The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-12-21
MEASURES OF VALUE
Railroad Property subjec-
ted to the Test of Sales
in Open Market.
CONDITIONS IN OTHER STATES
New Jerseys Policy Towards
the Corporations Results in
Impoverishing Her
Own Cites.
A Fourth Instalment from Jersey
Gity's Brief in Favor
of Equal Taxation.


Continuing the comparison between the
value of railroad and private property, on
the basis of market price, the Jersey City
brief resumes the argument at the point
where Saturdays instalment stopped, as
follows
a willing buyer will give to a willing
seller, neither being forced to buy or Sell
what is the value of these properties?
Are they assessed higher relatively, in
that view, than the property OF individ-
On the 25th of November last, the Nor
rs and Essex Railroad, which counsel
contends is overtaxed, was valued by the
world, as evidenced by the market Quo-
tations and sales at $57, 6S1, $3.50.
The bonds S14, 724, 900 Chiefly Z per cent?
being quoted at an average of 134-and
the stock $l5,ooo.oW at 1881. The road is
valued for assessment in 1895 at $34, Gil, 500,
which is so per cent. of the market value.
Over SO miles of the 119 miles of the
main stem of this road is in Morris
county.
The taxable ratables of this county, ex-
cepting the city of Morristown, are $18,-
037,397 Gsee report of State Board of Tax
alton, 1880, and the tax paid thereon is
$277,S46.69 or $30,904 more than the total
tax paid by the Morris and Essex Rail-
road. Every acre in the county, outside
OF Morristown, pays taxes on an average
valuation of $36. Would these 450, 600
acres. mainly stony mountains and aban-
doned iron mines, sell as readily and bring
even the assessed value of the Morris
and Essex Railroad? Would it not be diff
cult to find a market for such an area
at its assessed value?
The United New Jersey Railroad and
Canal Company was assessed for 1895 at
a valuation of Sal, 234, SS7. Today the value
of that property based on the market
quotation is.-
Stock 81, 24o, 400 at 1904. $50, 23s, SAG
Bonds at 10000, 600
The assessed value is only 5S ITO per
cent. Of the market value.
Inc same results. in greater or less de-
gree, VIII be found If the comparison be
made as to IS per cent. of the railroad
properties in the State.
We submit that this is enough to show
that, judged by the standard of market
value. not of isolated hut of
a complete road, compared with an equally
assessed value of ratables-the local as
SCISSORS approach as near to the STANDARD
Jas do the State Board.
This is no reflection on either hodv of
assessors. The world bases its value of
all properties largely on present and
P~rospectiye net earnings, and other con
usblohs s praen more or less speculative,
assessment for taxation In this
and other States, nave determined m,st
pe quailHed IN fixing constitutional trIJa
aiu by uniform rules. =
1t may be contended that the market
quotations OF the securities of a railroad
are largely influenced by Speculation
conndence IN the personality of the man
agement or the guarantee of the lessee
ompany These objections would have
peeA more potent for other than the New
Jersey railroads., In most cases, they
are the most valuable links in the lines
OF which they form a part. controlline
the terminal lines and lands on New
York Harbor.
But the market value of all real es-
tate are affected by similar conditions
and owe all is the influence of the eter,
nal law Of supply and demand. New
Jersey mas many acres vacant and await
ing a market for every acre which has
found profitable use in the two Centuries
OF ciyiiization. But there is only one city
and harbor of New York. and New Tar,
sey and Hudson county are a narrow
yestibule and gateway through which
the great bulk of the railroad
OF seventy millions of people increasing
and from the markets of the world.
Eagnty per cent. of the choice of posi-
dion IN this gateway has been appropri-
ated IN the little more han fifty years
OF fallroad life: Is it any wonder that
the property of the corporations owning
this commands its price in the worlds
What franchise that the State can
hereafter grant, even with millions Of
capital behind It, can equal in resultant
Which, conferred the
light to take. hold. improve and use the
terminal lands Of the Central, Lehigh
Valley, Pennsylvania, Erie and Delaware.
LackaWanna and Western Railroads IN
front Of Jersey City and opposite the
heart Of New York, and to connect these
hundreds of acres by continuous road
beyond, entering into and forming a nart
OF every acre and binding the whole to-
gether.
1t is fair to compare these miles Of
roads with their acres of terminals mic
for mile as to value and burden of taxa
Ilon, with the miles of single track across
chusetts, or to base their percentage IF.
return on invested capital ON the propor-
ton OF mileage in New Jersey to the
lakes.
Let US suppose the lessee companies
controlled the New Jersey roads to the
earnings on a car load of grain from
tide water be as 1000 miles to the Z miles
across Hudson county?
Based on practice and custom. the fer
minal three miles would demand ana re-
ceive an arbitrary rate equal to probably
one hundred miles or one-tenth of the
whole.
In his connection we desire 10 oal1
attention to the statement Of November
70, 1886, presented by the counsel Of the
behigh Valley system, based upon tables
In order to prove his claim he first
takes the personal property assumption
VI tduie n anu transfers 1T to table s.
He then assumes that the personally Of
indlyidnal on this basis, in the State
Is $l4S soo, 29e, or about $500 for each man,
that all property now exempt from taxa
tion, as shown IN Exhibit w page 9S).
and amounting to $50, S64 .564, should be
concludes that in ~exempting as well as
assessing, the local assessors fix the rate
OF sixty per cent. of true value, so he
adds 500, 576. 376 to the exemptions and tri-
umphantIy secures $751; .440. $40 adolf
tional to the axabl value Of the State
from exempt property. He is no reypec-
ter of persons; he includes the Slate
Prison. all of the Court Houses, and other
pubic PROPERTY In the State valued At
S32. 0S7- 1885, He would tax the City High
School and the Country District School
and adds their value OF SIG. 965 81. Then