The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-11-05
EQUAL TAXATION.
History Of the Great Fight
in This State Brought
Down to Elemen-
tary Facts.
ABBETl'S SPLENDID WORK
Allan Z. McDermott His Right
Hand Ally Griggs' I'm
dying Enmity.
HISTORY OF THE RECENT STRUGGLE
Republicans Passed a Bill
Which Protects the Rail-
roads From Any In
creased Levy.


prior to the year 1884 the laws govern
ing the taxation OF railroad property
were in inextricable confusion; most OF
the railroad companies-notably the
I.ackawanna and the Central-claimed to
have irrepealable charters with the State
on this subject which they claimed con-
stituted irrevocable contracts. The PENN
svlvania Railroad, as the heir OF the
Camden and Amboy system, claimed fhat
it could only be compelled to pay transit
dues under an act passed in the fortles,
when this company was an infant in-
dustry.
So great was the confusion that prac-
tically no taxes were received by the
cities from these great terminal proper
ties. although the city was compelled by
law to furnish them with police and fire
protection. Reform on this question had
been urged for some years by agitators
in Jersey city, of whom Stephen B. Ran
som and James Flemming were chief. In
1882 Thomas " Gator, a brilliant nut
erratics statesman, was elected to the
Legislature from the old Third district
He advocated the question with much
eloauence, but little result before the ses-
sions of 1852 and 1888, when George y.
Ludlow was Governor.
In 1883 Leon Albeit was nominated for
Governor, and the slogan of his campaign
was Equal Taxation" He promised on
the stump that if he were elected Cover
nor Of the State OF New Jersey that he
would so regulate the question OF railroad
taxation that never again would the
people OF the State be oppressed BY
State tax When the Legislature met IN
1884, both Houses were Republican but
Governor Albeit sent in such stlnglng
message on the subject that all parties
agreed that something would have TO pc
done. Governor Albeit insisted that the
company should pay franchise tax to
the State upon their right OF way ana
franchises. while the balance of the prop
erty should pay full local taxes
MT. Charles i. Corbin, of this city, pre-
pared a bill practically on these lines,
but unfortunately for the people of this
State John w. Griggs was then the NOV
ing spirit in the Senate. He emasculated
the Governor bill so that instead OF
providing for full local taxation upon
property of the companies at terminal
points and outside of the main stem, this
tax was limited to " per cent, whereof
the State was to receive one-half per
cent and the municipality one per cent
This bill passed after a bitter struggle
between Governor Albeit and the rail-
way companies. With the law on the
statute book the method of its enforce
mont was OF prime Importance. The law
provided for a State Board Of Assessors,
to consist of four members, two from
each political party, but in order to pro-
vide that none but persons satisfactory
to the railroad companies should be
placed upon this Board, it was enacted
that no appointment should take effect
until after 1t had been confirmed by the
Senate.
Governor Albeit appointed upon this
BOARD Edward Bettle of Camden, Alex
ander G. Cattell ex-United States Sena-
tor, of Camden, as the Republican mem
bers and Abraham N. Reynolds Of Essex
and Allan L. McDermott Of Hudson as
the Democratic members. The Republi-
can Senate confirmed all of the appoint
ments save that of McDermott at the
outset; over his appointment there was
bitter strife; Governor Albeit stood firm.
however. and refused to withdraw his
he was confirmed. When the Board met,
Mr.. McDermott became its masterful and
controlling spirit.
A thorough examination and inspection
of the properties of the railroads was
made. every inch of the land was meas
ured up, every track accounted for. every
building appraised, in fact, thorough
assessment was made. In this the Board
was assisted by Mr.. Edlow w. Harrison
as its engineer. AS a result Of that ex-
animation there was assessed against the
railroad companies in 1884, State taxes TO
the amount Of $977. .288.7 .76, and in favor of
the municipalities $685., s,52S30, nearly two
thirds of this latter amount fell to the
share of Hudson county. This assess
nert was very bitterly fought by the
railroad companies. especially 50 far as
the Commissioners attempted to tax their
franchises The matter was carried into
the Supreme Court and to the surprise
Of every one the act was declared un-
constitutional. in an opinion written by
Chief Justice Beasley, wherein Judges
Magic and Knapp concurred.
The cause of equal taxation seemed
dead. but Governor Albeit directed At
torney General Stockton TO appeal the
case to the Court Of Errors and Appeals.
The brief filed by Mr.. Stockton in that
case win be lasting monument to his
fame as lawyer. In March, 1886. the.
Court Of Errors and Appeals, Chancellor
Runyon writing the opinion reversed the
Supreme Court and upheld the law and
she assessments made under It.
The Lackawanna road. however, did not
give up its claim Of an irrepealable