The Bridgeport evening farmer., 1912-01-18
New Plan Of Taxing
 Proposed By Lawyer.
 Asked By Expens

Win the special Commission on Tax alton of certain corporations recom- mend radical change in taxation methods?
 The commissioners have consulted Attorney George M. Wallace of New Haven, who recommends a new sys- tenn, one which in his opinion would compelling steam and trolley roads to pay their taxes into town and city treasuries in ratio equal to that of other taxpayers instead of into the rates in the separate towns.
 The following letter is self-expIana- tory:
 New Haven, Ct. Jan Is. 1912 MessrS. Special Commission on Taxa
 tion of Certain Corporations:
 Gentlemen: I would rep to your favor of the 10th inst, requesting my opinion as to any defects in the pres ent laws of this state relating to the taxation of corporations paying taxes to the state, and especially with ref erence to steam and electric street railroads. as follows:
 Steam Railroads.
 I would suggest that these roads pay to each town or city within which they are in part located, the regular town or city tax rate, assessed upon other real alld personal property in ,lae town, upon all the personal and real LndL the TdllrOaQ owns 1n such city or town. It's right of way can be very closely valued by the as- seSors by reference to land values ad- joining, and of course its depots, rails and ties in combination, etc., can all be easily assessed All real estate owned by telegraph and telephone companies Is liable to taxat tion in the town where the same is situated. Gen. eral owners of real estate in New Ha- ven pay this year a tax to the city Of IT 1-2 mills, while railroad real es- tate situated here and used for rail- road purposes pays the state not over 10 mills and the town Tor city nothing.
 Street Railroads.
 These also should pay the towns in which or through which they run, on their real and personal estate in each town, the same tax rate as other own ed real and personal estate. The right Of way in this case, because the street franchise is used in common with oth- CT public service corporations and with private persons and vehicles, is not. so easily ascertainabe as in the case of steam roads. But principles of as- sessing can in this case be worked out The supreme court of the United States lays it down that the value of bonds and stocks less the value of as sessed real estate is in general the value of the franchise of public service corporations I do not hold that the taxation of personal property or real estate Improvements is in accordance WitH PiOPoI PilnCiPioS UT taXatlon, put while such system prevails, it should hold of public service corporations as of others.
 The city and town should also, of course, be permitted to get at, for tax purposes, the street franchise Or right of way of telephone, telegraph, cleo tric light, gas, water companies, etc
 Should all this clip the tax wings of the state, it can, of course, as it did in 1909, law a direct tax on the towns, which after all is the most scienti6cal- ly correct way to raise the state taxes. and in the case outlined the towns will be more than abe to pay the extra state tax from the franchise receipts.
 The city of Toronto receives from it's street railroad over a half a million per annum
 Very truly,
 GEORGE. M. WALLACE