The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1904-10-25

not far distant when the amount OF
tax to be derived from the personal
property of railroads is likely to be
very much reduced.
Is it not good proposition to hold
on to this income as long as we CAM
valuation OF Railroad Property Conn
pared with other Property.
Under the constitution it is necessa-
~ that the valuation of property for
taxation must be fixed at an amount
which will equalize it with the valua-
ton placed on other properties of
like kind. similarly situated, and 1t
must be taxed at uniform rate and
under a fixed rule The courts have
held that railroad tax Of 1884 was con-
stitutional and that railroad property
was class by itself and that it need
not be equalized with other property.
This is the reason why it is possible to
multiply the average value OF an acre
of railroad property used for the main
stem by multiple of two or three, and
no one wei be so unreasonable as to
say that the bare land in itself used for
a roadhed is worth three times the
amount Of like quantity Of land used
for other purposes. II the present law
is changed to conform to the Demo
cratic platform railroad property must
be valued and taxed at valuation and
rate which will equalize it with other
properties of like kind. Whether 1t
would be constitutional to separate the
different parts of a main line of rail
road and tax it locally is difficult le-
gal question. There is no question,
however, that if it is to be taxed local
ly the valuation placed upon it must
be equalized with the value of other
property, and it will no longer be pos
sible to separate it into a class by it
self or to take the cost Of construction
as a criterion of value. Railroad prop
erty VIII be valued at as much as, and
no more than, the farm, the woods, the
sands, the swamps or the mountains
through which it runs
The question OF Charter Rights.
Practically all Of the roads Of New
Jersey are operated under special char
tiers grantNl by legislatures, and in
most Of the charters special exemptions
are given In some of the charters the
rate of taxation is fixed so that it shall
not exceed one-half Of per cent upon
the true value In others it is fixed
so that the railroad shall pay fixed
rate on each passenger and each ton Of
freight.
First let us take up the question Of
the fixed rate. That rate was fixed in
the charters ait half of per cent.
the same rate which now prevails, and
the rate of one-half of per cent was
fixed on the main stem, franchise and
personal property in 1884, because the
railroads claimed that they had con-
tract with the state for that rate and
that the state could not take their
rights away from them. The lawyers
representing the state in the contro-
versy from 1884 to 1856 recognized the
gravity of that question and, in order
to obtain d general railroad tax law,
agreed upon that It's a fixed rate for
those classes of property.
In those charters the tax collected az
the rate Of one-half Of per cent was
for state purposes, so we find that tile
rate of taxation is as old as the char
ters Of the railroad and that the pnI-
pose for which the tax was to be used
was always for state and never for
local purposes.
Some of the railroads had charter
which provided that they should pay
to the state cents for each passenger
carried and 10 cents for each ton OF
freight transported in lieu Of tax In
other charters tie sum OF cents per
passenger and 8 cents for ton Of
merchandise was fixed in lieu Of tax.
Most Of the railroads have paid their
tax under the law OF 1854 under pro.
test. claiming that they still were en-
titled to their charter rights, and il the
law Of 1854 Is repealed the provisions
of the charters Will again become the
subject Of legal Interpretation
An interesting instance of what would
happen IL a railroad was compelled I'd
pay the state cents for each passen-
ger carried, as provided by the charter
is to be found in the committing dis
trict Of north Jersey. If the railroads
were compelled to pay s cents per pas
senger the development of the counties
in which the commuters live would
certainly be retarded, as the railroads
would add the amount of the tax paid
to the charge for Communication ticket.
This question Of the old charter rights
is a very serious and grave one and
is one of the most important elements
in the question Of railroad taxation.
The Democrats have forgotten this, or
pretend that they have.
Dangers of a Change.
The state of New Jersey is receiving
an income of 100000 a year from tax
alton OF railroad properties.
Under law devised and passed by
Senator Stokes, Republican candidate
FOR governor the staEe apportlons to
the local taxing communities of New
Jersey 80 per cent of all their state
school taxes This sum will amount
to more than 100000 this year, and is
a direct dividend returned to the pock-
cts OF the taxpayers from the state
treasury. The state could declare this
dividend to the taxpayers only because
OF the revenue obtained from tile rail-
road companies. If the state loses its
income from the railroads, the local
taxpayer will lose his dividend.
The Democratic orators ignore the
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