The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-03


for llght ami G'SSnlsanleA Nave PAI1
Hark TAXES and Franchise TaNes.
The dispute between the lighting
companies and the city a. TO the amount
q. money which each owes the other was
practically settled yesterday at confer
ences held by Mayor Gaynor and Corpora
ton Counsel Watson with George y.
Cortelyou. president OF the Consolidate ed
Gas Company. and by Mr.. Watson ana
Attorney General O'Aiallsy with other
representatives Of the company.
The legal fight between the companies
and the city has been going on for three
years and involves matters much older
than that connected with the special
franchise tax Law aud ~ cent gas Law
While the legality Of the spscial franchise
act was being tested the company refused
To pay the taxes imposed under that act.
and when the city sought 10 fN iis own
price for public lighting the companies
refused to contract with the city. b,it
under the Law we're compelled TO 20 on
supplying the city With gas and electric
light There are also back personal
taxes
About a year ago just after both acts
were declared to he constitutional by the
higher courts an attemp, ~ settlement.
was made. and st that time the com
panies worked u out that after deducting
the city claims for hack taxes from the
amount owed by the city for public light
ing the city was in debt to the companies
to the extent OF about 81 ,OOO.OOO
The companies were willing so settle
on this basis but the administration then
in power refused to agree 10 the PROPOSE
ton asserting that the companies brought
the city into their debit by Juggling the
interest accounts and because of the
contention ulads by the administration
that were the properties and franchises
OF the companies properly valued FOR
TAXATION PURPOSES ~ would he found that
instead of the city owing money to the
COMPANIES the shoe would y" on the
other foot
The dispute rested without any pTos.
p..ct 1t settlement until Just after the
beginning II thus year when Attorney
General OMalley took steps To enforce
the payment nt the special franchise
taxes without regard To any claims which
the companies might have against the
CITY KnowI-dge ~ this purpose. u was
Of the Attorney General. led to the begin
ming ~ negoilatIo by the companies
for a settlement The negotiations have
teen going on for about a month and as
a result ~ ~ the ComranIes have modified
their clam. for interest On their unpaid
bills and the state authorities have con-
a~Ttsd 10 sqIIalize the assessments on the
properties ~ the COMPANIES for IA Nation,
Thee assessments have IN some years
heen a. hiRh - - peT c~nt. Of the aHsesss-d
valuation ~ the properties. while m ether
years they have fallen - low A. ~ psT
cent oi the assa~sed valuation.
The result NJ the Confer~nc~- when
ended Yesterday - thai the companies
will paw the city about kSD.WO and 'Rll
u square The compromise provides
that the companies shall ray the city
about o. va OOO and that the city shall
give To the comganies check about
ts0n. On0 le~A than this amount for public !
lighting II - UNDERWOOD that Attorney
GENERAL ~ Malley CorporE ton totmsal
Watson ComptrolleT Prendergast and
Mr. CoFtslyou have agreed 30 these t@rns
of settlement and while Mayor Gaynor
a. the end u long conference with Mr..
Watson m the city Hall last nj Zht aid
that he was not gRepared ." ANNOUNCE
whether or not hn would agree to the
proposal. there IL reason 10 teh~ve that
after ha has had time 10 study IN" detrlls
a. submitted - hIm by Mr. Watson h"
u ~