The Jersey City news., 1906-01-09

stStAhiDVuS VIII tHe DOundarleS OF the
taxing districts through which it passes.
This would destroy for purposes Of tax.
alton the value which it derives by vir-
tue of It's continuity from terminal to
terminal and would result in a. cores
ponding loss in revenue. As | said in
my inaugural, property of this kind is
vahled as whole; divide it and you de-
stry it. In estimating the value of such
property for purposes Of taxation it
should be valued as whole. The sepa.
ration of this property into sections. or
into real estate and franchises, does not
conduce to the revenue of either the mu-
nlcipality or the State
AT present the State is distributing TO
the various taxing districts a million doll
lars annually. This about equals the
amount of tax now derived from the
main stem, and this sum could not be
distributed if this revenue were diverted
from the State treasury. Moreover, it is
doubtful if the taxation of the main stem
locally would, except in two or three
cities, produce as much revenue to the
different localities of our State as they
now receive under the present method of
distribution of main stem tax. There
are some sections of our State without
railroad property These would receive
nothing from local system of taxation
Livingston, in Essex county, now re-
ee.yes from this source 1851; East New
ark and Gutenberg, in Hudson county,
receive 81 ,2G6 and $2,4T7, respectively.
Beverly city, in Burlington county, re-
eeiyes $500. Sandyston township, in
Sussex county, now receives $776. These
are illustrations of city and rural COM
munities which would be deprived of this
source of, revenue.
"Nor would this system produce an
equality in all aspects. Rate and valu-
alton are both involved in any just
policy. One mile of the main stem of
railroad is as valuable as any other mile
for the purpose for which it is designed,
and yet, under system of local assess
ments, one mile Of railroad would be
valued at one rate, another at another
One mile, for example, might be valued
at $4,000. another at $25, 900, another
at $4,000. The mere statement of this
fact shows the possible inequality of
such = scheme.
The effect of the adoption of this
system upon our State policy on this sub
ject should be carefully studied How
ever different the laws providing for the
taxation of the right of way may have
been at different periods, in all cases the
income from this source has been turned
into the State treasury.
"The average tax rate of this State is
about two per cent. The main stem, in
Guiding franchises which are figured in
the value of the main stem, together with
the personal property, produces reve-
nue. to the State of little over 1851 600.
If the average rate of the State were
applied, this class of property, instead of
paying 1851 900, would pay, subject to
equalizatios Of valuation, about So, $780,
OO0, within about 100000 of the present
total State income from all sources.
The railroads now pay taxes of over
81, ,14G, 600 a year, which is turned direct
ly over to the municipalities. so that this
would make the total taxes paid by rail
roads for all purposes about $4,940,O00,
or nearly twenty-five per cent of the to-
tai taxes now paid by all the property
Of the State.
''The distribution of the tax derived
from the main stem is a separate and
distinct proposition from the method of
taxation.
The State might retain portion of the
tax and distribute the balance to the
municipalities through which the main
stem passes, according to the proportion
of the main stem lying within each muni-
cipaNty. This tax might be devoted to
the school fund for permanent invest
ment for that purpose, or might be dis
tributed by the State under the act of
1900 as now, to the various taxing dis
tricts for the payment of school taxes
and the elimination of the State school
tax. This would reduce the tax rate in
every taxing district IT'S points. The
present amount received by each district
would of course be proportionately in
rreaced. Hudson County now receives
from this source S1s9,07O; it would re-
ceive about S718,466. Jersey City now
receives from this source $9s,563: it
would receive about $3403 33S. Essex
Countys now receives from this source
1926, ass; it would receive about $685.
S40 X Nav-art now ranasxas eraon. +h;s