The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-03-27
IT ALL GOES FOR NAUGHT
lmpotent Conclusion Of the
Delaware and Lacka-
wanna Arbitration.
THE ARBITRATORs CANNOT AGREE
Four Years Of Tune and Labor and
Thousands OF Dollars OF Money
Fruitlessly Expended.
Special TO The Jerscy cfty Ne,cs.

TRENTON. March %. lS90.--All the ex-
pense to which the State has been put in
the matter of the arbitration of the dis
pute between the State and the Delaware,
Lackawanna and Western Railroad over
the back taxes claimed by the State from
the company has gone for naught The
arbitrators reported to the Governor this
afternoon that they could not agree, and
the Governor proposed to have the COM
pany made to settle up by the passage of
several bills through the house which he
win propose.
The controversy over these taxes has
ss oeen going on for several years and the
state claimed something like $1,000,000.
me case was perhaps the most celebrated
IN Lne annals OF the State.
HISTORY OF THE STATE.
In 1856, it will be remembered, the Gov
ernor sent message to the Legislature
GAZING attention to the fact That the
Morris and Essex Railroad Com
pany by its sworn statements
to the Secretary of State had declared
that its equipment and personal property
was less than $3,000,000. while it claimed
exemption in 1884 to over $1300O.O 900, and
urged the passage of such legislation as
would permit of an examination of the
affairs OF the company. After considerable
negotiations with the company the State
secured permission to have an accountant
60 over the books of the company, and
reported the result of his labors to the
State Board OF Assessors.
The report led the Board to declare that
after mature deliberation upon all the
facts developed by the examination made
Dy them, they were led to the conclusion
that the Morris and Essex Railroad Com
pany had reported the cost of its road for
taxation at much less than the cost from
Lne year 1907 to the present time, and that
thereby 1t had withheld from the State,
IN violation of it's charter and the supple
ments thereto. large sums of money
justly due to the State, amounting in the
aggregate, If interest were added, to
more than 81 900, 900.
IL is generally thought that the estimate
made by the State Board of Assessors is
high and that S500,00 would be fair
estimate OF the amount due the State
FIGURES OF THE ARBITRAToRs.
The matter was finally submitted to
arbitration. Frederick w. Stevens, OF
Newark. was chosen as arbitrator
by the State, and Judge John j.
Dillon, of New York, the railroad
company. A large amount of expert
testimony was taken and the matter
argued at length by Attorney General
Stockton and Barker Gummere, Sr and
Jr., for the State, and ex- Governor Joseph
Bedle for the company.
Judge Stevens found the amount due
the State to be $300,000 and Dillon fixed
the amount at $l37 900 They have filed
their respective reports with the Governor
and he is determined to secure by legis-
lation the full amount due the State. He
will have the Attorney General draft two
bills, which he will send to the Legisla-
lature with forcib!e message outlining
the whole proceedings and urging the
passage of the bill.
For MU1IOT.- R0Jlp9.t T1O7ie