New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-28
A BILL TO MULCT RAILROADS..
THE CORPORATION LAWYERS OPINION
OF THE EQUAL TAXATION MEASURE.
MIR. vREDENBERG SAYS IN ONE BREATH THAT 1T
Is CONFTSCATION, AND IN THE NEXT THAT
THE PEOPLE. NOT THE RAILWAYS.
WOULD PAY THE TAX-HEARiNG

BEFORE THE COMMITTEE.
Trenton. Feb. 27 (Specia) The Railroads and Ca
mails Committee OF the House gave a hearing this
afternoon on House bill No. l. the Equal Taxation
bill. in whcn the Hudson County members 50
deeply Interested Four members OF the commit
tee, Mess,s. Lower Tice Alpaugh and Hopkins,
present. Mr. Harvey the other member Of
the committee unable 10 be present. Mr..
Nredenberg, counsel OF the Pennsylvania Railroad
Company. the first speaker. He began by
saying that the idea that the Pennsylvania Railroad
Company did not pay local tax TO Jersey City
a mistaken
I'm ali. gentlemen" said the lawyer. 1.-The COM
pany represent pays taxes on SG3,0OO.0oo worth Of
property in this State. Upon this the taxes amount
10 N000N annually. We are paying annually 10
Jersey City the sum Of $4,000, besides which
pay $4,000 to the city for water or this $1,000 IS
for local tax property known No property.
We own is9 acres of land In Jersey City. This IS
one fovtieh of the total area ard yet upon this
pay just one-ffteenth OF the total taxes collected
in Jersey CITY
OF the sGS.eoOoo valuation placed upon the prop
erty OF tee Pennsylvania Railroad Company. de-
sire remind you exactly sl90O0VD is for nothing
more than goodwill. Does any individual taxpayer
pay for goodwill? This is called a franchise. the
right to Go business. We are assessed for personal
property besides. Other personal property is not
assessed in Hudson County.
PERSONAL PROPERTY NOT ASSESSED.
why Mr.. Chairman. personal property in
this State Is assessed at 100000 and all the other
personal property in Jersey CITY Is only assessed at
100000 Is this all they have Of personal prop
erty? Let see. Why. / know the First Ma
tonal Bank Of Jersey City mas deposit the cum
Of M.0c0c0; the Second National Bank has 100000
hand the Providen;ial Savings Bank has 5000
: eco on deposit: the Trust COMPANY, S2.O0o0U. and
. go and at least &0.0cO.0OJ. yes, per
haps. 100000 OF persona. property in Hudson
County that is not assessed These facts are easily
proven. The banks report their deposits every
year. ard the other facts close at hand IN the
various reports of the different State officers"
NJ Nredenberg quoted at length from legal opn-
ions to show that the railroad he represented
had been paying taxes upon all its property and
from the report of the railroad assessors to show
that the valuation Of the companies was the full
market value The State Board Of Tax Commits
soners, he declared his authority for the state
ment that the personal property Of Jersey City
! ard Hudson County was not assessed. Referring
to a report OF the railroad assessors. in which
it was said that they had made a thorough in
vestigation of the subject and found that railroad
property was fairly and honestly assessed, he de-
ciared that the present bill would Just double the
of the railroads.
CONFISCATION NOT TAXATION
"Why. just examine the statement the author of
this bill has prepared added Mr.. Nredenbers
Here is what he proposes: They say the bill VIII
Increase the railroad to 100000. but. as
figure II. II will be nearly $4,cO0cv. Look al ~
The present local tax in Cape May is $40 This
bill increases the tax TO SlGl75! The present tax
on local property at Somerset is N,o2' THIS b!i
proposes Increase that tax TO $4,000 Think OF
It! 1t Is not taxation. II Is conhscation. This Is
TO. bill for equal taxation II Is Dill 10 en-
courage litigation
"Who will pay this increase II you pass this bill?
1t is the who travel and who ship freight 1t
is the farmer who will pay this tax If you pass
the bill and he can least afford it,
Flavel McGee the counsel OF the Delaware.
Lackawanna and Western. the next speaker.
He opened his argument with the declaration that
the bill proposed was rather for unequal taxa
ton than otherwise. He discussed at length the
fictitious values placed upon the property wanted
and purchased by the big corporations ana con-
demned the policy Of heavy taxation OF corpora
lions as contrary TO precedent In New-Jersey and
inimcal 10 the interests Of the State. He said the
Delaware, Lackawanna and Western PAID n tax
Of $Z75JG5 IS for the year 1896 Inis Is over per
cent OF the gross earnings OF the company. The
State law fixes the tax on the ordinary corporation
at one-,enth Of per cent. us this fair dscrmina-
tom" he asked He held that the bill proposed TO
tax the Delaware. Lsckawanna and Western about
10 per cent its gross earnings.
Mr. MCGEE followed BY Mr.: Queen the nitro
Queer Of the bill under discussion He said the
bill was not simply for the benefit OF Jersey CITY.
cried. but as the day dawns the time Of
every community VIII come
ANOTHER SET OF FIGURES.
He had figured the valuation and taxes paid by
the individuals OF jersey City. and had found that
the total valuation OF the property OF the city was
exactly Sl20O0O,ODO OF this sum 100000 Is the
valuation placed upon the individual property, and
this paws a tax OF $22i0OOo. The $90ooc)o OF the
railroad companies paid a tax OF Sgt1p. THIS IS
in a proportion Of to against the individual
do you call this equal taxation" he asked.
I'VE simply ask that the railroads pay the same
tax on the same amount Of property AS the ind-
vidual is compelled to pay. on $4,000 the rail-
roads pay $4,000. on the same amount the mol
vidual pays exactly 100000"
Assenbiyman Hoos spoke next He said he did
not address the committee as member OF the law
HE wanted 10 answer some assertions BY Nj
Vredenberg. Mr.: Hoos said that when MI Ereden-
know that this expense was made necessary be-
cause the railroads had forced the people from the
built for the purpose Of trying to attract new resi-
dents to make up the loss
depreciated," said Mr. Hoos. II purchased prop
erty in Newark ave for $4,000 That property is
$4,000 The railroads are responsible for this"
Henry v condet. Of Jersey CITY, after question,
the railroads were interested in Jersey City 4 was
their duty pay their fair share OF taxes and save
Referring to the statement of one of the railroad
wSre a ana Western
quoted at lG2. and not share was sold because cause,
road. he said was quoted at l0i. Among the others
who spoke was Louis V. Booream. OF Jersey who
told the story Of the reorganization of the Erie
Company.
AFRAID OF DELAY.
George McEwan, Of Jersey City. closed the peo-
pies side Of the case. answering at length the
argument advanced by James Allen, the Erie lobby
!s made before the committee last week.
To the surprise Of the advocates of the bill Chair
man Lower announced that the committee would
adjourn until next Tuesday night in order TO give
any others who be interested an opportunity 20
be heard. This statement brought forth vigorous
protest from Mr.. Queen. VINO reminded the commit
tee that the announcement had been made lust
week that to-day the public hearings would be
closed He insisted as the inroducer OF the meas
ure that the committee make some kind Of re-
port not later Monday night. whether Il be
favorable or adverse He felt that ample time had
been given to those who sought be heard, and DID