The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-08-12
D. !. R. HOLDS UP
s78.746. 4S IN TAXES
Ad valorem Assessment Of Citizens
Lines Il Violation of Contract, De-
clares President Hutchins.

The Detroit United railway has
served notice on City Treasurer Max
G. Koch that Il will contest the pay
ment Of taxes aggregating $7S.7+6.4s
on the assessment levied against 10
last spring by the board OF review,
covering the property OF the old De-
troit Citizens Street railway and that
portion OF It's lines In old Fairview
This assessment was made on an
ad vaiorem basis on the advice OF Cor
poration Counsel Hally. the franchises
On q large part OF the lines involved.
constit; ting the most important sec
tions OF the ID. U. r. system. having
expired. Previously the company paid
gross earnings from these lines and
this. Pending settlement OF the
matter the ID. U. r. does not offer to
pay either.
The company, however. has submit
ted a check for 353.12i29, covering
It's general taxes on car barns. power
houses, etc.. and the old Detroit rail-
way, or Scent Lies IL also sends .
check for $S,673, this being the amount
OF It's tax on freight cars operated
within the city on the basis OF 30
cents per trip. and another Of $3,b01.-
o.. representing 2 per cent OF Its
gross earnings on the Fort Wayne &
Elmwcod line.
City Treasurer Koch. after consult
Ing with Mr.. Hally. decided to accept
the checks inasmuch as there was no
dispute as to those taxes. He has
asked for advice as 10 what action he
should take with reference to the
taxes the company refuses to pay. He
will probably make formal demand
on the company for the amount due
President Hutchins' letter 10 the
city treasurer in this connection fol-
lows In tart:
We have received statement
Of additional ad valorem taxes,
which. It Is understood. were lev
led against the company on an ad
valorcm basis, amounting In the
aggregate to $7S,746.40. The on
GERS of this company believe that
this assessment Is illegal by rea-
son Of the tefms-of- agree
ments made by the predecessors
in title of the Detroit United rail-
way and the City OF Detroit. and
which, by the terms Of the reso-
luton of the common council OF
October 26, 1909. and the CON-
munication and reply thereto OF
this company IL the proceedings
of the common council for Nov.
Is, 1909. were TO be deemed as
continuing In force without preju-
dice to the rights OF either party,
and which resolution, ETC., by
their terms, provided for the pay
ment Of $500 per day as q license.
pending the ultimate determine
ton OF the relations between the
city and the company.
We believe also that the asses
ment Is Illegal on the ground that
there Is o double assessment on o
portion of our lines. irrespective
of the contracts above mentioned.
We have referred the matter to
our counsel for advice and. pend
ing the receipt thereof and q con- /,
ference with the city authorities
on the subject with q view to
reaching a DEFINITE understanding
OF the matter. we are Withholding
payment of 37S,746.49. renting
to you, however, the amount OF
the undisputed tax.
We think IL proper to add that
the payment and receipt by you OF
the amount which we enclose
win not be deemed by US a. In
any way waving any OF the rights
of the city or OF the company In
this connection.
The specific taxes paid by the COM
pany on the property involved in dis
pute for the first half OF 1909, amount
ed to $19,247.S6. For the last half
OF 1909 the amount was S22.214.67.
The latter was not paid until last
April and includes interest added by
way OF penalty Thus the taxes for |
1909, on the basis of two per cent of
the gross earnings, were al ,562.53, |
exclusive of the general city taxes on
the old Detroit railway lines and
other property. On this basis the
taxes this year probably would have
been a few thousand dollars In ex-
cess of this figure, but the amount |
would be insignificant compared with |
the Jump from $41,562 to $7S,746.
II is not improbable that the |
courts will be called upon to settle |
the latest controversy between the |
city and the ID. u. r.
Receipts Below Expectations.
City Treasurer Koch's receipts for