The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1904-10-26

under fixed rule The courts have
held that railroad tax of 1891 was CON
stitutional and that railroad property
was Il class by itself and that it need
not be equalized with other property.
This is the reason why ii is possible to
multiply the average value of an acre
of railroad property used for the main
stem by a multiple of two or three, and
no one will be SO unreasonable us 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. If the present law
is changed 10 conform to the Demo
cratic platform railroad property must
be valued and taxed ut valuation and
rate which will eaualiZe 1t with other
properties of Il like kind. Whether ii
would be constitutional To separate the
different parts of Il main line of rail
road and tax il locally is Il difficult le
gal question. There is no question
however. that If it is To he taxed local.
ly the valuation placed upon it must
be equalized with the value of othet
property, and it will 10 longer he pos
sihle To separate il into Il class by it
self or to take the cost of construction
as IL criterion of value Railroad prop
erty Will be valued ut rs much as. and
no more than. the fnrm, the woods, the
sands. tie sWamps or the mountains
through which il runs.
The Question Of Charter Rights.
~.
Jersey are operated under special char
tiers granted by legislatures and il
most of the charters special exemptions
are given In some of the charters the
rate of taxation is IiNcd so that il shall
not exceed one half of | per cent upon
the true value. In others IL 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 tiNed ir
the charters at one 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 i'll 1881. because the
railroads. claimed that they had Il 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 ISL To 1856 recognized the
gravity of that question and in order
TO obtain general railroad tax law,
agreed upon that rs II fixed rate for
those classes of property
In those charters the tax collected NJ
the rate of ne-half of per cent was
for state purposes, 50 we find that the
re ui taxation is as old rs the char
tiers of the railroad and that the pur-
pose for which the tax was TO be used
WAS always for state and never for
local purposes.
Some of the railroads had n charter
which provided that they should pay
to the state S cents for each passenger
carried and 10 cents for each ton of
freight transported in lieu of tax. In
other charters the sum OF / cents per
passenger and . cents for n ton of
merchandise WAS fixed in lieu of tax
Most of the railroads. have paid their
tax under the law Of 1881 under pro
Test claiming that they still were en-
titled to their charter rights. and II the
-. IN,
subject of legal Interpretation.
An interesting instance of what would
happen if railroad was compelled 10
pay the state : cents for each pusseI-
',. nj, ,.,,.t.l...I -, ~, .'i.,.,,,
4. u fn,u.I Ia ~. ,,..,,,,,,,ti,.., "a,
,,f,t ~ ,',,.t,, t,'.,., - Ill.
-. .,,,,,ai,,l <
.,,,e.., tha do,-,.lo,,,,,,,,, ,f t,,o ',,,n,io.,
i, n.ljcI t,,o ,nn,n,m,ors ~. ,rn,,1d
,..,.,,i,l,, ,,t.,,I,d ,I.,, ,.ii.,...l.,
would add ,.o ou,o,,ut or ~. a., ,,,id
"a ia. cl,,ro, Ia, F., co,,o,nt,tia,, u.l.t
,rlis ou.siio,, al tho ,Id ,.,,,,or ,i,,lt.
IL . vn,y snrinus aud ,,,,,o o,,. mi
Is one of the most important elements
IN the quest III Of railroad taxation.
The Democrats have forgotten this. or
pretend that they have.
DANGERS of . Gimme
The STATE af New Jersey is receiving
an income Of Saut Gua a year from tax
alton of laill1ad ptppoIt Is.
Under "A law devised and passed by
Senator Stokes. Keal'bnetn candidate
for governor. the state appurtlons to
the local taNing cmnnunilics OF New
Jersey - pr cent of nil their state
chuel taxes Ih.s sum viii amoant
10 mere than S9'u.ta~ illis year. aud Is
a direct dividend returned 10 the ppck
dividend to r.r lax,ayrrs only because