations organized un-
der the Transportation laws, which in
clude all those using public utilities,
should also pay an additional tax. To
correct many abuses which grew up UNI
der the administration of this feature of
our law the Franchise Tax law was en-
acted. While agreeing with the princi-
pie, 1 am convinced thdl Ine MeChou VI
its administration is crude, and should
be more clearly defined"
IAN additional tax is recommended
for all corporations organized under the
transportation laws, which include al
those using public utilities" If Gov. Odell
lived in North Carolina and made such
a recommendation, the organs would say
he was driving capital out Of the State
and was a demagogue.