The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-11-05

that the act of 1854 did not apply to the
Morris and Essex, and their lessees, the
Lackawanna. Here again Governor Abb
bett was equal to the emergency. It APP
pears that in the old charter of the Morris
and Essex Railroad the State reserved the
right to take that road at the expiration
OF fifty years. upon payment Of the cost
thereof. so a bill was introduced into the
Legislature of 1887 empowering the State
to raise the money and purchase this
road This brought the LacAawanrla
Company to terms. They consented to
the appointment OF special commission
to ascertain the amount due from them
for taxes in the past and they tiled an
agreement waving their irrepealable
charter and agreeing to pay taxes under
the low Of 1884.
The claim of the Central Railroad to
have an irrepealable charter was decided
in favor of the State.
The Pennsylvania Railroad Company
never contested in the courts its claim to
be taxable only for transit dues. but has,
every year filed protest against the
assessment on this ground: in order to
preserve it's rights, but now after fourteen
years Of acquiescence in the law this
protest would probably not avail
At the time of the passage of the act
of 1884, Governor Albeit also called the
attention of the Legislature to the fact
that New Jersey was favorite State for
the formation Of corporations organized
for the purpose of doing business outside
of the State and he suggested to the
Legislature that a substantial revenue
might be obtained from this source. a
i : I.rrf Nf.,va "A
McDermott was introduced and passed,
and under this bill the taxation or mis-
cellaneouS corporations was also insured
In order that this tax might not pear
uneuually upon our manufacturing opera
tions it was provided that all manufac-
turing and mining corporations carrying
on business in this State should pc
exempt from this tax of one-tenth Of one
per cent upon its capital stock Governor
Albeit builded more wisely than ne knew,
for although the taxes assessed against
year 1884 amounted only to the sum OF
$195 2T3. 81 this tax has steadily increased,
until for the year 1888 it will amount to
more than 81. 100000.
When Governor Albeit handed over the
great seal of the State of New Jersey TO
his successor in January. 1877, he could
truly say that he had fulfilled his prom-
ises to the people to relieve them from all
State taxes.
Since 1884 no State tax has been thought
of or mooted. In 1888 bill was intro
D. Edwards, then Senator from the Coun-
ty of Hudson, to cure some defects which
had been found in the operation OF the
Railroad Tax act This bill. however, DID
not provide any material change in the
scheme or amounts Of taxation.
While the tax acts of 1884 have given
general satisfaction throughout the state,
still they were found TO work inequitably
toward the great terminal points like
Jersey City, Camden and Perth Amboy,
for in those places large tracts OF land
had been acquired by the railroads upon
which the cities were only deriving tax
of one per cent. per annum, while the
adjoining properties owned by private
citizens were paying city taxes amounting
to between two and one-half ana three
per cent per annum.
In the year 1896 John Wahl Queen voiced
this spirit of discomfort by introducing
into the Assembly of that year bill
providing for the equal taxation Of all
property whether owned by the railroads
or individuals Upon this bill many hear
was made out. especially for Jersey City,
that in order to put the matter over for
another session and possibly allay the pub
lie feeling on the question, IL was pro-
be appointed by the Governor to consider
this ana all other questions OF taxation
that might come before it. Governor
attoTneyeneraI i6Ta ssR1iera Stockton. Charles G:
Black President of the State Board OF
Taxation; Abraham N. Reynolds, General
denburgh: Peter F. Wanser was then.
Mayor of Jersey City, and he resolved
that the case of the city should be pre-
scented to the Commissioners in its most
purpose William D. Edwards as counsel,
and Ed1ow w. Harrison as engineer.
When the Commission met IN the Cham
Gerry Chambers in Jersey City, the whole
State was surprised at the powerful show
ing made on behalf of Jersey City. The
Commission continued to meet for many
weeks and took a great mass OF testimony
The railroad companies at the end woke
up to the idea that a determined fight
was on. and they We're represented be-
engineers. Mr.. James B. Vredenburgh
duly appeared for the Pennsylvania SyS-
tenn; Mr. William H. Corbin for the Lee
high system; Mr.. Robert W. De Forrest
for the Central system; Mr.. Flayel Nc
Gee for the Lackawanna system. In fact
no railroad influence was missing.
Mr.. Edwards placed before the Com
mission two fundamental principles: a.
that the railroads should pay full local
taxes upon all of their lands and real
estate outside Of their main stem; and (2)
that this tax should be paid exclusively
to the locality. During the progress Of
the hearings it developed that it would
be wise for Jersey City to fix a standard
rate rather thar the local rate, and as
result Jersey City proposed that upon
this so-called second-class property the
railroad companies should pay taxes at
the rate of two per cent. Under the law
of 1884 Jersey City was then receiving
from the companies about $3.50 600 per an-
mum; under the proposition advanced by
the counsel for Jersey City this amount
would have been raised to $3.50 900; every
other community in the State would have
benefited by it in the same proportion.
The committee finally went into execu-
tive session, and held many meetings.
They reported to the Legislature that the
grievance of Jersey City was well found
cd. and that all of the seeond-class prop
erty should be assessed locally They
recommended however, that instead of
assessing this property at the rate of
per cent. the old rate of 1J2 per cent
should be maintained. but that the whole
of this 15h per cent. should be paid to the
municipality. This meant no increase in
the taxation of the railroads, but a trans
fer OF an annual tax of about S210, 000 per
year from the State to the municipalities.
When the Legislature of 1897 met the
equal taxation bill proposed by Jersey
City was introduced by William M. klink
Shortly thereafter the bill recommended
troduced; the railroad companies fought
both of these bills very bitterly, hut in
the end the Commission bill was passed,
and under it Jersey City was TO receive
Sl14,000 per annum additional from the
companies. The sessions of the Commit
tee Of the Whole of the House. at which
this bill was considered have probably
never been equalled for excitement and
interest In the annals of State legislation
Governor Griggs, well satisfied at saving
the railroad companies from additional
taxation, signed the bill. 1t was intended
that this bin should take effect for the
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