Gubernatorial Messages 767 



and inevitable element of value and is a proper sub- 

 ject of consideration in determining the taxable 

 value of the real property of the corporation enjoy- 

 ing it. The right to occupy a street should not be 

 classed as an intangible something, distinct from the 

 other property of the company, but should be treated 

 as a necessary incident to the tangible property and 

 one to be considered in measuring the value of the 

 whole property. The Nichols law in Ohio which pro- 

 vides for the taxation of certain kinds of corpora- 

 tions such as telegraph and telephone companies and 

 the like, doing business in the public streets, proceeds 

 along these lines, and has in practice been found to 

 work admirably. It is possible that further expe- 

 rience may enable us to find some better method of 

 taxing franchises, but with our present knowledge it 

 is certainly wisest to tax them as realty. 



Under the bill before me the assessment will be 

 levied by the local authorities. This would result 

 in many cases in a dozen different sets of local au- 

 thorities assessing the value of different parts of the 

 same franchise. It is on every account far better 

 that this assessment should be delegated to the 

 State authorities who will necessarily ascertain all 

 the conditions affecting the franchise and obtain 

 information which will enable them to judge of 

 the value of the franchise in the different localities 

 in which it is exercised. The Board of State Tax 

 Commissioners can collate the facts, compare con- 

 ditions and determine values as a result of a wider 

 range of observation and experience than can be 



