The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-29
The validity Of the Franchise Tax.

,nusfJs oil eases send stamps for thai ps'poss.
The validity Of the Franchise Tax.
The Court Of Appeals yesterday, in
Q unanimous opinion written by Judge
vANN and ooncurred in by Chief Judge
PARKER and Associate Judges O'BRIBN,
CULLEN, BARTLETT, MARTIN and WERNER,
decided that the Franchise Tax law is
constitutional and valid.
No more im1sortant decision has been
rendered by this court in a civil action
for many years past. Tho great .ques-
ton involved was whether the Franchise
Tag, law was unconstitutional because
in violation Of the principle OF home
rule, guaranteed to localities by the
STATE Constitution; and il IL significant
that three Democratic Judges, Chief
Judge PARKER and Judges O'BRIEN and
Cullen, concurred In the opinion Of their
Republican associate, Judge VANN.
The Court Of Appeals has reversed
the decision Of the Appellate Division Of
the Third Department, and has affirmed
the decision of Judge ROBERT EARL, the
referee, as affirmed by Judge d. CADY
HERRICK, at Special Term.
Judge EARL held that the Franchise
act Of 1899 did mot invade. the home
rule rights OF cities, towns and villages,
or in any material manner deprive them
Of self-governinent. He pointed out
that the franchises. taxed under the
act had never before been taxed; that
these franchises were intangible prop!
erty, having NO precise oircumscribed
status, and that the Legislature, there
fore, could permit the assessment Of
this new kind Of property by a State
board. s5Srsti a0ibvecs go s't
The Court Of Appeals in substance
sustains the. view OF. Judge EARL and
holds that the Legislature could intrust
the power OF assessing new kind Of
property, such. as franchises, intangible
in nature, TO State, officers. ans
Judge yANN says:' -
Tins property consisted wholly Of specisi fran +.
ohlsesi or privileges given by the state. mainly
to corporations furnishing to the public trans.
portation. water. night and other necessities or
ronvenissetso OF daily Mfe. It had grown rapidly In
cx,en, and value during recent years Its value
rested upp tho 1gss 20 uss In some fmsnser the
public hshvayS Y e,A ssste. butM ives Intangible
and doubtless for shis reason had never been
brought under the taxing power. 80 -.
the system tlias created had never been known
before. and as It's main subject the act dealt with
special fr,nehises which had never been taxed
before. Property unknown ~ the subject Of tax :
alton to the frsmcrs Of any Of our oonstitutions
was brought into. the system. wAlch required new
methods Of vAhss,cn snd The exercise Of functions
whirh had never belonged TO local sssessors. In
tess Il escaped taxation In the futurc ~ IL had In
the past. It was Necessary TO commit the power 70
other ofcers. with new functions. wider experience
and srssasr oppertuhisses for observation. Who
would be sSie 70 grasp the new scheme Of Taxation
Is q whole. The valuation Of special
franchises had never been attempted before. but
presented ssw ns,d Of seton ana called for the
exercise Of new and different funcuons.-
The court then points out the assumed
fact that IL this important subject were
intrusted to local assessors each local
board would have its own method and
theory. that uniform action would be
impossible and conflict and confusion
would result.
'The function Of assessing Q special
franchise according to tho court, II
not exclusively local In character, and
homo rule applies only to functions
peculiar TO localities.
The supreme taxing power, which
belongs to the Legislature, in the opinion
Of The court, should b considered in
connection with the home rule pro-
vision Of tho Constitution, and neither
should b 90 construed a. to embarrass
or cripple Tho othes.'
II y not worth while at this time to
consider whether this decision be right
o. not. II b sufficient to say that, as il
= ths last opinion Of our highest court,
. Il goss.' Il may be said, however, that
The tendency Of this decision, q that OF
soma othsr recent decisions BY Federal
and State courts, is to enhance the legis-
lativs power ct tie expense of the judi
cial powss, and to make the Executive,
when backed by the Legislature, almost
. supreme dictator. d.
While this case, may, b carried to the
00R1OuO SOuIt VI t1o OhluoQ ot8uc8,
because on the trial n was claimed that
the Ford act violates the Federal Con-
stitution y ihp Skahk <hs obligation Of
Q contract. Il n hardly probable that the
Federal Supreme Court would reverse
tho New York court Of last resort IN
IT. Interpretation Of the New York Con-
stitution. i,ss 5 ss
The Hired 0trb the Man and the
".',ti,s Dlshos. - $3.50
often and in vain have. We sounded
TO the deaf ears Of Mere Man his quick
coming doom. Total subjection, In all
probabilitysto be followed by abolition;
that ID his horoscope. And he still struts
about, wrapped a. ID his tenuous legs in
the absurd pomp Of golf stockings, and
imagines that he amounts to something.
Well. we waste one more warning on
him. -,-r ~, 'ssHlss 'oe .-'fe z7ii,r' .fr- :"