NEW YORK STATE FINANCES

Cortland Evening Standard, Saturday, January 18, 1896.

THE STATE'S FINANCES.

Comptroller Roberts Issues a Statement.

CRITICIZES PRESENT METHODS.

He Declares There is No Hope of a Reduced Tax Rate Under the Law as It Now Stands—Various Reform Measures Suggested.

   ALBANY, Jan. 18.—A decidedly interesting and complete diagnosis of the financial condition of the state will be given out on Monday by Comptroller Roberts in connection with the figures of his annual report.

   The comptroller believes that the state has gone far enough in the direction of increasing the burden of taxation, even for very meritorious purposes. He says:

   "The adoption of the new constitution, with its burden of increased expenses; the practical extension of the state care act to all the counties of the state, including Kings and New York, and the creation of a large canal debt, marks a new era in the fiscal history of the state, and it may be profitable to give serious thought to the situation…

   "It may be as well for the people to know now that a result of this policy will be that a low tax rate can never be had in this state again, unless new sources of revenue are discovered."

   The comptroller emphasizes what he said a year ago as to the absolute necessity of making the tax levy large enough to leave some balance in the treasury at the end of the fiscal year. He earnestly urges the legislature to meet this situation intelligently and boldly, and to make the tax rate so that a surplus may be left in the treasury at the end of the fiscal year. The fiscal year begins Oct. 1.

   The great source from which the money is derived for the support of the state government is the annual tax levy. None of the money from this source has heretofore come into the state treasury until the middle of the following April. There was thus a period of six and a half months during which the state was dependent upon the grossly inadequate returns from its indirect taxes, and this period is by far the most expensive portion of the year. There is nothing to do under such circumstances but to borrow on the notes of the state.

   The comptroller attacks the corporations that water stock in this manner:

   "Many waterworks, gas, electric light, power and heat corporations, joint stock companies and associations, take advantage of the corporation tax laws as they now exist, and by issuing bonds, the interest upon which equals or exceeds the earning capacity of the company, succeed in paying less than 8 per cent of the amount of tax they should pay. Such companies very frequently meet their entire outlay by the sale of bonds and the stock is given as bonus to the bondholders or retained by the promoters. Evidently the law permits inequality in the assessment of these corporations.

   "These corporations are quasi-public corporations, enjoying public privileges in obtaining rights of way and other public prerogatives and enjoying, in a measure, the same powers which are by law conferred upon railroad, steamboat, express and other transportation or transmitting companies.

   "The suggestion has been made that, inasmuch as railroad, telegraph, telephone, express, steamboat, canal and other transportation companies pay a tax upon their gross earnings, that these companies which bear a like relation to and enjoy like privileges from the community might with propriety bear a like burden.

   "The department has the names of several thousand untaxed corporations, derived from the examinations made in the several counties. These are being investigated as rapidly as the means appropriated for the purpose will admit.

   "Beyond doubt, a great many corporations doing business in this state are still escaping taxation. It will be the purpose of the department to push the work of bringing such delinquents into the paying class as fast as possible.

   "From the returns made to Jan. 1, 1896, it appears that the abolition of pool selling has reduced the amount of taxes to be collected from racing associations at least two-thirds, and that the amount to be distributed among the agricultural societies of the state this year, including the amount brought over from last year, will not exceed $50,000, while the amount of taxes collected from the racing societies of this state, for 1894, amounted to $95,980.54, and since that amount was distributed there has been collected the sum of $16,546.57.

   "It would seem that the legislature should take early notice of the decision of the court of appeals in the matter of James, in that it is held that the stocks of foreign corporations held in this state, at the death of a nonresident, are not subject to taxation. It cannot be possible that the legislature intended to enact a law which would unjustly discriminate against our own citizens; such, however, is the effect of the law as it now stands.

