The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1901-01-04
GOVERNORS MESSAGE
Mr.. ODELL URGES ON THE LEGISLA-
TURE RIGID ECONOMY.

Taxation of Corporations, Condition
ton of Expenses Among the Sub
jects Considered.
The first annual message of Governor
Odell has been delivered to the New York
state legislature.
The message is general recommended
ton for the reduction of the expenses of
the state and plea for more rigid
economy in the different departments and
commissions. He recommends the con-
solidation of the board of mediation and
arbitration, the bureau of labor statistics
and the state factory inspection depart
ment into one commission, to be known
as the department of labor. He asks
that the state board of charities and the
prisons commission be abolished and the
work of these departments be done by
single commissioner. He also objects to
the present system of employing special
legal advice and recommends that the
compensation of attorneys be fixed by
statute on a percentage basis.
The governor is of the opinion that the
corporations are treated more literally in
other states than they are in New York
hN puANNhS PAoNNd uIlOh uOLiSSbiN wi Pc
rations, he says, are forcing capital to go
to other states where more favorable
laws exist, and as consequence New
York is losing revenue which other states
are enjoying at its expense. The legis-
lature is asked to enact amendments
which will liberalize and make more pop
ular the states corporation laws.
1--WE should exercise the same supervi-
sion fnpniot1 who sock
to do business within our state" says Mr..
Odell, las over our own, and they should
be subject to the same limitations. Many
complaints now made against large COM
binations of capital are just but, owing
to our lack of jurisdiction, we are unable
to control, and therefore no law can be
framed which will reach foreign corpora
tons effectively. Even though we deny
their right to file certificates, the greatest
penalty is the Withholding of the right to
use our courts, and this in effect is but a
slight embarrassment as the United
States court can be used for the same
purpose"
Taxation of Corporations.
The governor says that he has looked
forward with pleasurable anticipation to
the day when tine state of New York
NOulu no luNStl IIu IL necessary W levy
a direct tax for state purposes. In re-
ferring to the taxation of corporations
Mr. Odeil says:
"All corporations receive from the state
certain rights. 1t seems to me. therefore,
that capital of this character in our state
should pay tribute to the creating pow
or for that which they have received
This just fes the present laws taxing cor
porations for state purposes, and all flu
ture corporation tax laws should be based
upon this principle That the present
law works hardships to some and is not
fully enforced in other cases is apparent.
This no mal;cshift remedy will correct,
hut an entirely new system should be
framed to meet existing conditions and a
fair and equitable recompense from all
corporations enjoying state protection
and favors should be exacted. Exemp-
tions should be given by the localities
rather than by the state, because it is
the former which receives the greatest
benefit. and all corporations should there
fore pay tax based upon their earning
power But few of the many corpora
tions in the state are now taxed in this
manner. and therefore an unfair dis
elimination exists
As to the correction of evils in the city
of New York and the need of outstanding
the resources of thee'city the governor
says: e
EVERY department Of New York needs
corrective legislation. Especially is this