Department Tax to be Paid by Banking Corporations.

Banking Law (Laws 1892, chap. 689).

"§ 7. Expenses; how defrayed.- All the expenses incurred in and about the conduct of the business of the department, including the salary of the superintendent and clerks, shall be charged to and paid by the corporations and individuals required to report to the superintendent under the provisions of this chapter in such proportions as the superintendent shall deem just and reasonable. The expenses incurred and services performed on account of any such corporation or individual shall be charged to and paid by the corporation or individual for whom they were incurred or performed. If any corporation or individual shall not, after due notice, pay any such charges, the superintendent may apply the proceeds of the sale of or the dividends on any stock or the interest on any bonds and mortgages in his hands deposited by such corporation or individual to the payment of such charges, with interest, at the rate of six per cent. The moneys so applied, and all moneys received by him in payment of such charges, shall be deposited and paid by him into the treasury of the state, to reimburse all sums advanced from the treasury for such expenses, except moneys received from any corporation or individual banker for expenses incurred or services performed on account of any such corporation or individual, which moneys shall be applied by the superintendent in payment of such expenses and a verified account thereof included in his annual report. If any such corporation or individual shall fail to pay such charges as herein required, and there are no stocks, bonds or mortgages in the department, the dividends or interest on which can be applied in payment thereof, the superintendent shall report to the attorney-general the failure of any such corporation or individual to pay such charges, and the attorney-general shall thereupon bring an action in the name of the people for the recovery of such charges."

§ 189. Reports of corporations.- Corporations liable to pay a tax under this article shall report as follows:

1. Corporations paying franchise tax.- Every corporation, association or joint-stock company liable to pay a tax under sec

tion one hundred and eighty-two of this chapter shall, on or before November fifteenth in each year, make a written report to the comptroller of its condition at the close of its business on October thirty-first preceding, stating the amount of its authorized capital stock, the amount of stock paid in, the date and rate per centum of each dividend declared by it during the year ending with such day, the entire amount of the capital of such corporation, and the capital employed by it in this state during such year.

See Form N. 26.

2. Transportation and transmission corporations.- Every transportation or transmission corporation, joint-stock company or association liable to pay an additional tax under section one hundred and eighty-four of this chapter, shall also, on or before August first in each year, make a written report to the comptroller of its condition at the close of its business on June thirtieth preceding, stating the amount of its gross earnings from all sources and the amount of its gross earnings from its transportation or transmission business originating and terminating within this state.

See Form No. 27.

3. Elevated and surface railroad corporations.- Every corporation, joint-stock company or association liable to pay a tax under section one hundred and eighty-five of this chapter, shall, on or before August first of each year, make a written report to the comptroller of its condition at the close of its business on June thirtieth preceding, stating the amount of its gross earnings from business done in this state, the amount of dividends of every nature declared or paid during the year ending June thirtieth, the authorized capital of the company and the amount of capital stock actually issued and outstanding.

Form of report not yet prepared by comptroller.

4. Water-works, gas, electric, steam heating, lighting and power corporations.- Every corporation, joint-stock company or association liable to pay a tax under section one hundred and eighty-six of this chapter, shall, on or before December first of each year, make a written report to the comptroller of its con

dition at the close of its business on October thirty-first preceding, stating the amount of its gross earnings from business. done in this state, the amount of dividends of every nature declared or paid during the year ending with October thirty-first, the authorized capital of the company and the amount of capital stock actually issued and outstanding.

Form of report not yet prepared by comptroller.

5. Insurance corporations.- Every insurance corporation liable to pay a tax under section one hundred and eighty-seven of this chapter, shall, on or before August first in each year, make a written report to the comptroller of its condition at the close of its business on June thirtieth preceding, stating the entire amount of premiums received on business done thereby in this state during the year ending with such day, whether the premiums were in money or in the form of notes, credits or other substitutes for money.

See Form No. 29.

6. Foreign bankers.- Every foreign banker liable to pay a tax under section one hundred and eighty-eight of this chapter shall, on or before February first in each year, make a written report to the comptroller of the condition of his business on December thirty-first preceding, stating the amount of tax for which he is liable under this article, and giving in detail the facts required by the last preceding section for the purpose of ascertaining and computing the same.

[Revisers' Note.- L. 1881, chap. 361, § 1; R. S., 8th ed., 1152,

L. 1881, chap. 361, § 5; R. S., 8th Ed., 1154, as am, by

L. 1895, chap. 425,

L. 1881, chap. 361, § 7; R. S., 8th ed., 1155,

L. 1882, chap. 409, § 322; R. S., 8th ed., 1582, as am. by

L. 1894, chap. 196,

L. 1886, chap. 679, § 2; R. S., 8th ed., 1696,

without change of substance.]

See Form No. 30.

This section was divided into subdivisions by the committee and new provisions added, fixing dates for the reports of corporations taxable under sections 185 and 186 of this chapter.

The act of 1880, chap. 542, held, to call for a report in November of that year from a corporation which had not then been organized a full year, since the tax imposed was to meet the expenditures of the prospective fiscal year. People v. Spring Valley Hydraulic Gold Co., 92 N. Y. 383 (1883).

