The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-01-13
JUDICIAL REVIEW.
The Newark Evening News :
On the Reports of the Equal
Tax Commission.
From the Newark Evening News of
Yesterday.

Yesterday.
IT the State Legislature shall take the
view of equal taxation adopted by the
commission appointed BY Governor Griggs
it will not make a dollars difference to
the railroad n canal companies whether
an equal taxation bill be or be not passed.
The commission simply recommends thai
the taxing district in which seoond-class
property-aH real estate used for railroad
and canal purposes outside of the main
stem, passenger depots and Waterways
is located, shall receive a tax, of one and
one-half per cent. on the valuation of thai
property. Now the taxing district gets
a one per cent tax and the State a tax
of one-half of one per cent. on the prop
erty. 1t is proposed that the State. shall
surrender the one-half of one per cent.
tax to he taxing district. The method
of valuation by the State Board of AS
SCISSORS, 1t is recommended, shall con-
tinue. Nc change in the law is contem-
plated except this diversion of part of
the railroad tax from the State to the
districts In which the property is located.
If the plan of the Commission be carried
out it will mean. on the basis of the re-
port for 1895, the last available one, that
the State would receive s205, 6G1. 0S a year
less revenue and that the taxing district
would get that much more from the tax
alton of railroad and canal companies.
The conclusion reached by the Commits
sioners is fair, as far as it goes. There
is no reason why this real estate, more
than any other. should pay taxes to the
State. It is part of the area of the dis
tricts In which it is located, and it ought
to be taxed there. In the legislation Of
other States, the Commission ample
precedent for Its conclusions. There may
be some sentiment against adding, at the
expense of the States receipts, to the
revenues of Jersey City, Bayonne, Ho-
boken, Camden and other cities where
the railroad property is extensive. But
the arguments In favor of this course are
unansWerable.
That the report of the commission goes
as far as public sentiment may well be
doubted. Commissioners Black, in the
special report which he makes, does not
seem to go beyond the bounds of fair
treatment of the railroads. He points
out, and truly, tha when the impost that
they were TO pay on second-elass property
was liked at one per cent. to the tax
district and one-half of one per cent. to
the State, a tax of one and one-half per
cent. was about the average laid UPON
property throughout New Jersey. Dur
ing III last twelve years 1iberality in
the direction Of public improvements has
grown, and the rate Of taxation has been
increased. Mr.. Black recommend h a
the s~econd-class railroad and canal prop
erty be valued by the State Board Of AS
SCISSORS and taxed at the rate OF the local
axing districts in which it Is located.
giving the State Board Of Assessors power
70 equaitze the taxes paid on such prop
erty with the taxes paid by individuals
on their real estateior that the rate be
limited. so as not to exceed two per cent.
in such property. That IS the plan that
would put this property on the same
plane with other property.
All the long arguments of the principal
and supplementary reports to show that
real estate and personal property are as
sessed below their true value, and that
great mounts Of personal property es-
cape taxation altogether all the labored
som between railroad and general taxa
ton; do not cloud the issue that this
land included In second-cIass property is
like the other land In a taxing district,
aud that the demand that it be taxed
accordingly Is a reasonable one. When
the. main stem, passenger depots, water
ways ana personal property and fran
chises escape with one-half of one per
cent. taxation, while other real estate
and personal property pays full local
rates, 1t would seem thai due care had
been taken lest tho railroads be over
taxed. The arguments that on the score
Of evasion n exemption apply to keep
the rate On second class railroad prop
erty down to one and one-half per cent.
would apply to all real estate.
The reco-nnrnendEatiens that are made in
the general and supplemental reports in
regard to enforcing more complete and
higher assessments of personal property
echo a demand thai. other officials and
Boards In charge of tax work have made.
But they do not apply when they are en-
ployed as reasons for the release of rail-
road real estate, or real estate owned by
individuals, from the burden of taxation.
In his message Governor Griggs ex-
presses apprehension of the result of the
loss Of State revenutss If the surrender Of
the one-half of one per cent State tax ON
s~econd-class property be made. Mr.. Vre-
d~enburgh points out a possible way tow
ard recouping that deficiency. 1t is the
proper taxatton of street railroad compa-
niles. The puolic," he says, in his suEpae-
mental report, furnishes them gratubit-
o1sly with rights oil way, or easements,
as we'll as a roadway, which they are NOT
compelled even to grade; they tabus acs
Quire a roadway and worth
often millions, upon which value they pay
no tax. Takesf for Instance one
which has issued mortgage bonds to secure
S3,000,00o, placed up0il ITS easeGnepts, fran
chises, roadway and plant. and yet 1t Is
assessed only for the walue ct Its visible
Plant at 100000, ozse-thirtieth of the value
Of it's properties as gauged by its power
to borrow money UPON them. This should
at once be corrected by proper legislation"
There IS one hsttle sentence In the report
of the Commissioned which is significant
of the attitude In which they evidertly APP
preached the whole subject. 1t occurs in
the third of the reasons they give for rec
omrneTpding n change except the diversion
Of tax on second clssss property from the
State to the taxing districts. I'VE do not
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