New-York tribune., 1901-04-24
FINANCIAL LEGISLATION.
NEW LAWS PROVIDING FOR REVENUE
FROM INDIRECT TAXATION

<1AD-s' NPi'i % NoptCldll-fernapS the most I'M
portant problem of Legislation which Governor
Odell undertook TO solve was that Of a change
from direct TO indirect taxation for the States
revenue. 1t had been his intention at the begin
ming Of his administration, evidenced in his
message 10 try do away with direct taxation OF
she people, and instead raise the necessary funds
BY taxing the great and prosperous corporations
the State. The opposition TO such plan. however.
cas tremendous. and numerous concessions to the
opposing interests had TO be made. Nevertheless.
the Governor succeeded in taking long step for
ward the direction of indirect taxation, for
-esult cf the legislation introduced according TO
the Governors recommendation direct taxation
has been cut down by nearly 100000. leaving
100000 to be raised by direct levy on the people,
which is S35ooc0 less than that of last year. AS a
consequence the rate OF this year s the lowest
on record since 1855
The measures which were introduced for the pur-
pose of raising the indirect tax, and which are
now laws are as follows:
First-Imposing tax of l per cent on savings
banks capital surplus and undivided prohts EX-
pected revenue $4,000.
sscondmLmPosing tax Of e per sent sent o on insur
Thtrd-ImPosing tax Of Il per sd @ cent on trust COM
Fourth-AmeDding the General Corporation Tax
law. providing for the taxation Of manufacturing
corpora tions. Expected revenue, $4,000
Total. sSl00,00
The bills TO insurance companies and savings
banks were introduced in the Senate January g,
upon recommendation Of Governor Odell in his first
annual message The bills reported from
committee by Senator Krum February !. but by
order Of the Senate were recommitted, that there
might be further hearings them. On February
q delegation from the State Savings Bank Associa-
ton appeared before the Senate committee to pro-
test against the patsege of the bill savings
banks a delegation of Insurance protested
later against the Insurance Tax bill The Senate,
however. passed both bills February 81 and sent
them TO the Assembly.
The bill savings banks amends Chapter
1908 Of the Laws of 1888 inserting q new section 10
lbe known Section 1876 and provides for of
per cent the surplus Of such banks the surplus
Ito be taxed fits par value The bill also pro-
.vides for annual report TO be made before
August OF each year TO the State Controller.
ehowing the condition OF the bank June 30 pre-
fcediDg It calculated that the operation of this
flax would the State of NewYork about 100 ooO
a year.
The bill to tax insurance companies provides that
aerery domestic fire. life and mutual company shall
fpay tax of per cent the gross amount of
Its premiums IN this State. Companies organ
ized in other States, except fire and marine shall
pay e similar tax on the gross amount OF their
premiums in this State Foreign country fire and
marine companies required to pay one-half Of
per cent of the premiums IN this State, and all
ptber foreign country companies except life. health
and casualty. which not taxed, must pay per
cent of their premiums in this State 1t is believed
the tax will amou 1t 10 10000 annually.
These taxes banks and insurance companies
are in addition those already paid.
The bill taxing trust companies imposes tax
Of per upon their capital, surplus and undi-
Sided profits. The bill introduced on January
n by Senator Krum and Assemblyman Lewis. II
was amended several times TO meet the objections
raised by the companies as voiced by Charles
D. FairchiId at hearing on the bill Accord
bslv individual stockholders were exempted from
trust rompaniee is exempted from any other tax
alton for State purposes The nln vas was also nr3an %
and title guarantee business lhere are sever
Of these IN end sGpn accordng tt
reports submitted ~ 10 55e 5 The r. state would lose
$4,000 taxation under present conditions II thest
companies we're rn,t moi nndemnitv companY Of New
York: the Bond and Mortgage Guarantee Company
Title Company. Of New York; the lawyers Mort
gage Insurance Company. of New, York; the Law
f'ong Island Title Guarantee Company. of Brook
lyn, and the Title Guarantee company OF hoches
The bill taxing foreign CORPORATE and PLACING
Of one-eighth Of per cent on all companies ex
ept FIRE companies and the provsions @ ms ts lor
3n this State is abrogated. This was the exemp
section provides that the tax imposed on cor
poration not heretofore subject to Its Pro pr,
10 be computed upon the basis Of the amount o
during the year. The new law exempts joint stocl
companies and associations but includes foreigl
lions carrying on manufacturing in the State
provides that IL any increase he mace IN any cap
ftai stock already taxed within the State the sam
license fee shall be due and payable upon sue
increase Laundry, manufacturing or mining cor
porations noi to be exempted unless 10 pc
Of the capital stock IS invested IN Ianos an
other property in the State and used TO conduc
the business ,, -,
purpose of raising additional revenue by incirec
taxation One Of these proposed tax OF ! pc
Of every State bank This bill passed the legis
iature and is now in the Governor names IN
second measure imposed a tax OF per cent on IN
capital OF private bankers; II was VIGOROUSLY "a as
called bv the private bankers Of New-fork City
and did pass.
cages The BIZ was finally abandoned and shelve
In the Senate.