The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1889-08-13
Observation-Disclosures
The Morris and Essex Rail
road Suit Not All One
Sided.
THE ATTORNEY GENERALS VIEW.
If the ArbitratOrs Fail to Agree the
Company Can Still Be Sued and
Its Charter Can Be Repealed.

Speculation Is general in railroad and
State circles as to what will be the OUT
come of the suit instituted by the State
against the Delaware, Lackawanna and
Western Railroad Company to recover
about million dollars of back taxes. out
OF which the State claims to have been
chiseled by the railroad company.
The basis of the suit was laid in q
special message sent to the Legislature by
Governor Albeit four years ago Speak
ing generally, the allegation is that the
railroad, upon whose own statement the
tax bills of the State were made out, with
drew items from the assets of the COM
pany which were taxable and put them in
among the items on which no tax could be
levied In his special message Governor
Albeit estimated that by this device the
railroads had cheated the State out of
s5o,OOO year for nearly twenty years.
THE ARBITRAToRs.
The railroad company, under threat Of
losing It's charter, agreed to refer this
great claim to arbitrators. The Railroad
was to choose one, the State another, and
s1ngularly enough no third man was to
be chosen by them in the event of their
being dead-locked. Judge Dillon, of New
York, a railroad lawyer of the highest
officials. The State selected one F. w.
Stevens, Newark lawyer to act in its
behalf. AS has already been reported in
these columns, great volumes of testi-
mony have been taken, and the final
arguments are set down for day in Oc-
tober.
Ex-Governor Bedle was quoted at the
close of the testimony as saying that the
State would be lucky if it got enough out
OF the suit to pay the expenses of the liti-
cation; and on all sides it has been as
sumed that the railroad company will
have its own way in the matter, or that
there will be no agreement between the
arbitrators. 1t has in fact been mora
than half suspected from the start that
the railroad consented to the arbitration
only in the hope of bringing about one
of these results.
AGAINST THE STATE.
It was argued that Stevens is very
weak man for the State to match against so
shrewd and Skillful an antagonist as Dill
Ion, and that Dillon would be likely to
overreach the arbitrator on behalf Of
the State in reaching the conclusion
Then it was said too. that even if Stevens
proves to be more worthy of Dillon's
steel than anybody expects him to be- it
is altogether likely that Dillon, acting for
the railroad will put his foot down at the
| figure the railroad is willing to pay, and
that If the State refuses to accept that, it
| tdtlnOt SCb oil u1llllk.
| met Attorney General Stockton, who
| has had charge of the proceedings, on his
| way TO the beach day or two ago, and
| he took issue with this view.
THE STATE HAS ROD
''The railroad could accomplish moth
! ing" he said. ''by setting it's face against
| fair adjustment of the differences. II
| the arbitrators cannot agree, the State
may yet take it's claim into the courts,
and sue to recover the amount DUE And
| it may, besides, commence proceedings to
| forfeit the charter of the road. BY the
| terms of the company's charter, the State
can at any time bring suit to take its
| charter from it.
There is nothing in the act consenting
| to the arbitration that cuts the State out
of that right. So, you see, that the State
| is thoroughly guarded, by the surround
! ings, against the company's arbitrator
arbitrarily setting himself against allow
| ing the State less than it is fairly entitled
| to. Beyond and above all this Judge Dill
| lon is man of such character and stand
ing that for his own reputation he will do
noUhing that is not fair and equitable"
| The Attorney General intimated that,
even if the arbitrators agree, the State
will not lose its right to wipe out the
! company's charter.