§ 190. Value of stock to be appraised.- In case no dividend has been declared, by a corporation, association or joint-stock company liable to pay a tax under section one hundred and eighty-two of this chapter, the treasurer or secretary of the company, shall, under oath, between the first and fifteenth day of November in each year, estimate and appraise the capital stock of such company upon which no dividend has been declared, or upon which the dividend amounted to less than six per centum at its actual value in cash, not less, however, than the average price which said stock sold for during said year, and shall forward the same to the comptroller with the report provided for in the last section. If the comptroller is not satisfied with the valuation so made and returned he is authorized and empowered to make a valuation thereof, and settle an account upon the valuation so made by him, and the taxes, penalties and interest to be paid the state.

[Revisers' Note.- L. 1881, chap. 361, § 1; R. S., 8th ed., 1152,

without change of substance.]

The rule of assessment in determining the actual capital of a corporation for the purpose of general taxation, is the true value of its corporate assets, less the debts and obligations, and not the market value of the shares; and, taking the actual value of its property used here by a foreign corporation, is not erroneous. People ex rel. Roebling's Sons Co. v. Wemple, 138 N. Y. 582; S. C., 53 N. Y. St. Repr. 297 (1893).

The State comptroller is in effect an assessor and he may determine the matter submitted to him from evidence which would not be admissible in an action at law. People v. Campbell, 88 Hun, 544; S. C., 68 N. Y. St. Repr. 811; 34 N. Y. Supp. 801 (1895).

The statute makes the comptroller an appraiser and his determination is conclusive, unless on application for revision it is clearly shown to be erroneous. People ex rel. Axe & Tool Co. v. Roberts, 82 Hun, 313; S. C., 63 N. Y. St. Repr. 574; 31 N. Y. Supp. 245 (1894); People ex rel. Chicago, etc., R. R. Co. v. Roberts, 90 Hun, 474 (1895).

The decision of the State comptroller, fixing an assessment against a corporation under the act of 1880, will not be disturbed on appeal where the corporation is subject to taxation, unless clearly shown to be erroneous. People ex rel. Am. Contracting & Dredging Co. v. Wemple, 129 N. Y. 558; S. C., 42 N. Y. St. Repr. 400 (1892); People ex rel. Gramercy Co. v. Roberts, 91 Hun, 148 (1895).

The corporation being taxable to some extent, the determination of the comptroller upon the question of valuation, unless clearly shown to be erroneous, is conclusive. People ex rel. Edison Electric Light Co. v.

Campbell, 88 Hun, 530; S. C., 68 N. Y. St. Repr. 747; 34 N. Y. Supp. 713 (1895); People ex rel. Stokes Co. v. Roberts, 90 Hun, 533 (1895).

Where a person or corporation aggrieved seeks to review the action of the comptroller in imposing a tax under chapter 542 of the Laws of 1880, the burden is upon the relator to show some error or mistake upon the part of the comptroller. People ex rel. Brooklyn El. R. Co. v. Roberts, 90 Hun, 537 (1895).

The real estate of a corporation may be taken into consideration by the comptroller, though it is subject to local taxation. People ex rel. v. Campbell, 53 N. Y. St. Repr. 793 (1893).

The comptroller is not bound by the value placed on the real estate of a corporation by the local assessors. People ex rel. Roebling's Sons Co. v. Wemple, 138 N. Y. 582; S. C., 53 N. Y. St. Repr. 297 (1893).

The consideration of the amount of relator's average monthly bank balances, the gross amount paid for salaries, wages, and rent,— sustained. People ex rel. v. Campbell, 53 N. Y. St. Repr. 792 (1893).

The relator, being a foreign corporation whose authorized capital stock was $5,000,000, of which $3,872,500 had been issued, reported in its report and appraisal filed with the State comptroller in November, 1893, the amount of its capital stock employed in this State during the year as $1,284,058, and the value thereof was $321,014. It was held that the comptroller was not concluded by such appraisal, and that, in the absence of any explanation, it appearing that relator held $446,000 worth of real estate within the State, that in April, 1893, there had been paid a dividend of 1 per cent. on the capital stock issued, and that there had been no sale of the company's stock, he was justified in appraising the capital stock in an amount equal to the sum paid in the treasury of the company, viz., for the proportion employed in this State, $1,284,058. People ex rel. Axe & Tool Co. v. Roberts, 82 Hun, 313; S. C., 63 N. Y. St. Repr. 574; 31 N. Y. Supp. 245 (1894).

Where the comptroller in estimating and appraising the capital stock of a railroad company, for the purpose of taxation under chapter 542 of the Laws of 1880 and the acts amendatory thereof, fixes the valuation at the average price at which the stock sold during the year, he has complied with the statute, and it is not necessary for him to ascertain the "intrinsic" or actual value of the stock in cash, unless such intrinsic value exceeded the market value. People ex rel. El. R. R. of Brooklyn v. Roberts, 90 Hun, 537.

§ 191. Further requirements as to report of corporations.Every report required by this article shall have annexed thereto, the affidavit of the president, vice-president, secretary or treas urer of the corporation, association or joint-stock company or of the person or one of the persons, or the members of the partnership making the same, to the effect that the statements contained therein are true. Such reports shall contain any other data, in

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