New-York tribune., 1901-01-06
FRANCHISE TAX METHODS.
EX-SENATOR FORD. FATHER OF THE
LAW, THINKS AN EFFORT WILL
BE MADE TO NULLIFY 1T.

EoIIowinp Governor OdelTs suggestion in his
message that the Assembly should take steps
more clearly to define the method OF ehs az
nlinistration OF the Franchise Tax law it Is
tborebt nrobahIe that amendments will be onered
providing for a definite plan for determining s'ie
value of public franchises. More than one nie'i'ou
has been suggested by persons Interested III '', %
law. Edward Lauterbach, who appeared IN penA'
OF the corporations at the hearings oeiofe "oN-
ernor Roosevelt on the bill, before its enactment,
was quoted yesterday as saying that the oese anu
most equitable manner of taxing franchises "ouu
be TO make the earning capacity OF q cofposauoii
the basis on which to determine the vaiue OK ies
franchise
Ex-senator John Ford. who introduced the Fran
chise Tax bill and who also introduced an adai-
ton 10 it at the last session making the Naiue VI
the mortgage debt of the corporation, plus .ne
actual value of the stock and plus all the ia"iui
Indebtedness of the corporation. legal valuation
for purposes of taxation, said yesterday IN resaFo
to Mr.. Lauterbachs suggestion:
The trouble with Mr.. Lauterbach and all these
Dher s d eSs nt sE wan' no private la
enjoy Justice Cullen IN the supreme Coore opsrtn ~
just as much houses or lots. If | were taxed
for my house according to its earning aolS;
ton property thus?
and taxing by net earnings to be impracticable;
because. in the first case. two corporations might
quite different amount when expenses were de- de-
%ere not So wor tT6 e e would paying
the same tax; ard in the second case, because
IL earnings Of any G If its sca
use their clever methods to conceal them. .
am in favor of taxing corporations accorolns. 10
plus the remaining equity and plus ali tle IdMtui
Indebtedness of the corporation. not counting rum
ming expenses and temporary borrowings.
Ex-senator Ford believes that effort VIII De
put forth at the present session OF the Assembly
to nuIlify, as far possible the effectiveness OF
the Franchise Tax law. Should there be any steps
taken TO amend it for this purpose he will openly
and actively oppose the proposed amendments lie
said last night that he naturally interested IN
its welfare, and that he should use what influence
he had with the Legislature TO protect 1t. He fears
that in avoiding the laying of direct state tax
the Assembly may attempt TO turn the franehlse
tax into the State Treasury. In letter which ne
wrote 10 Governor odell day or two ago CON-
mending his message. he drew Governor
odeII's attention 10 what he believes would be an
injustice to the cities of the State should the fran
chise tax be turned into the State Treasury In
his letter he said this point, in substance;
State tax and you seem to suggest thas tne Was
TO avoid II is 10 turn the taxes from franchses
into the State Treasury II you mean ny & fnat @ tnS
of lS9e your plan is one that must meet Is Tp
sition Of the cities OF tRe STATE ane r nropsrty
brought within the class OF taxable real estate oy
the Franchise Tax law is as mueh the propsly O1
the residents 90 the locality in which II is situated
as are the houses and lots along its streets, the
only difference being that the titles 20 the houses
ana fo the e's Streets rrs ~ is R In phe public TO throw the
den OF State taxation primarily upon public fran
aS h@ taSe Dq eanred to run the State upon Cen
trail Park our docks or our Croton water plant
Such an arrangement would undo9oteGly 9e SAT-
Canandaigua or Schoharie, but would not rejoice
the hearts OF New-York citizens.