The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-01-17
INAUGURAL
ADDRESS
[coNrtS Unb FKoM FIasy PAGE, ] !.

v1duaIs ana corporations, but in cases Of
appeal between taxing districts and be-
tween counties where these are contrib.
uting to a common cause.
Municipal Taxation.
Municipal taxation is matter of Sc
rious and growing Importance, Municipal
expenditure is increasing and municipal
burdens likewise. The increase in expendi-
lures in twenty-six cities in this state has
risen in ten years from 2O2 to $22,
314161 or 75.4 per cent, while the valua-
tions have increased from $500, O66 TO
$751;, 1884,, $50, or only 40 per cent. There are
sixty-two taxing districts in the state
where the tax rate is between 21s and per
cent fifteen where the rate exceeds 3 per
cent and six where the rate ranges from
SO to 81 per cent. With government
bonds netting less than 2 per cent, muni-
cipal bonds less than 31a per cent, high
grade railroad bonds less than 4 per cent
and other property netting corresponding
ly low returns such tax rates as / have
cited exceed In some cases the earning
capacity of the property against which
they are levied This is not taxation but
confiscation. Confronted with such rates
as these and harassed every year by the
fear of increased burdens, taxpayers in
self defense are conceaiing their prop
erty or placing 1t in nontaxable forms.
This adds an ever increasing burden upon
real estate which cannot escape and is
one of the causes of its depreciation in
value.
There have been notable instances where
cities have met this problem and solved 1t
in a practical If not a permanent manner.
This has been by fair valuation of prop
erty according to the constitutional man
date and a corresponding reduction in
rate. For instance, the city of New York
in 1902 assessed its ratables at true value
and reduced the tax rate from 1921 to 81. Al.
The city Of Philadelphia reduced the rate
from S1.S5 to $1.50. Perth Amboy in this
state went through similar experience,
reducing its rate from $237 to $1.H At
lantic City did likewise and reduced the
rate from $685. to $1.47. The success of
these movements has proved their wisdom,
Property which, from a sense OF protec-
tion conceals itself against an exorbitant
tax rate is willing to come out of hiding
and subject itself to a reasonable and fair
rate. The result is that more property is
discovered and added to the ratables.
The revenue under a small rate is really
greater than the revenue under rate
that induces property to concealment,
while the individuals contribution is not
larger than before
Maximum Rate of Taxation.
The danger to the taxpayer In this rem
edy lies in the fact that he has no assur-
ance that the low rate will be permanent;
that it will not be raised on the basis OF
increased valuation Here the state must
come to the rescue. If a maximum rate
for every taxing district in the state was
fixed by legislative enactment the rate of
taxation would be insured, and under this
aegis Of protection property investors
would seek New Jersey as a safe asylum.
The legislature Of the state can very
properly consider the wisdom of such
legislation. The comptroller Of the lar
gest city In the country says that a rate
of s150 a hundred is sufficient to meet the
needs of any progressive municipality. II
the maximum rate for every municipality
in this state We're fixed at the outside, at
$40 on the hundred or lower, If possible,
the difficulties of the burdensome tax rate
and municipal expenditure would be large
ly solved. Every small property owner
would be assured of the contribution he is
to make yearly to the common good.
Property would come out of hiding. The
taxpayers and investors In municipal scr
curities would all be interested in en-
forcing economy In municipal expendi-
lures The public mind on the question
of individual taxation would be changed
from a state in which 1t now winks at the
dishonest evasion of taxes to one in
which 1t would insist upon their honest
payment. The gain in public morality in
N0AA-@NS~AS-@ ~~N@A@HO~ ~
Misapplication Of States Surplus.
would go even further than this In
1898 the legislature passed an act provid-
ing that the surplus money in the state
treasury might be appropriated for the
purpose of reducing the burdens of local
taxation For the first year or perhaps
the first two years the distribution of
this sum reduced the tax rate and Light
ened accordingly the burden of the tax
payer. At the present time the $50 900
distributed from the state treasury for
this purpose is used by municipal author
tiles for increased expenditures. while
the taxpayer is called upon to contribute
as much If not more than before / would
amend this act and would provide that
this distribution be limited to those tax
ing districts where 1t was used not as a
means for increasing expenditures, but as
a means for reducing the tax rate pro-
portionately to the amount of the con-
tribution from the state. In this way
economy in state expenditures, the in
crease in state revenue and the growth
of the state surplus could be made to
lessen the taxes of the property holders
Of New Jersey and attract home builders
to our commonwealth.
Dependents.
The work of the state in the care Of its
dependents grows in magnitude as 1t
grows in Importance 1t is a duty which
the government cannot neglect with JUS
tice or safety. Involved in this problem
are questions of health, morals and
finance. Detectives are objects of pity
and sympathy: they are helpless and must
have care They are also dangerous to
society. and their increase must be pre-
vented IL possible.
This work entails upon the state vast
expense, amounting each year to 30 per
cent Of the states disbursements. Ten