The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-01-10

Yiding for a state tax Of one-half Of l
per cent upon their cost and subjectipg
the property of any such road texcept
roadbed a hundred feet in width and a
tract of ten acres at the termini with
improvements thereon to local taxes.
This law was in 1876 modified to COM
ply with the constitutional requirement
that property Should be taxed on its
value and not on its cost, but the state
tax was vigorously maintained, the act
indeed being entitled IAN act provid-
ing for state taxes on railroads and
the more effectual collection thereof"
In 1884 the present law, as corrected
In 1885, was passed, and Of course il
also contained the familiar provision
requiring each company to pay to tbs
state for general state purposes the
tax of one-half Of j per cent upon each
dollar Of valuation the procee Is
whereof We're to be applied ITO the
uses Of the state
No more satisfactory resume of this
matter can be found than is contained
in Mr.. Justice Parker's opinion in the
court Of errors, concurring with the
majority Of the court in the view that
this act is entirely fair and .constitu-
tional. He says, speaking Of railroads;
"In the infancy of this class of corpo-
rations, when struggling for existence.
the amount of tax they We're required
to pay into the state treasury was
small The state favored them by linn
iting the annual tax to be paid by such
To tCIf nf
cent on the cost OF their respective
roads This tax was for state purposes.
and they were not assessed for local
taxes. The wise and liberal policy
adopted by the state was founded in
part on the fact that the enterprises in
which such companies were engaged
were at that time of doubtful success
and in part on the belief that if sue
cessful they would contribute vastly to
the public good.
''As time progressed these corpora
lions extended their business opera
tions and acquired additional property,
often of great value, until in some sec
tions Of the state, especially in the cit
les, the exemptions from local taxation
became so great as to incumber the
property Of citizens liable to be taxed
with heavy burden.
''To prevent injustice arising from in
equality of taxation and to equalize as
far as possible the public burdens the
legislature on the I'd day of April,
1873, passed an act the avowed object
OF which was to establish just rules
for the taxation of railroad property.
This act made radical change in the
system. 1t provided not only that rail
road companies should pay upon the
cost, equipment and appendages of
their roads a state tax at such rate as
had before been fixed by law, but also
upon all real property Of such compa
nies owned by them excepting the
main stem, not exceeding hundred
feet in width), county and municipal
tax for the benefit of the counties,
townships and cities of the state re-
spectively where the same were situ-
ated after the rate of 1 per cent, ex-
empting, however, from such tax land
not exceeding ten acres lying in one
parcel at the termini of the respective
roads"
AS is well known, the tax act Of 1884
imposed a heavier burden on railroads
than they had before borne, and hence
it was vigorously attacked by them in
the courts. The supreme court, con-
sisting Of Chief Justice Beasley and
Justices Knapp and Magic, the latter
now being the chancellor of the state.
held it to be unconstitutional. The con-
traIy Judgment of the court of errors
and appeals was not concurred in by
Judge (afterward Chief Justice) Depue,
so that while the law was ultimately
sustained it did not receive the APP
proval of some of our greatest jurists.
The act was drawn by the ablest law
yers and was designed to and did ma.
terially increase the revenue of the
state Many Of the railroads, includ-
ing the Pennsylvania system, have
paid the taxes imposed against them
under protest, claiming that their
charters exempted them from the adj
ditional exactions. Twenty years have
passed, however, and I think the view
prevails alike among the railroad com
panies, the state officials and every one
else who has given tile subject any at-
tention that Il fair and eauable system
was thereby devised for raising a large
part Of the states necessary revenue.
This twenty years acquiescence has
crystallized the act and dissipated the
doubts as to its constitutionality or
applicability. SO much at least is Sc
cure. The experience with that act has
demonstrated the difficulties legal and
otherwise, surrounding the enactment
of a law which will withstand attack,
and, speaking for and on behalf Of the
state, urge that before any material
departure from the plan and scope of
that act be recommended you seriously
consider the legal and practical diff
cuIties in the way of successfully en-
acting substitute Do not misunder-
stand me. The present situation calls
for certain notifications, but venture
to warn you against fundamental
changes.
1t is also well known that, pursuant
to the recommendation of the commits
sion appointed in 1896 to consider the
subject, the legislature in 1897 reduced
the revenue of the state from this
source by transferring to the several
localities through which the railroads
run fractional part Of the sum attrib-
utable to the state under the act Of