New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-11-11
RAILROAD INTERESTS.
r,v,ve TIE ELEVATED ROADS.

THE COUNT or APPEALS DECIDES THAI i"'-"
STRUCTURES ARE TAXABLE AS REAL EsTAIh-
OPINIONS or TIE OFFICERS.
The Court Of Appeals on Tuesday aihTmeu w
cison of Justice Barrett that the structures VI '
Ney,-yo,k elevated roads are taxable as real eS-
tote 1. J.. said that the effect of this decision niS'
ne +, bring about 500, 900 into the city treasury
from tine roads. although counsel for the New-fork
Elevated Road said yesterday that the case might
first he carried TO the Supreme Court OF the United
States.
The Tax Commissioners taxed tho structures oil
the elevated roads in 1873 real estate, but the
companics claimed that they could be taxed ohy
on personal property. In making ont then returns
however. they say they have no personal property
For instance. the New-York Elevated Ran
way Company was taxed tins year on
its capital stock of SG,j0O,OOO. AS
is allowed by law to deduct the cost OF I'VE
real estate which its statement says is poafy
$40. 600 900. it would therefore pay no personal
tax. The lax Commissioners refused to accept sucu
statements. When the books were opened IN Jan
uary the stock OF the New-iork Elevated Company
WAS sellng at about 1914, and at that figure the
value of the stock would be $SO6O,OOO. Inc
company contend that its loss in bonds should be
deducted from the value of It's real estate, and thus
showed deficiency TO the Tax Commissioners, ex-
elusive Of loss on bonds OF nearly $4,000 Tho
Commissioners insisted on allowing the company
only the difference between the loss on bonds and
real estate at what it cost, which would dc
S5OiOI5S and that subtracted from
SS O6O. 900 leaves personal tax. OF 93'olo'ofZ'
which the Tax Commissioners levied. snlt was
begun against the Commissioners to set aside ulis
tax tax was also levied upon the structure az real
estate The Metropolitan Elevated Road was assessed
for personal taxes on capital sock Of $6'5O0OOO
In January the stock sold at 100, making a captai
stock Of 81, 500 900, upon which 1t was assessed
The company put in the cost OF It's real estate al
S13 75O, 900. Then 1t wanted 10 deduc the loss on
the sale OF its bonds, which would leave no TAX AZ
all to nav on personal property. The Commissioners,
however, only deducted the difference on the loss OF
the honis-$6, $40 5OO-from the valuation of the
capital stock at 12O which made the company tax
able on about SI,4O0O0O. The company
began a suit to have the tax set aside. The
New-York and Metropolitan Elevated Roads have
been taxed on their structures for the years
1877, 1873, 1879 and 1880, at the rate 100000
running mile, or 5000 600 mile OF double track,
and the decision of the Court OF Appeals calls Tor
payment Of taxes the part of the elevated roads
for these wears The Manhattan Elevated Railroad
COMPANY which resulted from the consolidation OF
the New-Ycrk and Metropolitan roads, has capital
| stock of S13,000000. on which it has been
assessed. The company, however, claims that
il is not worth over 100000 for taxa
ton purposes. The capital stock Is taxed
at 52l4 at which 1T was selling January IL
That would make a tax upon a valuation oil
Sc. 100. 800. The Manhattan Company has begun
a suit against the Tax Commissioners TO have this
tax set aside. The taxable valuation real estate
Of the structure of the elevated roads for the
IN which the companies are in arrears is about
S25 600 600 making about 100000 due to the
city treasury.
In reference to the DECISION of the Court Of APP
peas. member of the firm OF Field. Dorshelmer,
Bacon & Deyo, attorneys Tor the New-iork Ele-
waited Road, sud Yesterday to a TRIBUNE reporter:
One branch Of the case can be taken by appeal TO
the Supreme Court oft the United States, namely,
10 cu.stiou whether the third section of Chapter
S55 al the laws of SOS eXcmptS the company from
taxation IN excess OF the payment OF per cent net
income Prov ed nv that section. The section de-
clares that the payment OF the per cent sila po
| the legal compensation IN Iul LOT uie
/ use and occupancy Of the streets by sald
! railway, as provided hy law, and shall constitute
! an agreement ~ the nature OF "A contract between
/ sotd CITY and constructing company emitting the
latter o. Its successors To the privileges ana rates
90 f,re ber,tofore or hereinafter lega Zed. which
shoI not b. changed without the mutual consent OF
the uortieS thereto The Court OF Appeals has just
| decided that this does not cXenpi The company
! from fur her payment IN the shape OF taxes. MS
ouesIon can hr carried to the supreme Court OF the
! United ates If the company wishes H. ms MT
/ cation wa, begun by the NeW-loik Elevated OGih-
/ many but since The lease the taxes, Whatever lhey
| nav be- Will have To be pad by the Man
! haitian Elevated Railroad Company. Should any
! appeal be taken It VIII on course DE- taken
/ very soon The decision affects the Metropolitan
| Elevated Road aud also the telegraph ana street
! ritway companies. Ii is undoubtedly based upon
two points, whether the structure "I the Elevated
Company Is real estate and whether me company Il
cvempted from taxation by reason of the thId sec
tion mentioned he first part-s just rs applicable
TO the Metropolitan Elevated and TIE telegraph ana
treef raj roads ~ to the Newly Ork Elevated while
! the second point. on winch an appea. eau be taken,
| applies only to the latter.
! lose f. Navarro, Of the Manhattan Elevated Rail
road Company. saId that the dec sion would nave no
effect Oh the elevated road dividends. tie could not
say al present whether the litigation would be
| nu,ued any further 10y the company. treasurer
| Rodv and Secretary Worcester, OF the same COM
many declined 10 express their opinions 81 the effect
! of lie decision. James \. COWlug, see ctdIY ANA
| treosurer of the New-York Elevated Railway Com
! pauy, said The question involved was whether
we should pay taxes ON our structure rs real estate
/ The structure being in the street, we took the
! ground that II was not leH estate 10 pv
taxed aud II II was the tax must De pad
! by the city because the company has contract
whereby II pays the CITY pr cent oil Us net earn
iugs Tor the use of the streets. Exactly what tue
dec sion was based on We cannot tell uutl We get
m. opinions of the Judges Ihe effect, however IS
tbat we are bound to pay the tax on the structure
as rell estate The dividends OF 10 per cent per
/ anuum, payable quarterly, VIII remain unaiec ed
bN the dec sion. Iue amount OF money Whcu tIe
decision vii cause To Ice pad over Tor taxes u - -
/ Will bc aupu, 81 900, ana probably SJOOuO or
/ 500. 900 Ior 1879 ana 1850. lie decision applies
/ only 10 the NcN-lurk Elevated Road Tor one year,
but how lar the principle Oe carried Ou u Re gard
| To other roads OF the New-lOrk Elevated - other
/ vears remains to be seen. If tie principle Is
| adopled | fail to see why lt should not Apply 10
street railr ads and telegraph companies Ii Is I'M
ppss ole 20 say what VIII be done uutil meeting ol
tp Board Is held and the advice OF counsel IS OBJ
| tanned winch will be- after the opinions Oi the
! Juages have been received.
! BUSINESS OF THE RAPID TRANSIT LINES
| ANNUAL MEETING OF TIE MANHATTAN COMPANY
OFFICIAL STATEMENT OF THE YEARS BUSI