The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-01-13

ments to be made and manage the fund.
The treasurer would only have to open an
additional account in his books, to be
known as the Sinking fund account" and
place the securities in bis vault. The agent
of the school fund having the care of the
school fun properties could without adj
ditional charge take care Of the real estate
Of the sinking fund.
The moneys received and disbursed from
this fund and its accounts do not now and
never did pass through the Office OF either
the comptroller or treasurer. In my judg-
ment these and all other state accounts
ought to be found in the books of these
officials.
Section 2 of the supplement to the act,
creating the Office of comptroller, approved
March "a, 1858 laws Of 1888. p. 465), makes
it the duty Of all public officers or other
persons, who as agents of the state receive
moneys belonging to the state to report the
same to the comptroller for audit n reg
istry.
The valuation of the bonds, mortgages
and real estate given as part Of the assets
Is not a fair representation of their real
value. The commissioners report that the
real estate, which Is part of the fund, is
worth only about fifty cents on the dollar.
What the bonds and mortgages are worth
It is impossible to tell. In some instances
1t is doubtful IL they would bring their face
value and interest. with the expenses Of
foreclosure, although the commissioners
report that in times of ordinary prosperity,
and with care and prudence, their full
value might be collected.
Tax Laws.
/ stated in my inaugural message that in
many localities there were inequalities of
assessment and violations of the law which
demanded legislative action, that unfair
valuations were made by some of the local
tax assessors, and that there should be
some tribunal beyond local control, with
power to correct unfair assessments and
enforce existing laws. These assessments
in some cases result from neglect of duty,
and in Others from u willfui violation of
the law.
1 also recommended the appointment of
a non-partisan commission to examine this
subject and report u the present legisia-
ture the defects in the tax laws and in
their practical administration, and the
remedies for securing proper reforms.
In pursuance of this recommendation
the legislature passed a resolution en-
titled "Joint resolution relative TO the
taxation of property, which was approved
April Z, 1897 laws of 1890, p. 5l5). This
resolution provided that there should be
appointed a committee to take into con-
sideration the taxation of property, and to
prepare and report to the next legislature
a bill for that purpose. IL provided for the
appointment of six persons-two from the
senate, two from the house and two by the
governor. This committee was empowered
TO sit during vacation, and employ neces-
sary clerical and legal assistance.
= The senate appointed John j. Gardner
and Moses X. Everitt; the house, Fred
erick C.. Marsh and Foster M. Voorhees,,
and the governor appointed the attorney
general and Barker Gummere.
This committee met and organized by
the appointment of Barker Gummere az
chairman, and held meetings in all the
counties of the state, to which the assess
ors of the several taxing districts and the
leading taxpayers were summoned.
The commissioners report hat they have
diligently investigated the practical execu-
ton of the tax laws; that the evils result
ing from such administration have been
disclosed to and considered by the COM
mission; that through their counsel they
have thoroughly examined the reports of
tax commissioners, and the legislation on
the subject of taxation in our sister states;
that they have devoted themselves faith
fully and a~ssiduously to their duties.
They further report that taxes are as
sessed with a practical disregard of exist
ing statutes respecting the valuation of
property, which Is the fundamental part of
our tax system.
That the assessors, instead of valuing
property at its true value, as required by
the constitution, arbitrarily value it at a
varying percentage, ranging from 25 to
over SO per cent. OF its true value.
That in adopting this percentage Of
value they do not seem to have expended
either time or judgment in a~scertaining
what was the true value of the property.
The local assessors defend their action
on the ground that the assessors of other
taxing districts return the values of prop
erty at percentages so far below true value
that they are compelled, in order to escape
an undue share of taxation for their dis
tricts, TO adopt a like percentage as the
fF1lQ VaInp4nT npnnc4rfN. That fhaU Gnaun IN
be controlled by this desire rather than
any rule or provision Of law.
That each newly elected assessor uses the
assessment books of his predecessor as the
normal standard of value of the property
in the district, only varying it in specific
cases, and in such cases raising or lowering
the valuation after a hurried inspection of
the property valued.
That the result of this method is that
the relative valuations of property, of sub
~stantially the same value, are grossly diff
ferent, and give rise to a general feeling of
dissatisfaction on the part of the taxpayers.
That a review of the valuation in each
taxing district by the board of commission
ers of appeals is hurried and inefficient,
and does not result in correcting the in
CAPABILITIES of valuations in the same taxing
district.
That the attempts Of equalization of
taxes in the several counties, attempted to
be made by a board composed of the as
SCISSORS of the several taxing districts of the
counties, are very inefficient, and have re-
suited in a contest between the urban and
suburban taxing districts, In which entire
valuations of districts are arbitrarily in
creased or diminished by the addition or
subtraction of arbitrary amounts.
That the deduction of alleged debts from
the valuation of property, made by the as
SCISSORS, is a fruitful source Of evil.
That as the law now stands it is practi-
cally impossible to prevent this swearing
off Of taxes by any taxpayer if he is will
ing to make oath, and that by means of
this provision of the law many citizens of
wealth practically escape taxation.
That one of the modes of evasion thus
practiced is TO borrow money from the
banks just before the tax assessment is
made, and purchase Herewith United
States bonds; that the money thus bor-
rowed is sworn off as a debt, and the bonds
purchased with the money are exempt
from taxation.
That this deduction in many cases is
greater than the taxable personal property
of the individual, and is used to reduce the
amount of taxes he would otherwise pay
upon real estate; that, after the taxes are
imposed, the United States bonds are sold,
and the money borrowed to purchase them
Is repaid to the bank or other institution
from which the same was borrowed.
That these evils exist largely in the