§ 175. Percentage of gross receipts to be paid in cities or villages;
report of officers. Every corporation building or operating a railroad
or branch or extension thereof, under the provisions of this article, or
of chapter two hundred and fifty-two of the laws of eighteen hundred and
eighty-four, within any city of the state having a population of twelve
hundred thousand or more, shall, for and during the first five years
after the commencement of the operation of any portion of its railroad
annually, on November first, pay into the treasury of the city in which
its road is located, to the credit of the sinking fund thereof, three
per centum of its gross receipts for and during the year ending
September thirtieth next preceding; and after the expiration of such
five years, make a like annual payment into the treasury of the city to
the credit of the same fund, of five per centum of its gross receipts.
If a street surface railroad corporation existing and operating any such
railroad in any such city on May sixth, eighteen hundred and
eighty-four, shall have thereafter extended its tracks or constructed
branches therefrom, and shall operate such branches or extensions under
the provisions of chapter two hundred and fifty-two of the laws of
eighteen hundred and eighty-four, or of this article, such corporation
shall pay such percentages only upon such portions of its gross receipts
as shall bear the same proportion to its whole gross receipts as the
length of such extension or branches shall bear to the entire length of
its line. In any other incorporated city or village the local
authorities shall have the right to require, as a condition to their
consent to the construction, operation or extension of a railroad under
the provisions of this article, the payment annually of such percentage
of gross receipts, not exceeding three per centum, into the treasury of
the city or village as they may deem proper. In case of extension the
amount to be paid shall be ascertained in the manner heretofore
provided. The corporation failing to pay such percentage of its gross
earnings shall, after November first, pay in addition thereto five per
centum a month on such percentage until paid. The president and
treasurer of any corporation required by the provisions of this article
to make a payment annually upon its gross receipts shall, on or before
November first in each year, make a verified report to the comptroller
or chief fiscal officer of the city of the gross amount of its receipts
for the year ending September thirtieth, next preceding, and the books
of such corporation shall be open to inspection and examination by such
comptroller or officer, or his duly appointed agent, for the purpose of
ascertaining the correctness of its report as to its gross receipts.
The corporate rights, privileges and franchises acquired under this
article or such chapter by any corporation, which shall fail to comply
with all the provisions of this section, shall be forfeited to the
people of the state, and upon judgment of forfeiture rendered in an
action brought in the name of the people by the attorney-general, shall
cease and determine.