Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1900-01-11

has been continued with great advantage
The work has been done gratuitously by
public spirited commissioners appointed
for that purpose by the governor. The
result of their labors is found in the re-
visions of the borough laws, district court
acts, mechanics lien laws, crimes act
township laws, conveyances and orphans
court act No laws, however, are in
greater need of revision than those relat
, ing to the public school system of the
state.
State Board of Taxation.
The board cannot be too highly com
mended for its usefulness. 1t commands
at present the confidence and cheerful aid
OF the local authorities and has greatly
increased its efficiency. The results of
its labors fully justify the expenditure Of
the amount annually appropriated in its
behalf. Since its creation, and as its
| field of operation has been enlarged, the
demands made upon it have increased to
such an extent that the compensation al
| lowed for its services now seems hardly
commensurate with their value.
From the report which the board has
presented it appears that the total as
sessed value of real and personal proper
tv taxable locally for all purposes in the
state for the year 1899 was as follows:
Real estate, S75S, 461 ,054; personal
property, Sal ,456,749 making the total
value thereof, less the deductions for
debts, 1866, 030,061.
| The increase of assessments of 1899
over those of 1898 shows a net gain of
| S21, 664, 1868, that in personal property be-
| ing S2.042.O16 and in real estate ST.
500, 6S3. The total valuation of property
in the state, including real and personal
property taxable locally, railroad and
canal property. exempt property and de
auctions for debt under the act of April
II, 1899, was 81, 223, S15,062.
The counties which reported an in
crease in valuation were Hudson, Cam
den, Essex, Mercer, Monmouth, Morris,
| Ocean, Passaic, Somerset, Sussex and
| Union, while in the agricultural counties
Of Bergen, Burlington, Cumberland,
| Gloucester, Hunterdon, Middlesex, Sa-
lem and Warren and the seaside proper
ties of Cape May there is decrease.
! The value of the real estate repre-
sents S42 per centum and the personal
estate 1873 per centum of the total as
sessed valuation of the property in the
state 1t is a suggestive fact that the
proportion of personally assessed IN the
agricultural counties is greatly in excess
of its proportion in counties containing
large cities.
The most important branch of the
work of the board and the one to which
| if has given much OF its time and atten-
ton is the equalization of the assess
ments in the various taxing districts
throughout the state. On behalf of some
| townships allegations were made that
lands therein situated were assessed at
their value while in other taxing dis
| tricts located in the same county they
were assessed at less than their value,
thus compelling the compliments to pay
an undue proportion of the county and
state school tax. So glazing were these
| Irregularities in some cases that the
courts took judicial notice of them and
| called the attention of the grand juries
/ to the failure of assessors to make prop
er assessments. In one case at least
presentment was made. The board
also investigated complaints that were
made. AS a result of this action, the as
sessments complained of have been
equalized. and an increase of several
millions of dollars in taxable values has
resulted. In many cases former methods
have been changed, and valuations are
now made in accordance with the stand
ard required by law. The assessors of
various other taxing districts throughout
the state have bad their attention called
| to the action OF the board and of the
courts, and there will no doubt fol-
low a stricter compliance with the ex-
press mandate of the constitution.
Taxation of Franchises.
The board in it's report discusses at
considerable length a problem of grave
mportance-namely, the taxation of fran
chses enjoyed by certain classes of cor
porations. The members suggest no spe-
cial remedies by way of legislation, con-
tenting themselves with calling your at
tention to the following facts:
Four elements of taxable property val
ne are found in corporations: First, fran
chises; second, corporate property; third,
bonds and shares of the capital stock in
the hands of the individual stockholders,
and, fourth, capital stock in the hands of
the corporation. Upon each and all of
these the state may impose taxes unless
forbidden by constitutional prohibition.
The state requires from all corpora
tions when they are organized the pay
ment of a certain fee, and annually
| thereafter moderate tax is payable, ex
cept by such companies as are engaged
in manufacturing in the state. This can
not, however, they rightly say, be con-
sidered a property tax. 1t is merely a
license fee exacted by the state for the
right granted by it to the corporation to
exist and to do business as such. All
citizens may avail themselves of the pro-
visions of the law. Compliance with
the established requirements is all that
is necessary to incorporate. Property
acquired is assessed in the same manner
as property of the individual. Corpora
tons so organized do not acquire special
or exclusive rights. They cannot use any
of the public property, such as streets
or highways in furtherance of the OBJ
jects of their Incorporation. They have
no more rights than the individual in this
regard.
Have Right to Such Use.
But corporations organized for certain
purposes have the right to use such
Street railway companies, telephone and
telegraph companies and gas, water and
electric light companies under the law
have and exercise such rights. Their
use of the public property may not, in a
strict sense, be deemed monopoly, but
practically it is SUCH In so far as they
use the public property to the exclusion
of others, they may be regarded as hav-
ing a special and peculiar franchise
Upon its exclusive character depends in
large measure their successful and p~ofit
able operation.
The question pressing upon your at
tention and demanding answer is, Do the
franchises of corporations of quasi pub
lie nature, enjoying special privileges in
the use of public property, possess a
value which should be the subject of tax
alton, and, if so, are the laws defective
in not subjecting them to such taxation7 ]
This special privilege or exclusive right
is as much an element of value as the
rest of the property of such corporations
and is so regarded by those interested
therein and by the public. Ample proof