New-York tribune., 1905-02-08
TALK OF DIRECT TAXATION
HEARD At THE CAPITOL.
Il Legislative Leader Discusses the
Subject.
IBr TELEGRAPH TO THE TnrpUxr.l


Albany Feb T-whie Governor Higgins Is
committed to the policy Of no direct taxation
and has the final negative on any attempt to
revert TO it, there growing signs that no
small number of the Republican legislators, par
ticuIarly in the lower house, are beginning 20
think about the advantages of the direct tax
The Tribune has already exclusively forecast
the action on the stock tax and told of the
agreement of last weeks conference. This plan
viii be adhered to. The Stock Tax bill will
come in from the Committee on Taxation soon.
Then there will be hearings, a party caucus and
every apparent effort to put it through If this
succeeds that will end the matter, for, with the
Insurance BILL which the Assembly Taxation
Committee agreed to-day, getting around the
decision OF the Court of Appeals, which cost
nearly 100000. and with the Hooker Dill
counteracting similar costly decision on fran
chise tax the financial problem will be solved
at least for the session.
Suppose" suggested one of the Legislative
leaders in a private discussion of the situation,
hedged about with pledges Of not having his
name mentioned suppose the last days of the
session should come and the stock tax bill was
still not passed. Would the Governor then in
sist on cutting the appropriation bills ana use
the surplus rather than revert to a direct tax,
or might it then be regarded as in, the nature
OF a last resort to fall back on direct taxation
Direct taxation might then be a remedy for
certain extraordinary expenses not directly or
properly chargeable TO State expenses Oh Or
dinary operation Such, for example, would be
the S1Oo000O we have got to refund to the
counties because the State has decided that 1t
was improperly assessed. At the time that
was raised It would have been raised by direct
taxation. What is the harm in paying 1t oack
that way? Then there are the expenses OF
good roads. Would the State object TO direct
tax for this purpose, opposed to practically
no appropriation to speak of. If we don't get the
tax bill through Mind, 1 am talklhs apout
direct tax as a last resort, but II seems 10 me
not at all improbable. We shall go aheao ana
get the revenue from indirect sources If we can;
hut. failing that, /. for one, am not uiale1oiS
opposed 10 direct tax"
Governor Higgins tonight reafirmed his belief
that there was nothing inherently impossible IN
stock tax.
There never was tax bill proposed he
said when the question Of some ones evadlng
fl didn't come up, but believe that the legis-
lature will be able to find law that can be en-
forced. OF coI<se, there are men whose ldea4
of citizenship is so low they are not willing to
meet their obligation to the community, but
that is nothing new.
The situation in brief, seems to be that con-
siderable number Of legislators are beginning
10 investigate the question as to whether the
limit OF indirect taxation has not been or will
later there must be return to a direct tax.
This investigation has led some already to the
point Of believing IN direct tax for good ROADS,
Cor forest reservations possibly for canals ana
this type Of State expense, leaving the operating
expenses Of the State government to the direct
taxes. Many of these legislators will vote for
a stock tax bill. 1t may pass as party meas
ure without trouble, but 1t is true that this
measure seems likely TO provoke a hard fight
and that the interests arrayed against 1t will
probably wage a contest bitter that waged
through the lobby against the excise increase Of
1902. They were beaten then; they probably
will be beaten now, but certain leaders are dis
counting the fight by propositions for direct tax.
subject to Governor Higgins's approval, which
seems hardly TO be obtained now.