Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1886-01-15

the three companies heretofore mentioned,
whose State tax amounts to 81, 1,553.70, they
being in default and not having contested the
tax, and judgment has been obtained against
them. The local tax against these three de-
faulting companies amounts only to the sum
of $16.15.
There are fity-one companies that have
paid their state tax without applying for writs
of certiorari, but the most of them have paid
under protest reserving all their rights These
companies have paid of the tax assessed for
local purposes, only $64,A4S.26, leaving due
by them for local purposes the sam Of 4,5S2.
In view of the allegations Of many of
the companies that they are unfairly taxed,
the Legislature should bear in mind that the
act Of April 10, 1884, q. 1884, p. 142,) makes
railroad corporations a favored class, discrim-
mating in favor of them as against individual
taxpayers Both of the railroad tax bills as
originally passed in the Assembly of 1884,
provided for equal taxation. The act as
passed by the Legislature, however, contained
provisions which secured to the railroad COM
panies advantages under which they pay less
than ifty-seven per cent of the amount they
would pay if their property were assessed the
same as individual property, as will appear by
the detailed statement prepared and annexed
to my first annual message. This result is
reached by the exemption of all their personal
property from taxation for local uses; the ex-
emptien of SS1, Jos 500 of real estate from tax
alton for local uses, designated under the head
of "main stems )" and the limitation of the rate
of taxation for the companies to one per cent
for local uses, no matter what the tax rate may
be in the taxing districts. The friends of equal
taxation, while not satisfied with the advan-
tages given railroad corporations over individ-
ual taxpayers, were obliged to accept the act
of 1884 with all its clauses favoring the rail-
road corporations or do without any legisla-
ton on the subject. They deemed it wiser to
accept the great advance made by the act OF
1884, and wait for another Legislature to give
them their full rights.
The present Legislature has it in its power
to amend the act of SS4 so as to subject these
corporations to taxation which will impose
the same burdens upon them as upon individ-
ual citizens.
The State has ample power to enforce its
rights in reference to taxation. In my last
message discussed this question fully. | re-
ferred to various acts of the Legislature affect
ing taxation of railroad and canal property.
The companies rely on these acts to sustain
their alleged contracts with the State. | also
pointed out the modes by which, in my judg-
ment, the State could compel these corpora
tions to act with Justice to the State and its tax
payers. l asked your consideration OF the
remedies there suggested.
The experience of the past year has demon
strated that the State must depend upon itself
and its agents to levy and collect the proper
amount of taxes from these corporations. To
show the necessity Of depending upon State
officials to secure proper tax instead OF ac-
cepting the claims Of interested roads, have
had prepared and annexed a statement show
ing the valuation of the contesting roads as
set forth in their protests and valuation as
made by the State Assessors and have also
given their cost as returned to the Comptroller
for the year 1888, and as reported by tim to
the Legislature in 1884, together with the
amount represented by the capital and loans
made BY these roads, These schedules will
show the Importance of these contested cases.
of securities, issued IN connecfloff With pf6pefz
ty which these roads say cost $92, ,179, 1858
and is only worth S2S,72s, 1888. Ii their
claims were allowed the state would lose $494,-
l44.27 of tax, and the officials of these roads
would be convicted of a Encouragement that
would be inexcusable. In the discussion of
this subject, shall treat Of the roads as CLASH
fed into systems, where they are controlled
by one corporation. | annex a list of the
roads thus, classified, for greater clearness and
accuracy.
Of the non-litigating companies, the Penn
sylvania Railroad Company, for itself and the
various corporations within its system, which,
itclaims, are embraced within an alleged con-
tract with the State, continues to pay into the
State Treasury the sum Of $29S, ,12S.9S, and in
addition, paid on behalf of such corporations un-
der protest sum sufficient to equal the amount
assessed on such railroads bv the State
Board. This company also pays taxes
upon eight companies, S57 1892 State
tax and $10,369.94 local tax without protest
and without contest. (d) I annex copies of
protests affecting fifteen of the the corporations
under the Pennsylvania system. They create
grave doubts as to the attitude Of these corpor-
ations. They declare that this payment is
made in the exercise of the discretion author
lied by the 29th section of the act of April 10,
1884, IL. 1884, p. 1881, without waiver by the
lessee or by any of the said corporations Of
their contract, but asserting the same and
claiming all benefits that may be had or
claimed under said act or the supplement
thereto, approved February 5, 1885 GISS5, D.
Is, sec. 4) This last act permits these corpor-
ations within six months after final adiudica-
ton in any contested case, to apply for writ
of certiorari and thereupon they become en-
titled to all the benefits of the contest the same
as if they had contested the tax from the be-
ginning. The attitude of this system of rail
roads, in reference to the companies claimed
to be included in the alleged contract, seems
to be this:
First. We will pay without litigation, but
In making the payment we will pay under our
alleged contract, without protest as to the
amount we admit to be due under such CON
tract.
Second. We will pay the amount assessed by
the Board, in excess of this contract, but
under protest
Ihard We will claim whenever necessary
the right to take advantage of the litigation Of
other companies at any time within six
months OF any adjudication made in their
favor
If the contesting roads succeed, the Penn
sylvania system will derive the same benefits
as though it had originally contested the tax.
The companies embraced within the New
York, Lake Erie and Western system have,
with two exceptions, paid the tax imposed
under the act of 1884 without protest. These
exceptions are the Paterson and Hudson River
Railroad Company and the Paterson and
Ramapo Railroad Company. These companies
are litigants. The Paterson and Hudson
River Railroad Company was taxed the sum
of 50, ,47294 for State purposes and $1,346.30
for local purposes, and has paid under order
of court the sum of SO, ,150 for State purposes.
The Paterson and Ramapo Railroad Com
pany was taxed the sum of sc, ,227 rs for State,
and $1.U94.94 for local purposes. 1t has paid
under order of the court the sum Of .S1,750.
These two companies allege that they have ir-
repealable contracts with the State, and the
amounts paid are the amounts admitted bv
them to be due under such alleged contracts
The companies included in the old New
Jersey Central system are all contesting the
payment of the tax. 1t is claimed by these
roads that they are excessively taxed. This
claim has no foundation in fact, as will be ap-
(a) See list Of these companies under classi-
ficatiOn of roads in svstanis annovad IL ,,,o,