The Jersey City news., 1904-12-21

Taxation Commission, whom he address,
ed here yesterday, were as follows:
Il have not had the opportunity of at
tending any of your previous sessions,
nor have even read complete report
of your proceedings. / have, however,
in some way become possessed of the
idea that suggestions have been made to
You, looking to change in the present
method of applying so much of the taxes
upon railroad property as now constitute
an important part of the revenue of the
State into other channels, and my only
purpose in what l say, will be to protest
in the most vigorous manner possible
against the adoption of any such course.
'sThe sum received from the State for
State purposes from railroads and canals
in the year 1908, was S9o7, ,934.14 or less
than $1,000 in excess of the amount re
ceived from the same source in 1885, be-
cause of drafts that have been made up
on this source of supply by the local
communities, while the State expendi-
lures have increased fully four fold be-
tween these years.
'Railroads have, as shall point out,
from the time of their organization, been
the one source consistently relied on by
the State for its necessary revenue,
which in 1903 was $4,5l7. 500. The
funds to meet these outlays. so far as
railroads are concerned, have practically
remained at a standstill.
This result was brought about, of
course, not because there has been no in
crease III the amount paid by the rail-
roads in that time. bnt because practical
ly all that increase has been applied to
the municipalities and not to the State.
1T is my FIRM belief that the time has
come to call a halt. and to insist that no
further inroads shall be made upon the
States revenue from railroads, unless the
people of this State are ready TO step
back back twenty-five years and contrib
ute from their individual purses toward
a State tax.
Railroads began to be chartered be-
tween 1890 and 1910. Previous expenses
of the State had been very small and
we're met by State taxes. fines, forfeit
ures, etc. The property that Immediately
felt the Introduction of transportation by
steam, brought with it increasing expens-
es and the State promptly imposed upon
the railroads TO whom it gave valuable
franchises, including the power TO ex-
ercise the right of eminent domain.
the duty Of paying TO the State an annual
tax, independent of the local taxes. There
was then no constitution provision re-
curing The taxes upon the true value of
property and companies by charter. paid
TO the State an annual tax imposed upon
the cost Of the road; others, a percentage
Of receipts and only four paid local taxes
under their charters. Uniformity OBJ
tanned in the application of proceeds to
State purposes. In 1869, the plan Of a
percentage on their cost was adopted
The general railroad law was passed,
imposing a tax of one-half of / per cent
on cost, equipment and appendages, in
cluding roadbed Mr. McCarter described
the law of 1873. which was modified in
1876 to comply with the constitutional
requirement that property be taxed on
value, and not cost, but the tax was
vigorously maintained in 1884. The
present law, corrected in 1888, was
passed, requiring each company ito pay
TO the State for general State purposes
the tax of one-half Of / per cent. upon
each dollar of valuation The proceeds
were to be applied ''to the laws of the
State
Mr.. McCarter quoted Justice Parker's
opinion in the Court of Errors concur
ring with the majority Of the court in
the view that this act is entirely fair
and constitutional. Mr.. McCarter de-
scribed the attack by the railroads on the
tax act of 1884. which imposed heavier
burden on railroads than ever before.
While it was sustained by the courts, he
said, 1T did not receive the approval of
some of our greatest jurists. although
drawn by able jurists and designed to
the interstate revenues"
Railroads, including the Pennsylvania,
have paid the taxes under protest,
claiming that their charters exempted
them. Twenty years have passed. how
ever Mr.. McCarter continued, land
think the view prevails alike among the
railroad companies, the State officials