New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-06-13
RAILWAY INTERESTS.
LITTER FROM Jay GOULD.

STATEMENTS OF THE MA1Oh AND No"'i"'i'
IN REGARD TO THE BILL TAXING THE ELE-
WAITED ROADS.
frKon SPECIAL CORRESPONDENT or THE TRrBUrE-l
ALBANY. June 12.-GOvernor Cornell mas
n, received letter from jay Gould, president OF the
Manhattan Railway Company, in which Mr. dould an
swers ut length the objections made by Mayor Grace
and Controller Campbell OF Newly to senate pl no
4OI the we'll known bill relating 10 the taxation OF 'he
elevated railroads Of Ne9York Mr. Gould STATES th ne
was pleased learn that the Mayor and Controller ho
specially addressed" the Governor on this suJect'
for the controversy In relation thereto has now I'D
vanced stage where the rights OF the parties ana
the Justice aud equity of their respective claims ought
alone to prevail" lie then proceeds as follows;
What be said in the matter in behalf OF the city
failed to present to you. And am fully satisfied that
the unounded assertions ~ tn the facts-the unwar
rantable accusations and reckless dennDoatlons
which have been made In reference TO THESE
OBSERVATION-DISCLOSURES suitable in the columns
of to ncite public clanOr ana prtJuhlce'
will DC entirely without influence IN the exercise by you
OF your constitutional right to approve or dsatPpoyc %
the bill before you. In every controversy the rights
involved ought To be Determined only after careIu con
sheraton OF the conflicting statements Of the parties
and neither passion nor prejudice aid in arriving at
a lust Judgment in any such matter. Impressed WIN
this conviction and in the spirit IL incucates submit
what 1 consider TO be conclusive answer To every
reply SO that you may before YOU the essential
facts out which this controversy has arisen and the
action OF the parties IA reference thereto -, , -
The elevated companies have never reueu upon
merely technical formal defences 10 dcfeud the from
the nonpayment their taxes and no such deienees
were nterpOscd by them In ths particular tuo Hayo
and Controller nave been m.siatormedi and they nave
the object and intention Of tue Coun'el 10
The Corporation In preparing ana presenting LOT tVt
mcut the bill referred to. This object as explained IN
tho Instructions % mo Coulscl ~ 'Hc ~ '1l'
who enqnrcd INTO the matter wa hot 10 ,lc0t "Fu
technical formal defcnces bul dcences founded
questions raised rs to the oI me Vi
tueciiy nlmakhS the assessments ana III" taAes
complained Olfhe specific defense or objection pchS
that officers acted the matter without legislative
sanction or authority, ana tha WHAT lhey ulu ~ sIcn
circumstance void These officer; have ialed TO
PLAIN now 1t became necessary TO apply 10 the LGgls
ties the OF 1850, when last year the LeSlsi-
ture passed special statute for this express PuTpose
The Counsel to the Corporation applied 10 the LeSsa-
ture, Mayor aud Controller Joining In the appuca-
ton, 10 Ito high prerogatye ana leVy Tor m
nicpal purposes by direct ehacSnient 9PcIiuo tn
In the name OF taxes, irrespective ol the question
lISdotiQl TO 90 10 ann I'm I,irntion nd sue
PEELED to pay personal taxes tho sum OF
S59,,3s1, which hal not, and could not. not, lay q,
this imposition these companies reused 10 submit;
Their officers appeared in person aad win inc ana o.
Cities their specific objections 10 the Dill and s
PROVISIONS These objections were Substantially ioi
/. That no authority existed in law authorizing the
officers of the CITY 10 impose any the capital
stock of the elevated companies Of Othcr corpora
tiOu for the years leSO and 1851, ana tIl no aAcs
posed by these officers upon these companies OF any Vi
2 But assuming that these statutes OF 1850 and
1ssl did relieve the corporations, Including the cc-
waited COMPANIES assessment and taAaIoh on thc
capital stock Tor muDcpt purposes III heHe Jedih' anu
MT the assessment and OF such capital stock
were authorized TO be made and imposed pursuant 10 Tue
provisions of the general statutes Oi tho STATE inc ou
Gers the city failed to comply with these statutory
ptoyislous and have uujusty and illegally made AS
se,sments and imposed taxes "hch mo laws ''y "cio
charged 10 administer DID not authorize
Mr. Could In conclusion. narraes the history of the
bill before the Legislature. showing how through amend
ments it was finally made acceptable to the elevated
railroad companies. He says;
-.1 To iftts # thp
elevated companies Is not the INTRODUCTION 81 new sJs-
tenn taxation rs represented h the MAJ or and Con-
statute OF the State IN relation to taxation Ii IN tne en-
actment Of system Tor TX upon tei 3VsS IectiPS
The PROMISED the estimated gross receipts OF the
invat rouIp,ic, tnIr year viii exceed $40 300 which
suer equal To Oi lUpe cent on net earnings for
Sc e 10 81 7.l00 OF the ,ross receipts No tax On
property in city state VIII equal IN amount the
proposed substitute tax On gross receipts Ana tins tax
The Increase wall be at tue rate " about $4,000 per an
IL cannot therefore, be that the action of the city Of
fcers in opposing tue bill before sou because
Of the p rSaSSHes is bSIei upon any INJUSTICE
which provisions OF this bill viii IN the future cause
to the city Aud the past is fully provided for The bill
requires the payment By the companies within thirty
DAVIS after law OF per cent on the gross
The onning OF the several roads 10 tue l'f day OF Jan
uaiy ISs2 IN fall oil all arrears. THESE gross receipts
per OF this aggregate VIII amohul L" 9o)VZl -.
As have shown, the asses5hrnt maze ny the cib
in l-sO and 1881 not aui hOrlZd by Law. Inc tax
imu-rd upon he made Ot the structure Ot
thee companies prior Ia lsS2 elO-O,JJ2 % rms
taxation upon an asse ,surnt which cquaed The lul
cost of thOs structures. Ia the city and county OF New
York 40 assessment OF real estate equals tine Nauc or
cost ih, MAJ pOsrt 33cd % rc estate III tue city
,. - NM a.r. scd for liX on abnyr 90 Der cent or
cost aud the general average of the assessment OF All
real estate city does not exceed 80 per cent OF cost
Assuming, therefore, the assessments made OF
the structures OF the elevated companies TO have
BEEN in the circumstances have explained a
LEGAL compliance with tue provision of thc
statue The taci that these assessments exceed b.
al rs. 40 per the sesSmcnt O all other real
estate in Ae city aud county entities the elevated com
ualos 10 tncir assessments and taxation reduced
by ms amount Giving effect 10 the reduction go per
cent of O-J JJ2 2j the amount 81 tax as above, -
c0ua to -GIs33l 20, and this IL the highest amount
"a Icl can DE dr.nan tho elevated companies III
the most favorable Tor the city. IucHc companies
a. have shown, viii 10y the provisions or the Dl he re-
uurcd 10 pay SGJ929l ~, beng IN excess OI what the
cty can demand Ine opposition OF the Mayor ana CON
trolc the bill in these circumstances Is more scn
mental than otherwise.