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

States Prison and Schools.
Governor Abbett's first annual message
is SO admirablea document that the I ArrLER
republishes the full text of the pregnant
sections of it. The message, treating Of
the railroad question, says:
In my inaugural address called atten-
ton to the imperative demand for imme-
date and radical reform in reference to
taxation. urged that the Legislature in
augurate State policy that should compel
corporations to pay the same taxes and
submit to the same burdens as individuals.
The Legislature at the last session devoted a
portion of its time to framing and perfect
ing two laws with reference to taxation,
one dealing with railroad and canal proper
ty, and the other with the miscellaneous
corporal Sns of the State. Flaws Of 1884,
pages 142 and 232
The report Of the Comptroller shows that
if these laws are acquiesced in there will be
sufficient money obtained hereunder to
defray all the legitimate expenses Of the
State without imposing any direct State tax.
There has been no important contest in
reference to the act taxing miscellan eous
corporations, and there will therefore be
no embarrassment, as far as the finances of
the.State are concerned, unless the railroad
corporations resist the payment of the tax
imposed upon them under chapter 101 of
the laws of 1884.
| see no present difficulty that can arise
under this act. Section 16 provides that a
certiorari may be granted to the company
or person assessed, on proper case made,
on-such terms as the justice or court grant
ing the writ may impose. Section 10 pro-
vides that the justice or court before grant
ing the writ of certiorarl to review an as
sessment of taxes under this act, shall re-
quire payment of such portion of the tax
as the justice or court shall deem just, and
thereafter, pending the proceedings, the
court may from time to time direct further
payments on account of such tax; the writ
of certiorari to be dismissed if the order for
the payment is not obeyed. The section
further provides that if the amount paid
shall be in excess of the amount finally as
certained to be due the excess shall be re-
paid by the State upon the order of the
court. think it entirely safe to assume
that no judge or court in this State will per-
NIT any railroad company to embarrass the
finances of the State by refusing to pay the
tax pending the litigation. The State is
amply able to repay any sum that may be
paid in excess if the court should thereafter
decide that there should be a reduction.
If the companies do not pay the tax, and
do not obtain writ of certiorari, then,
after the first of February, it is made the
duty of the Attorney General under section
II Of the act to apply to a justice of the
Supreme Court for an order that the tax
and interest due thereon, and reasonable
sum to be certified for expenses, shall be
made record Of the Supreme Court, and
judgment entered thereon in the name Of
the State. On like application the Attorney
General may obtain execution forthwith on
such judgment. This section provides that
the proceedings shall be summary.
Under section IS of the act all the fran
chise, real estate, rolling stock and property
of the company may be sold to pay the tax
and such sale passes the absolute title te
the same free and clear of all liens, incum
brances and trusts of every nature except
taxes subsequently levied.
Assembly bill No. 1858, in section %, and
Assembly bill No. 313, in section Is, as
they passed the Assembly in 1884 contained
a provision that no foreign corporation
should exercise any corporate act in this
State, unless it fled with the Comptroller
an agreement that its property, real and
personal. the value of its franchise exercis
ed in this State, and all other property Of
whatever character and description, that
might be used by it in this State, shouli
be subject to the same taxation, State and
municipal, as domestic corporation, an6
that foreign corporation fling such ar
agreement should make return in like
manner, and be subject to all the proyis
ions of the acts, the same as domestic cor
4 r1arofinnc This 4 c1
be incorporated in the present law By
amendment. The great lines of trave
across our State are operated by foreign
corporations, and such an amendment
would be of great advantage in any possibl,
controversy that might arise under the ac
of 1884.
THE VALUE OF A FRANCHISE.
The principal objection that has beer
raised to chapter 101 of the laws of 1884, il
that it imposes tax upon the franchises O
the railroad companies. Such taxation
does not appear to me to be subject to an,
just criticism. Franchises are taxed in til,
State of Illinois under law which imposes
much heavier burdens than have beer
placed upon them in this State, and sucl
taxation has been upheld by the Suprem,
Court of the United States. Railroad
Company VS.. Vance So U. S. Sup. CT. r
450.1 The valuation of the franchise b,
the State Assessors is only about 60 pc
cent. of what it would be under the Illinois
rule.
A franchise is property. It can be take1
and must be paid for under the exercise O.
of the right of eminent domain. TBlack VS.
Canal Co. 9th G. E. Green ass. If it b,
property for this purpose, cannot see WIN
it is not property to be taxed. 1t is in M,
opinion not only lawful to tax these fran
chlses, but also just and equitable. Ihs
railroad corporations that cross our State
practically monopolize nearly the entire
water fronts at their terminal points oppo
site the city of New York. The immense
capital represented by the shares of STOCK
and bonds and certificates Of indebtedness
of the companies cannot be taxed in the
hands of the shareholders, bondholders OF
creditors, except as they may be affected
by the act of 1884. The par value of this
stock and the amount of the bonded in
debtedness is shown In statement submit
ted herewith. The stockholders of these
companies are protected from individual
liability. Every property right of the citi
zen is liable to be taken by these corpora
tions under condemnation. The rate of
fare for passengers in many instances ex-
ceeds that imposed by roads in other States.
The peculiar uses of the property as a rail-
road impress value on the plant indepen-
dent of the tangible property. These rights
are certainly valuable when they induce
foreign corporations to lease our domestic
companies, and guarantee them large divi-
dends-much larger than can be obtained
by citizens at the present time by any other
guaranteed investment. Under the exer-
else of these franchises hundreds of mil
lions Of capital are practically tied up in
perpetuity, and instead Of being subject to
the natural redistribution of property
which follows when it is held by private
citizen, the law has stamped an aristocratic
irnxresa IF horsdiforu jaooapf ,.x,ox, A. :,