The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-05
COY. HIGGISS'S FIRST MESSAGE
TREASURY DEFICIT or $352,S33
Attic END or THE YEAR.
Recommends Repeal Of Tax on surplus
OF savings Banks-Nccded Changes
in the Election LaWs-SaIs Local
Option Might lie Extended TO the cities.

municate 70 YOU by message the ccndl-
ton Of the state. together with such rec
concentrations as seem 10 me eNpedient al
this time.
STATE pgnr.
On Sept 20 1904, the close Of the fiscal
year. the total debt Of the state amounted
to $4,000. classified as follows.
Adirondack PARK ........ .........,... $4,000
Rational Guard Public Deicnces"......... COCO
Canals. so0N'0o1
Total .g.iio.oao
The sinking fund created bv the annual
tax Of 1900 Of a mill per dollar Of assessed
valuation Of real and personal property,
provided 10y Chapter 20 Of rho Laws of
1895, amounted on tho 3Oth Of September
1904. TO 50 sos 1886. which in effect re-
duces the amount Of the canal debt TO the
sum OF 81. SOL 166A5 yet to be provided for.
The debt maturing during the next fiscal
wear consists of SIS go Adirondack Park
bonds. issued pursuant TO Chapter sol of
the Laws of 1895. maturing jan so, 1925.
and 500 Oo1 National Guard Public D.
fence bonds, issued pursuant to Chapter
e7z Of the Laws Of 1895 100000 Of which
mature on tho first days of MAY and No
vember respectively. and for the payment
of which provision must be made by the
Legislature
RECEIPTS AND EXPENDITURES.
The total receipts Of the state Treasury
from all sources for the year ending sept. 80
1908. wcre s25 SIS ,o02 9s the total payments
we're t25 900, 100. 70 showing an excess OF
payments over receipt for the year amount
ing 70 1851 $50 rs. Tue actual available
surplus on oct. /, 1904 was 1872, go 80
The total appropriations In force oct. !.
1904. amount to 500 1875 1910, which j.
81. s1e. 22sO OF more than the income of the
last fiscal year which was applicable to tho
payment of appropriations. 80 that with the
fame revenues as last year there would be
this excess Of expenditures over receipts
which must be met from the surplus. But
the COMPTROLLER estimates that che revenues
for the present fiscal year applicable to
the expense OF government will show a
decided falling of a. compared with the
receipts for the fiscal year last past un'os7
provision be made by law for increased
revenue from present source or tCr nov
sources OF reycnue
The satisfactory condition cf Affairs
whereby the tax ewa produce sufficient
revenue for the rcqu.r, nrlts - the state
y threatened by tie eject Of very recent
decisions rendered uy the Court Of Appeals
IN test actions brought and rucc' Ssluly
maintained bv corporations to OBTAIN
construction favorable 70 shem 81 the
corporation tax laws, which decisions not
only reduce current reCe pit, by large sums
70 be credited as refunds Of taxes, but e5-
tablsh new rules for future assessments at
variance with the practice OF the state IN the
past. Particular references Is made to the
definition Of "cnp.tal employed within
this State "a laid down IN the case oil the
Fort George Realty Company u7o y, Y, a0h
and the construction placed upon the Jaw
imposing tax upon premiums received Dy
life insurance companies contained IN the
uase OF the Provdent Savings Late Assur-
Hnce Society O79 y " 22O.
1t was impossible 10 tOreSee these de-
cisions, which are great appointment
and surprise 10 the State authoS.tleS. While
ii is impossible to make an exact estimate
Of the shrnkage in revenue and OF the
amount OF the refunds required that VIII re-
suit from this cause. the Comptroller estl-
mates the loss at approximately si;!o9Vpo
He further estimates that thrTc VIII ne
ehrinkage in tho receipts from the trans
fer tax OF 81 600 900, based on the shrink
age of the first two months oil the present
fiscal year a. COMPARED with the first Two
months Of the last fiscal year
The extraordinary Npcn O. OF tire present
year will necessarily Toe large Appropr.a-
lions to meet the payment Of judgments and
other claims against the state must he
made Weare confronted with condition
which Is calculated to cause ga to consider
with utmost care the problem Of adjusting
-reoeipts to expenditure. II seems unTiso
at this time 70 increase tho burcens oil taxa
ton. The only alternative Is the lowering
of expenditure. It is obvious that while,
IL appropriations are sufficiently conserEa-
tive, the surplus in the stale treasury O.
sufficient 10 carry MS through another wear
without increased taxation. crisis IS az
hand and provision should be made 10