New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-25
THE COURTS.
rur rAxAT1oN on STREET RALRoADs.


THE TAXATION OF STREET RAILROADS.
VALUE or THE PERSONALITY OF DIFFERENT COM
PANIEs--No ALLOWANCE 10 BE MADE 10"
DEBTS.
In 1874. the Commissioners of Taxes and
Assessments In assessing the taxable personal estate
Of the Broadway and Seventh Avenue Rai!roau Do'u'
pany the Dry Dock East Broadway and Battery h'h-
road Company, and the Bleecker street anu hu'on
Ferry Railroad Company adopted rue ""ion was
complained of ny those companies. The commissioners
took rket value Of each company soeN anu ue
Quoting from the value of their real estate dc nav
fog been already taxed otherwise fixed the balance as
the amoupt Of their taxable personal property. The
eompapes claimed that the Board should also have de-
Quoted their debts The following is statement OF the
differences as 10 each road which would result from tue
different rules;
As to the Broadway and Seventh Avenue Railroad
Company IL appeared that the original assessment OF
she capital stock was s2lO0C0O; that there had been
paid for real estate S665 % that the average market
value OF the stock was 60, and the Indebtedness
tl7OiOOO. The Commissioners determined the actual
value OF the capital stock to be S2OoOOo. They de-
Quoted S6I525 for the cost Of real estate owned by inc
Company and determined the residue to be the proper
amount Of the assessment
Asto the Dry Dock, East Broadway & Battery Rail
road Company the original assessment of the capital
stock was 100000; $4,000 Of capital stock hao
already been issued TO the Of the franchise In
payment and there nothing TO show that the fran-
ehise was worth that amount 1t also appeared that
the Company was under an Indebtedness represented
by bonds Of s72OOOO and the proofs gwen by the Com
pany tended show that the market value OF the stoek
was c. The Commissioners determined the actual
value of the stock be s7soOlO and deducted the cost
OF the real estate owned by the Company S55lSL Tue
residue sSs26 determined to be- the proper assess
ment. ,,.r,
COMPANY, the original assessment was S9OGOOO Ater
receiving the proofs offered by the company, IL ap-
peaced that the nominal or par value Oh t9o eapeai
stock was 100000; that the Company owned no real
estate hut that 1t occupied leasenod property Yaueu
sslOoo and tnat 1t was under bonded
OF $4,000 The Commissioners determined the actua
value of the capital stock 10 be SSOOO0 and declared
that 20 I've the iHst assessment.
Indebtedness claimed by each company, would nave
le no personally tax The Commissioners decision
Tate amounts Of little over $4,000 per anuum
Tue three companies named Appealed by eertl0rarl TO
Arguing the question on behaR OF the railroad cOmpd-
lies aud d. ]. Dean aud james c. Carter on behalf OF
the City. The Supreme Court sustained the action OF
The Com issOuerS. An appeal then taken 10 the
Court OF Appeals On the part OF the appellants II was
urged that mere franchise could not ne taxrd. IL
only the personal properly OF tne companies ndS
be assessed, and that that WIS TO DC ascerned
the already taxed value OF the real estate, aud
then deducting the debts due. For tue, CITY,
admitted that this might be fair could the real
Yahe OF the whole property OF inc COMPANY DC AsSeI
tanned, but, that was impossible, ana the market
value OF the the only good criterion, when the
market value was akeu the debts had already Deen as
auuuted To allow them again would be 10 allow them
twice, and thus company would only nave TO double
IT. profitable operations, on borrowed money 10 escape
taxation The value Of tue franchise included III tbc
value Of course part of the personal prop
crly Of the corporation In the OF the Bleeckerst
road minor question arose as to whether th5 vJlle
lease to lie deducted The Supreme Court hell II
should not The city claimed that lease was person
atty and that tie owner OF tue fee was bound TO pay
the tax. ,,.,, A..
Supreme Court III all three cases.