New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-12-02
OWE CITY S24,OOO,OOO
FRANCHISE TAXES DUE.
Investigating Committee
Goes Into Municipal Finances.

Daniel MoynIhan. collector Of assessments and
arrears in the Finance Department, yesterday at
the City Hall. told the Senate and Assembly com
nittee investigating the citys financial condition
that big corporations owe the city more than 2i,-
10000 on account of unpaid special franchise
taxes.
why were not these special franchise taxes col
Iected?' asked Senator Cassidy.
After they were levied"
Just explain against whom they were levied
Against street surface railroads. subways. cleo
trio light telephone. telegraph gas and other pub
lie service corporations that are not included IN
the foregoing group"
why vas not this twents four millions or mere
collected from these corporations continued
Chairman Cassidy
Because these corporations first contested the
corstitutionality OF the law Then they claimed
DIZZY entitled to a reduction il txaron ana
they GOT decision in their favor on this point
Then they got mandaEnus or something. claiming
rhat their special franchise taxes were levied on
what is termed the 100 per cent basis. and they
claimed that in the city OF New York they were
entitled 10 the special reduction the franchise
Since the court decisions some or the corporations
have come in and paid"
The witness said the city had great difficulty
getting the money from these corporations Only
total of about IS 100000 had been collected on
franchise from them. Senator Sake ASKED the wit
ness if he could give the committee an idea Of
what percentage OF the franchise taxes had been
paid
The witness sad he could only give the total
amount Of uncolected taxes for the whole city.
but from the general statement Of taxation the
franchise taxes could be made up He said ne
would prepare q statement 10 show Just what
franchise taxes remained unsolicited
James A Shankland Of the Finance Department,
in charge Of the forage accounts said most OF the
purchases were made on contracts. and was asked
10 identify a statement showing the accounts Of
purchases made. which put in evidence He
said he obtained the market prices from The
Commercial Bulletin quotations and from the
official reports. The amount Of the purchases for
the first haff Of 1905 S47o323 Sc
Charles Collins who with Lewis Bedeu aD-
neared as counsel to the committee. announced
that he would endeavor to md out through the
investigation why II was that the city would not
make its purchases at the prevailing market rates,
and he read some statistics 10 support his state
ment.
These figures showed that during the last five
wears the price Of purchases made by the city were
from 10 to Is per cent higher than the regular
market prices.
Nj Collins said he would present the figures in
evidence later. and he then called Frank W Smith,
bookkeeper of the Finance Department
Mr. Bedeu asked Mr. Smith about the Issuance
of revenue bonds. The witness said revenue bonds
we're included in the debt limit
Senator Cassidy asked: Do you know the
amount Of the outstanding bonds of the city,
"Twenty-eight millions OF S29Oo0Oo0." was the re-
ply.
The witness said he could not tell the amount or
uncolected taxes due the city without looking at
the figures but ne thought the assessment bonds
were in excess Of the taxes
The witness then read a statement showing the
amount for local improvements which the
rnent lists had been made out TO De for the whole
cir,, 81 SEQ 56S So The witness went say thai
In addition to this there had been advanced on the
PAYMENTS for work yet completed 100000. He
explained that the city issued bonds, and from the
amount OF the total issue made payments work
aTgu THa1 WI ser Nc VE0T va
uleted the amount spent charged against the
fund for that particular work
The witness also explained that when work
in progress and IL found that the amount that
had been appropriated was becoming exhausted an
application was made TO the Board Of Estimate for
more money 10 carry the work Then the Board
of Estimate made such appropriation as il thought
necessary and special bonds were issued