Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-14

) Early in the telephone fight all eyes
were upon Senator Edmund W. Wake
lee. the Bergen county senator who 1t
was charged, acted as "go-between"
in a telephone deal whereby the trust
Huntington, w. Va. Today Senator
Ackerman is the cynosure of all eyes
at Trenton. The search-light is thrown
upon the Union county millionaire be-
cause of the three senators to decide
the probe project his vote is the de-
cisive one. Wakelee. of course, is
against the probe, while Senator
Fielder, of Hudson county, favers 1t.
The five members Of the House COM
mittee, four OF them Republicans, pre-
senued drasrIc recommendation to the
Assembly and it is for Mr.. Ackernian
now to decide what the Senate Commit
tee will do.
The question is now being asked.
Are the telephone trusts dummy cor
porations that are doing business in
this State lodging the payment oil
franchise tax?r The answer could be
made plain at an investigation. 1t
would show whether New Jersey is
collecting 2 per cent. of the total gross
receipts from the Delaware and At
lantic and the New York and New
Jersey Telephone companies. 1t is be-
lieved that the 41a per cent. tribute
paid to the Bell interests by New Jer-
sey companies is deducted from the
gross receipts before the per cent
due this State is taken out. The report
of the State Board of Assessors con-
veys no Information ON the subject.
/ The State law imposes a per
cent. tax on gross receipts with
in the borders of the common
wealth upon all telephone, telegraph
and other like public utility COM
panies This is franchise tax The
state Board of Assessors works out the
amounts which it is paid with the COM
panies and the State then collects it for
apportionment among the municipali-
ties where the wire-using corporations
occupy the public streets and enjoy
privileges accorded for such business.
/ If the telephone trust is paying less
tax than is required by law Newark
and every other municipality is suffer
| ing a direct loss The franchise tax
payment to this city by the State in
/ its capacity as a clearing house
amounted to over $4,000, enough to
| keep the city tax rate down a point
and half.
/ Every Newark taxpayer can appre-
ciate what it means to make the tele-
/ phone company pay UP. 1t means that
there will be little relief in his heavy
burden. The tax rate makes the rent
rate and so indirectly food prices are
affected by tax rates. If taxes arv
high up goes everything else.
probe Only VIII show.
Only through a thorough investisa-
ton ordered by the Legislature and
| backed by the whole power of the
State will the people learn just what
the telephone octopus counts as gross
New Jersey receipts and therefore SUBJ
| ject to the 2 per cent. annual franchise
tax. There are numerous technicalities
that might be employed TO keep the tax
payments down The interstate mes
sages are apportioned so that New
Jersey is credited with only fraction
/ al part of the tolls for New York,
Pennsylvania or other foreign business,
The people would like to know very
much how the company works the pro-
portions out and what information is
furnished to the State Board OF Asses
sors annually.
Stockholders of the Newark Tele-
phone Company, as told in the EVE
1 MING STAR on Saturday, are prepar-
1 ing to wrest the company from the
! monopoly by throwing the concern into
| the hands Of receiver. There are
1900 shares of stock held BY Newark