The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-07-30
Taxation OF incorporated Companies.


TO THE EDITOR OF THE HERALD.
An article appeared in your PAPER, few days
since, referring to an application by one Of our city
banks to the Board Of Supervisors, for remission
Of its taxes on the ground Of having made no
money during the current year.
was surprised on il quiry, to learn that there is
law for remission and communication under the pro
visions Of title 4, chap. Is, part Of the Revised
Statutes, as amended July 81, 1853, jdsifyfng such
procedure
The act Of July, 1853, provides "thst monied or
stock corporations, authorized to make dividends
on their capital and not in the receipt, during tho
preceding year, Of net profits or clear income equal
to five per cent on such capital, after deduc.ing
the assessed value Of their real estate shall be a.
lowed to commute by paying dividends directly to
the treasurer Of the county sum equal to five Der
cent on their actual net profits or clear income"
To entitle corporations however, to this privilege
Of ccmmutation. the necessary proof must b sub
mtted, to the satisfaction of the Board Of Super
visoiE.
1t appe ars, further, that the Committee on An
Dusl Taxes, John Kelly and Henry Hofmire made
report to the Board Of Supervisors, July Is, 1856
growing ont OF applications under the law for re
papers, in which they state as follows:-
Since the operation Of this law would virtually
empt large amount Of corporation capital, hitherto
subject to taxation, your committee :uded to con-
suit with r. j. Dillon Corporation Counsel and submit
the aidavits for his examination and report The aft
davs attached have been returned by the alton
Counsel as JustyiDg the remission Of the tar, or the
con- mutation thereof In all in which any net
profit clear income has been received that amount
made subject to communication; but where profits or
income have been received tie assessment must be
stricken from the assessment rolls.
Under this decision Of the Corporation Counsel,
said committee submitted two resolutions; the Arst
allowing the following named incorp srations 10
commute by paying five per cent on their net an.
nual profits or clear ircome during tho preceding
year, viz: The Sun Mutual Insurance Company, on
$50 900; the Atlantic Bank, on $l6,564; the New
New York Balance Dock, on 81, 900. The other 70
solution, thst the following interpretations be struck
from the assessment rolls, not having beon n re
cspt during the preceding year Of any net profits,
Or cksy income vhstever, viz: The Union, New
Companies; the Hamilton, 81. Marks and Peoples
Fire lnsurarc co Companies; the United States Mail
Steamship Company the Third and Sixth Avenue
Railroads; the South street, Dry Dock, Grant,
Bowery and South Ferry Stage Companies; the
B 1a3. BSOa, Ruling and Paging Company; Gas Re
Company; Knickerbocker Ice Company; East River
Bank, and st. Nicholas Ins6rance Company.
Without discussing the abstract merits Of the lsw,
it is perfectly legitimate and proper, until It be 70
pealed, for any incorporation which has been d,
prved Of On income, BY misfortanes in business or
the defaications Of its servants to avail itself Of Its
provisions.
It ID understood that large number Of manufsc-
turing interpretations, in the int ori0r Of the State,
have been compelled from the disasters Of the past
For myself, was ignorant, - are thousands Of
others, that such law was on the statutes, and
beg to draw the attention Of the public 10 It, that it's
merits may be discussed. r. s. B.