The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-04-04
OVER sl,5OO,OOO IN REBATES
,.,URNED TO RAILROADS FROM THE
CoMPTRoLLER's OFFICE

a.. p.ven's Isvsssisstisr 81 the 1sehs ~
a.. T.. D..srt-e.t shows ro-r "er.vs
r,,or."- Retvss- ss.ooo. 600 SD e.
10000 Raises ~ Tsxi-s Rs.i s.a Per-
..,.i Property whish shouis Have Been
Paid By the Rsurs.a Corporations.
ARMY. April a-Comptroller Roberts to-
IA, made pu bile the report Of d. J. Devon. who
has been conducting an investigation OF the
hooks in the tax department OF the Comp
troller's ofice. Mr.. Devon says:
,, ab, Ire Comptroller n Ssts Fork!
I herewith submit a detailed report OF my
Ipvestg alton OF the books o. the corporation
tar department Of the State Of New York. A
careful reading OF the facts here presented
will show four grave errors, to call them by no
barsher name. In the conduct OF the Affairs OF
this departing nt and 10 It's system OF bookkeep-
inc. first dasirs to call the Comptrollers at
,sntion to the laws governing corporation tax
alton.
Tho FIRST act Of this kind was chapter 542 Of
IN. Laws OF $780, and provided for raising
money for state purposes. by taxing corpora
tions doing business in the State OF New York
other than manufacturing corporations The
gas companies claimed exemption on the
ground that they we're manufacturing cor
poratlons. and the court so held In the case Of
the Comptroller sgt. Nassau Gas Company OF
the City OF Brooklyn. The Legislature OF 1881
passed an amendment to chapter 542 Of the
,h.I.v. Of 1891 vhich DECLARED that GA.
.au,n.ni.s Jid nat com. und.r ox.mntion
r,.ru,octuring comnoni.. for IN. ro..on
a., ,h., controIi.d r.InahI. fr,n,his.. .In.a
which time no question has been raised By
gas companies. 1t will be conceded that no
corporation will Day taxes which are not
on.,,, nd I..ai,x In,nos.d Tha h..t
.,,.h,. ,soai t.,snt 4. a. ,hs d,sno.si q, ,h.sa
CORPORATIONS. and it i.s noteworthy fact that
this State, all but one. within two or three
years. recognized the law and obeyed Its pro-
visions MS, .r., 49, ,,. ,u,,. IA.
IL VIII DO recsheu. oi those iaminar with
tina, .ts
=, isso "a ,...ntod Al, t,.rnIs an ,h. =. :,
Of comptrollors wadsworth and Dayenpo to
H. I'd .oiIa., ,ho ,.x .n,nor,vad hx Ian
The Western Union Telegraph Company
carried Its case to the Court Of Appeals. which
court handed down . decision adverse to the
company and In favor OF the state. The de-
cision held that under the act of 1880 the COM
pany was nAoio ior uaa'Ion upon I's snure
capital stock and earnings although It had
,..a...n ,,n.h ~ %. .nn,nss
tended 10 SO much OF us earnings as WAS osseo
parua ,ho t.y% on ono. o, @ @ roller
w.dsworth and Davenport corporation taxes
under this law Of 1890 were paid. and no aues-
ton OF rebates or illegal texation was raised
Tb. law ss laid down. WAS enforced. and that
Al Com ptrollsr Cbapin tina. the stat. under.
took to er.di. corporations paving taxes sums
In VARYING amounts. which had been paid to
the state w.nou. question que on the par. o, said
% s,nn. Gnu '"e p'~e''so mas osen
~ fSs LesI:istur. ., 1885 passed an amend.
mont ~ 'ns vnS ~ IN - -. ~ eonnr
70 tnaaoh Inc t va E 10Y tnI ~ ~ y
Wsttn Iniao Tsar,,nS comn.ny S or Ib n
has teen ussd as the ss
many o,nntro,ier Thsnin'a ;nnoyapion an in
noystopw which during the terms Of Comp,
III. people OF the State a burden Of over
si56SSS which :hs , have have; BEE; ;s borne y
sf,.9 hnyinS been colected from the coTpora.
tions and alter lying Tor years In the hands or
tha srafa Treasurer Waa rafnnded upon
Thsss rebates take three iorms-rebates on
Sates on Account Of diydends served prior 10
Tie naasags OF the act OF 1850 and rebstea on
viii, thsse discoysries Z another Witch msrits
some intention. During Comptroller Camp
oor,e,ion corn naniss have hssn ch.rgsa On
he Soot in Issd.peneil Writine. This lead.
pencil booEkeeping was In use for the past
Two yesra D,taIis OF this loose systen OF
book yespine viii b. given iatsr on
lnter.St.te Commerce Earninsa-It 10 q sig
niacsnt fact that although over 81. 500 600 has
hssn tak an from the State Treaaury and rs.
turned TO trans sorts tion com paniss an Inter
STATE com m erco rebatss ;" no such thing WAS
sysr thong M OF until the passase BIZ Coneresa.
- JSST orth. go - IL. = StSta 49,.
insrcs ACT. Takine SdysntSrs Of tbis ACT ths
INSTRUMENTATION com pa niles on this Stnfs Uhose
Susiness oriQinated IN this Sat-, and endsd
In .ome othsr htsts claimed that they had
been illegally taxed on their earnings TRsy
reIiet
While tbsrs vaa nothing 70 warrant this ae-
tIon he did d,cids 10 ace Mt reports from com
psni.s doing an inter-State commerce busi-
ness on their earnings and canital Wholly am
ploysd In ths STATE az Nav YorE and did re-
via. The tag for some lew eompanies which
paid a tax during HE term a. Com ptroiisr
In effect this ruling of Com ptroller Chapin
gave 10 the DEMONSTRATION som paniea the Az
tTaordlnaTy nriyilsee OF com nufIne the state
tax on their local business. This rule has
been strictly Adhered 10 aver sinsa Notuith-
standins The Tact that thers can he NO disnnfs