stated what it contended to be the law and facts. In 395 instances the Board caused investigation to be made, and returned to the corporation, through the Attorney-General, a counter proposition of settlement. Also, immediate settlement of numerous cases was effected from the records in our office.

To handle this class of investigations, the Board designated one of its agents, who is an attorney, and the system thus inaugurated has resulted in court orders for settlement in three hundred and sixty-two cases. Thirty-three propositions and counter propositions are now being discussed by the attorneys for the different corporations and the Attorney-General. Of the remaining cases, a great number are held awaiting decisions of the courts on contested questions of law involved in like cases, and are being investigated, and counter propositions will be made in a short time.

In conjunction with the Attorney-General, representing the department, during the present year there were six hundred and forty-two certiorari proceedings to reduce assessments settled, and orders entered covering special franchise property in the State. The aggregate valuations of the assessments involved were $190,927,259.

Mortgage Taxes

This Board has general supervisory power over all recording officers in respect to the duties imposed by the Mortgage Tax Law (Article XI of the Tax Law).

Apportionments

Under section 260 of the Tax Law it is the duty of this Board to apportion all taxes collected upon mortgages which cover real property situated in more than one tax district on the basis of the relative assessments in each tax district. Where the property covered by the mortgage is located in more than one county, the Board is required to apportion the tax collected by the recording officer among the several counties entitled to share therein. When the property covered by the mortgage is located partly within the State and partly without the State it is the duty of this Board to determine what proportion of the mortgage is taxable in this State

this State as compared to the total value of the entire mortgaged property. The Board is required to give formal notice to the mortgagor and mortgagee and to the State Comptroller of the time and place when such determination is to be made. Under this section a question arose in the case of the mortgage executed by the Cleveland and Buffalo Transit Company to M. E. Farr, as Trustee, as to whether in determining the proportion of the mortgage taxable in this State this Board should consider tangible personal property covered by the mortgage and located without the State, or whether only real property should be considered. In the proceeding brought by the said Cleveland and Buffalo Transit Company to review the determination of this Board, the Appellate Division of the Supreme Court, Third Department, decided, in May, 1914, Mr. Justice Woodward writing the opinion, that section 260 of the Tax Law requires that this Board in determining the separate values of the property covered by such a mortgage within and without the State for the purpose of ascertaining the proportion of the principal indebtedness secured by the mortgage taxable under Article XI of the Tax Law shall consider only the value of tangible property covered by such mortgage, and that "tangible property" includes personal tangible property covered by the mortgage located without the State of New York.

Refunds

Prior to the year 1914 the power of this Board to order refunds in cases where taxes had been erroneously collected was not definitely established, but by the amendment to section 263 by chapter 398 of the Laws of 1914, this Board was given power to determine, upon a verified application, whether or not taxes have been collected erroneously, and if the Board so determines it is given the power to make an order directing the recording officer to refund the same.

Supplemental Mortgages

Taxes are collectible upon all mortgages recorded except that a supplemental instrument or mortgage may be recorded without the payment of a tax for the purpose of correcting or perfecting any

a recorded mortgage, or for the purpose of imposing the lien of the mortgage upon property not originally covered by or described in the recorded mortgage, unless, however, such supplemental mortgage creates or secures a new or further indebtedness. Under this provision of the law this Board is required to review the determination of the recording officer upon the question of exemption, and during the present year over 500 applications for exemption were reviewed by the Board.

Executory Contracts

Section 250 of the Tax Law defines what is a mortgage and provides that executory contracts for the sale of real property, where the vendee has or is entitled to possession of the property, shall be deemed for the purpose of the Mortgage Tax Law to be a mortgage. Under this section recording officers almost daily transmit to this Board copies of instruments which the Board is required to pass upon and determine whether the same are contracts taxable under the law.

Trust Mortgages-Annual Statements

Section 259 of the Tax Law requires in the case of trust mortgages, where the maximum amount of the principal indebtedness secured by the mortgage has not been fully advanced, that a statement be filed annually within thirty days after July first each year, giving the name of the mortgagor and mortgagee, the date of the mortgage, the county where first recorded, the maximum amount of principal debt or obligation secured by the mortgage, the total amount advanced during the year ending June 30th preceding, with the date and amount of each advancement. More than three hundred of these statements are filed each year with this Board, and an examination of each is made for the purpose of insuring the payment of the mortgage recording tax upon all advancements made on such trust mortgages.

Examination of Recording Offices

The law requires this Board to examine the records and audit the accounts of the sixty-two recording officers in this State. Dur

Washington and Warren have been made. The examination of Kings and Queens counties carried over from the preceding year were completed and the examination of the Register's office of New York county is being carried on with examinations in Saratoga and Chemung counties in progress.

Bond Statements and Stamps

Under the law the owners of certain bonds secured by trust mortgages may present the same to recording officers, pay the tax thereon, and have the same indorsed with a statement of the payment of the tax; thereafter such bonds are exempted from local taxation. It had been the custom to use stamps for the purpose of affixing the statement required by section 264 of the Tax Law to be indorsed upon said bonds. The attention of the Board was called to the fact that the manner of checking the number of such stamps used and the amount of taxes paid could be improved upon, and so a system was established which now requires that all stamps issued to the recording officers of each county shall pass through this office, and a record kept of the same, and the auditors, in making the examination and auditing the accounts in the recording offices of the several counties of the State, are required to report the number of stamps obtained by the recording officer, the number used and the number on hand.

Mortgages Recorded - Taxes Collected

The total number of mortgages recorded during the year ending June 30, 1914, was 112,122, and the total number of mortgage statements filed during the year was 4,139. The total amount of mortgage taxes collected was $3,255,172.55, and the total expense for collecting and distributing this tax for the mortgage tax year was $68,386.32, or 2.10 per cent of the amount collected. Recording officers, county treasurers and the city chamberlain of the city of New York are entitled to receive the necessary expenses incurred under the Mortgage Recording Tax Law, including printing and hire of clerks and assistants, and also the premium on bonds of the employees in said offices. The items of these expenses must first be approved and allowed by this Board,

officer, which are carefully scrutinized with the result that expenses incurred for the collection of mortgage taxes are less in proportion than the expense of collecting any other tax levied under the laws of this State.

Rules and Regulations of the Board

To carry out the provisions of section 30 of the Tax Law the Board, on June 25th, promulgated and issued a set of rules for tax maps to be used in cities and towns of the State. These rules are divided into two classes, one governing the property in the town outside of villages and the other the property in the town within incorporated villages. They will be found complete in another part of this report. The Board has also revised the rules in relation to appeals to this Board from equalizations made by county boards of supervisors of counties, as we have had from time to time many inquiries concerning these rules, and in order that they may be better understood, they are for the first time printed as a part of our report. The Board has spent considerable time in preparing a circular or booklet of general information for local assessors, and it is our purpose to publish the same, if possible, as a part of this report. The information is designed to inform the assessors as to the different classes of property subject to assessment by them, the exemptions that may be allowed and the extent of such exemptions, the proper interpretation of the term "full value," the duties of the assessors on grievance day, and such other general information as would seem to be of assistance to the assessors.

The Board has also prepared forms for assessment-rolls in cities, towns and villages in compliance with the provisions of section 20 of the Tax Law. These blank forms may be had upon request at the office of the Commission. The Board requests criticism and suggestions bearing on the same, and desires to have the best and most satisfactory form that can be obtained.

Assessors

Central Co-operation

There has been agitated for a long time the advisability of closer co-operation on the part of this Board with the local