   "It seems to this department also that the law should be amended so as to impose a tax whenever an estate for life or for years can be divested by the act or omission of the legatee or devisee, as if there were no possibility of such limitation; and further, so as to have final decrees in estates where there are contingent remainders filed in this office, to the end that the department may have a complete list of all estates upon which the entire tax has not been paid. This will enable it to keep watch that the remainders pay the tax, although no proceedings in any court be necessary to vest such remaining estate.

   "The disparity in the per capita cost of maintenance in the several institutions will immediately attract attention, ranging from $121 per inmate in the Elmira reformatory, and $122 in the state custodial asylum at Newark, to $319 at the state institution for blind at Batavia, and $404.54 in the western house of refuge for women at Albion. The cost per inmate at the state industrial school at Rochester is one and three-quarters times as great as that at the Elmira reformatory. This great disparity between the several institutions is partly due to the policy adopted by the state, partly to the policy adopted by managers and partly to the diverse character of the institutions.

   Whether these policies are wise or unwise," says Mr. Roberts, "I do not propose discussing here. I simply want to call attention to the practical result of late years the tendency of the state has been toward smaller institutions but the per capita cost of care and management is much greater in proportion in the smaller institutions."

   In view of these facts, the comptroller recommended that he be given the same power of revision over the salary, wages and labor estimates that he now has over supplies, and which has been given to the lunacy commission with such good results.

   "The past year has been exceedingly prolific in investigating committees and heavy expenses. One of the most difficult things that the comptroller has to deal with is the auditing of these accounts, and that principally for the reason that the accounts differ so as to the amount charged for the same thing. If a member of a committee can live satisfactorily in New York for $4 or $5 per day, it is difficult for the comptroller to allow $8 per day to another member of the committee, and yet doubtless the last named member has expended the full amount of $8 per day. While the expenses of any single committee may not reach a large amount, the aggregate expense of these committees is sufficiently large to call for examination and economy."

   "Regarding public printing, the comptroller suggests that it would save much trouble, and perhaps litigation, if section 72 of chapter 682 were so arranged as to provide that the printing board before advertising for bids should make as nearly as possible a statement of the amount of printing done under the legislative contract the preceding year, and that such statement should accompany the advertisement and be the only basis used in computing the bids. And to remove the inducement for resorting to unbalanced bids, it might be well to provide that no bid should be entertained wherein the price of any item is largely in excess of its fair market value."

Austin Corbin.

Cutting Down the Time.

   Austin Corbin, owner of the E., C. & N. R. R., and president of the Long Island railroad, has published an interesting pamphlet upon ''Quick Transit between New York and London." Mr. Corbin claims that a new line of steamers running between Fort Pond bay, six miles west of Montauk Point and 114 miles from New York, and Milford Haven, the most western point of Wales, 273 miles from London would save from eighteen to twenty hours' time for the mails between New York and London. There are fine harbors at both these points. Mr. Corbin elaborates his theory in detail with facts and figures and his pamphlet has a number of excellent maps which clearly bring out his point. It is altogether probable that the time will not long be delayed when his project will be put into execution.

AS ONE ONLOOKER SEES IT.

   To the Editor of the STANDARD:

   SIR—One who is neither a voter, a taxpayer nor a resident of Main-st., has followed the hitching post controversy with amused interest. It is hoped that every farmer has cut out the list of those who signed the call and protest, and has pasted it in his hat. Then when he comes to town he can consult his hat and look for the posts and know where to go. This will not be talking through your hat, but trading through your hat.

   There seems to be considerable anxiety about the rumored sale of the E., C. & N. R. R. and consequent removal of the car shops, but other industries may be developed which will compensate the loss. If some hustler would secure the contract to set the seventy-five posts, there's money in it.

   It is to be expected that every one who signed the call will as soon as the frost is out of the ground put up one or two posts and thereby protect the farming interests of our county.

   ONLOOKER.

Grand Concert and Dance.

