New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-02-19
A RAILROAD TAX LAW VOID.
THE PEOPLE OF NEw-JERsgY SURPRISED.

| ihL IGOI VI I'VE SO
THE SUPREME COURT HOLDS THAT TIE LAW Is
ACKNOWLEDGEMENTS FINANCES CRIPPLED.
IRON TIE REGULAR CORRESPONDENT OF THE rRIBUSg.J
TRENTON, Feb. 1S.-The Supreme Court
branch composed of Chief Justice Beasey and Justices
Knapp and Magic, to-day declared the Railroad Tax law
OF 1854 unconstitutional and void and the finances OF
the State thrown into the UTMOST confusion 10
quence. The opinion read by the Chief Justice.
There had not been. apparently, the slightest nmation
that the Court would take the did the expecta
ton being that the difficulties minor
details The effect OF the decision stunning Large
sums of money must be returned to the railroad
companies and the State without funds carry
ordinary course OF government It is impossible even
| to borrow money. Immediate legislative action Is
| therefore necessary and the Assembly this
| ING ordered a committee to consider the subject
| and recommend the course to be adopted The
effect Of the decision upon the rarond people was
more crushing than upon the legislators
This decision too far" said Of them. and
the inevitable result, fear, will be inn
| position"
| The opinion shared by others Mayor Gilbert
Collins Of Jersey City, who is able lawyer with
special familiarity with this subject says the result viii
be the greatest boon to the taxpayers at will give
equal taxation he said The opiuon in the OF
the Central Railroad Company OF NewJersey, proses
cuors against the State Board OF Assesso ct AL de-
PENDANTS. Messrs. De Forrest, Bedle Robson McCar-
ter and Williamson appeared for the prosecutors and
the Attorney General and Barker Gummere for this
| State. The syllabus Of the case is as follows:
separate Independent property tax cannot under tho
constitution Of this State be put on property arbitrarily
selected for the purpose and set apart from other
The constitutional amendment that requires that prop
erty shall be assessed taxes under general laws aud
legislative will Of the property OF two classes Of corpo
rstCns separating 1t from the mass "a similar property
lected" property tax for state purposes nposed on
aad nnI S a
ing other property, is declared unconstitutional
The Chief Justice said THE importance of this case
apparent large Of the OF the State de-
rived from taxes involved as well as one Of the most
valuable of the safeguards Of property erected by the
Constitution for the protection Of property Deeply im
pressed with this consideration the Court has given to
the subject all time. and attention at its
mand The questions TO be decided take their rise In the
passed in the year 1884, entitled An act for the
taxation of railroad aud canal property"
Chief Justice reviews the act and discusses
the provisions and the arguments concerning details Of
the The franchises, which was attacked by
counsel for the railroads. Is held good and the Chief
Justice then proceeds to elaborate discussion OF tho
rules which should guide legislators in making tax laws
He admits despoc power Of the Legislature In levy
Ing taxes that this has been sustained by the
all times within the limitations set by the peo
pie the Constitution. The law, however, orbids une
quail taxation where inequalities detected the
permitting such injustice must be held void. The
famous San Mateo decided by Justice Field Is di-
rectly IN point The Court in that held that the
Fourteenth Amendment forbade the discrimination Of
an excessive upon the railroads Of California and
the case is applicable with the difference that the
question OF amount does not enter. The liability Of
the power OF taxation to abuse made some restric-
tions necessary. The Constitution Of NewJersey dis
ncty provides that property shall be taxed by general
laws OF uniform rules. at full value This clause limit
i,,gt tl,a nf tbA
prevent classification does 1t forbid the group
ing of classes, but there mus. be proper
discrimination the classes. Homogeneous property
must be taxed similarly The rule against special egis
laton applies directly. The classification must DO Of
the nature OF the property issef and legislative hat
cannot make class II part of class Is taxed and the
remainder exempted then the tax is illegal Property
cannot be isolated for taxation The general rule is Of
full force The satlte In controversy canno. be sus
taued IL separates the property OF the rail-
and canals from all other corporate property and
subjects 1t to tax for state purposes
to which other property Of the same class does
not contribute. The franchises of the railroads cannos
be separated from others II such rule should be adj
med be legal. then il would be possible to declare.
for that the pottery interests Of Trenton should
bear the whole municipal burden All kinds of property
1.-THE Court" SAID the Chief Justice in conclusion,
did not fail TO into full consideration the serious
results TO OF the course it has adopted Every
step has been carefully examined ara every hetal con-
sidered ana the conclusion IL
the duty Of the Court to declare the act unconsu
tional and void"
tracts IN manner 70 lead many who heard his opinion
TO believe that the judges had retreated from their for
mer pnston when they declared these special privileges
subject to repeal and modification This view OF tho
opinion to-day declared to be error and the effect Of
the Courts utterauces Is summarized follows: That
present law is vOd and that tax law providing
for equal nSSeT wSSe @ he a OF wa,
follows From taxes OF 1854. Tor states purposes
S76l, ,7s5 80; for local purposes, S34245 AZ from
Sl02SD IS for local
purposes S4l,270 s6 While under strict eonstruc-
entire amount received by lie
TO the railroads the fact that the roads must at
81 same covern9ent n pay will MAKE tGi. Unnecessary
The local tax has, however. been held In
sum will he held subject order OF the railroads.
soon as the makes the order which is necessary to
State Controller Anderson said to-day "The state
has received little money since the opening OF ho scai
In the treasury TO meet the large demands that VIII
Tsroas Ds %Sa0 tases would have covered The state
is prohibited from borrowing money except by popular
6ercore necessary and the dircction it Will take the
question the Assembly will have to settle at rs early
TIE effect OF the decision upon the law taxing miscsl
lane corporations |: problem which remains 70 oe
State Board Assessors in oico is also needed soon.
The opPOn snOa provide some SYSTEM
OF taxation for railroad property and then devote It's at
Spoa snOn s D Ss STSJ viii
imply legislative session OF extrsordinary length
The law which the Court declares unconstitutional
was passed in 1884 after phenomenal struggle with the
railroad companies The clauses most warmly contested
at that time care now upheld. The popular agita:
on then was and threatening. and the demand
now that the shall bear their full share OK the
burdens not likely 10 be less urgent The greaest
obstacle In the way OF the general law AT present
the charter exemption Of the Morris and Essex Raroad
and IL is probable that bill to repeal the charter VIII
soon be introduced. . A.,
soon after the opinion had been read In the court Mr.
Corbin offered resolution in the Assembly provdlns
for committee to take the subject INTO
The Cont,O has refused to Issue any turtner war
rants upon the Treasury until some dehuae underanu
ng is arrived at as the effect OF the decision.