New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-07-09
WITHOUT EFFECT IN THIS CITY.
COMMENT ON THE DECISION OF JUSTICE CULLEN
SAVING TO THE BROOKLYN RAPID
TRANSIT COMPANY.


TRANSIT COMPANY
The opinion Of Justice Cullen, printed in The
Tribune yesterday. announcing the decision of the
Appellate Division of the Supreme Court declar~
ing that the franchises OF corporations could not
be assessed for taxation, created some comment
in official circles but did not disturb the equanim-
ity Of the New-York Department OF Taxes and
Assessments.
This decision. it was said, affected the recent
work of the Brooklyn tax officials TO bring about
generally a higher personal assessment OF corpora
tons and other taxpayers in that city. where. as
a matter Of fact they had long been permitted to
escape taxation. New-York. a prominent city off,
cia said, has not assessed the market value OF the
capital stock OF corporations since 1893. when the
Court of Appeals decided in the Union Trust CON-
panys case that the capital stock could not he
legally assessed The assessments Of corporations
by the New-York tax officials were therefore UNI
affected by the decision Of the Appellate Division.
The shrnkage in corporation valuations was mostly
confined to Brooklyn.
Justice Cullens intimation that the law which
exempts the franchises of corporations from being
ocrsidered in making up their personal assess
nents was unjust and ought 10 be amended by
the Legislature met the approval OF many ci'izehs
who are familiar with the statutes affecting cor
porations. On the principle that the best wa! 10
secure the repeal of a bad law is vigorously TO en-
force it, the sentiment was freely expressed yes
terday that the questions relating TO the exeInp-
ton from taxation of corporations ought 10 receive
the grave attention Of the Legislature at the ear
lest moment possible. 1t was urged that the la"
ought TO be altered Justice Cullen suggested 70
that the burden OF taxation from which corpora
lions have been relieved through court decisions
might be restored. and that corporations should
he REQUIRED to pay taxes on the same basis with
other classes of taxpayers ''Ihe point 10 "mcn
the attention Of legislators may be called said
an official lis the taxing Of railway corporations
for the benefit of the State. whereas the towns ana
cities whose streets used by such corporations
are and of right should be. the proper pehen-
cia ries and local treasures. and not the state
should receive the amounts so paid In An eiior''
II was believed would be MADE TO discriminate IN
favor of the cities and towns whose thoroughfares
had been appropriated by railway corporations 80
that in the future the taxation or corporations
might go TO them. instead OF the state. .o.inr
The decision CT the Appellate Division. vaeatihs
the assessment on the capital stock OF me ID ooM or.
iyn Rapid Transit Company Will result IN noaer
ing Of 500 600 a year in taxes. In ADDITION nvIci
dacison in a case before Referee McDonaiddo 90 re-
duced the valuation for track taxes from $500 ~
sa6 600 per mile whereby $4,000 year IN taH 49,,
saved Under the Greater New-York Cohsonua51 iVn
act BROOKLYN will levy taxes next year ana 81.
con seouen nee the company VIII save s-0""'' VII ~
real estate alone in 1898.