The Central Trust Company v. . the New York City and Northern Railroad Company. in the Matter of the Petition of the…

Summary

The New York Court of Appeals held that the state’s franchise tax on the New York City & Northern Railroad is constitutional, that the tax claim is paramount over mortgage claims, and that the court may, in its discretion, order the receiver to pay the tax from the railroad’s gross earnings despite the statutory collection scheme. The appellate court reversed the General Term’s order and affirmed a modified Special Term order directing payment.