Perth Amboy evening news., 1904-10-20
Explanation h Detail Of the
Main Issue Raised by the
Democrats.
TERMS DEFINED.
4 Clear Cut Statement of Taxation Matters
Ia General Showing What Effect It
Would Have to Take the Tax Collected
on the Main Stem From the State and
Turn II over to the y un.cipaIties.

Equal taxation of all property is pro-
vided for by the constitution. Educa-
tlonal, religious and charitable proper
ty is exempted from taxes. The con-
stitution was adopted in 1875 and is
binding Oh 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, for
the reason that the state had granted
special charter rights and privileges
prior to the adoption of that constitu-
ton and could not take those rights
away.
Under The cry of equal taxation the
Democratic party is attacking only II
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
1T should be made to do so. In order
TO understand the question it 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 a change is made
In the present system.
CInssess Of Railroad Property.
Hhsf.7NIain stem, which is the right
Of way, E3lot more than 100 feet in
width, with the rails, ties, ballast,
bridges, viadsicts and passenger lepots.
Seconds-Frqnchise. The right to OPP
crate the railroad granted by the state,
Including the right to condemn land
for the main stem.
Third, -lPersonal property, such as
rolling stock, cgrs, locomotives, ferry
boats. all machinery, tools, etc.
Fourth, OtRsr real estate. used for
rhiltoad purposes outside of the main
stem (of q width of not more than 100
feet, such as roadbed, waterways,
reservoirs, buildings. water tanks, wa
terNorks, riparian rights, docks, wharfs
andspiers
The first three classes of property
are taxed at a rate of one-half of l per
cent on the valuation, or IS on each ST.
600 s0f valuation. The fourth class is
taxed at a rate of ~ per cent, or SO
on each 81, ZOO 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 Oh the fourth class of
property is assessed and collected by
the stnte 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
1884 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
board has been continued up to tine
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.
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 a
locality north of the Passaic river was
found to be 500 per acre such value
wal 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
sup~erstructure, the total valuation con
sisting OF roadbed, with ties, etc.
Tax On Franchise.
The franchise of a railroad is the
right granted by the state to operate
the road, without which the road could
not be operated. 1t is intangible, but
thut 1t has a value for purposes of tax
alton has been long settled. Under
the New Jersey railroaS tax. law the
yalue of the franchise is determined
by calculating thk market value of the
stocks and bonds of the railroad sys-
tenn. then subtracting from the sum
thus obtained tile value of the three
other classeD of railroad property and
taking go per cent of the remainder
D the value of the franchise for tax
alton. The allowance of 40 per cent is
mnde in order I'd eliminate the specu-
lafiye value Of st0cKs and bonds as
shown by the market quotations at the
time the xaiue is fixed.
Personal Property.
The railroads are compelled by law
q return IN exactlist0f every item Of