The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1904-10-25
"A BAD SCHEME
EXPOSED
BY Equal Taxation Morris
County Would Get Back
Less School Moneys.
BLACKS ARGUMENT SIFTED.

The Democratic party is trying to
boodwink the taxpayers of New Jersey
in this campaign BY claiming that it
stands for equal taxation. 1t pretends
that, if its plan is carried out and rail-
road property is taxed at local valua-
hons and at local rates, the taxpayers
of New Jersey will be relieved from
part Of their burdens Of taxation
Equal taxation of all property is pro-
vided for BY the constitution. Educa-
honal, religious and charitable proper
ty is exempted from taxes, The con-
stitution was accepted in 1875 and is
binding on all property in the state Of
New Jersey which Is subject to its
provisions. There are, however GER
tain classes of property which are not
subject to constitutional provision fof
the reason that the state had granted
special charter rights and privileges
prior to the adoption of that constitu-
tion and could not take those rights
away.
Under the cry Of equal taxation the
Democratic party is attacking only one
class Of property, and that is railroad
property. If the railroad property OF
the state is not paying its full share
of the taxes and can be made to do So
it should be made tc do SO. In order
to understand the question 1t will be
necessary to consider the classes of
railroad property, how they are val
ued, what is done with the money re-
ceived from taxing these different
classes and how the local communities
will be affected if change is made
In the present system.
Classes Of Railroad Property.
First. Main stem, which is the right
Of way, not more than 100 feet in
width. with the rails, ties, ballast,
bridges, viaducts and passenger depots
Second Franchise The right to OPP
crate the railroad granted by the state,
including the right to condemn land
for the main stem.
Third. Personal property, such as
rolling stock, cars, locomotives, ferry
boats, all machinery, tools, etc.
Fourth. Other real estate used for
railroad purposes outside of the main
stem (of width OF not more than 100
feet, such as roadbed, waterways,
reservoirs, buildings. water tanks, wa
terworks, riparian rights, docks, wharfs
and piers.
The first three classes of property
are taxed at a rate Of one-half Of per
cent on the valuation, or 50 on each ST.
600 Of valuation The fourth class is
taxed at a rate Of IL per cent, or $15
on each $1,000 OF valuation. The taxes
collected by the state from the first
three classes of property belong to and
are part Of the states annual revenue
The tax levied on the fourth class Of
property is assessed and collected by
the state and returned to the local tax
ing districts in which such property
is situated, not one dollar being retain
ed by the state
State Board of Assessors.
The railroad tax law was passed in
1854 and provided that a board should
be appointed whose duty it was each
year to value railroad and canal prop
erty and collect the taxes assessed
thereon. The law fixed the rate of tax
alton and the classes Of property This
present time. 1t now consists of four
members, two Republicans and two
Democrats, and under the law not
more than two members of each party
can be appointed on the board.
Valuation of Main stem.
The main stem was and is now val
ued by taking the full and true value
Of the land in the taxing districts
through which it runs and multiplying
that value by a multiple of three north
of the Passaic river and a multiple of
two south of that boundary In other
words, IL the full value of the land in
locality north of the Passaic river was
found to be $100 per acre such value
was multiplied by three, and the result
was taken as the valuation Of the land
per acre for the railroad bed. Having
obtained that result, they added to that
amount the cost Of construction, which
consisted in the rails, ballast, ties and
Buperstructure the total valuation con
sisting of roadbed with ties, etc.
Tax ON Franchise.
The franchise of railroad is the
right granted by the state to operate
the road, without which the road could
not be operated. 1t is intangible, but
that it has value for purposes of tax
alton has been long settled. Under
the New Jersey railroad tax law the
value of the franchise is determined
by calculating the market value Of the
stocks and bonds Of the railroad sys-
tenn, then subtracting from the sum
thus obtained the value Of the three
other classes of railroad property and
taking go per cent of the remainder
for the value OF the franchise for tax
alton. The allowance OF 40 per cent is
made in order to eliminate the specu-
latiye value of stocks and bonds as
shown by the market quotations at the
time the valne Is fixed
Personal Property.
The railroads are compelled by Law
TO return an exact list Of every item Of
heir personal property, and the board
sf assessors Ak the value Of such prop
erty, and on that value it leyies ths
tax.
other Real Estate.
The railroad companies are compelled
by law to return to the state board Of
assessors list Of their real estate
holdings. outside .of main STEM anl