The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-14
.R,R, T. RESISTS SPECIAL TAX
siYS That THE BURDENS I'M
POSED ARE INTOLERABLE:

special Franchise Tax $50 96.O 900.
sranted Yesterday seven writs Of certiorari
directing the State Board Of Tax Commits
sopers to show cause on August Is why
the final assessments they f1xed some days
ago on the value Of the special franchises
held by seven OF the constituent roads Of
the Brooklyn Rapid Transit system should
NOT he reduced as excessive and illegal.
The total reduction asked for is S43. &C.,
64i.3S
The companies concerned are the Brook
hn Union Elevated Railroad Company.
the Brooklyn Heights Railroad Company,
the Nassau Electric Railroad Company,
the Concy Island and Gravesend Railway
Company. the South Brooklyn Railway
Company AS lessee OF the Prospect Park
and Coney Island Railway Company. the
Brooklyn Heights Railroad Company as
lessee If the Brooklyn City Railroad Com
pany and the Brooklyn. Queens County and
Suburban Railroad Company.
The writ were granted on the applica-
ton of T.. s. Williams, who is president Of
every one Of the seven corporations. George
n. Yeomans submitted the application to
the court as general counsel Of the Brooklyn
Rapid Transit system.
Mr.. Williams declares that the assess
ments are not only excessive but intolerable,
and that the burden placed by them on
the companies ia such that unless reduced
il will soon absorb all the net earnings. At
present. MIR. Williams points out, In the case
Of the Brooklyn Union Elevated the total
taxation of all kinds. State and local. which
The company has to pay amounts to
$685., 358 per annum. or moro han 81 per
cent. Of the total net earnings. and the
condition in the case Of the other companies
is similar.
Attached to the applications for writs
are copies Of seven letters written In March
last by MIR. Williams to the three State Tax
commissioners. The letter he wrote al
president Of the Brooklyn Union Elevated
may be taken as a standard for all OF them.
In it he points out that the total assessment
for special franchises on the companies
constituting the Brooklyn Rapid Transit
system amounts for this year to s54. 4Se 900.
This is al increase over the assessments
for last year Of $40 Dos, 900, Mr.. Williams
says, or 54.28 per cent. 1t is the largest
increase in the corresponding assessments
against any OF the public service corpora
tions, he adds, and in corroboration points
out that the increase in the case OF the Inter-
borough company wa only 80 l-3 per cent,
the Manhattan elevated % per cent and
the New York City Railway Company
1917 per cent.
comparison Of his company's earnings
over those Of the previous year does not
justify any such increase, Mr.. Williams
says. The company's net surplus shows
an increase Of only t.45 per cent. over the
been turned into a decrease had the full
amount Of the taxes been charged against
the earnings.
Furthermore, Mr.. Williams says, the
assessment for 1905 was 3O.35 per cent.
over that for 1905. which in turn was IS. IS
per cent. above that ofs 1904. Since 1900,
when the first assessment was made by
the commission appointed by Gov. Roose-
welt under the new franchise tax law,
there has been a steady increase in assess
menJs, making a total Of liy per cent. over
that for the first year,
When the validity OF the new law was
finally established we were the first cor
poration to comply with lts provisions by
the payment In full OF all taxes under it with
the accumulated penalties. But the large
increases since 1904 have compelled us TO
resist payment except on the value Of tangible
property and the prospect ls now presented
Of long and dreary litigation with the hope
and expectation that eventually the courts
will relieve what we believe to be an I'M
equal and unlawful burden.
ton 20 the snnnort ~ sovsrnmsnt Our
nolicv ard nractice ia not To resist the nav.
ment q, snv tar which ia In VIII and NOT az.
ces.ivs and UNEQUAL with one excention
ve bave not contested anv tar during tbe
lac, twelve vears where the court. haye
no, fulIv sustained our n~osItion in whole
or in part.
The attitude OF resistance, however,
,,he,ber Justified mr. NOT Ia not an agreeable
one and we nrefer not tn assume n excent
where we are 40 compelled by the enormItv
Of the burden imposed. In the wear 1907
the total OF direct REFRESHMENTS. state and
local. against the properties of our companies.
forming the Brooklyn Rapid Transit system.
4. az Follows.
ou
Raj u ssw a. ptNa'e ish's " 49,. 'S2ss' IA
Local capital stock. .,.............. ss.4SO.OOo
Special franchises '''''''''''""''' @tso.ooo
Total Slss 4lo. ass
A, ,a.. ,aor,. nv rat. mi. ,snresen,. !.
as 40 r,,sW pn, ~ 4. nv No
woans ,ha er,ent ~ our burden Wa mnst
INV IN addi,ion a stats tar on o,r gross
rocs,r,. a s,a,a ,ax "a the nriviIeue 70 he
corporasions, a local tar on our receipts,