The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-12-22

same witness says, If d company should
attempt to build a railroad from st.
practicable unless 1t should first secure
6. Which water?"
York. between caven Point and the Pail
ii tie effort to reach tins front by its
was b~ankrupted.
BY reaching it and securing a foot
hold thereon. after years of litigation, the
Lehigh Valley Railroad has merged from
q local coal road to the position of
a trunk line with a great western traffic.
The control Of the New Jersey lines
made the reorganization of the Erie more
than once q financial possibility.
s rhs fact that r. has terminal
New Jersey to reach them, has
brought to the Central Railroad of New
Jersey the traffic Of the Baltimore &
9hio and the philadelphia & Reading
One Of the great and recognized ele-
ments of the value of the Central sys-
water front on New York Harpor. and
that any road seeking an entrance must
pay tribute to il forever. 1t is the only
road that has any surplus terminal lands.
The requirements for rattle and the
amount of business done, as we'll as the
necessity of room for that business. is
well shown by the proportion which the
kAkI VI tAaShr OEa4 ~ LIE AAti4C VI Od0-
A railroad is complete, ready for bust
ness up to a certain extent when it has
laid a single track between ~termini-sec-
ond and side tracks grow with its growth
in dustiness and value. They are seldom
laid and allowed to rest.
New jersey has a little over two miles
| of track for. every mile Of road. Group
H., outside of New Jersey. in miles of
track to every mile of road.
With 2253.5 miles of road, New Jersey
has 537 miles Of track more than the aver
l orc of Gfos1n r A1ftCtda Of Non ycrcau
To bring all the railroads of Group H.,
outside of New Jersey up to the standard
Of value, and business Of the New Jer-
trackage 1912 miles of tracks, increasing
their track mileage from 1857 to s5,439
miles, besides the proportion of terminal
f resllafle en th sajP Rarbor 81 & New shs S York. Jersey
Even on the schedule submitted by the
Central Counsel, the earnings of the New
Jersey roads are far IN excess y Of the
shown the system of bookkeeping adopt
ed by the trunk lines. leasing our roads,
fails TO credit to our State q fair proper
ton Of the earnings on through bust
ness.
In New England, following the lead of
Massachusetts, the railroads enjoy the
/ privileges of equal taxation, they pay a
larger sum for the support OF the Govern
ment, whether based on trackage, capitali-
zation on gross earnings, than do the
roads in New Jersey. As systems, or as
x t@ASI
the trunk lines in New Jersey in equip
ment, market value or earning capacity
If the railroads in New Jersey were
taxed at the rates prescribed in Group
No. /. we should ave no cause for COM
plant.
We believe that we have demonstrated
the truth of the two propositions funda-
mental to this inquiry a. that the rail-
road companies do not pay their fair
proportion of taxes in this State, and ()
that the present method of the distribu-
ton of the railroad tax is not fair or
equitable; and, further, that we have
suggested a constitutional remedy, in
line with our present State policy, which
will do no injustice to the railroad COM
panies.
In the course of the discussion stress
was laid upon the assumption that the
railroads only were called upon to pay a
Franchise tax, as they call II. We have
already shown that it is a property tax.
in the s~trictest sense of the word, and
not a tax on their business or
privileges. But assuming the correct
ness Of their proposition we beg to remind
the Commission tina other people in the
State pay much greater sums for fran
chises and privileges, pure and simple.
The railroads pay on franchise about
1922, 900 per year. We take the figures OF
the railroad counsel as correct for the
purposes of this point.
The city of Newark alone collects from
franchises to sell spurious and mali
liquors, and for other purposes the sum
aof $409, 1853 50 as per the following schedule
from the auditors report of the city.
papa 9S-