The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-12-21

me state ratableS he includes $45,504 ,956
under the Act of April II, 1886. He IS
not content with taking these debts AZ
par but assumes that the debtors have
only sworn off their debts at the rate Of
sixty cents on the dollar. Now, a debt
Is due at par; it may be compromised at
q discount; 1t is never paid with a prem
lum. Moreover, under the theory Of the
included in the assets of another. Still.
IN go. the debts at a premium into the
Lsnsgn Table; anything to raise the valu-
atoms on the individual.
But when he calculates the other side
OF the table he would deduct 26 IL per
cent. from the value of the railroads as
nxed by the State Board of Assessors
upon his clients, because it represents
only the franchise. We nave shown that
n the markets of the world and by the
opinion OF our courts that these fran
In this method he increases the average
rate of taxation per Sl00 paid by his
clients from .6S7 to 1886.
by MS Schedule No. l, wherein he in
cruces Inc personal property of the State
at Sl4S, so, 290, and also the exempt prop
erty and that raised by his method Of
20. ~, $40, and also the debts at a,
rate Of 1873 for the property Of individ-
uals throughout the State.
TO show the reasonableness of the
need only call attention to the fact that
under 1t the railroads would only paw at
the rate of 1886.
The railroad tax for 1896 was. 81 .514. All "a
Unuer the compromise plan pro-
posed by Jersey City 1t would
On the present valuation of the '0'0'' =
railroad of 1920, 705, S22 the
the rate would be-. J. $3.50. 1886
so even on his own showing. with all
his contorted assumptions, it needs the
increase nn,1sI proposed by Jersey City to
As a matter of fact. with the amend
ments proposed, the burden Of taxation
on the railroad would then be not more
On the part of Jersey City ii is asserted
mat not only do the railroads of New
Jersey carry less than their just proper
pared with other taxpayers. but that fhev
also, as a class, pay less taxes in New
Jersey, In proportion to their holdings.
tnah 40 many of the same roads and all
others, as a class in others States in
which the conditions as to terminal rail-
road centres and the physical Character
ana standing OF the railroads are at all
In short, that the policy of New Jersey.
IN Inc matter of railroad taxation, results
IN impoverishing her own cities, not for
the benefit OF herself, but to, the advan-
Iage OF other communities who are not so
tender in exacting their just dues from
their corporations.
Counsel for the Erie Railroad. probably
py reason OF the fact that the road he rep
. q lPOtdllOH VI the state or
New York, and has most of its mileage
therein, and thus appreciates more fully
the advantages enjoyed under New Jersey
laws. has confined his brief mainly to a
denial of this assertion. He seems much
aggrieved at our exhibit on this subject.
Exhibit "J' is entitled "a Comparative
Statement of Railroad Mileage, Capitalize
ton, Earnings and Taxes in Various
States"
This title does not Indicate the source
OF the lnformation-it should read, based
upon the Railroad Reports of Various
states, The table was made in response
TO a challenge of the railroad counsel
naming the very States.
The figures here given for New York
\ Massachusetts are based upon the
statistics OF al roads operated in whole
cial reports are made up on this plan. AS
for example. the Boston and Albany Raif-
road returns it's mileage, capitalization,
earnings and taxes. both to New York
and Massachusetts,, operating as it does
in both States. The Erie returns to New
York State over PENNSYLVANIA and New
jersey lines. The New York, New Have
and Hartford returns to Massachusetts,
and New York for its whole road, includ-
ing Connecticut lines also. All this was
explained by Mr.. Harrison in his exam
nation, and the point in the objection of
the counsel for the Erie Railroad that
these tables do not show the situation
truly in each State, is merely begging the
question.
Illinois and New Jersey reports give the
actual gross figures for their own States.
As this exhibit is of Importance in the
consideration of the question at issue,
there should be no uncertainty as to what
1t shows, and the authority for the data.
The Report of the Railroad Commission
of the State of New York for 1895, contains
on pages 56-57, Vol. IL, an abstract of the
reports OF all the r&road companies own
ing or operating lines wholly or partially
within New York State. The mileage of
rnnd S thing rcn0rtnd ic TX nE1 M
OF which there was in New York
state S,OS2. IS
The miles of track reported were q, lbs. 20
In New York State IA. 282. 81
The total Stock and debt on these Is
0s1.W miles of road or 27,145.70 miles of
track, is reported at 81, 556, 79o. 034.ss.
The gross earnings from operation of
the same mileage is exported as s19s, 1885,
355.24.
If the total stock and debt he divided
by 15,061N and 27,145.70, the results will be
the average capitalization per mile of
road (s10S, 1861, and per mile of track st.
34s) of the roads reported in New YORK,
ard covers the mileage of such New York
companies in the adjacent States.
The gross earnings per mile of same
roads is found by dividing the same mile
age of road or s~ameSmileage Of track into
$199, 1888. 355.24 with the resulting earnings
per mile of road 1925. and per mile of
track, 81, 1888.
The total taxes paid by all roads report
ing to New York and covering the Is. 061.W
miles are reported as 81, 1862, 4So.9 8 n the
average taxes per mile of road or track
can be found by dividing this sum by the
figures 25.061.W and N.145.D with the
result of taxes per mile OF road, $522, and
per mile of track, s2S5. The taxes per
$1,000 of capitalization and per 81 900 of
gross earning are obtained by dividing
the total taxes by the total capitalization
n by the total gross earnings with the
result of sos taxes per LOCO of capitaliza-
ton and s39.47 per $1,000 of gross earnings.
Similar mnfhn6S WQra nl1rClIad with thu
reports of other States: 1t is a mere ques-
tion Of calculation from official data.
As to the criticism made by the coun-
sci for the Erie Railroad Opp. 4 of his
brief), of these New York Agures.
1t is probably true these taxes cover
all property owned by the companies, but
the wording of the company's report to
the State is-(see report of the New
York, Lake Erie and Western Railroad
Company, pp. 351. Railroad Commission
ers' Report, New York. 1896. Vo1. III.
On. property used in operation
On earnings and capital stock. 21, COS. SO
But assuming that the real estate used
for other than railroad purposes amounts
to five per cent. of the total, which in
New Jersey would make its assessed
value 81 900, 900. The New Jersey taxes
per mile of road, given In the table as
$672, should, to allow for taxes paid on
property locally assessed, be increased 5
per cent. to SOS. Take per mile of
track from $335.0 90 to S35l00; per $1,000 of
capitalization from $4.62 to $4.S6, and per
Loco OF gross earnings from $3.50 to
$39.47, in order to compare fairly with
tho nfhar State fps,rou ond =fifI fLo $3.50