The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-01-12

Receipts. Disbursements.
1874 ..-.........$l ,066, 1853 SO SLIGO, 495 10
1888 ........ 1,272, I'll AZ 1,329, 062 90
1873 .-....--.-. l,307 ,0SS AS 1,262, $50 "A
1887 .-......... 1,772,081 70 1859 56 IS
1888 ............ 1,504, 124 26 1,542, 613 81
1883 ........... 1,512.O61 AZ 1,440,c05 AZ
1890 ......... 1880, 9G7 So j. $3.50. 142 81
1891 ............ 2,231, 104 81 2,262, 696 As
1892 -......... l ,915, 937 SO 1,69S, 405 10
1893 ............ ], 1862, 9319 SO 1857, 9S2 SO
1894 ..........: 2,i93,07 Z OIL 1880, 255 %
1895 ..--..-.- 2,175,93l SO 2,269,039 Sc
sNote-In the year 1891 there was in
GUIDED in the receipts $780, 900 of temporary
loan, and in disbursements $3.50, 900 for
paymen of temporary loans.
A BIT OF HISTORY.
The report next gives several pages upon
the history of railroad taxasion IN this
State, with extensive citations of the
terms of their charters. 1t draws the fol-
lowing
"-Firat-Several methods or principles Of
taxation have been applied to railroad
companies in New Jersey since the origin
of such corporations.
Second-That the rate of taxation of one
half of one per cent. applied either to the
cost of the railroad, or upon the true Value
of the property used for railroad and canal
purposes, for the purpose of determining
tine amount of tax Waficl such companies
should pay to the State, is not a new or
urstlfed factor jim the problem of railroad
taxation in New Jersey.
"Third-A Mmftation of THE amount of
land which such companies could hold by
law, either in the wiouf1 of the main stems
or at the commencement and terndni of
such roads, freed from local or municipal
tax, is recognized as a principle for the
protection of the local taking districts
against Entertainments.
"Foarrth-The history of the taxation of
railroads IN New Jersey shows that II has
been a gradual growth, growing and ex-
pand1Tlg with the growth and Developments
of railroad corporations, eliminating IN
The act of 1884, ais revised ard amended in
1888"
A of the tax laws of all tile
States follows, leading up to these con-
"FirstlTo show that the railroad COR
porationS have been taxed in the differ
ent States by different methods and prin-
systems. due in part to the different. con-
ditions-geographically and. economically
under which the railroad corporations
operate in the various States;
"SecondITo show the difficulty as a
practical question of Comparing in ac-
tual results zach system, / 6 the
amount of tax each system yields IN rev
enue, with any other system;
"Third1To show that the rights of the
local taxing districts in which the rail
the State: indeed, it ma be said that
this principle is frequently recognized III
the systems of railroad taxation in the
United States. a~ndtespecially by New Jer1;
aFourth-Te- showsthat eutAof Is States
S. have systems of railroad taxation in
KS oiE CAOCP-
tional provisions to meet exceptional con-
dltlons, but in no State superior to ours
II New Jersey as. q whole.leiaher in
FRANCHISES.
Under the act of 1884 the franchises of
the railroad companies are taxable as pro-
perty, and subject to a rate of taxation
of one-half of one per cent, or five dollars
on a Thousand dollars of valuation. With
che method of computing the franchise
tax, which is setJouts somewhat ait length
nv fln SfqfnF Roe ri of Accc ,ccpn>c TN FL 49,
first annual report to the Legislature,
whether 1T is too much or too LITTLE, too
high or too low, IS not Within the province
of thiS Commission under the resolution
as we view 1t. That is a mere matter of
computation, and the law has designated
the officers whose, duty lit is to make the
valuation That franchises of a corpora
ton are taxable as property admits OF no
dispute at this date. We are of the opfn-
ion that this tax should be maintained,
and that 1t is peculiarly appropriate as a
source of revenue for the exclusive use
of the State. 1T enrarates from the State
IN lbs sovereign capacity, and by its in
herent qualities 1T is incapable of subdivi-
sion.
In addition to this, railroads. are clothed
with the s~overeign's power of condemn
ing land and taking 1t for the use of
their roadbeds. The late reports of the
State Board of Assessors do not show
and do not divide the value of the ran
chises from the values placed upon the
main stems, but it has been sfimate
by witnesses produced before this Com
mission to be about $3.50 600 900, on which
the State receives a revenue of 5000. 600.
AS a comparison was made at the hear
ings of the Commission of the amount
Of tax which the railroads pay, as COM
pared with the amount of tax which in
which will be referred to in a SUISSE
quent part of this report, it may not
be amiss to cali attention to the fact
that under the Act of April the eigh-
taanfh A n 1874 what = Lnourp nC
miscellaneous corporations pay to the
State for the exclusive use of the State,
in addition to the tax levied by the local
taxing districts on the property of such
| corporations there located, a license fee
or franchise tax for the privilege of be-
coming a corporation. This, however, is
not, as held by the courts, "a property
tax, such as the franchise taxes levied
upon the railroad corporations above re-
ferred to. The Standard Underground
Gable Company VS.. Attorney General, /
Dick, go. Nor as the law now stands
the franchises of such corporations are
not taxable under the tax act of 1866,
Revision page 1,150, or Section 15 of the
Corporation Act, Rev: page 1876, Rev. Sup.
page ITO, by the local municipal authoTi-
ties, in the taxing districts in which such
| corporations are located and doing bust
ness, or have their principal Office.
The amount of such license fees or fran
| c1rise taxes under the act OF April Is, 1884,
as assessed and returned by the State
Board of Assessors for THE year 1885, was
$1,092, 744. 50; i'm 1884 it was $195. 273.51 The
| number of such corporations assessed In
1884 was 619; in 1895. ALSO.
PERSONAL PROPERTY.
All the public hearings of the Commits
the Act Of 1884. paid by the railroad and
canal upon the value OF their
tangible personal property, for the pur-
| pose of comparing tho tax so paid with
| and other corporations upon the value of
their personal property, both tangible