Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-07
ALLEGED OFFENDERS NAMED
Assertion of Neglect of Duty on Part
of Officials.
STREET RAILWAYS BIG DEBT
One Corporation Said to Owe 49,
OOO, OOO-Total Amount Enough
to Build Subway System.

NEW YORK, January THE discovery
that the street railway lines and the gas
and electric light companies enjoying IRAN
chise privileges owe the city OF New YORK
between thirty and thirty-fve million DOL
lars in unpaid taxes and interest mas Deen
made according to the New York Amerl-
can. after a thorough investigation OF the
books in the office OF the controller by char
tered accountants and that newspaper
representatives.
The American says: This indebtedness
runs over a term of seven years. ana al
though the laws authorizing the taxation
have been upheld by the court OF Appeals
and by the United States Supreme Court
and are absolutely uncontestable, little OF
no effective effort has ever been made to
enforce payment.
..That there has been neglect of duty on
the mart of several county and state ofncials
is evident on the face of things, ana IL Is
not uncertain that criminal culpapili'y VIM VIM
not be found The existing conditions WIN
certainly be looked into by Attorney CEN
eral Jackson
Enough to Build Subways.
THE sum due the city from these cor
porations. for back taxes and interest, Is
great enough to build the subway system,
for which the city is crying. If it had
been collected and paid into the city treas
urv as are the taxes of the less favored, 1t
would not have been necessary for the city
to borrow millions. as 1t has done. for sup
way extension.
The franchise tax Indebtedness mas peen
growing from year to year untli II mas
finally reached the enormous total oi
S19O1S $3.50. 1t is an Indebtedness from
which the corporations can expect no rehel
from the courts, as the franchise tax law
has been fully sustained both by the court
of appeals at Albany and the Supreme
Court of the United States from the de-
cisions of which there can be no appear.
THE street railway companies owe the
city other large sums for other taxes as
we'll total indebtedness of $2O,GOo,e0O Is
shown in the statements prepared TOT the
American by chartered accountants, lne
official character and accuracy OF which are
undoubted. 49,,
Nor does this tell the whole story of this
corporate Indebtedness, which, because the
companies will not pay and the omclals re-
sponsible do not force them, is making 1t
necessary for New York city to strain It's
credit to the utmost.
THE street car companies eve large ar
rears in real estate taxes, as well as per-
centage taxes and car license feeS since
January /. 1908 These will increase the
total by two millions or more 1he CITY
officials have neglected to bring up 10
date their statements of this Indebtedness
Full Amount Unknown.
"Other great corporations. the gas and
electricity companies, contToiiel ny TIC
same class of capitalists as the street rail-
way companies, have been equally per-
sistent in refusing to pay the city their
franchise taxes. Like the traction men,
they have simply ignored the whole matter.
The full amount of their Indebtedness has
not yet been ascertained Ly the controllers
accountant but il is estimated that the to-
tai amount of taxes due the city from
corporations exceeds 100000, and may
reach so 900 .0oo.
THE Metropolitan street railway system
is the city's prize creditor, with the enor-
NOUS unpaid total Indebtedness for fran
chise taxes of more than $4,000 900. The
Manhattan Railway Company, which, un-
der the direction of August Belmont, oper-
ates the elevated railroad. is a close sec
ond owing over 81. 200.OW. The Brooklyn
rapid transit is not SO heavily involved,
but. nevertheless, owes more than 800,
OOO.'
The corporations named by the American
and the amounts said to be due by them
follow:
Metropolitan street railway system, s13
90, 5g1 10: Manhattan Railway Company,
s9210. 80. "A; Brooklyn Rapid Transit Com
pany. 81, 76S. 079. is; Coney Island and Brook
Ign Railroad Company. $l44,9lS.5o; railroads
IN boroughs of Queens and Richmond, s3l6,-
c.. 40. Il