New-York tribune., 1907-07-14
R R. T. TAX COMPLAINT.
"4RSORBING PROFITS" ."
Tar Board Pctitioned to Reduce
Assessments SIS, 3,66G,G4h SO.

-, Rrooklyn Rapid Transit Company has
,,.s N nave rs tax assessments reduced. on
oo,,nd that they are so excessive that the
80 ,,l eventually absorb the net earnings of
.,,,na,,. Justice PlatzelI Of the Supreme
- gre1tei yesterday writs Of GER
-, tir.ctng the State Board of Tax Com
,a.,,rarg 70 show cause, in Special Term Part
- tls supreme Court, on August -. why the
lSseesrnents should not be reduced Illegal and
excessive.
The total vaiua lion OF the special franchises
eyed by tie board is about SGOoO0.OO0, and
he reduction asked Tor is 43,666 GA IS
The companies which asked for this enormous
reduction were the Brooklyn Union Elevated
Railroad Company, the Brooklyn Heights Rail-
road Company, the Nassau Electric Railroad
Company, the Coney Island and Gravcsend Rail-
way Company, the South Brooklyn Railway
Company, as lessees OF the Prospect Park and
Coney Island Railway Company; the Brooklyn
Heights Railroad Company, as !essees Of the
Brooklyn City Railroad Company. and the
Brooklyn, Queens County & Suburban Railroad
Company. George d. Yeomans. the general
counsel OF the Brooklyn Rapid Transit system
is attorney in the action. T s. Williams acting
as president Of the seven subsidiary companies
is the petitioner
The petition says that in The case Of the
brooklyn Union Elevated Company. the taxa
non OF all kinds state and local. amounts TO
8. .632,o56 year. 81 per cent of the net earn
ings. and that the relative conditions pre-
vail ia the other companies. A Slight reduction
made last March is declared inadequate
IN the case OF the Brooklyn Elevated Railroad
the petitioner contends that there is an over
valuation il the final figures of the BROOKLYN
franchise OF S2,900,45S IS and 100000 for
Queens 1t declares that the corporation owns
special franchises in Queens, and that fair
valuation OF the Brooklyn franchises is $5,399,
541 %
Mr. Williams says that in the case OF the
Brooklyn Heights company S16537 O7 would be
a fair assessment. but that the Tax Board as
sessed Il at $4,000. The Nassau Electric Rail-
road Company's assessment was first fixed at
s11,eS5.oo0 for Brooklyn and $4,000 for Queens
These figures were reduced TO S109J000O for
Brooklyn and nothing for Queens. Mr.. Williams
declares that the figure for Brooklyn should be
s1.3617o1 Il.
From S16Loe0 TO $4,000 was the reduction
made in the case Of the Coney Island & Graves
end Company's assessment, but the petitioner
says that The fair valuation would be S56 1910 -
Nine thousand one hundred and five dollars
and thirty-two cents is considered the fair valu-
ation Of the South Brooklyn Railway Conpany's
franchises, but the board put the final figures
at S200a0
The franchises OF the Brooklyn City Railroad
Company. now leased by the Brooklyn Heights
Railroad Company, We're assessed at $40 500
0o0 for Brooklyn and S2,010,o0O for Queens
The Queens assessment was reduced 100000.
but Mr. Williams says that the figures are still
Sl,4Sl 1913 - too high, and that the figures for
Brooklyn should be S3025.476 81.
Mr.. Williams contends that the franchises Of
the Brooklyn. Queens County & Suburban Rail
way Company are overassessed in Brooklyn
by S2.5l1.353 81. and in Queens by S15l 439 06
The letters written TO the state board in
March point out that the total assessment for
the roads constituting the Brooklyn Rapid
Transit system amounts for the year to Sol
436.GOo and that the increase over the previ-
Gus year Is 5426 per cent, or S2O0O5 900 Mr.
Williams points out that the increase in the
valuation Of the Interborough company was
only 80 Is per cent, the Manhattan 123 per
cent and the New York City Railway Company
33l2 per cent.
Mr. Williams says that in 1907 the total of
direct assessments, state and local, against the
system follows.
Tracks private right NEUTRALITY-SUSPICIOUS.. s. - 500
70. ssl1ie s. 23N. 80,
lf-ei STOCK