New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-03

Compromise Of Franchise
Tarcs and Lighting Bills
Submitted to Mayor.

! SHbWift6d to mayor.
| Instead of q baia nee of some $l.cOo.En
IN favor of the Consolidated Gas Com
pany, as originally claimed by the COM
rany, there will be q. balance of more
! than S.0n00O in favor of the city as the
result of tentative basis of settlement
and compromise Of the franchise taxes
owed by the company and the bills for
lighting owed to the company by the
city
The agreement of facts and the basis
of settlement were submitted to Mayor
Gayuor by Corporation Counsel Watson
late yesterday afternoon. The Mayor
did not have a chance to go over the re-
port. but it is understood that he is dis
posed to accept the recommendation Of
Controller Prendergast and the Corpora
tion Counsel who represented the city.
Attorney General OMalley. on behalf
of the state, took a leading part in fore
ing the Consolidated Gas Company to
agree to the settlement of its franchise
taxes. He brought suit six weeks ago
for their collection, but the suits had
been postponed from day to day pend
ing the conferences for a settlement.
Will End Many Suits.
President Cortelyou of the gas COM
pany. its counsel, Controller Prender-
gast and members of his staff, the
Mayor and the Corporation Counsel have
had numerous conferences looking to a
settlement Of the long standing disputes
between the city and the gas company.
Ar amicablo settlement will mean the
discontinuance of some seventy-three
suits. The settlement Will bring the
payment of franchise taxes up to Jan
uary |, 1909, and the payment of
lighting bills owed by the city up to
January /, 1910. Both bills ran from
1901. Originally the claim for franchise
taxes, including interest, was about $40
O0o,oO0, while the gas company, not to
be outdone, put in d claim for some ST.
100000 for lighting bills and interest
thereon.
The basis of settlement will involve
the payment by the gas company for
franchise taxes of 5000. 900, with inter
est at per cent, bringing the total Up
for personal taxes, which the city had
never collected. which will bring the total
payment to the city to some S7.364,O00
This amount was reached by an cuuat-
ization of the franchise taxes for. several
years back. When the So cent gas law
went into effect the State Tax Board re-
duced the tax assessment of the Consol-
dated Company from some $4,000, 900 to
about S22.000.000. The following year.
after the company had started to fight
the law and obtained an order permitting
it to charge the old rate. the franchise
tax assessment was put back at its orig
inaI figure. Because the company was
finally compelled to pay back all the ad-
ditional money collected it demanded an
equalization of its assessments made on
the original basis.
Lighting Conpan Makes Cuts.
When it came to reaching d basis of
settlement for the lighting bills pre-
scented to the city the company made a
straight cut of about $4,000 from the
original bills. II also was forced to make
considerable concessions on it's interest
charges. ne interest on the gas D1llS
was cut to per cent and that on electric
bills to ) per cent up to January !, 1909
Since then per cent was allowed to run.
The result was that it was mutually
agreed that the city should pay the gas
company some S6,725, 900, as against the
bill of $7364 900 owed by the company to
the city for franchise and personal taxes.
The settlement to be made with the
Consolidated Gas Company of course af-
fects equally its constituent companies,
as follows: The New Amsterdam Gas
Company, the Central Union Gas Com
panv, the Northern Union Gas Company
of The Bronx, the Standard Gas Light
Company. the New York Edison Com
pany, tho Consolidated Telegraph and
Electrical Subway Company, the United
Electric Light and Power Company and
the Brush Electric Illuminating Com
pany.
If possible. arrangement VIII be made
" hereby the city and the gas company
will draw checks on the same bank. so
that the actual transfer of money III the
settlement of the two claims may be at
tended with the least possible disturb
Ance Of bank capital.