Omaha daily bee., 1903-02-28
FRANCHISE TALK ENDED
Municipal Ownership Convention Conclude,
It's Labon in New York.
sEueHAN DENoUNcEs TAXATION PLAN
Banker Claims American System of
Raising Local is I'm state
of Absolute Chaos, Partly be-
cause of Capital Basis.

NEW YORK, Feb. 27.-The last days
session Of the municipal ownership con-
vention today began with an address or
How Should Public Service Corporations
Be Controlled" by DR.. Charlton T.sLewis.
He said any branch Of the civil govern
ment which derived its power from the
sovereignty Of the people must control the
corporations.
In the discussion which followed he was
asked what his sentiments were In regard
to the commercial enterprises.
"Just as long he replied, "as men con-
fuse the functions Of governments and
commercislism, just so long will govern
ment be corrupt"
All TaxGtiOn should he Same.
A paper on Regulation and Taxation OF
Public Service Corporations" by Allan
Ripley Foote OF Chicago was read by Law
son Purdy.
Mr.. Foote said in part:
II It Is correct public policy to secure
the best service at the owest price for use,
the policy regarding the taxation of the
utilities operated by private or public cor
poratjons should be Identical. A public
service utility Is a public Improvement and
should be financed in identically the same
manner, regardless of ownership.
THE Referendum and the Initiative in
Relation to Municipal Ownership was dis
eussed by George H. SHIRLEY, chairman OF
the Federation for Majority Rule.
Mr.. SHIRLEY said in part:
Behind all questions of public policy con-
corning municipal ownership are the deeper
and more inevitable ones. Who shall ex-
ercise the discretionary power as to these
subjects, and how shall this discretionary
power be eNercisedI
The discussion was opened by Eltweed
Pomeroy Of the Direct Legislation league,
who said in part:
The referendum and initiative is coming
in our legislative affairs, whether we favor
1t or not. Several of the states already
passed by legislatures this winter. The
acts are called public option and various
other names, but 1t is the referendum and
initiative.
SeIigman Points TO England.
Taxation Of Franchise Values was the
subject OF an address by Edwin R. selig-
man, former president Of the Federal and
Economic association; He said: How does
it happen that this is a problem that is
known only In the United states7 When
you ask an Englishman how much he is
worth he will mention his income; In this
country a man will mention his capital"
Prof. Seligman claimed that the whole
system of taxation in America was in a
state Of chaos.
Wheeler w. Peekham opened the discus
sion. He differed with Prof. seligman in
many respects, and added: What differ
ence does 1t make whether you consider
the income or the principal in taxingf
Tax the metropolitan railroad Is you will,
is there any question that the man who
rides in the car pays the tax?
when the stock of the Metropolitan is
quoted above par 1t is a disgrace to the
| state OF New York. for they have stolen
1t in some way, either from a high rate Of
interest or in some other way. A tax
should be paid either to the general public
or passengers In the reduction of fares"
Former state Senator John Ford, author
OF the Ford franchise bill, said for years
corporations paid a tax Of some kind, and
had never questioned 1t until some one
found a way to get rid Of it. II Governor
Roosevelt had signed the original franchise
tax bill there would have been no trouble
in the courts. The bill that was signed
was amended so that the state board, and
not a local board OF assessors, was to
collect the tax. That clause Of the law was
declared unconstitutional, but no other part
OF 1t.