The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-25

Broadway & 9th st.
Justice Gaynor Decides the Tax Case
Again.t the Brooklyn Companies.

,Iu,t,eo Gnynor Decides the Tax Case
Against the Brooklyn Companies.
Justice Gaynor of the Supreme Court has de-
MED the motion for an injunction to restrain
the city authorities In Brooklyn from selling
the Brooklyn Elevated Railroad structure for
non.payment OF taxes. The company contend
ed that the assessment on its property was ex-
cessive, and that 1t was not properly made.
Justice Gaynor says:
The twenty miles OF structure of the COM
pany is valued upon the assessment rolls at q
total valuation of only S2.0O3. 985, making a
tax Of about $50 900 each year. And yet the
company Is bonded for S12. Dos, 900. and stocked
for Sl3. 2S3. 900. making a total Of over $780,
600. 900. II the company's structure Is not
worth the assessors valuation Of 81, 903, 965.
what is to be said Of this total of see. 000, 900
in bonds and stocks2 What was 1t issued for?
If this assessed value were doubled, and put at
SO, 900, 900 uor illustration), or trebled and
put at 50, 0O0, 900. In order to get the actual
value. the disparity between the actual value
and the amount of bonds and stock would still
be striking. And due consideration in this con-
nection of the earnings of the road makes no
better case for the company.
''The papers before me show that during the
time in question. 1t has been carrying an aver
age of upward Of 5000 passengers a day. This
enables the gross receipts to be actuiately
Railroad Commissioners In 1893, the year In
question. gives the gross receipts from opera.
lowed for operating expenses. including re-
rairs, the remainder will be net earnings. But
o4o.Ss which sum take. This Is a net in.
come of over % pei, cent. on the value which
the assesso r., hasye e 5 plar ed upon %r n the po s9mspn nnm.
bers. 81. OOO, 900. ur of over IA per cent. on
double that value, viz. se,O0c,0 900. or of over
nine per cent. on treble that value VIZ 80
There is no house, store. or factory prop
erty in Brooklyn favored like this in taxation.
To say that this company cannot pay its taxes
out of its net income, because 1t is all con-
sumed in paying interest upon ITS said exces-
sive issue of bonds. is not a permissible answer.
Ii it were. 1t has only to continue to issue more
bonds. and never pay any taxes. These bonds
pany alone. but also upon the valuable fran
chises which. have been given TO IL by govern
franchises. the gift OF 80 eminent to 1t, and
then say to government that 1t canno. or snail
not pay any taxes upon It's actual taxable
prorerty out of its income upon actual invest
ment, because It first has to pay interest upon
such bonds. is a position which cannot be 1qsti.
gave it life and endowed II with valuable priyi;;
follow the example of this company and re-
fuse to pay their taxes, government would be
brought TO n downfall. -.
syervaIucd Ht III That It has overloaded and over.
ues, or uncarned fortunes. Is no reason why Its
obligation to pay its, just, share OF taxes upon
its actual property should be made second to
its obligation to pay interest upon, such bonds
or dividends upon such stock. 1t is no reason
why its share toward the support of govern
mcnt should be thrown upon the other tax
payers"
County Elevated Company, which Is also
heavily in arrears to the city:
1T Is pertinent to add that this company Is
assailing AZ excessive an assessed valuation of
its nine miles of road at n total Of only SILL
100 for taxation. although 1t has issued 3D.
200, 900 OF bonds and 80, 500. 900 of stock, max
ing n total of S12.150,O00., Its bonds alone
average over 81, O0O, 900 n mile. while thetotal
assessed value of its whole line is only about
81, OG0. 000.''
Registrar of Arrears Henry A. Powell said:
when we learn officially that the injunction
is vacated we will start to sell the elevated
roads. just as soon as we can get them on the
list"
The sale, however. Is likely to be DELAYED for
some time, as the companies will appeal from
InstIca GnNnnr's decision.