New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-04-30
RAILWAY INTERESTS.
TAXES OF THE ELEVATED LINES.


the PETITION OF TUE oFPIcEgs OF THR nANGAT'
TAN COMPANY To TIT. NUNIcfPAL OFFICERS
DENIED.
The Mayor. Controller and Corporation Counsel
have c0ns Tered the application Of the officers Of tho
Manhattan Company 10 join them in an appeal 10
the Legislature 10 reduce the amount of taxation
imposed on the elevated railroads on the ground
that their canings sufficient 70 pay the pres
cnt taxes and continue the payment of the present.
rate of dividends. They decline Ia acce.e 10 the re-
quest of the railroad officials for the following rea-
sons:
To ne President and Directors Of he ManLaan Rdlray
The undersigned officers OF the Municipal Government.
towhom your for reduction " Taxation was
addressed some days since decming tst formal reply
properly be pectcd rom us, have met and con-
sidcrcd the matters stated in your communication aud
submit the following considerations in reply thcrcto
Frsi-As 10 the taxes for past year, amounting 70
about one million OF dollars, which have been regularly
aud remaining unpaid the various corporations namely
the New-iOrk Elevated Railway Company. the Metro
poliian Railway Company aud the Manhattan Railway
Company have been assessed and taxed by the depaP
ment of The city Government having Jurisdiction over
which all other corporations have asfc-sed and
taxed apparently Tie upon the real estate Of the
-- corporations has been valued hy the Commits.
soncrs of Taxes and the tax has been m, against
the real estate Of the corporations The corporations
haN' been taxed npon the valuations iade ~ Tue ~
m,ionc 81 Tays af their property af'er drctng the
tax upon the real estate No error has been -hegest
az To the principles upon which these ahrs nave Dc'I
assessed except that claimed ta; the business
Of iilr companies l. mol stcH ns 10 JUSTLY ltANiOl I'd
81 large amount. The Manhattan Company has.
however been mp Ia the present lime PAYING uOn tho
capital stock of the Metropolitnn Ele, ated Halfway
Company 10 per per annuhl dlyiends small por
ton "i which money. II had been devoted TO the pay.
ment ~ taxes they accrued fron lime 10 lime. would
have wiped ont the arrears OF taxes which tie company
ask TO be relieved from The payment u such dv-
Of creating fictitious value for thc corporate property
and fmnchses represented by its stocks and me Tax
Commissioners may have been deceived thereby In max
ing the valuations of the corporation for the proSr or
taxation but the Tax Commissioner jushe in
.,-gIl
net earnings, and therefore the error, II any has cen
made in the valuations OF the crptal stock l. oe for
which the officers OF the companies, and not Tax
Commissioners. are responsible. The estimate put III
the markets npon the securities Of "A corporation
circumstance 10 which the officials entitled to resort
for esmnte Of the value OF the corporate franchises
Besides. ii must hc remembered that the sums for
which in past years the railroads have been taxed hayo
been relied upon to meet the drhiir'ei'n oi ie tiy
Government. Upon the faith thereof sgcl disDGrse.
;nen1 have been made the money having been raised
upon bonds IN anticipation of the payment ~ iaNcs ana
IN the opinion of the undersigned Officers u l. not prop
cry within their province 10 aid assist ia The cOmpro-
mise oi the releasing OF any legal ana Nhid callh for
taxes arising "ut oi the assessments and levied Tor st
years.
Seoond. so for your application concerns the taxes
OF tic corporations for the future, II the facts stated in
Intimate the contrary, the question will settle Itself.
The made by you Is 10 the effect THAI unless
fcicncy In the amount necessary 10 pay tho
interest upon the bonds and the taxes. As-um:
natural alsrs the valuations ~ yonr cororaon- upon
which tnNrs are levied VIII DE reduced al ne necessary
relief viii thus be obtained Fully ourhalf OF the tax
sse-sr upon the properties Il dependent upon the
value put by the public upon the stock, OF these cOnpa
ne- n they have the value currcut. they must repre-
sent property and should be taxed such II they do
not they viii decline In value and the tax viii decline
proportiOnatoy. and the corporation VIII De- relieved or
the excessive amount OF taxation by the operation OF
natural laws H. other wOr the princ Dl.fuloD which
the road conducted hy you are taxed the
those when made applicable Ia all ohrr citizens
aud corporations We know Of 10 REASONS why an eN.
crpon should be- made in favor Of corporations,
why the public burdens which, nndcr uniform laws lau
upon you should bc placed upOrrOIhers.
With regard la the apparent hardship upon the corpo-
rhe existing situation, which IL 50 strongly
pushed upon our attention in the communication may
be ont OF place "a suggest that the statement made
by you shows that with small reduction OF taxation,
which will through reduced valuations the Cor
poratOns will be earning the interest upon their bonded
debts and THEN taxes their bonded debts being IN amount
sub faniiny as great the money cost OF the pr,-
critics This appears 10y the legislative report of the Rail-
rogd COMMITTEE ~ the Assembly made In so, and IL,
We understand substantially conceded by the Officers Il
the company