The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-13
ELEVATED'S PERSONALTA
JUSTICE NASH CONFIRMS THE AS
BASEMENT AT SI6,9O9,63S.

$4,000. 900 Alleged to he Due to the City In
volved-Company VIII Appeal, Russell
Sage says-The Opinion Deals with Inn
portant Questions of Corporation Tax.
In decision overturnlng the report OF Ham
ilton odell as referee and passing on important
questions as to taxation o. corporations. jus
tico Nash OF the Supreme Court has dismissed
certiorari proceedings brought by the Manhat-
tan Railway Company to review the assessment
for 1894 on it's personal property. The COM
pany was first assessed for that year on Sl7.-
S607l OF personally. but after long litigation
carried up on appeal the assessment was set
aside and new assessment was directed.
Tho new assessment, according to Corpora
ton Counsel Whalen. was $1,000 .63S. Again
the company took out writ OF certiorarl
maintaining that it should pay no tax. and the
case was sent to Hamilton Odel as referee.
Mr. Odell reported that as the liabilities ex-
ceeded the taxable personally Of the company
II should not be taxed. and 1t was on motion
TO confirm that report that Justice Nash rem
dered his decision yesterday. The Court sets
out with these rules:
That the statute contemplates a valuation
OF the capital of the company "a distinct from
the value OF it's share stock. That for the pur-
pose OF ascertain!ng its capital subject to tax
alton. all the capital owned by the company
both real and personal. shall be valued and
that there be deducted therefrom the aggre-
gate assessed value OF its real estate. That
under this statute the franchises OF q corpora
ton are not assessable."
Considering the point as to whether the
company should be taxed for the easements OF
light air and access for which It had paid out
up to January. 1894, S7.t32.iSl. the Court
says; ruo,, o =. ,,,,uo, .,o
easement OF the AUDITING owners. 1t has eX-
tinRushed their easements OF light air and
access in the streets, and acquired an ease
ANT 70 Ito - art
pose pose Of taxation it has simply been
owners have been depree iated in value by
the loss Of their easements and the value OF
creased pdpb because Of its magnitMde to far
greater extent by the acquisition Of the right
pass b5 by co or Of the road Il is prop.
erty which in the case OF Individual owners
ona value gG S It's estate The rule
which would be applied to individual owners
should be regarded as applicable to the prop
for the that the
gether 70 So. 5o6o00 were labties Incurred
e secure in part the franchises ni the old New
taxable, that this sum Of liabilities should be
Of the relator. Concerning this contention the
The Legislature did not intend to depart
from the principle that all property should be
made to share equally in the public burden
class q dSduas and no one speces S@ Of
property should be nnenualy or unduly as
sessed. This principle would be violated II the
permit the amount of the Indebtedness Of the
relator contracted or incurred 10 the purchase
Indebtedness for franchises. and relieved from
ment, as well as its share OF the tax levied by
local assessment for the general purposes OF
Concerning the evidence OF Secretary Gaynor
Of the defendant company. the Court says;
p sgHeS ' %t Re capta Of an
Indebtedness Of sl2,0600o0. tangible assets
pay E the interest est upon It's ndebiedness and
dividend Of per cent, upon it's capital; besides
annual be yne 81 9 tbr IRON nav IS to
be apportioned by the allotment OF SoOOpo,Oo0
pr the S12o00.0o9 valuation to 'frnnchissccs.'
leaving S22OOO.OOO to REIN burse capital The
idea is more than absurd. At that rate every
corporation owning franchise no matter how
solvent II the proposition be acceded to every
such corporation may entirely escape taxation
elnded:
the presumption arising from the possession
OF an unmpaired capital. except the .prepoS-
ferrous valuation put upon the franchise: and
value Of the ' REALTORS property, or OF facts upon
which its value may be estimated the same
GAS NAY sS be a hses 444gNsf fs
however. the Court Ia required upon the evil
dence here to put a valuation upon the REALTORS
property for the purpose of assessment, as
Stunning, as | do, that the estimate is to be
based upon cost and earning capacity. II may
we'll be found that the capital OF the re!ator
subject to taxation after deducting its indebt
edness equals or exceeds the amount OF the
assessment
Corporation Counsel Whaen says that in his
opinion Justice Nnsh's decision. il finally sus-
tanned in the Court OF Appeals. disposes of all
the questions In litigation relating to taxation
between the elevated railway companies and
the city of New York as to the taxes OF 1894,
1885 1896. 1897 and 1903, a total of assess-
ments considerably in excess OF S1OO. 100000.
The amount that would DO due to the city for
back taxes should the Corporation Counsels
concu sion be sustained is estimated at more
than 81. 100000. 1t is expected that the COM
pany will appeal from Justice Sash's decision:
Comptroller Coler said yesterday that the total
amount OF the assessments which had been
disputed was Sl25. 100000 for the years 1894.
1855. 1886. 1897. 1893 President Feitner OF
the Department OF Taxes said that the reve-
nue. to be derived annually from this source. II
the decision is sustained, will be about $780,
600, unless some change Is made by the opera
ton OF the Franchise Tax law.
Russell Sage said Yesterday:
THE decision is not final. The case will go
to the Court OF Appeals II our counsel advise
It, and no doubt they will so advise The Man
haitian Company is the largest taxpayer in this
city and it has enhanced the value OF the tax
able property along its lines more than $780,
100000"