The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-08-10

not been so heartily in favor or IL tnat
he sent an incisive message to the Legis-
lature in it's closing days it probably
would have been defeated. Then the dis
position of Mr. Roosevelt to listen to the
reasonable objections of the corporations
affected was evinced in his unusual &C
tion of Immediately calling a special ses-
sion for the purpose of permitting an
important amendment to be made.
although this amendment, which gave
the assessment of the franchises to the
State Tax Commission in place of the
local assessors, was made at the urgent
request of the corporations, which
claimed that local assessment would give
too great opportunity for bleeding them,
it became one of the grounds for the sub
seuuent contention that the law was I'M
constitutional. 1t is to be said of this
law that while public spirited citizens Of
New York regard it as one Of the most
creditable events of Mr. Roosevelt's adj
ministration as governor, it was potent
factor in creating a desire in powerful
element there to see him shunted on the
Republican national ticket in 1900. With
little question, Senator Plat was entirely
willing to crafty this desire to the ex-
tent of his ability.
THE Ford law relates exclusively to
franchises given for the use of streets
and other public places by public service
corporations It's introduction into the
LEGISLATURE was due to the popularity
of the New York general property tax,
by which it was impossible to assess
these franchises as personally. If, in
deed, the courts had permitted that dis
position of franchises, the law still would
have failed to reach such property for
taxation, because debts may be deducted
from the value of personal property, and
the bonded Indebtedness of the corpora
tions concerned was ample for the pur-
pose. Accordingly 1t was the idea OF
Senator Ford, the author of the bill, to
regard these franchises as real estate
and to assess upon them what was de-
nominated special franchise tax" The
assessment of values was left to the dis
erection of the tax officials, instead of
prescribing q definite rule, such as the
difference between the value of the tan
gible property and the market value of
| stocks or of stocks and bonds, as in Mass
| achusetts and Illinois. On this point also
the corporations contended that the law
was constitutionally defective.
"The decision of the referee was a
| sweeping declaration in support of the
act in every feature but one. 1t asserts
| that the designation of State board as
the authority which shall make the
| assessments, thereby superseding the To-
cal assessors in a portion of their natural
| functions, is not contrary to other acts
Of no I oic a haf hoUn
tanned by the courts The wisdom of this
| provision of the law is, of course, to be
| questioned. The Democratic members
of the Legislature, who opposed it had a
| strong prima-facie case, for, IL local as
SCISSORS are competent to give values to
| other forms of local real estates, it is
difficult to see why they should be dis
/ trusted in assessing these special local
franchises. Home rule has it's dangers
| but it will be by home rule that Ameri-
can municipalities will learn to do their
! own business honestly and efficiently.
1t was this question of the constitution
| atty of assessments by a State board
! that gave the referee apparently his
| hardest nut to crack. On such matters
as the alleged impairment of contracts
and the freedom allowed in methods of
| determining valuations he seems to have
| had no doubts But he admits that, if
| the assessments of real estate in New
| York cities is customarily at only seven
! ty or eighty per cent of the true value
| the same percentage should apply to the
franchise valuations. This concession
however, is not material, since it does
| not affect the issue of constitutionality
| the remedy being the simple one of APP
| plying to the courts for an equalization
| of assessments.
when we know that the amount OF
unpaid taxes involved in this case is
about $11 900 900, it is clear enough why
both the corporations and general tax
| payers in New York regard these decis-
ions with more than passing interest. II
the decision OF the Supreme Court JUS
/ tice were the final word upon it that in
, terest would be still more lively. AS G
matter of fact, his confirmation of the
| finding of the referee is purely formal
and the case must now go to the Appel
late Division of the Supreme Court, anC
probably further appeals, even to the
Federal Supreme Court, will follow
| The end of this celebrated case, there
| fore, is afar off. But the referee is Rob
| ert Earl, a former chief judge Of the
| Court Of Appeals, whose word will have
more than ordinary weight with those
| judges who are yet to pass upon it. The
| existing status of the case warrants the
| presumption that an effort to tax, will
! some degree of justice the great pub
| lic-service corporations of New York
f! has not been in vain. The Importance
to the New York public of ultimate sue
| cess in this matter can hardly be eXag-
| gerated, for it is by taxation on the one
hand and by the character of the service
and the rates of fares on the other that
such enterprises are to be held to theil
| obligations to the people. So far as taxes
| are concerned, it cannot be asserted by
| disinterested citizens of New York that
| too much has been demanded of their
| corporations, while in service and fares
| the metropolitan population still has
some reason for asking further considera-
| tion."
A STATE PREPARATORY.