The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1905-12-16
Public Excited Over a Priv
Vate Interview Between
the Promoter and the An
tagOnist Of Corporations
WON'T TELL WHAT THEY SAID
RUMoR DECLARES THEY TALK
ED OF TROLLEY TAxING-COL-
BY WILL NOT REPLY TO ROB-
BINS.
Special to @rhe Jersey city News,

Special to .'The Jersey city News.'')
NEWARK, Dec. 16, 1905-For an
hour and a quarter yesterday Senator
elect Everett Colby and President
Thomas \. McCarter of the Public Ser
vice Corporation, We're in conference in
the sanctum saRctorum of the Colby
headquarters in this city. The principal
subject under discussion was the taxa
tion of franchises.
Both Mr.. Colby and Mr. McCarter
stated afterwards that each had express
ed his views on the subject, but they did
not agree. Mr.. Colby related for the
public in a general way what his argn-
ments were but as he did not have the
permission of Mr.. McCar.er to repeat
what that gentleman had said. he refer
red inquirers to the trolley magnate him
self.
Mr.. McCarter refused to give any
statement of his side of the conference
except TO say that he had made the APP
pointment to meet Mr.. Colby to talk over
another matter, and that afterward the
subject of franchise taxation was taken
up.
Mr.. McCarter made the engagement
to meet Mr.. Colby at the latter's offices
in the Scheuer building and Went there
shortly before 11.3o o'clock. When the
visit was concluded about 1890 o'clock,
Mr.. McCarter Immediately left.
I'VE had very interesting and satis-
factory talk. We talked over various
things that are interesting the people Of
the State at the pi esent time, was all
that Mr. Colby said when first question:
ed. When pressed concerning the nature
of the talk he answered questions by
saying that the principal subject taken
up was the taxation of franchises and
the application of measure in this
State similar to the Ford franchise law
in New York.
I'VE expressed our views concerning
the taxation of franchises" said Mr.
Colby, and talked over the Ford franz
chise taxation act that is in operation in
New York. and how franchises should
be assessed in this State. and methods
for assessing them. Mr.. McCarter's
views and mine were not alike.
4 told him that believed the value
of franchises could be aseertained as ac-
curately as could the value of a piece
of land, and recalled to him that brokers.
when dealing in securities of public utii-
ity corporations. figured down to eigaths.
which goes to show that they can obtain
almost the exact value of franchises.
MY plan is TO take the cost of the
cars and equipment of the road and sub
tract the totaI for that from the market
value of the securities of the company.
The difference would equal the amount
that shows the warth of the franchises.
In the matter of steam railroads
which get their business at certain po.n.s
you can take SO per cent. of the diifsr.
enee as the value of the franchises tor
the cars and equipment must be cons.d-
cred as adding to the value of the
franchise
In the case of public utility corpora.
tions it would be fair to assume 40 per
cent. of the difference as the proper
amount at which to fix the franchises
value for the public utility company gets
its business almost continuously and al
every poil1t along its lines.
Now. if you would take about GO pet
cent. cf the franchise valuation as gotten
by this method, you would have about
the assessment that is placed on ths
property of citizens in geAeral.
Experts have figured out that should
pubic utility corporations pay -the local
rate on assessed valuations of pubhs
franchises, they would pay an amount in
tax that would be equal TO about 414
per cent. on the gross receipts, inStelt
of the , per cent Tux which IS now lew
led under the Voorhees, franchise law"
The United States courts have ruled
that franchises have value just ii
much as any other property and that be
ing so. there is 70 reasonable excuse why
the owners of franchise property shouH
net pay proper taxes on it,
When Mr.. Colby was asked what the
difference was between his theories. ant
those of Mr. McCarter, he sad he dix
not thiak il quite proper that he. shouK
speak for that gentleman. Mr. McCar
ter refused to make known at the present
time what position he teok on the sub
jects that were discussed.
When Senator-elect Everett Colby wa
asked to-day what reply he would max
to the statement issued YESTERDAY BY As
senlhlyman Samuel X Robbins the re
publican caucuss nominee for Saeake
Of the Assembly, he said he would no
MAZE any answer.
.Thera's nothing to renlY to- he sain