The sun., 1903-04-07
FRANCHISE TAX LAW VALID.
AttsFney-Ge0eral Cunneen 90 Argues be
fsre the Court Of Appeals.

Attsney-Geoeral Cunneen 30 Argues Be-
fsre the Court sf Appeals.
ALBANY, April e.-Attorney General Cum
neen, for the people. this afternoon argued
before the Court Of Appeals in favor OF
the constitutionahty OF the Special Fran
chise Tax law passed by the Legislature Of
1900 when Theodore Roosevelt was Gov
ernor. The arguments will be continued
tomorrow. On Friday the court will take
q recess until Monday. April a. II Is ex-
pected the Legislature will adjourn finally
on Friday, April "a. 30 that 1t is apparent
there will be no effort made on the part OF
the present Legislature to remedy any
defects In the law or to carry out the recon-
mendation made by Gov. Odel In his mes
sage that the law practically be repealed
and an annual gross earnings tax on cor
porations holding special franchises be
substituted.
Tho Appellate Division OF the Supreme
Court at Albany In January last declared
that portion Of the Special Franchise Tax
law which designated the State Board
of Tax Commissioners instead OF the local
assessors a. the authority TO value the
special franchises unconstitutional. The
Of the oonstitutionaity Of the other pro.
visions Of the law which. Attorney; General
Cunneen holds, stand, and that the fran
chises can be valued and assessed by the
local assessors just as though they. had
been named in the law TO do 80 originally
II the Court Of Appeals upholds the Ap-
pellate DiviSon and decides against the
corporations An appeal will be taken TO
the United States Supreme Court and thus
the operation Of the law will be held up
for another long period Of time.
Attorney-General Cunneen's main points
were:
Even II the sections Of the Special Fran
chise Tag law complained OF are SS SG1S 1sse aher
The purpose Of the Law va. to tax fran.
STATE STATE Board % Of Tax comml.sioher. II The
means and agency intended fail others are
s.,. e III s aSS ce.
fSs ss:sSs: !: acs Soa; .. I. doe: not Ss d. e.;
Ttis' Is competent ior the fsgisisturs % pre-
sS6,Hs cfu.is. upon Ie the Il vss1 ss.sssors '" '
This pr0psrty was no. !us .s,es:sS!e %f when s;a
and Il Is competent for It TO provide for their
etrS''Ga The Importance of tho litigation appears
from m the fact that the assessments for 1902
ageregated s2esci7.,7o. and re ;.ti tai;ss, esti-
sis. .Si,, ,ss4. or about .one-nfth Of the total
amount Estimated to be necessary, to rebuild
the canals Of the state. or these taxes
York II the corporations should succeed.
these enormous amounts OF money will De
and corporations other than special fran
chisee.
the public streets violates the obligations
OF the contract under which II is held, is
based on the erroneous assumption that
purchase money and Ia ration are the same.
The tax is imposed not as consideration
for the grant. but because the tar Is needed
10 maintain government to protect the cor
psrdtion in the enjoyment OF the grant.
The Attorney General met the argument
that it Is impossible to fx the value OF the
franchises for the purpose Of taxation by
reminding the court that practical expert
ence proves the contrary; that the records
in these cases before the court show that
many OF these rights have been bought.
sold and leased.
Regarding the point that the special