New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-27
OVER a MILLION A YEAR.
WHAT THE PENNSYLVANIA RAILROAD
WILL HAVE TO PAY THE CITY.
COST THE ROAD S4s 00oco-PI.ANs
FOR LONG BEACH.

The Pennsylvania Railroad Company Will
have 10 pay a round 100000 a year, and PROB
ably more. for the privilege OF building tunnel
and station and doing business on a grand scale
in the heart Of the city The city tax officials
are. IT is true counting chickens before they are
Matched in estimating the tax on the PenhsyI-
vania company's new enterprises. but on &C
CONT Of the advanced stage of the tunnel legis-
lation they consider they warranted in
figuring on the minimum of the company's pay
ments
J. c. johnson. special counsel to the company,
at the hearing in the Mayors office on Friday
said his company had expended S6,onOo al
ready and would spend about 100000 more
in building the tunnel and adjunct improve
ments
The city boundary reaches to the middle OF the
North River and the tunnel east OF the midway
point under the North River viii therefore be
IN this city It is estimated that II will cost the
company $4,000 600 to build its tunnel. station
and connections in this city. Taxes are levied
on a - per cent basis. and this would make the
conpany's assessment $26,0o0O00 in round fig
ures Al the prevailing rate, 2.31, or S23, -
70 the million. the company's real estate tax
bin would be 1902 900 year. This is entirely
outside Of the franchise. the value OF which
must be figured on different basis. As mat
ter Of fact there is established basis on
which 10 figure the value of the franchise de-
sired by the Pennsylvania people If a small
railroad had the franchise for its exclusive use
IL would not be worth great deal. on money
earning basis owned by the Pennsylvania IT
doubtless viii prove valuable asset. The Penn
svlvania people own the Long Island Railroad,
ard one Of the many plans Of gigantic proper
tons under way is the development Of Long
Beach. which in point Of time VIII ultimately
be closer TO the middle Of Manhattan Island
than is Coney Island ut present.
The Pennsylvania people expect - Whisk pas
sengers 10 Long Beach in the summer months
inside Of forty-hve minutes This is expected
20 make out Of that resort a second Atlantic
City, and is only illustration of the COM
pany's far reaching development plans All
such considerations will affect the Judgment Of
Mayor Low, Controller Grout and the Rapid
Transit Commission when franchise terms are
considered. 1t is believed that the city will de
rnand a franchise compensation based on not
less than ~ per cent Of the gross earnings on
what may he considered strictly local passenger
trl71c receipts What this will be or how II
will be ascertained in advance no one is able
10 say now. In addition 70 its payment for its
franchise. the State Board OF Assessors will
impose regular corporation franchise tax
The New-YOrk Central Railroad is assessed
for So 5000 for property IN this city. This IN
cludes everything, and is divided about equally
between franchise and real estate. The real
estate is COMPUTED by the local authorities
and the franchise tax by the State board. which
transmits the figures 70 the local officials. On
a basis making the real estate and the franchise
equally valuable the Pennsylvania people would
be taxed another 10000 for its franchise, un-
der the State Corporation Franchise Tax law.
II is likely, the officials say that II VIII
have TO pay a franchise tax 50 disnroporton-
ately greater than that assessed against the
New-York Central company, whose franchise.
as already indicated. is valued at about Sl,3'b-
O00 by the State board. The tax officials seen
yesterday thought the PENNSYLVANIA company
would have TO pay not less than Nl.eeO,tO n
year and perhaps as much as Sl.250oO0 as
fixed charges city and State account when
their tunnel is in full operation.