Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-26
BANKS MAKE A PLEA
To Be Exonerated From the Payment
of City Taxes on Property.
CONTROLLER MORROW REFUSES.
He Rejects the Proposition That They Come
Within the Law
EXENPTING PUBLIC CORPORATIONS

EXENPTING PUBLIC CORPORATIONS
The action of the City Assessors and Con-
troller Morrow in exonerating several big
corporations of the city from taxes, as an
nounced in yesterdays DISPATCH, caused
considerable discussion in financial circles.
The question was, how far would the exon
ertions extend. The directors of one down.
town national bank got together at noon
and decided that if public corporations were
not expected to pay city taxes, banks should
be exempted as we'll as the others. A little
later q member of the board waited on the
Controller, who would mention no names in
telling Of it, and made q strong plea for the
exoneration of his bank.
The gentleman argued that bank was as
much public corporation as the Allegheny
County Light Company or the Mononga-
hela Water Company, and paid State taxes
the same as they. It had an equal right to
exemption from local taxes The director
even asked to have the taxes paid by his
bank for several years past refunded be-
cause they had been illegally collected.
Banks Not on tho Free List
The Controller had but little to say in
reply, except that he would oppose the e1-
smption of any bank from taxation, or any
other company except those mentioned in
the City Attorneys opinion, which he had
been compelled to approve. Later he found
Supreme Court decision in the case of the
Titusville National Bank versus Caldwell,
rendered in 1856, which reads: 'The real
estate of national banks is subject to taxa
tion distinct from their other capital" This
satisfied him that however far the ex-
emptions might extend to other corpora
tions, banks at least would not be included
in the free list
As to the question of refunding taxes
heretofore paid by corporations which,
under the law as laid down by the City At
torney, are legally exempt from taxation,
the Controller needed no time to make
reply. He informed the bank director that
the refunding of taxes was illegal under
any circumstances "Even if Councils
pass a resolution ordering such action"
said he, SIT is illegal, and any citizen could
easily go into court and have it stopped.
But the fact is many generations are
granted every year and it would be an in
justice not to grant them.
Every Taxpayer His Own Judge.
There have been a number of Supreme
Court decisions on that point, and they
show that man must satisfy himself before
paying his taxes they are right and legal.
When he pays them he admits they are
proper and he cannot legally recover them"
There was much discussion of the ques-
tion among attorneys also. Their argu-
ments were confusing. As to the ALLIE
gheny County Light Company, 1t was
argued that having been chartered under
the act of 1874 as manufacturing company
and not as public corporation, it had no
legal right to claim exemption as such a
corporation. The discussion OF this COM
plex piece of law made in 1874 de-
veloped that under the charter of
the Allegheny County Light Company
it has the exclusive right to furnish cleo
trio light to the whole city for q long period
of years. the period being only limited by a
pany pays dividsndA 1t was also brought
out that the East End Electric Company,
which was started as branch Of this COM
pany, is now being operated BY the banks
OF the city which loaned it money to start
with OIL its capital stock.
No Money Will Be Refunded.
In regard to the several companies e1-
onerated by the assessors on Tuesday it was
learned thai some of them have not been
paying city taxes for several years
Whether any of those that have paid will
demand their money refunded could not be
learned, but in view of the facts presented
by the Controller it is hardly expected they
will. Controller Morrow was asked last
night if the traction companies would be
likely to demand exemption.
eff they imagine they can get 1t I have no
doubt they will, was his reply. 81 am
firmly convinced that It'll an injustice to ex-
empt any of these big money-making con-
Germs. but under the law laid down by our
Supreme Court 1t seems the fault lies in the
law. That being the case it is the duty of
the next Legislature to repeal such an in
iquitous law. From reading of the Con-
however, it is difficult to see how
any of these corporations are exempt. and it
only ,shows the ordinary citizen the con-
possible on good English.
s'The only exemptions allowed by the
Constitution of this State are public prop
erty used for public purposes, actual places
used or held for private or corporate profit |
and institutions of purely pubic charity
1t adds; ALI laws exempting property
from taxation other than the property above
shall be void Now, what |
could be palmer to the layman's mind than
that? Who would suppose the Allegheny
County Light Company or the Mononga-
hela Water, Company could be regarded as
one of the objects allowed exemption in
that article?
AS Viewed by the Supreme Court
"Yet the Supreme Court in large num- |
Der of cases has decided that public works,
such as bridges, turnpikes, canals, railroads |
and gas and water works held by corpora !
tiofs, together with their necessary appur-
taxation as real estate, except so far as ex-
pressly imposed by the Legislature. In
the city's original charter she was |
by the Legislature to impose |
q tax on all subjects taxable for !
State or county purposes, but see
how the courts have curtailed the list. See |
how many rich corporations are exempted. |
The traction companies and even the news |
paper companies seem to have the same |
right to demand exemption as being public |
1t is hard to draw line be- |
tween a newspaper and light company. |
To the fair mind one is equally entitled to |
exemption with the other
"But can't see why any of them should |
be. The last Legislature passed a revenue |
bill I am not acquainted with its con-
tents, but it may contain clause which |
all other taxes of corporations on |
that they pay q certain tax to the |
State If such is the case the city will lose |
q vast amount which she should not lose.
They charge the public exorbitant rates for
the service rendered and the law prevents |
The people from collecting anything in re-
turn. propose to make fight somewhere |
In the city's behalf against this injustice,
but am not now prepared to say where. I |