New-York tribune., 1882-04-20


with it is matter OF considerable concern The Con
trolcr and had two long sngs over last week ana
should have had sufficient time from the Mayor ou'
for the sickness In his family TO have gone over the whoe
subject and decided what ia best to bo DONE Ine
Controller and I agreed that the elevated railroads
shouI be taxed in the same manner IA all o'her
persons and corporations under the operation OF laws
apolcabl. to all Up to the present time have not
committed myself TO anything with reference to ther
case hat the complication arises from the fact that III
the litigation we are obliged to admit that part o'
their present outstanding taxes Is Illegally assSeu'
James C. Carter acted for the city In the caae Drought
nv the eevatcd companies In the United States Circuit
Court and after thoroughly examining the question: no
became convinced and admitted in the answers put
I'm ny him that the taxing officers mad erred In assessing
the capital of these companies. Such Ia the case,
and unfortunately IT ia not technical error oa oI o
of corporations provide that whatever part OF the capta
is taken out and invested in real estate must be deducted
nn the assessment made upon the capital OF the cor
poration The structures Of these roads are taken as
real estate. Returns were made ny the oinpanics @ IN
1880 and the amount Of money pad out upon
tic structures and for other real estate was the duy
OF the taxing officers after having valued the capital 10
deuot therefrom the part of the capital invested In real
estate ync Of course Is taxed as real estaie the pro-
son f the law being in end d to prevent dou lie taxa
on I'm the case elevated railroads the deductions
were properly made, ana We cannot sustain part
OF what il known r. the tax upon cap TAI
There are other questions raised by me companies
with to which we do not concede te correct
ness OF their position. With reference 10 TINS we 90
Consequently in no position 10 ASK me LegihbT
re 10 confirm what we cOucede TO he unjust assess
ment for the OF taxation. In the courts they
world probably get reduction on This account hs
understand 1t. the counsel Tor the elevated roauS
brought these facts the Committee Cities of the
senate and presume thoy made sucn an Impression on
them 10 Induce them 10 Insert clause cNcoPI
Ing the elevated railroads from the operation
of This confirming act le ivin them 10 ght out with
us in The have not assencd to the OF
the amendment had seen 1t until aIieT the 'enae
ma passed tue bill 10 the third reading am probably
responsible for the action OF Two three oi our city
Senators, wnOm wrote early last Week hsks lhei
to promote bill Upon seeing tue form or the amend
ment spoke tO one OF them " nen here over ~ Day
stating tina had not been aware 0I the lorh "inch nc
bill was III when 1t On 0f the COMMITTEE ana ask
ing him to tnat i, was not advanced any iuftLef
until consultation was had down mere ahd
come decision reached 0s 10 what We would RECON-
mend have written % the same elect 10 each OF the
Senator'S with wnon co hlnunlc tled isl week IL any
amendment is maie affecting the elevated roads,
should crelu!ly drawn, curing technical detects
any. the cyyng o the tax leaving then 10 suDS'h-
tate merit UriOds CLAIMS"
Mayor Grace sad Yesterday that ne under,
1 g Committee Cities, had claimed that
the bill in its amended form had the sanction OF
the city authorities speaking ior hlmseI ne wished 70
sav that he decidedly opposed 10 me clause whch
mad been inserted IL knew % no reason why the ee.
vate raj rO.os -hou b. exempted from the payment of
taxes. lie was wiling, and had 80 expressed
himself, that clause ~, should rilDh, Dc M
from the decision OF the TAX Commissioners liking the
amount OF hcir taXes Thai was the risnt OF any per
son Or corporation. But he wished tine made general,
and not to apply to IA particular corporation There
suits against number OF corporations 10 compel
them to pay the taxes wnlch had Deeh IeVled ior ooO
ana ISL II would be unfair 10 go on and collect those
taxes and nave others exempt Dy an act CI
Cont2oner campbell said that the clause mentioned
had been nrOd ICED "i'noui his kho"iedse or consent
Tae elevated railroads held tha they should be exempted
ON DIVISIONS OF thn ec because the taxes levied
on ,hen Ii lsSo ana loSl were party oaSed On on
erroneous estimated Naues; lNat they were
now seeking rghtiul adjustment OF the
claims in the courts and that the bill ao originally drawn
would deprive them OF all remedy Tor the alleged MUS
lice. Inc Controller admitted tIat on the principles OF
of rght o review where they believe tney had been
wrongl, taxed. al error nid been made TINS
however, to tne elevated railroads being
iss OF all taxpayers should he protected equally and
Wiling tnat the bali should be 30 amended as to
TIE pills Nos l19 and l2J provided for tax of
Der cent gOs, icccps OF the elevated railroads.
comp.nico ayers ana provided ior the pa meat oi
III consideration OF TIE use by the riliroads OF
ase as II nigh be held TO constitute contract which
tne city Stite could not atcrward change bill 80
To guard AGAINST -er, bal provided for the
kla OF taxation 1hc Controller was Oppo cd 10 aAing
Inc railroads any dcrent from that OF
a. he col Do about @65OOJO IN taxes uur
from the iaiU.ds last year, wnile TAX Of per
ccnC on their gloss rcc,ps would yield ODiy S2iOUUO
II the roads special favor III the mode OF
taxation only iar to sdpposc mat ia year Or Two
lac, nOuld scek a reduction III tue amount The only
far way to AK all pioperiy-CwnerS III the same
senator Grady last night open letter to Mayor
GInce eXPanng ,ho PROVISIONS OF the M lie says
th,t the Din ny It's express provisions relates
MY to the taxes ON tne capital stocH
ol cOrIoraiOns. fl does not
tain single clause in any way applicable to taxes upon
tuc real estate structures OF NE elcNatrd roads
At the hearing before the Com
mittee on Cities couBsel IOr the elevated
ads ap earod along the president OF tncse
roads, ana opposed the D me ground ndi II would
IcgiIZe these COMPANIES i3rse amount nnpOS'
III tne OF taxes. w-lcM tie cI.y a"tnonhes al
init ed nad been cfJncO lay asscs-od against thrm
1no objection was not ba,ed upon an, tinS con
famed IN the otate az laws OF 1850 or
I9Sl. That the Obj 'c;iOn wds well tancn was
SHOWN to the committee ana 1t was not questioned by
tle representative Oi tDc Guys interests. an cnlre
aaAoAnt vi the tdXauOn Oh thc erroneous asSrss-
meats Was shown D. tue return OF inc Controller
10 lir Senaie 1880 and l5SI to SjJS,25i. The
same showed credit iaInOunt paid ~ tne Man
haitian company Oi 80, Al leaving balance OF
= 900 -. Railroad cOupaAcs ciaiuI tnaL the
committed and acknowledged by the COlOratOn
Council and con- 70 Ter amount To tns Daalcc Inc
cOMmlt1ce therefore, Mr. Grady says, could not
IuuOsc in lie name OF the amount ap
pedng tn cOncc icdly erroneous records. Neither
could cOlnttee the railroad mpanie- the
tIcy desired. Ihc only course remaining
ad Ca ana 1hr coinhite oit me railroad compdAes