TAXATION OF THE PORT AUTHORITY

WILLIAM E. PECK, Acting Chairman of the Committee on Taxation, presented the following report on behalf of the Committee on Taxation and the Committee on the Harbor and Shipping and moved its adoption:

To the Chamber of Commerce:

The Mayor of the City of New York, and others, have asked the Chamber of Commerce to consider the question of taxation. by the City of New York of the property which the Port Authority may acquire in this City. These requests have been referred to the Committees on Taxation and on the Harbor and Shipping.

Your Committees have jointly considered this subject and have reached the conclusion that the property of the Port Authority is and should be exempt from taxation.

Your Committees look upon the Port Authority as a governmental body performing governmental functions, and not as a private corporation. Such being the case, property of the Port Authority cannot be taxed by the City of New York, or by any of the other 185 municipalities included in the Port Authority's district, without special legislation by the States of New Jersey and New York giving such authority. The power to tax gives the power to destroy, and if the governmental bodies within the Port district have the power to tax they would have the power to destroy the Port Authority.

Governor SILZER, in a message to the New Jersey Legislature recently, said "if the courts shall hold that the Port Authority is a governmental agency, an arm of government, then, of course, it and the property acquired by it under our laws, would not be taxable."

Conversely, in exercising its freedom from taxation, a governmental body like the Port Authority would have no right to injure or destroy another governmental body created by the State of New York or of New Jersey. Therefore, it is expected that in cases where a municipality is stripped of an undue portion of its ratables, as may happen in Hoboken, an equitable arrangement will be agreed upon between the City and the Port Authority. In the matter of Hoboken, the Port Authority has publicly announced that upon acquiring the Hoboken Shore Line Railroad in that municipality, it will pay the local taxes and assessments and carry these as part of its operating charges; and, in so doing, it believes it is making an exception justified by Hoboken's limited taxable area, but it does not, however, surrender by this action the principle of freedom from taxation.

The work that the Port Authority was created to perform will be as important an element to our community life as is the supply of drinking water, the sewage system, or the Fire Depart

ment. The congestion in our streets and the high cost of handling the traffic in this Port have considerable bearing on these wellestablished municipal activities. The Fire Department officials have frequently pointed out the great fire hazards resulting from traffic congestion. The Port Authority's activities relate directly to the daily life of this community, and its expenditures are as important to our welfare as is a large part of those made by the Federal, State and Municipal authorities.

An objection raised to exempting the property of the Port Authority from taxation is that it will enable some of its activities for public service to compete at an unfair advantage over private business enterprises. The Port Authority must ultimately have operating terminals and transportation facilities, but it is contemplated that these facilities will be only such as are necessary to facilitate deliveries in the City, to relieve congestion and to reduce the cost of distribution. Such space as it may have for rent at its terminals should command high rental and thereby reduce operating costs for the benefit of the public at large. The amount of this space, however, would logically be comparatively small.

The City Government by building bridges over the East River and by assisting in the construction of subway lines under the River has forced some private ferry companies to quit operations, yet no one questions the merit of these public improvements. In the same way, in order to relieve port congestion and to facilitate deliveries, certain private interests will undoubtedly here and there have to conform to new conditions. Should ten million people within the confines of the Port of New York pay higher prices for food and other commodities consumed, and suffer inconveniences and perils from traffic congestion in this Port, in order that a few private interests may be protected?

Such property as the Port of New York Authority acquires in carrying out its comprehensive plan, or such improvements as it makes must be financed by it and on its own credit. Your Committees are impressed with the fact that if the various municipalities within the Port of New York area should have power to tax the property of the Port Authority, the investor, having in mind that the power to tax is the power to destroy, would hesitate to buy the securities of the Port of New York Authority, and it would find itself unable to finance itself and carry out the mandate of the States of New York and New Jersey approved by the Federal Government.

Your Committees, therefore, offer the following preamble and resolution:

Whereas, The Port of New York Authority, for the general welfare of the entire community, is organized to reduce the high cost of distribution in the Port, by relieving congestion and eliminating waste movements; and

Whereas, The Port Authority in order to accomplish, at a minimum expense, the purpose for which it was created should be free of taxation; and

Whereas, The Port of New York Authority must finance its improvements through the issue and sale of its own bonds unsupported by the credit of the States of New York and New Jersey, and has no other means of financing; therefore, be it

Resolved, That the Chamber of Commerce of the State of New York approves in principle of the exemption from taxation of all property owned or acquired by the Port of New York Authority.

