New-York tribune., 1901-08-03
FRANCHISE TAX HEARING.
MR. GAWTRY'S TESTIMONY-DATE FOR
NEXT SESSION BEFORE REFEREE.

Albany Aug . CSpeciaD-Ex-Judge Robert Earl
of the Court OF Appeals gave hearing to-day as
referee to the lawyers representing the state Tax
Commissioners. Deputy Attorney-General Conan and
J. Newton Fiero, and lawyers representing many
corpora tions the appeal from the valuations put
upon their franchises by the State Tax Commits
sioners under the Franchise Tax law.
Frank II Platt appeared before ex-Judge Earl in
behalf of the Consolidated Gas Company, of New
York There were also present ex-senator David
B. Hill. as general counsel of the corporations;
William II. Page, jr. representing the Metropolitan
Street Railway Company, and Charles A Coihn'
representing the Brooklyn Rapid Transit Company
Mr. Page presented affidavits to complete the case
Of the company he represented.
Harrison f. Gawtry. president of the Consolidated
Gas Company, gave testimony regarding the
amount of the bonds and stocks of that company,
the value of its real estate and tangible prop
ertv He said it had $S9 100000 of capital stock
at the time the imposed upon it under the
tax law.
What was the market value of its stock?" in
quired Deputy Attorney-General Conan
Il submit" said ex-senator Hill, that the mar
ket value is not a proper basis for determining
the value of any special franchise
Il will admit the question" said Judge Earl
'.Then I would point out" said Mr.. Platt, that
the market price might not be ascertained II only
one hundred shares of the stock were sold.'
Il would point out said Mr. Conan, that on
January 6. when this tax was imposed Consoh-
dated Gas Company stock was selling at Sl@
share Mr. Gawtry. has the value of these shares
of stock varied since this tax was imposed?
'They have varied in value in the stock mar
ket replied Mr.. Ciawtry from $l6I to $50
do you regard the value of your franchise as
4uctuating with the market value of your stocks
and bonds?' inquired Mr.. Hill
Il do not" answered Mr.. Gawtry.
Mr.. Hill then said: Mr. Gawtry, is the opening
of new streets a financial burden to your COM
pany?"
1T is"
Why
Because we put in gas mains, and we get no
revenue until the street has dwellings on either
side of it"
Are you compelled TO put in mains?"
Yes" answered Mr.. Gawtry. by the city au-
thorities"
charles A. Collin then offered additional afi-
davIts regarding the value of the property OF the
Brooklyn Rapid Transit Company.
Then followed an interesting debate on the date
of the next hearing. Mr. Platt and MI h'll. as
well as Professor Collin, urged that further testi-
mony be taken Immediately. Mr.. Hill stated that
he had expected to have present as a witness to-
day * II. Vreeland, OF the Metropolitan street
Railway Company, but he had been unable 10 oe
present He also desired to cross examine George
r Priest president Of tho State Tax Commission
Mr. Cowan and J. y. Fiero counsel for the state
objected to another hearing before september
They said they had made arrangements TO take e.,
lav-vers of the corporations would welcome rest
Mr. Hi replied: 4 would call Judge Earrs at
immediate action upon this statute II was passed
bv the legislature in 1899 its final days session
,I1der extraordinary circumstances. Its wisdom
and constitutionalty doubtful. don't charge
any one with intent TO delay action on these Cases
buf / would point out that il took our opponents
I'm the Attorney Generals office SIX months IN
which 10 make a return. Judge Earl has 10 do
his work within a reasonable time, and then MS
work goes the Appellate Division Tor IT'S acton
and theu finally to the Court OF Appeals. Any
thing that could be done 10 hasten action upon
this case involving half the taxation or the state
in my opinion. should he done. Mr. flatt also
urged that another hearing he given soon ,,,
After further debate about the matter, IN which
Mr. Conan and Mr. Fiero opposed hearing IN
August the referee. Judge Earl. set down the next
hearing for September here in Albany