The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-29
BRIDGE Is FREE TO
B. R. T., SAYS KRACKE
Commissioner Raises Special
Tax Point Before Legisla.
tive Committee.
OLD TINE PROFITS GONE

Senator Thompson's legislative ON.
mittee. which is charged with the task
Of revising the public service commits
sion law. looked into the case Of the
Brooklyn Rapid Transit Company yes
terday afternoon and was so pleased
with the experience that 1t will resume
operations on the same subject This
morning. Bridge Commissioner kracke
was the witness who disclosed a situa-
ton respecting the transit company's
special franchise tax which the commit
tee believes will merit more thorough
investigation.
Under the section Of the tax Law pro-
viding for deductions from the special
franchise TAX II IL set forth that when
a corporation such as the Brooklyn
Rapid Transit Company has paid "a per-
centage Of its gross earnings or license
fee or any other sum OF money on ac-
count Of the special franchise for an ex-
elusive use of the city's streets. which
payment VAS in the nature Of a tax,
all the amounts so paid for exclusive
use shall be deducted from the tax
based on the assessment made by the
State Board OF Tax Commissioners and
the remainder shall be the tax on such
special franchise payable for city pur-
poses.
Commissioner kracke told the COM
mittee that In 1900 the transit compa-
MES using the bridges between Manhat-
tan and Brooklyn paid to the city S27<.-
&62.05 in car tolls and rental for tracks
and terminals. In 1913 the amount due
for these privileges was Ss67.5l7.l+. and
he said that for 1914 the amount would
be more than $1,000, 900.
These tolls are made up Of payments
Of five cents for each surface car max
ing a return trip over the bridges, OF
ten cents for each elevated railroad
car and OF fiat rentals. To keep ac-
count of the number Of cars and to do
other clerical work in this connection
the city employs n pays out OF its
own pocket $4,000 a year.
Just how long ago the Commissioned
was not sure. but certainly by 1906 the
Brooklyn Rapid Transits associated
companies began to deduct the total Of
these tolls and rents from the amount
which II was supposed to pay for the
exclusive privilege OF operating in
Brooklyn. According to Senator Lawson
Of Brooklyn. a member OF the committee.
these deductions lave wiped out entire
ly what the transit company should pay
for its privileges.
'ollllNrlOiltI NAash W. tAAhN WV
mockery Of the whole situation Is that
not only has the city lost the profits
IL used to make when IL operated a line
of its own across the Brooklyn Bridge,
but also that IT had TO employ and pay
the men who check up how much the
city is to lose through its contract with
the Brooklyn Rapid Transit Company
He said he had notified the various
parties to the contract that 1t would
49, ..-a,a a.l tAAs
a new one must be negotiated.
But what excited the members Of the
committee was the assertion OF Com
missioner kracke-and he said he had
been SO informed by the Corporation
Counsel-that no special franchise Ia,
is imposed upon the b. Il !. for til,
exclusive use OF the city's bridges. the
city's tracks and the rest Of the para
%phernalia used in putting air anc
cars across Brooklyn Bridge.
In other words" said Deputy Attor
ney-General Merton L. Lewis, counse
for the committee, the Brooklyn RapiC
Transit is deducting from the amount /
is supposed 10 pay for operating II
Brooklyn as II that amount extended L
the privilege OF using the bridge"
Commissioner k-acke admitted tina
this was the case II that APPARENT!
there was legal authority for doing SO.
commissioner" said MIR. Lewis, pref
acting his remark with the request tina
IL be kept from the record. do YOU him
New York city would be able TO govern
Itself II II had home rule"
We'll, 1t might" was the rejolnder
III We had proper cooperation from tn
people up state"
The legal authority referred TO. II wa
disclosed. was an opinion which Mayo
Gaynor, then a Justice OF the Suprem