Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-25
YIELDS TO THE LAW.
The Controller Changes His Position
on Taxing Corporations.
WILL FIGHT 1T OUT NEXT YEAR.
City Attorney Eoreland Writes Pointedly
on the Subject.
NO REVENUE FROM PUBLIC CONCERNS

NO REVENUE FROM PUBLIC CONCERNS
Controller Morrow yesterday approved
the action of the Board of Assessors in ex-
onerating from city taxation the property
of the Allegheny City Light Company.
When the assessors published the list of
exempted properties in the city last week,
that of the light company appeared in the
exempted list, valued at S91, $50. 1t was
the only corporation so noted. Controller
Morrow, at that time, claimed this company
had no more right to exemption from city
taxes on its property than any individual
He proposed to investigate it, he said, and
prevent its going into that list, If possible.
At the same time Chief Assessor Case
expressed his disapproval of putting the
company on the free list. He said the Su-
preme court had decided that the property
of public corporations which pay State
tax on their capital stock were not COM
PEELED to pay city or county taxes While
he did not think it right or fair, Mr.. Case
thought the Board had no option but to
allow the exemption. He also stated that
the various gas and bridge companies of the
city, the Monongahela Water Company and
some of the traction companies were asking
for exemption on the same grounds.
All Free From Local Taxation.
There was nothing in the interview in
timating that the companies mentioned were
likely to get what they asked, but it was
made plain yesterday that they will. All
their attorneys need to do now is to demand
it and the assessors will free every street
railway, gas or other public corporation in
the city from local taxation. In view of
Controller Morrow's positive statement in
opposition to the exemptions, his action of
YESTERDAY caused some comment when it
became known. When asked to explain,
the Controller said:
II followed the opinion of the City Attor-
ney. am still of the opinion that it is un-
just and unfair to release these big
money-making corporations from taxes, but
what can 1 do? No one will assist me, and
i am confronted with the written opinions
of two attorneys, each saving my position is
wrong, and that such corporations are not
taxable for county purposes If not taxable
for county purposes they are of course not
taxable for city purposes. think by next
year L will be in position to fight this thing
out, but it is too late now to fight it this
year
The City Attorney Indignant.
The opinion of City Attorney Moreland
on the exemption of corporations was
brought about by the action of Delinquent
Tax Collector Ford in filing liens against
the Pittsburg, West Pittsburg, the East
End and the Consolidated Gas Companies
and the Allegheny County Light Company
for taxes for 1891 In response to this
action r S. Frazer, attorney for the CON-
panies, sent Mr. Ford a communication a
short time since claiming exemption from
all city taxes.
II have examined the question as to the
liability of these companies to pay these
taxes" said Mr.. Frazer, land am of the
opinion they are not liable because they be-
long to that class known as public corpora
tions and our courts have for wears past
held that the property of such corporations
necessary and indispensable for carrying on
business is not subject to taxation for local
purposes. A leading case in point is the
Coatesyille Gas Company versus Chester
county, in which the Court held that the
works OF gas company were not subject to
taxation for county purposes. Another
case, and one which entirely rules these |
cases, is an appeal of the city of Pittsburg |
in which the city sought to tax the pipes of |
the Philadelphia Natural Gas Company |
Lie SOuIs utlu Ludt luc TlRuL vi /
eminent domain the company was public |
corporation and therefore its pipes were |
not subject to local taxation, either as land |
or as part of its capital stock.
Some Kindly Advice.
Mr.. Frazer held that any attempt to |
collect taxes from the corporations men, |
toned would, in the face of these decisions, |
only result In placing costs on the city, and |
suggested that the best way out of the |
difficulty would be to grant the defendant |
companies exoneration of their taxes |
assessed against them for 1891. He further |
stated that City Attorney Moreland had |
agreed with his view of the case, and had |
advised the Board of Assessors to grant the |
generations
Major Moreland's letter to the assessors
made public yesterday, states that there is |
no authority of law for imposing city taxes |
on public corporations such as those men
toned, and that view of the case has been |
generally recognized for over 80 years. He |
calls attention to the fact that the costs in |
these illegal assessments amount to several |
hundred dollars, to be paid by the city, and |
sharply criticises the assessors for placing |
the city in such position when only on |
March 20, 1888, he had clearly pointed out |
the law in such cases. The opinion given |
at that time had been either wholly disre- |
Bdrueu OF lorgotten, ne salQ or the city |
would not now be confronted with such |
cases as MI. Frazer had submitted.
Mr.. Moreland Writes a Letter.
In his former opinion the City Attorney |
had maintained the same argument that Mr. |
Frazer presented. In his letter of yester- |
day the City Attorney said:
beg most earnestly to press upon your |
attention the fact that we cannot of our |
own motion, make subjects of eyery kind |
liable to taxation. We may think they |
should pay. but in the absence of the clear
est legislative authority our personal views
must be subordinate. Gas and light COM
panies, Monongahela Water Company No |
nongahela Bridge Company, are within the |
line OF exemption, in SO far as the property |
is used for corporate purposes, and of this |
fact the directors are better judges than
we. / press on your attention /
the importance and necessity OF recognizing
the law. We are not responsible for it. 1 |
deeply regret having TO write on this mat
ter, but in order to save btrdensome costs,
which the city must now pay, TO save also |
the corporations and individuals, to save
public officers all difficulty, and to recog-
nize the decisions, local and State, / furnish |
my excuse and apology.
In view of the above communications and |
the statement of the Controller yesterday,
it is not likely that any public corporation |
will pay local taxes this year.