New-York tribune., 1901-01-03


IL is your duty to curtai in every way this
wasteful extravaganza, which exists to-day IN
almost every State Department 1t is no an
swer to cite the fact that others have done
worse. and that the State is better able to afford
these expenditures because of the indirect taxa
ton, but 1t is your duty at once TO take sucn
action as may be necessary to correct what
convinced grave abuses.
1t is the right of the taxpayers to expect at the
hands of the Legislature such action as VIII
lead TO reduction of their burdens which are
now bearing heavily. especially upon the farm
ing sections of the State / trust your favorable
consideration will be given to these recon-
mendations.
! STATE TAX COMMISSION.
The State Board of Tax Commissioners have
! had placed upon them the additional duty OF
assessing the special franchise tax under the
| law enacted during the administration of my
! predecessor. Under the first operations of this
! law 4,I51 valuations made, aggregating
total of S266. 163. .059 an increase of S11O.1Ol.
/ 15i over the assessment of the same properties
by local assessors the year previous. The Tax
! Commissioners in the valuations under this
special franchise tax, have had to do with the
assessment of property crossing highways and
they have recommended that where the occupa-
! tion is less than two hundred feet the law be
so amended as to leave to the localities the as
causing serious and unnecessary irritation TO
those affected. with hardly any corresponding
benefit to the State.
TAXATION.
The subject of taxation is one that is of the
most import to the people of the State at large.
| sponsibility from one class of property to the
| other, with but correspondingly slight decrease
IN the burden borne by the real estate through
out the Commonwealth, does not fulfil the
| quirements OF the constituency which we repre-
sent. 1 have looked forward with pleasurable
anticipation 20 the day when the State of New
York would no longer find it necessary to levy
a direct tax for State purposes. The franchise
/ tax meets, TO limited degree this expectation.
| The Stranahan bill, the purpose o: which
! to Impose a tax upon all mortgages came nearer
/ ITS consummation than any law that had ever
|
/ complications and antagonsms which it aroused
made it unwise TO act upon matter of such
great Importance during the last session of the
| Legislature; so that to-day We have the same
! problem confronting us as has been before us
/ for so many years.
| All corporations receive from the State certain
| rights. They have. first. the right to exist. In
addition some acquire from municipalities,
through the action of the State, rights to build,
maintain and operate their properties IL seems
| to me, therefore that capital of this character
| in our State should pay tribute to the creating
! power for that which they have received. This
justifes the present laws taxing corporations for
| State purposes and all future 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 ,makeshft remedy will correct, but
entirely new system should be framed 10 meet
| existing conditions. and a fair and equitable
recOmpense from all corporations enjoying State
protection ana faVors should be exacted. EN-
emptions should be given by the localities rather
| than by the State because il is the former
which receive the greatest benefit, and all
| corporations should therefore pay a tax based
| upon their earning power. But few of the many
| corporations in the State are now taxed in this
manner, and therefore an unfair discrimination
/ exists. 4 correction OF this would add
greatly to corporation tax receipts by the State.
In addition To this. corporations organized un-
! der the Transportation laws. which include all
those using public utilities. should also pay an
additional tax. To correct many abuses which
grew up under the administration of this feature
/ of our law the Franchise Tax law enacted.
While agreeing with the principle 1 con-
vinced that the method of it's administration is
crude, and should be more clearly defined.
! We have in addition to these as sources Of
! revenue great number of banks, both National
and State; trust and insurance companies some
| of which are assessed at high figure and others
| at a valuation so low as to be absurd II is a
we'll known fact that trust companies do not
pay their proportion of the States taxes. and
that this discrimination is of such character
as 10 enable them tc thrive and do business
where a National or State bank cannot. The
| total amount of the capitalization, undivided
133 800 of which about s55. 900 900 is in real
estate leaving about S330000.O00 in personal
1 property in such capital and surplus. Trust
| companies and hanks should pay a tax upon
| their capital TO the State. because Of their
Of our courts and for the other privileges which
are accorded them. One per cent upon this
| amount could be exacted. which would bring
| into the treasury between S3,o00.00o and
S4.oOoeDo and would not materially interfere
with the collection OF taxes in the various To-
calities. In addition to this the surplus of saw
| ings banks and insurance companies, which Is
now held as a reserve, and which amounts
Si69, 10I, ,fJl, should pay its proper proportion
! of the taxes because Il Is in effect the capital
of such banks and companies. and should be
so treated. L do not believe in attacking the de-
post of the poor man. whether in savings banks
or in the form of life insurance. Every possible
| inducement should be afforded by the State to
/ encourage saving by those who labor and desire
/ to lay up fund against rainy day" But
this surplus which accumulates from time TO
time should bear it's portion of the tax burden,
and the enactment of law which would tax IL
at the rate of per cent, as above. would not
be too great i'm consideration for the protection
and safeguards which State throws around
savings banks and insurance companies. These
| suggestions. In my judgment, If fayorably acted
| upon. will greatly relieve the burden upon real
! estate In return for this | should favor ex-
emption from payments by banks, other than
savings banks of all local assessments for State
| purposes, and in the case of savings banks and
| insurance companies from all other taxation
except upon their real estate.
The inequalities resulting from the taxation OF
| mortgages very great. the burden being
horne principally by estate and trust funds.
nearly all other mortgages escaping taxation.
If the suggestions before outlined should meet
mortgages entirely from taxation. in the belief
! that their taxation should be left to the opera
tion of the Transfer Tax law. the present unfair
discrimination being thereby corrected and a
lower rate secured TO borrowers.
THE EXCISE DEPARTMENT
The total receipts of the Excise Department
/ from all sources for the last year amounted TO
| 256I 100 %. the States share being 81 232
| 625 %. This revenue was derived from 81 $50
| certificates. Four thousand three hundred and
/ nnety-two certificates were surrendered during
| the year. The total expense of operating this
| Department was S2SO995 O6, TO which should
/ be added county treasurers fees, amounting to
| $50 75S "a, making the total expense Of collec-
! tion 1896, 1913 60.
Your attention is called to the low expense of
| collection as compared with the expense of col
lection of the collateral inheritance tax hereto
| fore alluded to- The Excise law was originally
| framed for the purpose OF taking the saloon out
places. Since 1896. the date of the passage of
| the law, there has been decrease of licensed