The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-13
JERSEY RAILROADS MUST PAY.
TAXATION OF SEC0NDCLASSP PROP
ERTY LOCALLY UPHELD.
vest case Results In the Dufneld Act ef
1905 Being Declared Constitutional
state Board ri Increase valuation
or other Local Properly II Necessary.

n. j., Nov. l2.-The Supreme
Court in an opinion by Chief Justice Gum
mere. sustained to-day the constitutionality
of the Dufield act OF 1905, which provides
f.r the taxation of second class railroad
pyoperty at local rates for tho benefit of the
municipalities in which it is situated. The
decision is against the railroads upon most
Cd. the questions raised in the test case
night by the Central Railroad OF New
Ie.sey against the State Board OF Equsliza-
non Of Taxes, which dismissed the railroads.
appeal from the assessment levied by the
local authorities in Newark.
Several hundred appeals filed by the rail-
roads throughout the State are involved in
tto decision. When the railroads. appeal
was heard by the State board it was set up
tnat, It's second class property having been
assessed at true value and other property
n Newark below that value, the board
should reduce the valuation on the railroad
property to a percentage equal to that Of
other property. The board held that for
I've purpose of eoualizing taxes it had no
power TO reduce property below its true
value or to increase the valuation on other
property assessed locally.
The first contention OF the railroads
was that the Dufield act was unconstitu-
rionsl. being special legislation and in
violation OF the provision that all property
shall he taxed by uniform rules at It's value,
The Supreme Court holds that he Dufield
net is not substantially different in its
method from the law which has been in
force for many years for the taxation OF
railroad and canal property and which
has been sustained by the courts.
It's held also that the State board was
entirely right in deciding that it had no
...-,- 10 no1,NOn NkA watl~NnIia aaaaa1vx, anNa
under the constitutional limitation hat
property shall be assessed at true value.
As 10 the point made by the State board
that it could not raise the assessments
Of other local property, the court holds
that board was in error in Diminishing the
appeal on those grounds On the con-
trary, II holds 1t to be the duty Of the State
hoard TO increase valuation when IL is
shown that the assessments are below
true value and that it has power to direct
g reassessment in any district.
In the case at bar the Chief Justice says
the only evidence before the court was in
the form OF a stipulation of facts CON-
sented to by the Attorney General and the
railroads, h agreed that property out =
side of the railroads had not been assessed
at true value. Therefore the our holds
that it can order such a reasseesment,
leaving open the question as to whether
such an order may be obtained by sub
sequent proceedings to which Newark
may Oec9tne a party udenoatJ'
A hearing was begun before the New
Jersey State Tax Board in Jersey City yes
terday on the appeals of the railroads enter
ing that city from the assessments levied
by the local tax board on second class rail-
road property. William H. Corbin, repre-
senting the roads, said in his opening that
he levy was unfair and unlawful because il
Disseminated against railroads in favor Of
other property holders.
The total assessed valuations in Jersey
City on real estate, he said, had been in
creased from sos, 600 900 last year to $751;
10000 this year. and of this, amount 347.-
900. 600 represented the valuations on second
class railroad property as against s23, 900 600
'evied by the Stale Board of Assessors last
year. He contended that the best resi-
dental property had been assessed at not
more than so or 70 per cent, while the rail-
roads had been overassessed in many cases.
Testimony was taken in the case of the
Jersey Central's appeal which will, by agree
ment of counsel, apply to the other appeals.
Thomas }. Ryan and William V. Garrison,
real estate experts for the railroads. testi-
'ied that real estate in the Bergen residen-
iial section was assessed at a lower rate than
real estate in the poorer sections OF the city.
The hearing will be resumed to-day. II
will continue for some time.