The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-03-31
$4,000.
The Morris and Essex Rail-
road Brought to
Time.
ARBITRATORS In ACCORD
The State Allows a Rebate for over
paid Taxes, and the Whole
Sum Will Be Speedily
Paid Up.

dlu Ups
The arbitrators appointed by the State
and the Morris a nd Essex Railroad Com
pany TO adjust the mount Of past due
taxes have reached an agreement and
mutually signed an award by which the
question submitted to them is settled and
basis laid for future adjustm ent Of Inn
portant issues.
As was stated by THE JERSEY CRY NEWS
on thursday last, the arbitrators had III
most greed to disagree, Mr.. Stevens on
tne part the State demanding $500 600
and Mr.. Dillon, on the part of the COM
pany being unwilling to concede more
The statement by The JERSEY Cry NEWS
OF the status of affairs; the subsequent
utteran ces by Governor Albeit OF his
general purpose in the matter, and the
Jealous warmth shown by the House of
assembly IN defending the States posi-
Ilon and enforcing its claims, seems to
nave renewed the activity of the arbitra-
tors and so modified the attitude Of the
railroad company as to lead to an early
Sc ttlement upon the basis OF the States
demand.
Concisely stated, the result of the agree
men5 and award OF the arbitrators is that
the company agrees to pay to the State
the sum of $500, 900 which the States arbl-
traitor claims TO be due for taxes levied
under the old law, prlor to 1888; the State
agrees o credit on this payment the sum
OF $4,000 for takes overpaid under the
new law since 1885, making a net paw
ment TO the State of S235 900 500, 900 IN
thirty days, 100000 in sixty days and
S35, 600 in ninety days.
Besides this adjustment of accounts,
there IS a still more important feature Of
the arbitration in the agreement that the
company will yield its special contract
with the State in regard to taxation and
subject itself to all constitutional gem
eral tax laws applicable to all railroad
companies, Z it the State will by legislAr
tive act yield its right to purchase anAs
acquire the railroad and property of theS
Morris and Essex Railroad at cost, as pro-
vided by the charter.
The following is the full text of the
award:--
Whereas BY virtue Of a Joint resoint;op rala.
tive to the arbitration of alleged taxes in arrears
under the charter and supplements of the Morris
and Essex Railroad Company, the Senate and
aeneraI Assembly OF the State of New Jersey
submitted all matters in differences between the
state OF New Jersey and the Morris and Essex
Railroad Company and the Delaware. Lacka-
wanna and Western Railroad Company its
lessee, OF alleged taxes in arrears arising under
the charter and supplements Of the Morris and
Essex Railroad Company to the arbitration Of
two arbitrators, one OF whom should be chosen
in writing by the Governor, who duly chose
Frederick W. Stevens as arbitrator, and the
CHOSEN J.
paries 10 writing, who duly chose John E. Dillon
as arbitrator; and,
Whereas, The appointments of the said arbi-
traitors duly fled in the office OF the Secre-
tary OF State within thirty days from the pass
age OF said joint resolution, and the arbitraEors
duly TOOK an oarn OF ofTice; anu,
Whereas, Under orders made by the arbitra
tors the State formulated in writing its com
plant, setting forth its claims of alleged taxes
in arr ears, to which the said companies made
Whereas, Under the authority given TO the
said arbltr atorS In said resolution, They caused
the SAID par ties to take their respective proofs
touching the matters contained in the complaint
and answer and said joint resolution, which
We're submitted to the arbitrators as aforesaid;
and
Whereas The sal arbirrators have exarn-
ined the said roofs and heard the counsel Of the
respective par ties thereon, and duly considered
Now, therefore, we the said arbitrators do
hereby make our award in writing as follows
That in full payment and satisfaction of all
alleged claims OF the State against the Morris
and Essex Railroad Comp any, and the Della
ware, Lackawanna and Wes tern Railroad COM
pany, its lessee, in respect of taxes in arrears
from the organization of the Morris and Essex
Railroad Company, down to and including the
year 1888 the said Morris and Essex Railroad
Company. pan and the said Delaware. Lackawanna
and western Railroad Company, its lessee shall
pay to the State of New Jersey the sum Of three
hundred thousand dollars. (S300 000.l
And it is further ordered and awarded in re-
spect of the taxes since 1883 down to and incI,1d
ing the year 1882 as follows. to witt
That II the State shall as contemplated pass
an act at the present session Of the Legislature
sure endering the right given by the sixteenth
section Of the charter of the Morris and Essex
railroad Company, passed January 20. 1885, or
and acquire the railroad and properly of the
Morris and Essex Railroad Company as set
forth and contained in, said charter and supple
ments, in consideration that the company shall
surrender the special contract in relation to taxi
alton as provided in section Is Of said charter OF
January 20, 1885, and the third section Of the
IN
of the supplements to said original charter, and
shall agree to submit itself to the operation OF
the provisions of all constitutional general tax
laws applicable to all railroad companies passed
or to be passed. and shall release the State from
all liability in respect OF refunding or repaynR
taxes paid under general tax laws since and in
cluding the year 1884, then the above ward is to
be credited with the sum of sixty-fye Thousand
dollars (S65, ,O00).
New Jersey shall pass no such act as the one
above contemplated at the present session
thereof. then the above award is to be credited
with the said sum of sixty-five thousand dollars
(S65,000) provided the said railroad companies
shall file with the Comptroller of the State 10
lease to the State of New Jersey of all claims
against the State for on in respect of refundinx
or replying taxes paid by the said companies, or
either Of them, since and including the year
1884,
The amount above awarded shall be paid by
the said railroad companies to the Treasurer Of
New Jersey as follows:-S 800, 600 within thirty
the Legislature; 100000 within thirty days
thereafter and the balance within thirty days
thereafter.
In reaching this award the arbitrators deem il
proper to add, each for himself, that it has been
the result OF careful examination of the votunl-
inous testimony embracing complicated trans
actions running through period OF about forty
years. Many of the questions involved, es-
pecially those relating to net earnings, cost OF
road time OF payment and others, are compli-
Gated and. to a large extent, unadjudicated In
consequence of different constructions put upon
the charter and acts relating to the subject by
the State and the company, there wide
difference between them, the State claiming
that the company was in. arrears about 500, ,0e0,
exclusive OF interest, and the company claiming
to have paid the State not only in full, but about
$24o,000 besides. The arbitrators acquit the
company and its officers of any intention In the
reports which have been made from time to
time of design to defraud or wrong the State
1t is further awarded that each party shall pay
its own costs.
Dated, signed and sealed this 2sth day Of
March, A, D., 1890.
G.. So FREDERIC W. STEVENS.
(L.s) JOHN r. DILLON.
Nnn Er