New-York tribune., 1903-04-30
MUST PAY ARREARAGES.
NO STAY CAN PREVENT III.
Cunneen's Opinion Regarding Com
NAMES and Franchise Decision.

Attorney General Cunneen, who was In town
yesterday, said that he did not believe the cor
porations which. under the decision OF the Court
of Appeals will have to pay the special franchlse
taxes assessed against them by the State Board
of Assessors would be able to obtain any order
which would act stay in the payment Oh
arrearages. Mr.. Cunneen said:
never felt any doubt about the action of the
Court of>Appeals. except on the consttuti3naty oE
some of the questions involved. One OF these was
officials the power assess which. under the con-
stution, is distributed among local ofnclais & op OF
mas ruled with me- that the franchise tax law ere
Of taxes on Which the existing law made no pro
vision and that therefore it was WITHIN tne pso1
these assessments should be made. l understand an,
the case VIII pc & bee 10 ne that the CORPORA
tons will be able TO get any order that Will act as
a stay in the payment OF the arreaTases ana III
one of the points made by, the corporation ms:
an appeal to the United States Supreme Court;
new condition in the contract between the city
and the companies 1t was contended by the state
means to compel this new species OF property to
bear its proper proportion of the expense 9i their
franchises There is no doubt that the tbn,,I ITleG
if an appeal is taken do not expect to argue it
during my official term
Controller Grout said yesterday that ne olo
not think the corporations affected by the de-
csion of the Court of Appeals on the tranchlse
Tax bill would succeed in getting reversal OF
that courts decision by the United States ou-
preme Court. He continued:
aInesi eoh see exnected ali along That the franchise
tax law would be declared constitutional; AS 70
there seems to be misunderstanding IL VIII az
not the the Rate pn at all 9dt Sn the
have no doubt would have qmpea o up be
on the assumption that the law would stand. SO
that the rate will be about Wna1 sbsTed It's
decision. This year the franchises are taxed at at
te state Assessors in former years that the valua-
tions represented the full value, but this is not a
ton on franchise assessments. and reduction was vas
made in fact about 30 per cent was & b Maid this
year.
Mr. Grout added that he expected the fran
chise taxes would now be paid, and that II or
fers of payment were made they would be ac-
cepted by the Finance Department, put ne re-
marked that with the possibility of an appear
being made to the highest court in the iand ne
should not at present attempt to enforce the
payments.
CORPORATION Counsel Rives said:
The citv will deal with the corporations the same
as it deals with other real estate owners Wo Won @
tOt & pay he % Old defniton of real estate merely
land-that was in 1899 The franchise tax s taW ue-
e9e eS rea snd 94der the het streets and rights
streets and to M lay ysnchse gaS right which is vastly
more valuable than tangible property
Mr. Rives said that if the corporations oeclueu
to appeal the to the United states 0upr
Court the Attorney General could nave II au- %
vanced on the calendar, and decision "ouio
| he reached sooner than If the case went through
| the ordinary channels.
William N Dylxman, counsel for and a neIh-
| her of the board of directors of the Coney Isl
| and and Brooklyn Railroad Company one Oh
| the corporations affected by the decision SAID
| Yesterday that an appeal would be taken 10 the
United States Supreme Court on the GROUND
that the Franchise Tax act impaired the opllsa-
ton which the city made with the ram roaus
when It granted the franchises. especially
| aho-a tho franchises were sold at auction. He
| declared that the decision was great blow to
| the principles OF home rule