The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-01-15
HOBOKEN'S TAXES.
suggestion That the LexoW
Committee Should In
spect That City's
Finances.
HAS BIG SURPLUS EVERY YEAR
Tax Arrearage Bonds Are Unknown
in the City, Because They
Collect Nearly All
Their Taxes.
HAS BIG SURPLUS EVERY YEAR

If Governor Griggs and his minions in
the Legislature are anxious, as they say
they are, to investigate Hudson County
administration of public affairs ''in the in
terests of the State" (ahem0, they could
do something infinitely better than the
SANDER churning expedition proposed, by
teaching a lesson which would mean thou
sands of dollars saved every year to ev-
cry city in the State. This idea was re-
Gently suggested to a News representa-
tive by one of the brightest minds in the
county, or, for the matter of that, the
State.
.But how is it to be one?" he was
asked.
Very simply came the prompt reply.
Show them by investigating in the prop
err direction and in the proper manner
how every municipality in the State can
keep within it's income and as a neces-
sary consequence keep out of debt.
'.But thai means an ideal city-Utopia,
in fact. Does one exist?"
Eyes, right here in Hudson County"
''Where?'
.Hoboken. There is your object les
son.
The announcement VIII douptiSoS
shock some who have hitherto imagined
that Hoboken had achieved greatness be-
cause of its beer and skittles, metzei-
suppes, singing societies and politicians.
In spite of the continuous performance
artists gags about Hoboken, there is no
city in the United States whose fnanclai
condition is healthier or whose bonds pro-
portionately sell so well on the marker;
and the Investigating committee could
perform no better or more worthy service
than by going into Hoboken and ascer-
tanning how it manages to M
Right here it is worthy of notice that
when the Martin act was first appheo IN
Hoboken the astonishing discovery was
made that what money was wanted Dy
other cities to wipe out their tax arrear-
age bonds was not needed IN HoDoken, TOT
the good reason that HoboXen nag ne aa1
arrearage debt and the money INTENDED
for their liquidation was put INTO the
general fund!
"You will understand this" aid The
News /" informant, when ! tell you that
every year Hoboken adds. eight per cent.
to the amount of her local appropriation;
that makes 10Sgo, let us say, in all. Now,
she COLLECTS lo ~ eNo. q fo ana ve, amoul'' ""ioi
AS every one knows, the budget. or
money required yearly to run any munl-
cipality, is made up on the theory ina
the CITY will collect all its taxes; but the
trouble is that it does not. one thlng
IS certain. it has to spend it whether it
collects it or not, and upon the theory
that it will collect it all the city borrows
money. The city, as a matter OF fact,
does not collect all its taxes, and con-
| sequently, it goes behind every year, and
in Jersey City that means many thou-
sands of dollars. In 1878 an act was passed
| under which the city could not spend
| more than ninety per cent. of its appro-
| priations, and when the total approprla,
| lions were made up ~one-ninth was AIDED
- - 49, 1,,d rat h0aqI1GaA0f the GXD9cTed
| deficiency on collection. This ~one-ninth
is theoretically devoted to, the sinking
fund and available when celieetedi prac-
| tically the city in twenty-five years mas
| never received a dollar from his source
for the sinking fund.
If Jersey City could collect nine,tenths
| Of it's taxes every year there would pc no
necessity for borrowing a dollar. As a
matter of fact, however, only seven-tenths
| are collected and the city must, therefore;
\ borrow the difference between seven and
| nine tenths or two-tenths. and thus she is
| adding to her debt in round numbers about
! S4Oc, 600 of tax arrearage bonds every year.
City to collect every year every dollar OF
| her tax budget, and each year would
then take care of itself and the DEBT
But Hoboken does even better than
that. BY Section 9 of the supplement to
its charter, passed April 4, 1873, 1t is COM
levy for all appropriations for contingenn..
eies and for losses in collection. Vi
| course where the total tax is raised suf-
fcient money is secured to run the de-
partments and all the eight per cent. is
well named velvet, a sum of money which
| can be spent in any manner they may
that in Hoboken. much criticized Hobo
ken. they collect all the tax and practical
ly all the velvet" Result. No tax arrear-
agebonds, andthe elty IS richer her every a e
of the Doubling Thomases, as an in
stance, let anyone take the Comptrol-
ler',s report OF that city for say the yeal
ending 1856, and he will find this state
of things
Tax levy for all appropriations, includ-
ing eight per cent for deficiency, s5s4
9I3. 40; amount to be deducted for appeals
S.. 94S.02. Total net collection, $579, G25.3S.
Against the above amount was the tag
budget as appropriated for lSso-6, lnclud-
ing to 1854. 449. q. So that the surplus un-
der Section A of the city charter, wher
an the taxes AXES for pr the s5a y sss * had Fr been e q.
Comptroller's books it appeared thai
there had been collected. on account o.
these taxes, the sum Of Sol3,3lS,S1 less
some amounts enormously credited and
duly deducted, leaving this extraordinary
resulI.-
Total net collection for 1895. s572, SIS; 20
total appropriation, $554, 449.2f surplus
available, $1S,4 23.93!.
Now let the curious look on this pic
ture-that Of the same year III jersey
City~'s@tinancial statement and what does
he find?
Total amount to be collected, including
county and State school taxes, and one
ninth for deficiency, 81. 465, 244.19. The tota
collections were 81 500, Gil 1872, leaving a de
feiency of S65s, 6a2. 81 to be provided for b.
temporary loan Onstax arrearage bonds.
In giving the above figures of Jerse.
City's balance sheet for the year ending
1896. Comptroller George Hough pointed
out that it was perhaps scarcely fair t,
compare closely the two systems of Hobo
ken and Jersey City, for they differed con
siderably. Whatever may be the differ
emce of the systems. one thing is plain
Jefsey City has tax arrearage boards AM
Hoboken has none. The cause of all thi
Is it has been pointed out, is the collec
tion of taxes. 1t is not intended here t.
criticize the present Collector. He has, !
IS admitted by all. done bette
than all his predecessors, and is earnestl,
striving to collect as much as he car
There can be no doubt about it. however
that in view of his state of things some
thing must be devised to reduce III
amount of bonds and increase the amour
If collections, and If, as The News :" in
formant said in conclusion, the Legislativ
Committee will only visit Hoboken an
explain how it does manage to get alonl
80 well. that committee will confer a last
ing benefit on every municipality in tn
State. and, indeed. in these United states
aaEm O0oe@0oeO@000o,
E$#$&M pheunnafistn Sciatica.