   A concert and dance will be given by Conger hose of Groton in Nye's opera house at Groton on Friday evening, Jan. 24. Music will be furnished by Nobles' full orchestra. Dancing, 50 cents, concert, 10 cents, supper, 75 cents.

   The arrangement committee consists of Benn Conger, Murray Swartwout, Grant Rockwell, Chas. Hamill, James Mathers and N. I. Fitkins. The floor committee is Murray Swartwout, Chas. Hamill and Grant Rockwell.  

FIRE AT GROTON.

Part of Bridge Company's Factory Burned.

   The large woodworking shop of the Groton bridge company was burned to the ground early last night. The fire was first discovered in a pile of shavings on the first floor and the origin is not known. An alarm was sounded and the whole fire department responded quickly, but the fire had gained such headway and the building was so entirely of wood, that they were powerless. Groton has excellent waterworks and six [hose] streams were kept on the fire for four hours, but to no purpose.

   The burned building was about 50 by 100 feet in size and stood just south of the brick office building on Main-st. It was a two-story building used for pattern-making and in the back end was the sawmill. On the first floor were three valuable lathes which are rendered worthless. The loss is estimated between $7,000 and $8,000.

BREVITIES.

   —New advertisements to-day are: Chris Hansen, Cortland-made awnings,

page 5.

   —Service at the Baptist chapel tomorrow will be at 7 o'clock instead of at 4 o'clock.

   —The skating flag is out and the ice is fine. Every one can take his skates to-night and try a spin.

   —Excelsior Hook & Ladder company will hold their annual banquet in John L. Lewis lodge rooms Wednesday evening, Jan. 22 at 9 o'clock.

   —The Y. M. C. A. Bible class meets [in the Standard building] to-night at 8 o'clock, The mechanical drawing class meets at the same tune.

   —Rev. B. I. Ives, D. D., of Auburn will preach at the Homer-ave., M. E. church to-morrow morning and evening and every evening of next week.

   —Rev. Alfred J. Hutton, D. D., of Corning, formerly of Cortland, is now preaching to his people on Sunday evenings a series of sermons on "A Horseback Ride through Palestine."

   —The Thimble club was entertained by Mrs. N. Jay Peck yesterday afternoon. The gentlemen were invited to tea at 6 o'clock and a very pleasant evening was passed in playing progressive whist.

   —W. W. Kelsey has bought of W. D. Riley forty feet off the south end of his lot on Church-st. next to the residence of A. F. Stilson. A handsome new residence may be expected there in the near future,

   —The regular monthly meeting of the Republican league will be held at the league rooms Monday evening next at 8 o'clock P. M. A large attendance is desired and the annual election of officers will occur at that time.

   —At the annual meeting of the First National bank of Groton held Tuesday,

Jan. 14, Mrs. D. H. Marsh, widow of the late President D. H. Marsh, was elected to fill the vacancy of president. H. G. Moe was elected cashier. Mrs.

Marsh was also elected president of the Crandall typewriter company at their annual meeting last week. Possibly this is the only National bank in the country which has a woman for its president.

   —Wednesday evening, Jan. 22, seems to be pretty well filled with engagements and a variety of attractions is offered for all. The organ recital of St. Mary's church occurs at the church, the John Thomas Concert Co. appear at Normal hall in the students' course, Col. Reddington lectures before the Sons of Veterans, Excelsior Hook & Ladder Co. holds its annual banquet, Proprietor Kernan gives a party at the North Cortland house, and other attractions will doubtless appear before Wednesday comes,

   —Mr. Bheem Roy of India will speak to the young men in the Y. M. C. A. rooms on Sunday afternoon at 4 o'clock. Mr. Roy is an Indian nobleman. He came to this country six years ago and has been preparing himself for the gospel ministry. He expects to return home in February to spend his life bringing his countrymen to Christ. A collection will be taken to assist Mr. Roy in defraying his expenses on his homeward journey. Mr. Roy will speak in the Baptist church in the evening.