The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1904-10-25

following valuations of their property
Valuation
Maia stem and franchises. ...... s15s, Is, ,sOl
Personal property ............... 25.201.1 lis
Total valuation. ................. s1Si, ,o1<
Taxes for the state. .............. 92l.795
Valuation.
Real estate, other than main
stem ,,.... $42, ,836, ,09i
Taxes on this class Of property
which are returned to the
local taxing districts........... 642,51s
The franchises Of the railroads Of
New Jersey were taxed in 1908 on a
valuation Of $5O,00O,000, leaving the
tax on the main stem at $109. 100000.
What the Democratic Party Proposes
to DO.
First. 1t proposes to tax the main
stem, the personal property and the
other real estate on local valuations at
local rates for local purposes and to
tax the franchises at fixed maximum
rate Of one-half Of / per cent. The
valuations are to be placed upon the
property by the state board of assess,
ors. The tax is to be collected by the
same board, and all taxes, except fran.
chise tax, are to be returned to the
local community In which the property
is situated.
In one paragraph it Is asserted that
the time for investigation has passed;
that the subject is simple and easy to be
settled. In another paragraph in the
same platform it is said, "That, expert
knowledge being necessary to determine
the Valuations Of railroad and canal
properties, the assessment Of valuations
shall be made BY the state and paid to
the taxing districts in which the prop
erty is located" The question, accord
ing to the Democratic platform, is very
simple, and yet it requires expert
knowledge" The party backs and fills
on the proposition in the same plat
form. If it is simple and easy to settle,
why is it necessary to have expert
knowledge in order to fix the valua-
tions?
Second. 1T proposes to separate rail-
road properties into two classes the
franchise, which is, intangible, and the
other property, real and personal.
which is tangible, 1t proposes to have
rate Of So per thousand on the
franchises and as many different rates
for the other classes Of property as
there are communities through which
the railroads run. There are about 500
taxing districts in the state, and the
Democrats thus propose to separate the
railroads into 500 parcels.
Under the Democratic plan, as set
forth in their platform, a railroad main
line will be cut up into as many diff
ferent pieces or parcels as there are
taxing communities through which it
runs, and the franchise, which is Of
value only when it. is connected with
the main stem and is as much a part
Of the value Of the main stem as the
roadbed and the superstructure. is to
be separated from it and taxed sep
arately at fixed rate. The proposi-
ton to separate the franchise from the
main stem is as sensible as it would be
to tax each separate link in chain
used on a windlass for hoisting pur-
poses and then to tax the windlass
separately. 1t is about as reasonable
a proposition as it would be to tax a
mans house by yaluing the kitchen at
one rate and the parlor at another.
The franchise and the main stem are
inseparable. They must be considered
together in order to get at value.
Take away the franchise and you have
nothing left but the real estate. The
value as railroad is gone, and the real
estate has no value outside of its value
as real estate.
Not only is this so as to the fran
chise, but the value Of main stem is
not divisible into different parts. 1t is
an entity, and must be so considered
or its value is destroyed. A mile Of
railroad track on main stem In a bar
rem swamp is as important an element
in determining the value of a railroad
as mile of track through the most
populous community. The proposition
to divide the main stem into parts is
absurd on its face. For illustration,
take mile of main stem containing
about ten acres of land situated on the
salt meadows between Newark and
Jersey City. Consider it, il you can,
separately from the rest of the main
line, and it will have no appreciable
taxable value. Again, take mile Of
main stem running through Jersey
City or Newark. Consider it as
separate mile of railroad unconnected
with the rest Of the line. and 1t will be
worth no more than the bare land Of d
similar area in the same city. The av-
erage valuation per acre of railroad
property in New Jersey is $6,366, and
there are approximately ten acres to d
mile. Consider each separate acre in
this way and its value will be destroy
ed. It is the continuity Of the line CON
Meeting centers of trade like New York
and Philadelphia that gives value to
the main stem.
Taxation of the personal property Of
"a railroad under the Democratic
scheme is impracticable and impossible.
A train of cars on the day when the
tax is levied is probably in fifty differ
ent communities Which one is to OBJ
tain the benefit of the tax-the one
where the train is in the morning
where it is at noon or where it is at
night? The result would be that the
rolling stock, locomotives. etc, would
not be taxed anywhere, and the state
and local taxing districts would lose
the revenue now derived therefroin.