New-York tribune., 1901-09-05
Fl. RI. VREELAND TESTIFIES.
PRESIDENT OF THE METROPOLITAN
TRACTION COMPANY on FRAN
CHISE TAN.
SAYS HIS COMPANY MIGHT ABANDON
LEASES ON CERTAIN LINES
II PRESSED.

ment to-day before eK-Judge ROBERT Earl oi Ihe
Court Of Appeals, acting as referee, IN the
Assembly Parlor of the Capitol. The evidence
that Judge Robert Earl collects regarding the
methods used by the State Tax Commissioners
IN appraising the value Of the property of corpo-
rations under the Franchise Tax act, and his
opinion on the evidence. will be submitted 10 the
Special Term Of the Supreme Court.
The last previous hearing before the referee
took place on August . An adjournment was
then taken till to-day when the lawyers OF the
corporations. through ex-senator David b. Hlll.
after submitting further testimony. said that
they had no more TO offer. Upon the request of
Deputy Acknowledgement Cowan. the referee
then adjourned the next meeting to September
IL The State will then present its evidence.
After this the counsel Of the State and Of the
corporations will make their arguments before
ex-Judge Earl. II is expected that ex-senator
Hill will then. in behalf of the corporations Of
the State attack the consttutionality of the
Law.
NOTABLE ARRAY OF COUNSEL.
The chief witnesses present to-day were H. H.
vreeland. president of the Metropolitan Traction
C7onpanv and George f. Priest. president Of the
Board of State Tax Commissioners The cor
porations were represented by ex-senator DaNld
b Hill. William H. Page. jr, and ex-Judge
Charles F. Brown. representing the Metropoh-
tan Traction Company; Frank H Platt- repre-
senting the Consolidated Gas Company, OF New
York: Charles y. Collin and John L. Wells rep
resenting the Brooklyn Rapid Transit Company:
william N Dykman. representing the Brooklyn
Union Gas Company and some street railroads
os BROOKLYN. and H. ]. Hemmens of the Con-
solidated Telegraph and Electric Subways The
State was represented by Deputy Attorney-Gen-
ersl Cowan Deputy Attorney-General Martin
and J. Newton Fiero.
Frank H. Platt as counsel of the Consolidated
Gas Company Of New York, first subjected
President Priest Of the Board Of State Tax
Commissioners to a careful examination as 10
the methods used by that board in determining
the valuation Of the property Of that company
'Mr Priest" said Mr. Platt, did you separate
the tangible property from the special fran
chises in making your appraisement?"
mo. sir" answered Mr., Priest. I'VE did not"
Did you separate them in the leased COM
panies?'
Yes"
''The Consolidated Gas Company had several
special franchises. Did your board fix sepa-
rately the value Of each franchise"
I'VE did"
In assessing the franchises of the companies.
did you put your valuations upon the basis OF
their earnings?"
That was one Of the elements"
real estate-were not some Of the earnings Of
the company derived from that real estate?"
Yes, SIR
do you know OF any way of separating these
earnings from real estate from other earnings
of the company
4 know of such rule
Did not the company derive some OF its
earnings from its 10000 services to buildings"
"Undoub btedIy so.''
Mr.. Fiero, as counsel for the State. at the
termination Of Mr.. Platt's examination of Mr.
Priest made formal objection TO ali the ques
tions asked him as 'immaterial and irrelevant"
METHODS OF APPRAIsING PROPERTY.
Mr. Priest then underwent an examination
al the hands of Mr.. Dykman TO the methods
followed by the tax commissioners in apprais-
ing the property Of the Brooklyn City and New
town and the Brooklyn City and Coney Island
Railroad. The line OF questions similar to
that OF Mr. Platt- Similar questions We're asked
by Mr.. Page, as counsel for the Metropolitan
Traction Company and by Mr.. Collin, as counsel
for the Brooklyn apid Transit Company.
A G. Shiller gave testimony regarding the
construction Of a tunnel for the New-York and
East River Gas Company beneath the East
River and evidence was obtained from him
by Mr. Platt as TO the sums expended in tunnel
construction and in the enlargement Of its
plant
PRESIDENT VREELAND's TESTIMONY
President Yreeland testified that he had been
president Of the Metropolitan Traction Com
rany since June 1893 When became presi
dent" he said. 'the Broadway cable line had
been partially constructed. but was operated by
horses. In July the cable line was put in opera
don The next step was the construction Of the
Columbus and Ninth-ave. and the Lexington
ave. lines. which also cable lines. At that
time electricians said il was impossible to have
underground electric power. We expended about
S5O0OOO in investigation. 1t was then decided
afterward by electrical engineers that it was
possible TO use electricity. We had constructed
the Lenox-ave. for either cable or electricity.
II cost US about $4,000 more 10 give the road
this double character. We then experimental
with electrical traction on the Lenox-ave. line.
During a year Of operation the whole theory Of
operating such road was changed, to have il
conform with other electrical lines in the United
States. year later in 1885,. were asked II
we were willing TO say that the electrical sys-
TEN was a success from commercial point of
view. and an answer was in the affirmative
Since that we have made constant additions TO
the electrical transmission Of power We added
al first the Second-ave., Eghth-ave. and other
lines. We could not put up overhead trolley;
that was forbidden by the city. We therefore had
20 meet the novel electrical experiment of putting
the electricity underground Lastly, started
IN 10 change our cable system in Broadway and
Lezington-ave. and other lines TO electrical
power. The cable was in good order. but
could not exchange cars. We have put in cleo
trical power at a cost Of s60OO.O0O and also at
loss Of S6.0OO,O0O in equipment. When l took
charge Of the roads there were only four trans
fer points. In 1900 We had 27a transfer points,