New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-06-27
FRANCHISE TAX.
THE Subway COMPANY GIVES FIGURES
TO SHOW THAT 1T WAS AS
sESSED TOO HIGH.

THE hearing in the night Of certain corporations
against the new franchise tax law was cohtii'u
yesterday In this city before Robert EaIl' 'ii
farmer Judge of the Court Of Appeals who sat as
referee Most 81 the DAY was spent IN heaIlhs
testimony about the Consolidated Telegraph anu
ELECTRICAL Subway Company. Henry J. Hemmehs
appeared for the subway company "hlle eN-9eh-
ator David b. Hill acted general couhseI l"i
the combined corporations. and opposing them were
Acknowledgement Davies ana MS
Messrs Conan and tiero.
William r Seton secretary and general super
intendent 81 the subway company, testned that l,s
original capital 100000 OF that sum 500,
was expended for patents, and the balance OF 'he
oapital consists Of property acquired by the pro
ceeds Of the sale Of stock The value OF the STOCK
the witness said. is 81 a share There are AZzo'V''
in bonds 81 $4,000 in stock, and $5i54t9 IN uhpald
coupons. The company owns l42 miles OF subway
Only a half OF that mileage is earning anyth
much Of the work having been done by order OF the
city authorities TO prevent tearing up the sreets
IN the future
The State Board Of Tax Commissioners assessed
the company : franchise al s. 0o0,e0 The company
appealed 10 the Supreme Court To reduce the
amount To 81 100000 and declared itself in default
on fits bonded Indebtedness, in arrears S7S4000 on
interest, and declared il had failed by $1,000 last
year 10 earn operating expenses.
Cross-examined by Mr. Conan Mr.. Seton said
the par value OF the oompany's stock is 800 he
had no particular reason for placing the present
value OF the STOCK Al 81 pul teIltEe1 Allat ~ A'
about what il would realize. About 81 per cent OF
the constructed subway in in 1899 The
increase since then. the witness said would amount
10 between and 10 per cent. The balance sheet for
1900. he said. would show deficit Of $4,000. None
of the expenses Of reconstruction We're taken from
the earnings.
Edwin r. Quinhy, the company's engineer of con-
struction. testified IN support OF the statement OF
the company. made 10 the supreme Court, that the
work which cost more than 100000 could he done
to-day for SS9l GO
Albert Carr. civil engineer in the employ of the
Rapid Transit Commission. cOrroborated Mr.. Quin-
bys figures TO the relative cost OF iron piping
and Vitrifed clay cOnduits-
Similar testimony given by Henry G. Stott.
superintendent Of motive power for the Manhatta
Railway COMPANY
The case of the Edison Electric Illuminating
Company came next The local boards assessment
on the ompanys property is $4,000. The value OF
the franchise Of the company. assessed for
taxation by the Stale board. is IS. 09lS S5.
Henry NJ Edwards. auditor Of the Edison COM
pany testified that his company paid last year 10
The Empire City Subway Company Sl9o543. and TO
the Consolidated Subway Company. SS. 094 S.. as
rental for the use Of their ducts. The company
paid s. l59 900 for patents Its funded debt amounts
to s65oO00o Up TO June 80. 1899 S224sSs4 had been
expended for meters. conductors lamps. wires, ETC.
much Of which is Anticipated and has TO be re-
placed An equally servceeble plant could be IN
stalled to-day. he said. for S250.000.
The hearing viii be resumed at Albany next
Tuesday