The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1903-05-07
Mavor Wants to Let the
Validity o the Trolley
franchises.
ON REC )RD'S OPINION
City Counsel Thinks Act Ex-
tending Their Existence
Is Unconstitutional.

The new Public Services Corporation
is. at the very outset of its existence,
to be confronted with formidable law
suit from an unexpected quarter. May
or Pagan today directed Corporation
Counsel George L. Record tc 5ply to
the Attorney General for permission to
bring suit to test the question of the
right of the Jersey City and Bergen
Railroad Company, the corporate name
under which the lines of the North Jer-
sey Street Railways Company in this city
were originally incorporated, and its les
sees to run cars in the streets of Jersey
City. He also instructed Mr.. Record
to bring suit against the trolley COM
panies to collect license fees due to the
city in accordance with the termrs of
their original franchises and to take ac-
ton to attempt to assess for taxation
the privileges which the trolley lines
and other interpretations enjoy in the
street so fthe city.
These instructions are the outcome of
an investigation which the Mayor in
stituted last January. On January 10,
he sent communication to Mr.. Record
asking him if there was any power in the
city to increase the taxes to be paid
by the various corporations; the nature,
duration and extent of the franchises
which these corporations enjoy; whether
there is any obligation owed by them
to the city, which is not now being per-
formed by them and if there is any way
to compel the trolley companies to rem
der the citizens of the Jersey City better
service.
In reply to this Mr. Record sent to
the Mayor q very lengthy opinion in
which, among other things, he says that
the original ordinance of 1859 granting
permission to the Jersey City and Ber-
gen Railroad Company to lay tracks in
certain streets, required the company to
pay annually license fee of $40 per
car. a similar ordinance passed in 1868
contained the same provision and the
fee was paid to 1867. He has been un-
able to ascertain why the company then
discontinued paying this tax. In 1867
law was passed which provided that
in the future the city should not have
any right to interfere with or obstruct
or hinder the company in running its
cars.
1T is possible" Mr.. Record says, "that
repeal of the $40 car license provision
of the ordinance 1t is also possible
that the company may have concluded
to take the position that the $40 a car
condition in the original franchise was
beyond the power of the city to impose
/ am of the opinion that these contentious
are not sound and that the city can en-
force the payment Of the iicenee fee
''Ther is question as to whether or
not the original charter of the Jersey City
and Bergen Railroad Company has not
already expired The company's act Of
Incorporation provided that they should
Jersey City upon consent Of the muni-
cipal authorities. The act was to con-
time in force for twetny five years. Up
on the fact of it therefore, this charter
expired in 1884. In 1876 a law was pass
ed permitting all corporations to extend
their corporate existence by fling GER
ti6cate to that effect with the Secretary
of State The Jersey City and Bergen
Railroad Company in 1879 fled such a
certificate extending the corporate exis-
tence of that company for fifty years.
s'The company doubtless would claim
that its privileges in our streets were
therby extended for that period of time.
| am of opinion that this claim is not
sound. In the first place the amended
constitution, which was adopted in 1875
forbids the passage Of any special law
conferirng corporate powers, and lawd
giving this company the privilege of run
ming cars In our streets for fifty years
would be such a law.
A. - orc
is open to the objection that it cannot
be made to apply to street railroads at
all, it being supplement to the general
corporation act In 1902, an extension
the law Of 1876, and the Jersey City and
Bergen Railroad Company have filed a
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