New-York tribune., 1903-01-08

Tho actual surplus. after deducting all appro-
-,rtatjons mao prior TO January j, 19o2' was
Ssooi .34s sc. co ooo eco -
which S255o falls due during the current gear- @
THE expense for educational purposes s ouLlIs
the past year was Sa,aof 'oIo on Ine M q e +te
inssne. was S5.4 .s17 30, and for betterments
and buildings s., ,35l, ,944 sS. making total OF
sc. sos. .762 10. ..-.z,-oo. .,,,roes
of taxation fer the current year at loooos0vo'
which added TO the present surplus sbib
should be deducted the sum OF a-i, ,too,oiv 90 90,
the amount of the appropriations MADE ny tne
legislature of 1902, exclusive Of the speclal LaA
for stenographers and extra compensation 1ol
SupfeIne Court Judges. leaving an ee 20
surplus on October j. 1903. of S2,fZo 4ou %,
Tbe estimated indirect income for the year
ending Septeuber 80 1904. is S11 oooooo; and
assuming that the appropriations for that year
are S23 600 oo0 there viii be an apparent snort
are of about So $50 600 even though the entire
surplus were used for the payment OF appro.
priations. From these nSures eoo tlls
new revenues amounting TO S5.sotooo are neces-
sar-v and it becomes our first duty therefore TO
provide ways and means for this increase
In imposing any additional taxation due re
sar6 must be had for the rights of individuals
corporations and the localities IT Is Wen
known fact that notwitf standing the cohstahC , m
seduction in the direct taxes Of the state lnere
bas heen a very great increase in local taxation
and therefore whatever is intended 10 increase
the States revenue should not be at the expense
rf Increasing local burdens IL has always ap-
reared 10 me 10 be dangerous TO lodge power IN
any taxing officer which permits him 10 Gus,
crirninate IN the levying Of assessments, ana
4hat the nearer therefore, we can approach a
system which has for its object constant Valu-
stior, the nearer We are 10 perfect sssterh OF
saxstion.
FRANCHISE TAX INEQUITABLE.
The Franchise Tax. which is still the subject
If litigation. seems TO through the few years
1ha. il has been IN operation TO have Demon
<frated that il is inequitabl ble, and source of
annoyance and constant litigation. Some cor
porations bear this burden without serious
results following. But is well known, the
continued increase of street railroad trafhc ana
the demands for lighting. water, telephone and
other public utility facilities have perhaps
brought into existence many corporations which
cannot bear the excessive burden which is now
supposed under the present law
UnGer the operation Of the franchlSe Tax law
# was sought TO impose upon all those using
streets and highways greater tax Tor the privl-
lege thus accorded. There is a great misconcep-
1ion, however, as TO the results produced.
single corporation in the boroughs or Manhat-
Tan and The Bronx has seven-sixtesnths OF the the
total valuation OF such properties in these two
foroughs This corporation is paying as much
tax as many great railroad systems BY pro-
visions Of the law il is entitled to deductions
because OF car licenses and percentages paid TO
The cfty-at least so the law interpreted
-,,t;I a racert decision of the court in a case in
Buffalo which held that such tax should not be
deducted. The increase in receipts under TINS
law upon the hundred and sixty seven mill
ions of franchise valuations in Manhattan ana
The Bronx, after making all an9warces Tor the
tangible properties in the streets and the de-
SuctiOnS ordered by the courts OF One-Ihlro OF
the total assessments are four hundred and
thirty thousand dollars Of new revenue II this
came proportion were carried out, therefore, in
fbe CITY OF New-York il would mean an added
revenue to the local treasury of SS5O,O0O. The
state has accorded TO every locality the power
70 enter into contracts for all franchises which
7aav be granted and IL seemed TO at the time
IF the enactment of this measure that ample
-,rovision was possessed by the cities to prop
er]v guard and protect their interests. and that
"a surrender, therefore, what should belong TO
The State to the nunicipalities-that is, fran
cnise rignts-was unnecessarily giving away
mowers which should belong to and which are
frhereslt in the State With corporations e5
--f+b individuals We should be fair, and while
,aerhsps these corporations had not been paying
lie proportion which they should. stil whatever
ss OF value for a franchise should be paid for TO
he State because il creates the corporation;
nile for the use OF the streets there should DC
direct contract between the company seeking
such privileges and the municipality affected.
: an of the opinion also that under the present
law those who might desire 70 use the powers
5oossessed for taxing purposes coulo 90 so 10 the
presf disadvantage OF almost any corporation
or with resultant unfairness TO the municipali-
gtes AFFECTED. II seems 10 me. therefore, that
she only safe and conservative way or assessing
such corporaftcns IS upon their earning capacity,
a rJzr which would not permit unfair discrin-
snafion This would avoid many complications
srd would be a much safer system than the one
now in operation
MORTGAGE TAXATION UNFAIR.
The nresent method Of mortgage taxation is
unfair because IL reaches only email proper
IT, of the whole and permits an excessive tax.
zxrhatever may be the reasoning as to the pro-
,,,riety or Justice of imposing such e tax, the
Prarrserce of of her conrGonweaiths has demon