New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-01-14
THc yEU.JERsEY MESSAGE.

The Governor of New-Jersey IN his second
| annual message devotes most of his attention
| to the question of railway taxation. The I'M
portarce of this question in ewJerscy will be
bctter understood elsewhere if it is remembered
that no tax on general property is levied by the
! State, and the entire income required Tor the
support of the State Government in all its func-
tons is derived from taxes on corporations with
! few minor items The disbursements OF the
! State are about $l,169,0OO of which courts,
! State Prison, crimes etc, require about
1929, $50; the State Government and Legislat-
ule, about $21 1000; printing, about
| $4,000; military. about 100000; cduca-
tional purposes about So, 900; scientific. about
! $1,000, and miscellaneous about $5S,OOO,
while charitable and Icformatory instltu-
tions Iulre $232, 900 The State raised last
year $S3G,G9l by the tax on railway corpora
tions, $ljS,27G by the tax on miscellaneous
corporations; the Stale Prison receipts were
about So 900, aud few minor items swcllcd
the aggregate to $1.17l,S14. Under such
circumstances the resistance of the tax on rail
ways becomes matter of the greatest interest
TO the State Government ana the Governor dis
cusscs at length the taxes levied on the different
companies, the state of litigation, and the
State should enforce its claims.
OF the railway companies thirly-four are con
testing their taxes. The Governor shows that
the companies have issued securities of the par
value of Sl37, 100000, representing property
which they say cost $92.0O0,0 900, and is only
worth SOS. 72sIss. "If their CLANS were
allowed the State would lose : l0l,lli of tax,
land the officials of those roads would be con-
Il ti,..f,
sexcusable." The message proceeds to consider
the questions at Issue between the State and
the different systems of railway. The roads of
the jersey Central system. the Governor
maintains, "do not pay 81 per cent of what
" they would pay if their property was taxed the
same as that of an individual / also call
@at.ention to the fact that while the State Board
"valued the roads in This system, including their
franchises lat $40, 629, 1874 the net earnings
"0f these roads for the year ending December
"3l, 1888, as testified to in the suit now pend
sing, amounted to $2.9ij. 1872 26, sufficient to
apay q per cent on the investment Oi
S19.0S3S7l. or -, lj1 ,l36 80 more than the
"cnt:rc valuation a. assessed by the State
Board" The Reading system returns net
earnings equal 10 per cent on an investment
exceeding by S2,3O9,9l3 the amount assessed
by the State Board. As to the Morris and
Essex, it is stated that the personal property
returned, which is claimed to be non-taXdble,
increased between 1868 and 1884 about
SlO,3OO,00O, and the Governor asks of what
that property consists. He recommends invcs-
tigation by judicial proceedings to determine
whether the whole of this amount should not
be added to the taxable property, and similar
inquiry regarding all corporations claiming
exemption under contracts with the State. The
local taxation Of corporations is also considered,
and il is claimed that the burden is rot unjust;
"the man who owns a house in jersey City
"worth s. o, 900, and pays 1922 tax, would pay
$500 less provided the railroad companies of
"the State were taxed the same as individuals"
IL il to be said in regard to this part of the
message, that 1t is forcible presentation of the
OF nions which have governed recent legislation
policy of the State.
In discussing other questions, the Governor
recommends action to relieve the State at once
of the alleged contract regarding prison labor,
and holds that the piece price system is the
best solution of the problem yet found An
appropriation for the completion OF the State
House, which was partially destroyed by fire
i'm March last, is recommended. 1t is urged
that the expenditures for publishing the laws
should be strictly limited. Generally, the mes
sage recommends that no appropriation be
made in excess of the amount absolutely neces-
sary until the State has established the validity
of its laws taxing corporations, and has on
hand the money to he applied.