The Jersey City news., 1904-04-21
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new JERSEYS
RAILROAD TAXES
Their Difference From
Those on Other Prop
erty a Long Stand
ing Grievance.
OLD CHARTER PROVISIONS
Surrender Of Tax Exemptions
Division Between Local
and State Government

Although the cry Of 1equal taxation
may be novel one to the new genera
tion of voters, it is not the first time by
many thata it has been used In politi-
cal campaign, says the Newark Sunday
Call' Several governors have been
elected on that platform, and a number
of Hudson County people reached politi-
cal eminence largely because of the
reputation they made in the Assembly
in the fight to wipe out the distinction
made the taxation of railroad and pri-
vate property.
The exemption Of railroad property
from local taxation is the result of
original conditions. and it is difficult to
understand why the distinction was
made, unless the matter is treated his
torically.
The building of railroads in New Jer-
Scy Ue5ah Win tnS CaAurh Slu <AA1oOs
in 1880. It was then new and un-
tried venture, and it was hard mat
ter to get capital interested. Long be
fore that, in 1871, John Stevens, of
Hoboken, ''the father of the American
railroads." applied to the New Jersey
Legislature for charter to build road
joining the Delaware and Raritan rivers,
but was eurtly refused, partly because it
was deemed unnecessary, and partly be-
cause it was looked upon as an innova-
ton which would seriously interfere
with large number of citizens who
We're interested in stage coaches and
wagons. But the War of 1912 demon
strated the necessity of railroad, or
some improved method of carrying
freight The carriage of goods, wares,
etc, between the Hudson and Delaware
by the slow and cumbersome ''ox-
marine Of that day amounted to more
than 50, 100000 during the years Of the
war, and when the Legislature met in
1875, a different view was taken of the
matter. John Stevens again applied for
charter and this time he was success
full, but the Legislature provided that
unless it was built Within ten years the
charter should be void. The road was
to run from New Brunswick to Borden
town, and to connect with the steamboat
lines at those places, but it was never
built. Stevens had trouble in raising the
capital necessary to build the road. and
no further attempt was made until 1880.
In that year the Camden and Amboy
Railroad was started with capital Of
81 ,00o, ,000 1t was built as a road sfor
carriages, on which toll was to be
charged, eight cents per ton per mile
for freight and ten cents per mile for
passengers. The only taxation imposed
was a transit duty Of ten cents for each
passenger and fifteen cents per ton for
freight. and the following years the pro-
visions concerning the passengers was
amended. to apply only to through pas
sengers.
In 1882 the New Jersey Railroad and
rJs,.. +;<,,, (s,,ananx ,,,ny,;no from,
New Brunswick to JERSEY City, vas in
corporated, with provision that after
five years a tax of one quarter of one
per cent. should be imposed, and after
the expiration of ten years one half of
one per cent.
rhre years afterward the Morris and
Essex Railroad Company was chartered
and the provision concerning taxation
shows that some advance had been
made by the railroad company, and that
they were seeking to impose the taxa
tion imposed upon private individuals.
In the charter of the Morris and Essex
Company it was provided that no taxa
tion at all should be imposed, until the
net proceeds of the railroad amounted
to seven per cent; when the profits Of
the roa damounted to seven per cent.
the road was TO pay to the treasury Of
the State one half Of one per- cent.