The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-01-10
McCARTER ON
EQUAL TAXES
The Attorney Generals Views
Freely Expressed Before
State Commission.
QUESTION OF STATE REVENUE

The following address was delivered
by the Hon. Robert McCarter, attorney
general Of New Jersey, before the
equal tax commission:
Gentlemen-A communication from
yonr secretary, dated the 18th day of
December, invited me ito be present at
this meeting OF the New jersey tax
commission to present the question Of
taxation to tie commission from the
states point of view ! had previous
ly received a request from the govern
or that should accept such an invita-
tion should 1t be extended and shall
therefore avail myself Of this opDoTtu-
nifty to draw to your attention one
phase Of the interesting and important
subject you have under intelligent con-
sideration which perhaps has not been
prominently before your minds, but
which is OF the greatest Importance.
use the word perhaps" adYisedIy, be
cause / have not had the opportunity
Of attending any Of your previous ses-
sions nor have even read complete
report Of your proceedings. | have,
however, in some way become pos
sessed of the idea that suggestions
have been made to You looking to a
change in the present method of apply
ing SO much Of the taxes upon railroad
property as now constitute an impor-
tant part Of the revenue of the state
into other channels, and my only pur-
pose in what shall now say will be to
protest in the most vigorous manner
possible against the adoption of any
such course. The sum received by the
state for state purposes from railroads
and canals in the year 1908 was $907,
934.14, or less than $4,000 in excess Of
the amount received from the same
source of supply by the local communi-
ties, while the state expenditures have
increased fully fourfold between those
years.
Railroads have, as shall point out,
from the time of their organization
been the one source consistently relied
on by the state for its necessary reye-
nue.. and while the increase in popula-
tion and in the accompanying demands
of an intelligent people have added to
our state expenditures, so that in the
year 1903 they reached the sum OF
$4,517, 800, The funds to meet these out
lays SO fai as railroads are concerned
have practically remained at stand
still. This result was brought about, of
course, not because there has been no
increase in the amount paid by the
railroads in that time, but because
practically all that increase has been
applied to the municipalities and not to
the state. 1t is my firm belief that the
time has come to call a halt and to in
sist that no further inroads shall be
made upon the states revenue from
railroads unless the people of this state
are ready to step back twenty five
years and contribute from their indi-
vidual purses toward a state tax.
Railroads began to be chartered in
the decade between 1880 and 1910,
previous to that time the expenses of
the state had been very small and
We're met by the imposition of state
taxes. the receipts from fines, forfeit
slres, etc. The prosperity that imme-
diately followed the Introduction of
transportation by steam brought with
it increasing expenses, and the state
promptly imposed upon the railroads,
to which 1t gave valuable franchises.
including the power to exercise the
right Of eminent domain, the duty of
paying to the state for state purposes
an annual tax Of some kind independ-
ent Of and without regard to the reve-
nue. required by the local municipali-
: ties 1t is believed that not a single
charter was granted to railroad com
pany that did not contain some provi-
sion Of that kind There was then no
constitutional provision requiring tax
es to be assessed upon the true value
of property, and hence we find that
many of the companies were by their
charters required to pay to the state
for state purposes an annual tax base
upon the cost of the road. Others
again were compelled to pay percent
age Of their receipts from the carriage
OF passengers and freight or transit
duty, and / have been able to find but
four charters out of several score that
have examined in which local taxa
tion Of railroad property was provided
for, and in each of these it was only
permitted while the companies We're
constructing their roads and before
they were operating them, and in prac-
tically all Of them the taxes thus Inn
posed were expressly stated to be in
lien of all other taxes whatever While
diversity in the method Of imposing
&ovos +h..r oviefad an onffro t1nfforr,
ify obtained in the application Of the
proceeds Of the assessment to state
purposes. In 1869 the legislature sought
by the act abolishing transit duties to
secure like uniformity in method Of
imposition by substituting a require
ment that the roads pay to the state
percentage on their cost and requiring
sworn statements from officials to be
annually presented to the state. In
1873 the general railroad law was
passed. in the nineteenth section of
which there was provision for state
tax Of one-half OF ! per cent on the
COST equipment and appendages, In
cIuding the roadbed, Of any company
Incorporated hereunder. This section
also authorized the same assessment Of
taxes upon the property other than the
x0adbed hundred feet in width that
was imposed upon nonrailroad proper
" In any municipality. IL order to
make assurance doubly sure the legls-