New-York tribune., 1910-05-23
COLLECTS S4O,OOO,OOO
Attorney Generals Record in
Getting Franchise Tax.
ONLY $1,000. 900 NOW OUT
Assessments at Hampstead Low
Annual Revenue of $4,000
coo to State Expected.

albzny, May zz-Estimstes Just completed
s. the Attorney General and the State
pasrd Of Tax Commissioners show that
<s-,e January J. 1909. Attorney General
,o-vsuev has collected special franchise
,sxes amounting TO s4o,ooo,ooo. This now
,ssvss uncollected o1ly about sS.one.oe0 Of
-. sss O,onoo which the corporations owed
ITO January !. 1917, under assessments
made from the time the special franchise
..+1sv went into effect The comparative
;. <~eu sum remains unpaid owing 10
fe- scattering suits instituted by several
,-or-orsrions 10 test minor objections 70 the
law These suits are being urged TO trial
e -spidiv as possible. The settlement OF
.he s,,lts against the Metropolitan Street
psfvsv. in New York. few DAYS ago
r-ouzht the amount realized By that csty
~ franchise taxes since January L 1909. up
n about s5oeao.o
7, conuiling the data 10 learn how much
-ransv Rad been SO far collected under the
lsv throughout the state II was discovered
-hst considerable more money could have
beer realized b- the state EXCEPT for pe-
oriiz- lack OF uniformity as 70 methods Of
sssessnent pre-aiitng in the various tax
districts throughout the state The Court
es kpreals has held that q special fran
disc IS real estate for purposes OF taxa
.ion TIRE courts accordingly order the as
s.sEc-s 70 eQualize their assessments, with
ne result that the assessments against
guecizl franchises N many tax districts
were reeuced 70 the level OF the neighbor-
t-g rssl estate. In some districts this level
itns process amounted 70 halvine the as
s.ssrsnts- and even cutting them down TO
crly small fraction OF the trus value Of
me FRANCHISE.
District Attorney Sends Letter.
Notable srncng these districts IS the to-vr
os Hsmpstses- Long Island where assess
nsnts we're made ~ from 10 10 s5 per cent
et the fun value Of the real estate As
rss4tt Of this situation Attorney General
assgIley has sent e letter 70 the District
strorney OF Nassau County calling this re-
rsarkahle state Of affairs to his attention
The letter is IS follows:
May %. 1910
Hon Franklin A Coles. District Attorney
Nassau County, Mineola. n. 7.
Dear Sir: Some time ego 7 designated
the Hon Nathaniel A. Elsberg 10 represent
THIS department in the certi0rari proceed
ings brought BY the Queensboro Gas and
Electric Company 10 review the special
franchise tax assessment made by the
Heuustead. Nassau County. \. Y, for the
wears 1908 and 1909. Upon the investigation
Of these cases It developed that the relator
would give evidence upon the trial that real
properly in the town OF Hampstead is as
Eesssd by the local assessors at from 10 10
2 Per cent OF its fun value | am Informed
ffs- NJ Elsberg could not find among the
TesI estate dealers Of that town or the as
SCISSORS themselves any one who would tes
-fv that the assessments made bore much,
= any higher relation 10 the actual Talue
ef tbs real property. The result was that
T-e we're obliged 70 settle the assessments
rlsnuoneo at S5l2 per cent for the year
tbe year 1919. These settlements were ceT-
tsinly favorable u the town, in view of the
fact that real property Is assessed so low.
I have been informed by Mr.. Elsberg that
these facts had been communicated TO the
town board by him before the settlement
vas made, and that approval Of the settle
board Of the town Of Hampstead.
Tnder the law II is the duty OF the as
aiue. BY subdivision s OF Section - OF the
consolidated tax law OF ls's. II IS Insde the
dgty Of the assessors 70 assess real 2 prop !-
erry a. its fun value. and by Section IS the
Legislature has prescribed the oath for the
verihcation Of each TAX roll, as follows:
We, the Undersigned do severally depose
The value OF the said real estate az the
SUMS Thich majority OF the assessors
haze decided to be the full value there
b Section a OF the same Law a penalty
IS prescribed for the neglect or omission on
the part of the assessors Of any duty which
rhev must perform.
I also call our attention TO Section l,62e
n the penal law relative 10 the subject OF
periury- 1 have no doubt that where an
assessment IS made az from 10 to - per
cent Cf The full value and sworn 10 as the
fun value it is 4 violation Of this section
This condition was called 10 my atten-
TIN by reason OF the litigation arising out
q The assessments aforesaid believe Il
Is m dutv TO place these facts before you
Is the prosecuting officer Of Nassau County.
= Is certainly Z condition that needs cor
rac1ion and the immediate attention OF the
locsl authorities I am mailing copy OF
thix communication to the Governor. Yours
respectfully. EDWARD R O'MAl-bEA,
Attorney General
5eset with oisccurasinq Obstacles.
Or January !. 1919, there was due the
various localities Of the state. in back fran
chise taxes 100000 Of which s26.eooeoo
was owed ~ corporations using franchises