The sun. [volume] (New York [N.Y.]) 1833-1916, 1901-10-18
The FRANCHISE TAX Law.
PROCEEDINGS PENDING ATTACH
ING ITS CONSTITt'TTONALITY.
TIE Hearings before d Eari 90 Ctese
In About Three weeks. hut the case
Cannot Reach Ceurt ef Appeals In
Time for Action nv Neat Legislature.

ALBANY, oct. II -Robert Earl. former
Chief Judge 81 IN Court Of Appeals. will
tomorrow continue the taking 81 testi-
mnny In the special franchise tar h'iga-
ton Judge Earl was appointed refer""
hy Supreme Court Justice II. Cadv hrirtck
10 take this testimony IN connection With
the actions instituted by the Metropolitan
Street Railway COMPANY, the BROOKLYN
Rapid Transit Company, the Consoidaied
and BROOKLYN Union Gas Company. and
other big corporations in New York civ.
who ask Justice Herrick In declare IN"
Special Franchise Tax law unconstitutional
on the ground hat the franchises have
been oyervaluSd and are taxed n full value
NJ real estate. while other real estate In III"
same localities h. taxed a. only Al Ier cent
of FUN value Judge Earl expects TO hav"
three more siitings and 10 close IN" '@s'i-
monv In about three weeks Then he
will require two months 10 digest tho vol.
luminous testimony presented and 60 pre-
pare hi- report to Justice H"rrck. and
u il not expected that The question Of the
-consfitudonality ~ the law can be pnsssd
, upon by Judge Hrrrick much before Feb
/ riarv next In tina event n would not
get through the Appellate Division and
reach the Court 81 Appeals IN tim" for a
denomination before The neNt Legislature
adiournS .
In each county real .stai. is as-"Ss-d
! a, different percentages 81 value, ranging
from ~ par cent Ia - T-r sent ~ full valu"
In New York city real estate h asSssSs-i
AZ a. per cent 81 full value and ~ Bufalo NJ
A. per cent But Ia assessing special fran
chi-e- a. real estate the state Tax Com
mission assar-ed them ~ full value, notwi'h-
standing tho cpunty ratio fixed hv th"
state Hard ~ Equalizat ION. Since then
the state commission has agreed ihhi The
same percentage 81 valuation should Apply
to special franchises ~ other real estate
In the same localtiy Accordingly, tie
Stat. commission scaled down all it's valua-
lions 81 special franchises ~ thos" corpora
tions which would Accept such revalua-
lions a. Anal and not contest the tonsti-
~tu.ionslity 81 the SI-Acial Franchise Tar
law.
Among tho corporations whose special
franchis. valuations wcrs 80 rednord wep'
tho Buffalo street Railway Company and
he Cros~town Street Railway Company
Of Bufalo The valuations Of the for
mer's sI-.cial franchises we're reducI from
s.. SIS. 2p to 81. "a .-o and ~ the lait"r-
from 81 .s?i.675 to si.277,252 THIS meant q
reduction - ~ Ter Cent. ot fun Nalu". tho
ratio which he state Board Of EQUALIZATION
iiSel Tor tri. county Now city Attorney
crat. contends hat the Buffalo authorities
aS-ess property within the city boundaries
az full value. and that 10y tho reduction II
valuations u the special franchises 81 ths
two railroad companies the city will loss
$4,000 Ia taxes.
Justice Hcrrick's order ye-ter dav ~
the Buffalo case gives Mr. Cuddeback q
chance TO show that Buffalo Assesses hei
real estat. at inOrr han ~ per cent lhs
State authorities arr satisfied that h" can
not do 80 and that the p.rcentag' Taiip-
to full valuation m the 81 counties m the
stat. a. hNed by the state Board of Equal
igation IL CorrpCt. II j. addei that w~rs
MIR Gu ddehack not a candidate for r.
election a. City Attorney n cndcavor
ing 90 po-e A. an enemy 81 the corporations
this proceeding never would have ts-'I
heard OF. and will not be heard u after
election In any event.