The Sunday tatler and Jersey City express. (Jersey City, N.J.) 1883-1886, 1885-01-18

alton, would pay if they were subject to |
local taxation, and assessed on their real 4
estate, the same as individual property at
present local rates, In this statemen.
have charged only one per cent. on the
rolling stock and personal property. It
was impossible to- k,cate this rolling stock
in any particular taxing district, and have
therefore charged it with q rate of taxation
less than the average tax rate in the whole
State Ire rate at any terminal point
would be largely in excess of one per cent.
This statement also shows, as to each of
these systems, the amount assessed by the
State Board of Assessors. It will be seen
that these companies pay under the act of
1884 less than 81 per cent of the amount
they would pay if their property should
be assessed the same as individual property.
The valuations taken are those made by
the State Board of Assessors, but you may
deduct over forty per cent for errors of
valuation, and these companies will still
have an advantage over the ordinary tax
payer. The result of this investigation
shows that the railroad companies have
great advantage over the individual prop
erty owner. The limitation upon taxation
in their favor more than counterbalances
the amount of the franchise tax 1t seems
to me that this fact disposes of any claim
unfairly taxed.
The State Board Of Assessors have i'm
posed upon the railroad and canal compan-
les of this State tax of $977. 62S.76 for
State purposes, of which $256. 529. Al is up
on the franchises Of the companies. They
have also imposed taxes for local purposes
amounting to 1888, $3.50. The amount
due to the State for the taxes of 1888 under
| the provisions of the act of 1876 will be
about $740, 900. The amount cannot be
accurately stated at this time, because of q
dispute as 20 the valuation of some roads,
and the litigation with the New Jersey Gen.
| trail Railroad Company. IF this valuation
! be maintained, the increased amount added
| by the State Assessors will be about $685.
| 900 for State tax The report of the Com
missioner of Railroad Taxation for the year
1883 shows valuation for municipal pur-
| poses under the act of 1873, which, if col
lected, would yield $83, 91.31, and if we
add to this sum the $50, 900 voluntarily
paid Jersey City by the Pennsylvania Rail-
road Company, it would give total of
$113, 791.31, which would make an increase
of taxes for locel purposes levied by the
| State Assessors over the valuation under
! the act of 1879, of $274, 1928.
POWER OF THE STATE.
| In view of the great questions involved
in the exercise of the power of the State to
| obtain from its corporations fair amount
of tax, it may be wise at this time to con-
slider the exact position of the State, and to
ascertain what rights, if any, it has surren-
dered, snd the modes by which they can be
regained. That taxation upon any class OF
property should be equal, commends itself
to the Judgment of all men. When the
State attempts to secure IA uniform rule
with reference to the taxation of railroad
and canal companies, it S met with the
claim upon the part of certain corporations
that they have irrepealable contracts on the
subject of taxation, which relieve them
from the burdens imposed on other corpo-
rations.
I am confident that if there should be
any legal controversy on this subject, it will
be limited to few companies.
Whatever these great corporations may
consider to be their legal rights, trust
they will deem it wise to yield to the genera,
demand for equal taxation, so far, at least,
as to submit to the provisions of the act Of
1884.
I do not propose at present to discuss the
extent or scope of any of these alleged ire
pealable contracts. l think it unfortunate
tn t any court in this country should ever
have held that the Legislature could barter
away the sovereignty of the State in the
matter OF taxation. Such contracts are
however, recognized as binding upon the
State. Their extent and scope in each case
is one of construction.
If corporations attempt to embarrass the
State In its finances and compel its citizens
to submit to taxation in order to relieve
such companies, then it is time that yor
should ascertain if there is not power to ex
tinguish these contracts, by condemnation
and payment, as suggested in my Inaugural
message, or by the exercise of other powers
still remaining in the State.
REPEAL THEIR CHARTERS.
| In considering this question / will frs
deal with those companies whose charter
are repealable, either by virtue of provis
ions in their charters, by section 80 of tn,
the General Railroad Law [P. L. 1873 p
So; Revision 1877 title Railroads anc
Canals, page 935, sec. 1877, or by reason O.
section 6 of the act of February IL, i84t
| [P. L. 1916, page Is; Revision 1877, title
Corporations, page 178, section 6.
submit herewith a schedule of the rail
road and canal companies assessed by the
State Board, with statement showing
whether their charters are subject to amend
ment and repeal. 1t will be seen by an ex-
animation thereof that nearly all the char.
tiers are amendable or repealable at the
pleasure of the Legislature.
1t you can find company whose charter
is repealable, and it refuses to submit to
the provisions of the general tax law, why
should you not say to such corporation that
you will repeal its charter, and provide in
the act of repeal for the immediate winding
up of the affairs of the company, and for a
sale of its franchises and property. You
can provide that the money arising from
the sale shall stand in lieu of the road, and
that it shall be distributed among the
| stockholders, after the payment Of the
debts of the company. You can provide
by general law for the formation of new
company by the purchasers at such sale,
and require their assent to the tax act of
| 1884, and any amendment thereof The
ssplant" can be preserved intact by receiver
/ or otherwise. until it passes into the hands
of the new corporation. There are parties
who would willingly purchase any of the
| great railroads of the State affected by such
| legislation.
You can deal separately with each corpo-
ration, and use such power only when the
interest of the State imperatively demanded
its exercise.
THE EFFECT OF LEASE.
It has been suggested that the action of
the Legislature ia confirming leases made
by domestic to foreign corporations for
long terms of years, will operate to prevent
| the exercise of this power of repeal. / do
not consider this claim well founded. The
rule of construction of acts claimed to con-
tain surrender of power upon the part of
the State, is, that they must be construed
most favorably to the State. Courts will
not permit any surrender of power by the
State by implication; such surrender must