New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-27
CONDEMNS TAX BURDEN
ANNUAL REPORT OF &. r. T.
Decrease an Gross and Increase in
Net Earnings lShO1Cn.

I'm the annual report To the stockholders of the
Brooklyn Rapid Transit Company. showing de-
crease in gross earnings OF s176105 and an in
crease in net earnings of S3sS.S19 Edwin ". Win
ter president of the company, devotes considerable
space to discussion of the burden Of taxation.
He condemns the special franchise tax law and
suggests its modification
lie points out that although II is ten years since
the law first put into effect there has been no
final adjudication by the courts of general principles
and methods which should control the State Board
OF Tax Commissioners In determining the value of
this class OF property. and the owners still in
doubt as the measure of their liability. In the
time approximately So 900 900 900 Of assess
ments have been levied through the state most of
which still in litigation. It is fair assumption,
he says, that the new law is actually laid down I'm
the special franchise tax law by which the Tax
Commissioners are directed to value such property.
and the board persisting in fits refusal divulge
its methods of appraisal the resulting assess
ments seem to be largely a matter of guesswork.
reached by no uniform rule and occasioning great
inequalities and injustice.
Out of the s1.337.62O of taxes charged in the
Brooklyn Rapid Transit report in the fiscal year. all
except SSO7.l07. or s1,O3O513. in sense
franchise taxes. being levied either on the right 10
occupy public streets and places the enjoy
ment OF corporate charters This is equivalent 20
over so per cent Of the net income after deductng
other taxes and fixed charges. This amount would
pay interest Of per cent upon upward OF $780,
100000 worth OF extensions and improvements.
Mr. Winter says
Neither do these franchise taxes measure the
full extent of such burden, for other Official impos
portation etc. in like category principle.
although not included under the definition of taxes
II Is conservative estimate that I'm addition TO the
saIeS paid by the company it contributes TO the
SZooOOo In relieving the city OF the expense OF
maintaining certain portions of pavement in the
mains, etc This does not take into consideration
the item of interest 100000 invested by
IL, rfrurQ W1~hi Nl1
me city would have had 20 pay had tracks not been
The state cannot consistently expect railroad
corporations 10 meet requirements in the transpOr
and services and at the same time nv the Utmost
ZION OF unreasonable financial burdens cripple their
suit Of such policy must be either the withdrawal
OF private capital from such enterprises their
assumption by the state and in either case the
public must be the chief sufferer.
Since the close Of the fiscal year an additional
tag ohligation has been imposed in the shape Of a
iederal corporation tax ON net income This will
on the basis Of the net income Of the various com
pa.ies during the calendar year 1905 win appar-
Transit system about $4,000.
on the so-caued transfer evil he saws that the
vitality NJ the transfer evil is worthy Of a better
cause. Each year. he says. II absorbs far moro
than proper share OF the lean surplus or I'M
duly increases the deficit from surface operation
He says that ~ .36l2s transfers were redeemed in
the last fiscal year-an increase Of 10 per cent
over 1894 and 9s per cent over last year against
an Increase ~ 50 per cent in the gross passenger
earnings. 1879 over l@oi. and Of slightly over one
half OF I per cent in the gross passenger earnings
OF 1903 over 1905.
The statistical statement 81 the Brooklyn Rapid
Transit Company for the year ended June 20 shows
gross earnings Of Sls.s9f.462 and net earnings Of
SS2s9sG. After charges taxes there was a re-
mainder Of 81 95s SO. from which was deducted is
42O for additions and betterments. leaving a sur
plus OF sl.s1.l7a against 81 s4LOa2 in the preceding
year. Dividends OF SS97.o7s were paid So that the
final surplus. including discount bonds and re-
serve account and losses S54349 Adding 20
this previous surplus makes a total profit and loss
surplus Of s43s5.s57.
The company's gross earnings in the las, four
years have advanced from SIS 47s52s in 1875 20 Sia-
69i 4s2 in 1909. while in the time operating ex-
penses have advanced from SO 4f57T TO 81 ss5
The decrease IN gross earnings last year ~ y7SIes
was distributed follows: