The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-12-22
NOT AS0THtRS STATES
New Jerseys Discrimina-
tions Against Private
Property in Favor Of
the Railroads.
THE MASSACHUSETTS, SYSTEM
Franchise Tax Compared With
the Levy Made for Liquor
and Other Licenses.
Final Instalment of the Munich
pality's Brief Filed With the
Equal Taxation Com
missioners..
The final instalment Of the Jersey City
Equal Taxation Brief is given below

The final instalment Of the Jersey City
Equal Taxation Brief Is given below
The reports published by the States of
Massachusetts, and New York, covering
the railroad statistics, llave been for years
accepted as standard books of reference,
and are recognized as the most carefully
prepared of the State Reports on the sub
ject. To overthrow table ~, these re-
ports must be discarded and disbelieved.
The counsel for Erie has contented him
self with criticisms Of some of the minor
details OF difference He has presented
no table of his own construction from
these reports. Had he done so, the result
wolld have differed very little from our
mitted from them would have remained,
to wit:-That the railroads of New Jersey,
when compared with the other States in
table II" do not bear their relative shares
of the burden of taxation.
For years the railroads have insisted
hat their burdens in New Jersey were
greater than elsewhere. We respectfully
submit that Investigation has exploded
this theory.
It is evident counsel for Erie is not com
versant with the Massachusetts, system of
railroad taxation, or he would not charac-
terize it as radically different from the
In fact there Is a great resemblance be-
tween the W. systems IN method, but as
to results Massachusetts, secures full and
equal taxation Of her railroads as we'll as
In that State all railroad property out
Of the location which corresponds
to the main stem in New Jersey Except
that it is five rods wide only Instead of
local assessors in the same manner and
at the same rate as all other ratableS in
the taxing district. The remaining value
Qmain stem and franchises) is taxed by
the Thy Conn niqainY1n< of the State Inv
computing the full market value of the
stock, ~Subtracting from this sum the rat
ables locally assessed, and taxing the re-
mainder at the average tax rate of the
State. The proceeds of this tax are divid-
ed among the taxing districts in proper
ton as the stock held in each, Is to the
whole issue, and the tax representing
treasury ofSthe state for state purposes.
The city of Boston received in 1895 from
taxes on railroad property locally assessed
at a valuation of $50, 729, $50. the sum Of
1898, 80. 08.
The area Of railroad property in that
city is 700. 70 acres outside of the location
or main stem. Can there be n cempari-
son between cheese local terminals and
railroads with the terminals on New York
harbor and the giant trunk lines owning
we cali the attention Of the Commission
to the map produced by US showing the
city of Boston, with the railroad property
eolored red. very little Of 1t comparative
1y Is ON tide water.
At the same time the railroads Of Massa-
chusette paid to the State on capital stock
at the average rate OF the State, $14.95 per
81, 000-see report of State Auditor, 1885,
pages SO to 69-S1, $40, 53S, which is S2S.1 76
more than the entire tax paid by New
Jersey railroads on a mileage 1873 miles
greater; the companies also paid full local
taxes on all real estate outside of the
main stem.
In the State of New York all railroad
property, including main stem, Is assessed
and taxed where found by the local asses
sors at full local ratesAand in addition to
this. the State collects a tax practically
on franchise, which, as will be seen by
the letter following, amounted, for tax OF
Albany, November %, 1896.
Earle & Harrison, Civil Engineers and
Surveyors, corner Montgomery and Hud-
son streets, Jersey City, N. IL:
Gentlemen-Replying to your letter or
November 81, permit me to say
The State of New York collected, in d.
rect taxes from the railroad corporations
in the State, during, the year ending Ne
amount ss1s, $685. were taxes upon gross
earnings and the balance Upon capital
stock.
Respectfully WM. + y0q Mo.RaAN.
Deputy Comptroller
The city of Buffalo, with a total area OF
26. $50 acres, contains railroad property
covering 2.6ss.16 acres, the tax on which.
| valued by the local assessors at so, 81, $3.50,
was s526, 6s2. "a for city and county.
The astute counsel for the Central Rail-
| road of New Jersey knows too well the
danger of comparisons made between NeW
Jersey its railroads. and any State or
| railroad System at all equal in value,
| based on physical condition, earn
ing capacity, advantageous position
| terminal properly on tide water. and
| seeks to snow, by a comparison with the
statistics of Group ii. in the interstate
| Commerce Commission Report that the
| railroads. of this State are o~vervalued and
| taxed above the average OF that group
| which includes all of New Jersey, .Deia-
ware and Maryland, all Pennsylvania ex-
| cent the northwest corner, and ali New
| York east Of Buffalo, and a small por-
ton out Of the northwes corner OF West
| Virginia. 80
| comparison to point to the statistics OF
Group l.. comprising the New england
| States. printed in .counseIs brief at the
a comparison of Group I. and Group II.
| shows that the New England railroads,
| with less proportion of miles. of track to
| ings per mile than Group H., and still
| further away from New Jersey roads IN
! ali these elements Of value, pay within
| Of the railroads Of New -Jersey-more per
| mile of -track-alm0st double the amount
| per 81, 900 Of capitalization-23 per cent.
/ more per 81 900 of gross earnings
The Question is not-How does railroad
taxation in New Jersey compare with
| States IN which railroads are taxed UNI
equally Or exempted BY special legisla,
class In 1854, but with States in which
/ equal taxation exists or Is aimed at and
in which equal taxation Exists or Is
| bear some relation to those of New Jer.
ssy; -a.n ob3oottva noanf "a wh;oh al