The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-03-04
TAXATION TALK.
The House Judiciary Committee Hears
All About That Awful Bill.

Trade of Newark, was the nrSt speaker.
He said that there was a widespread feel
ing againt the bill. Not because Of re-
luctance to bear any necessary taxation
that Is equitably apportioned upon sound
and just principles; but because, In addi-
ton to the inquisitorial and despotic
yigor of it's provisions. the bill has not
the merit of just apportionment All
property should be taxed once. A man
owns only what he has above his just
debts. No corporation should be taxed
for its bcilding, machinery and its assets
aud then the stock which has no intrinsic
value. II it were & business nrm wnicn
| had no stock, the assets alone would be
taxed. II both property and stock are to
! be assessed Ii was double taxation.
The fact that the system OF taxation
heretofore devised has failed to reach all
| property values with an equality OF the
burden OF taxation was no excuse Tor
law that would infiict double taxation.
Such a law would inflict punishment
upon the innocent, because there are
fsomeg guilty VINO escape
Mr., Bassett claimed that the clauses
which taxed notes and mortgages
amounted practically to double taxation.
he denounced as highway robbery. There
was plenty of work for a good tax COM
| mission in this State. he declared, and
said that there was no wal or any other
necessity for such an inquisitorial tax as
this bill proposed.
INSURANCE OBJECTIONS.
Ex-Judge Frederick Teise, VINO said he
represented the Mutual Life Insurance
Company Of Newark, spoke against tax
ing life insurance companies. and began
by calling attention to what the State had
said about taxing life insurance ompan-
fau Wbau cueh commands WQre VOunU
In this State, the Legislature In 1854,
passed a law under which the companies
of the State nave been tax since, and
Mr.. Teise claimed that they should be
taxed under the provisions OF that law
which axed them on their capital less
the value of their policies. The compan-
les having made their investments and
calculations on the basis of that law, he
thought that they should have some con-
sideration. He sroke of the benevolent
character of the life insurance companies,
and claimed that as the chief benef1ciarles
of their work were widows IN orphans
they were also entitled To some consider
GRAFTON. If they could not do business
SO as to make 4 per cent. compound inter-
est they could not compete with the COM
panies Of other States, and would be
driven out Of business. He claimed that
they would not be able to make that 4 per
cent. If they were taxed under this bill.
The Mutual Life. he said, paid more
taxes to the State of New Jersey than any
other company paid in any other State in
the Union. II paid h State now $4,000
a year. Judge ferris argued in favor of
| the law of 1864, under which the compan-
les are now taxed, and declared that mat
was the best method yet devised for the
| companies and State alike. He suggested
an amendment which wonld exempt life
| insurance companies from the provisions
of the bill the same as railroads and
canals.
Frederick Kuhn. editor of Erie Zet-
tuna of Newark, spoke against the clause
in the bill taxing schools. He said that he
represented a society which maintained
six English-German schools which are
supported mainly by voluntary contribu-
lions. They charge q small tuition fee,
and therefore come under the provisions
of the law. The schools accommodate
1,5O0 pupils, and " the city of Newark
at least $4,000 annually.
METHOD OF COLLECTION.
City Counsel Joseph Coult of Newark,
opposed the section which relates to the
method OF collecting axes. He said it
was unsuitable 10 Newark. II was not
necessary in the law and simply provides
new machinery for collecting taxes. 1t
might have done in the country, but it
would not do in the cities like Newark.
He suggested that the bill be amended SO
that no proceedings for the assessment
and collection of taxes which may AVE
been started by the present taxing officers
at the time the bill goes into effect should
be iuterfered with.
John 4. Dryden, president of the Pru-
Dental Insurance Company of Newark,
also denounced the law. He said that it
would unsettle all business interests for
some time to come until this bill If 1t be-
came a law was thoroughly established
by the courts. His argument followed in
the line of Judge Teise's remarks.
Mr. katphAm nFqSQnfpn n nrnfQcf from
the American Insurance Company, of
Newark, N. j., which represented that in
1916 they were Incorporated by the Legis-
lature to transact the business of insur-
ance at the above place. For forty-ige
years they have been engaged in that oc-
cupation, under direction of the charter
and other laws of the State.
Their business has been carefully con-
Quoted, and the company Is now one of
the largest of the kind in the State, with
assets of about two millions of dollars,
which the directors hold as trustees for
the members, and which has been mainly
Invested in bonds and mortgages in the
State of New Jersey under the avs of the
State and more particularly under the
laws of April IL, 1876, adopted since the
amendment of the constitution in 1875,
and which were passed to meet the wants
of citizens Of the State, and provide that
taxes shall be paid on all property mort
gagged. The acts have accomplished this
object, have kept capital in the State, and
brought it here from abroad.
1t is feared that the effect of Assembly
bill No. 243 will be to prevent these OBJ
jects. unless a provision is inserted in the
bill in the following or like words pro-
Viding that the acts of April IL, 1876, be
continued in force, viz
provided, that nothing in this act con-
tanned, shall be construed TO alter, mod
ify or repeal the acts passed by the Legis-
Iarure, aud approved April II. 1876, pro-
viding for the taxation of property
mortgaged in the State of New Jersey,
but that the said acts shall continue and
remain in force"
Mr.. Charles Colyer. secretary of the
Firenlan's Insurance Company, opposed
the bill on the ground that IL worked un-
justly to his company. The law COM
pelled the company to invest in bonds
and mortgages. Inasmuch as the new
bill would TAX the mortgages and then
tax the company under the provisions Of
the bill it amounts to double taxation.
UZal McCarter of the Fidelity Trust
Company of Newark said that if the bill
taxed fire Insurance. companies double, il
taxed trust companies quadruple. They
could not stand it, and would be driven
out Of business.