THE PRESIDENT.-The motion to adopt the report has been seconded. Is there any discussion?

(No response.)

The motion was adopted with but two dissenting votes.

ANNOUNCEMENTS

Membership of the Chamber

THE PRESIDENT.-Including the twenty-one members that we have added to the roll today, we now have a membership of nineteen hundred and thirty. That is the largest membership in the history of the Chamber; still, full membership has not been

attained. We ought really to have two thousand members and a waiting list. Your officers wish me to call this matter to your attention, and to ask for your co-operation. As a matter of convenience there has been furnished to each of you today a blank application. We wish you would make use of it. The high standard of membership must be maintained. We would not think of having it any different, but we are just short of that two thousand, and wish you would help by proposing a candidate or two. It would be very gratifying indeed if, with your assistance, we accomplish the two thousand mark and a substantial waiting list this season. We ask for your co-operation.

Portrait of Joseph H. Choate Received

THE PRESIDENT.-I call to your attention the portrait of the late JOSEPH H. CHOATE. It is to be hung in the Chamber's collection. It was painted by HERMAN G. HERKOMER and presented to the Chamber by Mr. CHOATE's daughter, Miss MABEL CHOATE. It has been recommended by the Advisory Committee on Portraits and accepted by the Executive Committee.

You know that Mr. CHоATE was an honorary member of the Chamber from 1905 to 1917. He was elected to honorary membership on May 4th, 1905, on his return from England, where, for six years he had filled with great distinction the position of Ambassador to the Court of St. James. He served on important committees of the Chamber and took part in discussions and addressed the Chamber on many occasions. He was vicepresident of the Chamber from 1907 to 1911 and during that time presided at several meetings in the absence of the president.

It is not necessary to make further comment concerning this very distinguished citizen, and a former member in whom the Chamber takes pride, and I am sure that you will agree with the action of the Executive Committee in very gladly accepting this portrait to add to our collection of notable men of New York. (Applause)

Complete Address for Mail

Letter from Postmaster of New York

THE PRESIDENT.-I have a letter here from the Postmaster of New York which I have been asked to read:

OFFICE OF THE POSTMASTER

NEW YORK, N. Y.

“Mr. FREDERICK H. ECKER, President,

August 26, 1925.

Chamber of Commerce of the State of New York,

65 Liberty Street, New York, New York. "My dear Mr. ECKER:

"The complete address on mail matter is a very important factor towards securing satisfactory and efficient city delivery service. I am enclosing copies of circulars recently issued by this office on this subject, and may I request you to bring the information to the attention of the members of your organization? Their compliance will result in great mutual advantage. "I shall appreciate to receive assurance of your help and cooperation, and any suggestions you may desire to present.

"Sincerely yours,

(Signed) J. J. KIELY,

Postmaster."

The letter was acknowledged and the assurance given the Postmaster of our desire to co-operate in every way, and it is our purpose to reprint the circular to which he refers in the Bulletin, and in calling your attention to it, may I also ask you to bear in mind, if you have any suggestions-helpful, practical suggestions for improving the mail service, that the Postmaster will be glad to receive them.

Remarks of President Ecker Introducing Mr. William P. Field GENTLEMEN. I am happy to say we have a visitor who came in today quite unexpectedly-we had not previously known he was in town-in the person of the President of the American Chamber of Commerce of Cuba, Havana. He is an American. but has been resident there since shortly after the Spanish war. He is keenly interested in subjects that interest us. He is not here this morning to make any special address. Perhaps he did. not expect to be asked to speak, but I think you would like me to introduce Mr. WILLIAM P. FIELD, the President of the American Chamber of Commerce of Cuba, and say to him that we should be much pleased if he has a word for us. (Applause) ADDRESS OF WILLIAM P. FIELD, PRESIDENT AMERICAN CHAMBER OF COMMERCE OF CUBA

Mr. PRESIDENT AND MEMBERS OF THE CHAMBER.-Your President has asked me to say a few words to you about Cuba and the work of the American Chamber of Commerce there. I appreciate the opportunity and will endeavor to give you some ideas gained by a life abroad, which, I trust, will assist you to