The news & observer., 1901-02-06
N0REAL ESTATE TAXATION
Republicans Contending For Policy
Started by Gov. Flower.
ZEN MILLIONS REVENUE A YEAR lNv0LVEl
The Contest 8 ds Fair TO be Momentous am
Memorable One. Governor 0delI
Has His Party at His
Back.
(New York Herald.)

NNoW 1OFk Herald
Albany, n. Y, Feb 2.-One of the
greatest battles in the legislative his
tory of this State is now fairly on
Governor Odelps plans for the aboli-
ton of direct taxation for State pur-
poses are under way. All the bills to
compel corporations to assume what is
considered an adequate share Of the
burden of maintaining the State govern
ment are in the hands of :he Assem-
bly, Committee on Taxation and Re
trenchment.
The volume of resistance to these
measures can only be estimated. Thou
sands of corporations, with hundreds
of thousands of stockholders and bill
lions of capital on one side, and Gov
ernor Odell, backed by public sentiment
and the Republican organization on
the other, will contest every inch of the
ground.
From a political point of view the
battle will be unique, for every one Of
the proposed laws is in measure Dem
ocratic and the minority in the Legis-
lature will find it impossible to resist
them.
Governor Flower, the last Democratic
Executive of New York, urged the pas
sage of similar laws again and again
but found it impossible to coax or CO.
cree an unwilling Legislature to do his
behest.
Unanimity as to party policies. how
ever, is no guarantee of smooth sail
ing for any or all of these measures. In
delay and amendment, brought about
by political social or monetary infiu-
ence, the Governor will find his wors
enemies. Confident as he is in the sue
cess of his plans, he realizes better
than any one else the magnitude of the
task he has undertaken, and knows that
ON his achievement or failure depends his
future.
MAGNITUDE OF THE TASK.
Just what this task is may be seen
from the statement, furnished to the
Herald by the State Board of Tax Com
missioners, which shows that in 1900
direct taxation cost the people of the
State $40, 7O4, 1888 for schools, canals
and general purposes.
OF this State tax New York city paid
Sc, ,922, ,652.45, or 64.672 per cent of the en-
tire amount.
The smaller counties are not so deep
lSN interested in the struggle. They
have been content to contribute their
mite year by year and sit calmly by
while New York city paid the bulk of
the tax. Further than that, they haV
unhestatingly lowered their assessed
values, knowing that in the equaliza-
tion they would be undisturbed and
that no matter how high the local au-
thorities would make the assessed
valuations in New York city the State
Board would always find an excuse for
adding millions.
In proportion as New York city as
a whole will experience relief. it can
still lay claim to giving more than its
proportion to pay the cost of State gov
ernment, even should the Governor s
plans carry, for the vast majority of the
corporations and banks which will be
affected by them have their homes and
conduct the bulk of their business in
the metropolis.
How far the plans of Governor Odell
will affect the interest at which these
tax reform bills are aimed can only be
estimated. Under the general plan con-
IcIDpldl0u Dy lI6S6 DlilS, IL 10 AlOPCN
that the total revenue from indirect
sources will be $22 500, 900, divided thus:
Receipts for State purposes
under existing laws ........ $13OO0,OOU
BY tax on insurance compa-
MES LOO, ,000
Rv tax on savings banks. 800, ,00C
by tax on national and State
Ranks 1000, ,00C
BY tax on corporations (addi-
tionan 5000, ,OOC
Rv fax on trust companies -. 1,4G0, ,00C
LEVY ON THE MANUFACTURERS.
Under the existing laws corporations
other than insurance and trust compa-
nies. bank; and allied institutions, paid
! into the State Treasury in 1900 $2,624,
J0S5O.
Under the new Corporations bill it is
estimated that this revenue will be in
creased by at least $3,OO0,000 a year
Corporations engaged in manufacturing
which are now exempt from taxation
are brought within the meaning of the
| act Owing TO the fact that these CON
| Germs have been exempt there is nc
record of them except among the books
of the Secretary of State, but it is esti-
mated that thirty thousand corpora
tions, with an aggregate approximate
| Capitalization of $4,000, 100000, will bt
required to pay taxes.
|. This includes many of the Srea1
trusts, inclusive of the Sugar, Leather
Standard OIL American Tobacco, ano
National Biscuit. which now escape L
a great extent, payment for the prlVi'
lege of doing business in the State.
Concerns organized under the laws
| of New York that come within the mean
| iro of the proposed statute will be re
duired to pay tax of one and quar-
ter mills on each dollar of the maximum
! amount of their capital stock, and al
additional tax OF quarter OF a mil
on each one per cent of dividends IL
| excess of five per cent.
Foreign corporations will pay taS
{ at the rate OF one and quarter mill:
lupon such portion of the authorized
. al sto or ~ Chnll haar fbl