New-York tribune., 1885-01-24
c,pcr,rAR FROM THE DIRECTORs-THE TAX COM
. MfssIoNERS EXPLAIN.

. c,pcI-IAR FROM THE DIRECTORS-THE TAX COM
MIssIoNERS EXPLAIN.
A o;rcnlor letter has been sent to the stock
hoaors Of the elevated railroad companies, explaining
the action of the directors Of the Manhattan Company in
removing the general offices to Irvington In 1t the d
rectors state that the companies are willing now as
thew always have been to pay fair rate OF taxatOn'
Tn other words, they are willing to pay al
che same rate and upon the conditions rs all other
oncrty in New York is assessed, and upon no other
tarms The statements made that they are attempting
to avoid taxation untrue. They are Wiling 10 pay
~ nv time upon the basis of the decision of the SUI
rsme Court" The letter bears the names OF all the
arectors of the Manhattan Railway Company
Tax Commissioners Donnelly and Feitner yesterday
o ont the following their answer to the allegations
- nv the officers OF the Manhattan Company
few observations upon the circular issued ny the o.
tnrs % of the Manhattan Metropolitan and New, YORK
The date of January 90 are necessary in the inter
est OF truth and frmness. as well as Ill lhe senei'i ~
First The settlement made by the city authorizes with
these companies in the matter OF axalon atr tp @
Special Term decision of Judge Pratt accep'eG & .G % he
duced valuation OF the structures made Dy nm. no
valuation of the structures by the deIat&ene & f ,h
been in excess of the value OF the capital saooh ~ @
companies owning them, there had been no assessment
OF the capital stock except in the case oi tue f
uSnp'Si tSs roads. and Manhattan stock as;
ses.ed al market value Had the value OF the captai
stock on the occasion of the settlement been considered
i'm connection with the reduced valuation OF the structures
the agreed upon The assertion OF the uectos @
that the taxable property OF the elevated roads con
ssts solely of their structures ana Loins so1a, N. III
sidering their great practical experience ana ialnary
with the law of taxation rather bold One unless, IN
deed il be admitted that they are an exception 10 an
other corporations and and administer the law for
themselves The taxable property OF the sievaieg 0
roads consists not only OF their structures anu loS
stock but of the value of their capital STOCK less me
Seoad~The assessments appearing the books Of the
department against these different corporations Tor the
year 1885 are as follows: ....o.
NewYork Elevated capital stock s00o33ooo s003ooo
Metropolitan capital STOCK H0Gi All
NewYOrk Elevated structure -----'-'''''''- 99i 96i
Metropolitan structure -.---'''---- '''''
IL is the practice department in assessing copora
tjons TO place the books at the opening sncieh
amount TO cover all contingencies allowing the proper
adjustment be made upon the returns ana other eV
dence furnished That these amounts should he ample
especially the of these elevated roads,
whose frequent agreements of mergers consultations
etc are apt breed confusion In the ordinary nina as
cd The directors must have known and do know that
was not the intention OF the departmeent end
to assess their capital st.Gk az tS Oins,co
the ilegay and the absurdity OF sucn mehod OF TAXA
ton" is simply affected and pretended Judge Pratts
decision held that the taxation OF the stock OF the Man
haitian Company untenable because 1t had no actual
value although it had market value OF 90 per cent or
thereabout Perhaps the commissioners, IN assessing
the presen; Manhattan Company might apply this rule
and IL they should find that nothing had peen addeu 10
its property which consists almost entirey OF leases
rowed money the sale OF stock the actual vac OF tne
stock might be accepted as nil and assessed accord
THrd-whatever assessment against these corpora
ons department may decide upon Will be entered
and form part of the taxation against tnem oT tof
flight 10 IrvingtOn 1t will be for the courts TO decide
whether the Office principal place OF business OF cor
poraon not necessarily be in the place where its
business can only be carried on ~ - -,
FOurh-The assessments of the structures have been
made mainly upon information furnished by the directors