New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-25
rs THE CITY SWINDLED?
TO INVESTIGATE. IT'S RAILWAYS.
THE CONTROLLER THINKS SOME ROADS ARE
NOT PAYING UP PROPERLY-A DENIAL
FOR THE ELEVATED ONES.

THE CONTROLLER THINKS SOME ROADS ARE
NOT PAYING UP PRoPERLY-A DENIAL
FOR THE ELEVATED ONES
Ex-senator DAILY, Collector Of CITY Revenue acting
under the instructions of Controller Myers has begun
an investigation into the affairs OF the city railway
companies, to discover whether they are paying into
the sinking Fund the percentages due from them
upon their receipts. Mr.. Daily said yesterday that
among the suspected corporations was the Mammalian
Elevated Railway Company, which was required by
law to pay per cent to the city upon Its net re-
ceipts. An examination had revealed the curious
fact that the officers Of the Manhattan had been pay
inc into the Sinking Fund the unvarying sum OF
@, 121 II per quarter for the last eight years. Other
street RAILWAYS are the inquiry list, Including tho
Third and Eighth ayes, the Belt Line ana the Dry
Dock surface roads The Controllers right TO ex-
anime the books of the companies to ma OUT eX-
actIv how much they ought to pay the city, was an
interesting question discussed yesterday. corpora
ton Counsel Clark said that his opinion had not been
osed Int he understood that the Controller had con
suited eminent legal talent which had advised MIN that
no nossesscd the power referred TO- Controller Myers
is expected back from Washington to-day, when THIS
part of the controversy will probably be settled
In discussing the alleged suspicious discoveries Mr..
DAILY said Yesterday When / was a senator at Al
banv 7 had OCCASION as one Of a committee TO in
yestcae the gas companies Of ew-lork, ana touhd
out that they kept down dividends by spending large
for Improvements, and account Ior 'i'o Sndn
payments by the elevated roads IN the same way
Any way do not believe that railroads have right 10
deprive the city of certain income by such methods
/ understand the term net receipts 10 mean thas
sum which is left after the actual running expenses
have been deducted. A thorough investigation VIII
be made and the facts will be ascertained''
The Third ave- surface road is alleged to be S24ooo
behind in It's payment This company pald over I'd
the city in January the Of Sl25,000 after carrying
the matter up to the Court Of Appeals This only
brought its arrearages down TO 1852 1t has ACCORDING
10 its regular statements filed in the Bureau Of civ
Revenue been running 1853 annually on when
a license fee of $50 each IS lawfully due Inc fourth
Avenue Company is down on the list a. having PAN
nothing TO the city. The Eighth Avenue Is IN
similar situation, but the city recovered Judgment
OF s4 600 against it on January 2o. 1t was fer car
licenses from 1873 to 1851 and IS unsati'hed' mo
Twenty third Street Railway Company Is IN husa,oh
with the city on account OF its licenses. ii IL
he found that the Controller has no power to examine
the hooks of the several corporations under eAsuhs
law il Is probable that the Legislature VIII be appee'
TO to supply the lacking authority
Robert NJ. Galloway, yice-presldent OF the Mammal
tan Railway Company. when asked regarding th'
claims Of Mr. DAILY said " 1t is mistake to say
that the Manhattan Company is required TO pay
per cent upon its net receipts or It's he' income
The law affects among the elevated INES Only 'no
New-York Elevated Company. The latter company
| , ii4N''''N'
cent upon its capital stock according 10 tle terms
Of the lease TO the Manhattan As That Is HAe'
| amount. naturally the New-York Elevated pays "
fine city the same sum each quarter ana edch year
| The Manhattan Company pays In taxes ior al Ito
leased lines and itself about 100000 year 10 '"'
CITY Treasury. Part Of the payment Is for Pe''"nii
| taxes based upon the valuation OF the MdnliA''"
! Companvs stock and that valuation rests upon ''o
nroatabe operating Of the leased lines IL ai>o Pa'
taNes upon the structures. The city receives al '
i due IL bnt the distribution of the tax pay mehta MA,
! confuse iuinformed persons. The situation mas oc''
evnlained fsquently TO the Controllers once anu M
| Dav must have made oversight when ne gave o"'
| any charges against the Manhattan. Inc 'onp'"y
l. willing TO give all the information It's DOORS amor"
to tbe proper city officials, and they are taeh at
Ioss f,r Information the State Railroad comm
'', l,,,nv If in The reports e. thcA "hNH ~
ne counmon property Of the public ,,ho+,a,,
! rbe total payments Of taxes by ule -
elevated system for the last three years h1Ne 500
49, .G3O }t3: lS--, SJ42,-J9. l-79', f"oP -,
Tbe nersonal taxes paid by the Mdnha,tin nay p 5-
! - s136-G3: 1--S S1-J.219: loco, 80 :.
The heavy payments for personal take in.e III o,
r. due t6 The high price 10 which Manhattan 10
was carried when cyrus W. Fled vas lhc pm, U
oD'rer and from which there was naturally " Se'0''
! collapse.