New-York tribune., 1901-06-11
RAILROADS DEBT TO CITY.
CORPORATION COUNSEL TO SUE FOR
THE MILLIONS IN ARREARS FOR
TAXES OF VARIOUS SORTS

John c. HertIe and Edward Owen. Commission
ers of Accounts yesterday made special report
TO the Mayor showing that the street railroads
OF the city in arrears the city in the sum of
So0sS2s6 49, The period covered is from 1895 TO 1901
inclusive and is for taxes due on property used
IN operation and earnings and capital of the
various street railroad conDaL lies within the
boundaries of the enlarged city
Inc commissioners in a report last winter
showed that the companies in arrears in the
sum Of a149.S .S57 IS for paving, franchise tax upon
gross receipts and car license cees. The report
turned in to the Mayor yesterday shows an addi-
tional sum of S.f3s5SS 81 due the city from the
same corporations.
OF this additional amount the sum of 81 $50 SO s4
Is for taxes levied by the city authorities for the
i've years prior 70 January l. 1860 tangible and
personal property. and the of sSOS6S o. is for
taxes levied under Chapter H. Laws of 1899. by
the State authorities for the year 1900 on all classes
of property except real estate.
The subject is summed up by the commissioners
in their findings follows:
IT That street railway companies in New-YOrk City
are taxed under five headings. viz:
Ffrst-Car license fees
Second-Franchise tax upon gross receipts.
oPeration Of the '5i''' road p Vps''' = uSsu ''s
,rF FourthIax f IT upon personal property e. earn
Fffth-Tax on real estate.
That prior 10 1900 all taxes were assessed by the
That the legislature. believing our local authori-
corporations in Violation Of home rule enacted
Chapter az of the Laws of 1893. giving the State
power 10 assess and tax corporations for special
panies in their reports to the State Railroad Com
missl9ners for the year ending jane 80, 1900 con-
be identified on the books of either the
Tax Finance Department
That there is unpaid for taxes upon TANGIBLE
property" and earnings and capital from 1885 70
1889; inclusive, the sum of S2,360670 81
That in previous reports made by US it was
shown that the street railway companies were in
de6ted 70 the city for paving between the tracks,
and also for car license fees and franchise taxes.
That there is due the city and unpaid from
street railroad corporations as herein shown. the
For paving between tracks. ss25.5s5 go
For local franchise tax and Car licenses, ga
Total due. shown in previous reports. sl14s.-
For tangible and personal property. Manhattan
and The Bronx. for the 1885 to 1893 inclusive
state franchise tax. 1900, k,o7z SIS o.,
Total due and unpaid. s6.5SSS96 7s
The Interpretation of what is meant by gross
receipts is likely TO figure prominently in the
ton 10 De begun by the city against the railroads
The general railroad laws Of the State and the
various individual charters. according TO the COM
mssioners. impose upon the railroad companies a
specific franchise tax their gross receipts The
commissioners in commenting gross receipts
say:
Perhaps the best evidence that by gross re-
cnly shown by the fact that nearly all the rail-
way companies in New-York City in the past
years have paid their franchise taxes 10 the Con-
trOller OF the city upon this basis
In the report for the year ending June 30. 1900,
furnished by the Metropolitan Railway Com
pany 20 the state Railroad Commissioners We find
the following. viz:
Page LOS3-Receipts from cash fares s13 10 0S3 a.
Page I0Sl-IncOme from other sources such
advertising. rentals, dividends. interest, etc. s52
o4s 70; gross earnings, N4,fs7.133 64
This sum Of s14437.IsS 81. the commissioners con-
tend. represents income other than from cash
fares"
Il is understood that the Corporation Counsel is
arranging 10 bring action for the collection Of
the arrears as found by the commissioners.