New-York tribune., 1900-04-11
HEARING ON ASSESSMENTS
LOCAL COMPANIES PROTEST AGAINST
INCREASED FRANCHISE TAXES.

.,ns,v Aprf l0-The Metropolitan. the Man
,,++sn the Brooklyn Rapid Transit and the Third
Avenue railroad systems and other large corpora
,sous operating IN the city OF New-York to-day.
.,-orxh their legal representatives. presented TO
.ba State Board OF Tax Commissioners objections
70 the valuations which have been placed on their
,-.nchixes The Third Avenue system repre-
Sen-ed hv Eugene Treadwell Of Hoadly Lauter-
bsch & Johnson: the Brooklyn Rapid Transit sys-
zen, by Professor Charles A. Collin, the Edison
Electric Illuminating Company by Samuel A.
Fasrdsley. the Manhattan Elevated system by
ruIten 7 Davies the Standard Gas Light Company
bv Henry Thompson the receiver OF the Third
Avenue system by L. G. Reed. the Brooklyn City
z,sfI-osd Company Oessor road by W. c. Trull
o-6 the Metropolitan system by Charles F Brown
T-,a Manhattan Elevated Railway Company
s-s- heard The valuation OF the franchise prop
e--v of that corporation has been increased from
e. az, na n SO 4ss 300 Mr. Davies who represented
the company. IN opening his argument made a for
mai demand that the Board disclose the method BY
,-A,ch the Board OF Tax Commissioners arrived at
.pe valuation fixed. Chairman Priest IN reply said
.s.- ira Board had determined that the Franchise
Tax law does not require this information to be
disclosed This same demand made by the
-s-resentat.ves OF the other corporations repre-
sented.
MR. DAvIEs's CLAIM
NJ Davies contended that the franchise law Is
unconstitutional. because IL gives 10 the State
Tosrd Of Tax Commissioners. body not elected
~ the peope but appointed by the Governor, the
,-sr 70 TX valuations for taxation purposes, which
aovsr can be conferred only public officers
e,ected by the people. He said that in determining
.ra ,-aIustion OF the franchise OF the Manhattan
-, ss~t that claims TO the amount of 81. .5000 900
nave been brought against the company for dam
sres % ahufting property, for the use OF public
+-ae-s and S 600 600 paid thereon should be taken
40 consideration. He maintained that the assess
,+ SHOULD be reduced TO the cost of replacing
- -a-g5ble property in the streets. This would
hing the assessment down 10 about 100000.
r. reduction 10 that figure asked on the
s,r,pron that II the franchise tax act is consti-
---+o,sl /: coufers power on the Board 10 place an
ssssn7ent on real property only and any
vreee 70 use the streets for The operation of the
.on7nanv's franchise. The company pays TO the
STATE a tax OF per cent. which is increased 70
-.+e as high a. per cent, for the purpose Of con-
timing as a corporation. As the right to operate
sc road IS Fart of the corporate privilege for which
n PAYS that tax counsel claimed that It should be
considered 3 franchise tax
FORMER TESTIMONY INTRODUCED.
Chairman stearns said: Did an official OF your
onarv not testify that the value OF the franchise
OF your company was about $4,000 o00oo?'
M Davies replied: Not exactly that. One did
testify thar the value OF the company's property
and corporate rights is S5OocO0o not the value Of
the street franchise"
M Davies concluded by contendlng that as the
courts have held that n the case OF railroad COM
panies no legislation should be enacted reducing
the rate Of fare unless 10 per cent is earned on the
capital the same rule should apply in administering
the franchise tax law
Samuel A Beardsey, behalf OF the Edison
Electric Illuminating Company. asked that the
franchise valuation placed that company De re-
duced from 81 IIIce0 10 not 10 exceed sl,005000
Charles T. Brown represented the Metropolitan
system. The valuation placed the franchises
operated by the system SCI 5s $50 which
IS an increase from s.. .O9OO00 The increases made
in the assessment on the companies constituting
the system are follows: