768 Gubernatorial Messages 



obtained by local officers, and under them the system 

 of assessment will tend to produce justice, harmony 

 and uniformity. This is the system adopted under 

 the Nichols law and it has worked well in practice. 

 Furthermore, the bill before me fails to take ac- 

 count of the fact that, in a very unequal and ir- 

 regular way, many corporations do already pay a 

 certain, though usually an utterly inadequate sum in 

 taxes. Some pay nothing at all to the local munic- 

 ipalities, but others pay sums varying from one to 

 five per cent on their gross earnings. The amounts 

 have been determined in the most haphazard manner 

 and bear no proportion whatever to the value of the 

 franchises or to their earning capacity. It is obvi- 

 ously unjust, when introducing a system under 

 which we believe that these franchises will for the 

 first time be fully and fairly taxed according to their 

 respective values, not to allow for this existing and 

 inequitable taxation. Accordingly it should be pro- 

 vided that from the sum assessed by the State au- 

 thorities as the tax which a corporation must pay 

 because of its local franchise, there shall be deducted 

 the amount already annually paid by it to the 

 locality for such franchise. In no other way is it 

 possible to tax these corporations with uniformity 

 and equity. It is contended by the advocates of the 

 bill that in reaching the value of the franchise under 

 the new law the amount thus paid away in taxes 

 must be allowed for and deducted anyhow ; but it 

 is not certain that this would be done, and in any 

 event the principal should be definitely established 



