, 1906-02-07
GOVERNOR STOKES ON
RAILROAD TAXATION
TALKS TO VINELAND CIVIC CLUB
Says the Corporations Patronize New
Jersey Because Here They
Are Not Subjected to
Political Blackmail


The Civic Club and a number of in
vited guests listened to an interesting
talk on Wednesday evening, Jan. 81,
1906, at the home of DIR. Wellington in
Vineland on the question of Railroad
Taxation, and although many of these
representative citizens have previously
entertained different views on this suit
ject it is safe to say that at the end of
the Governors talk and the discussion
which followed, every one of the forty
or fifty present, practically agreed with
him on this particular question. The
difference between the Governors prop
o%sition, as embodied in Assembly bill
No. |, and that of the Essex and Hud-
son county people is not in the amount
of tax to be raised, but in the manner
of raising it, and the disposition of the
proceeds.
Taxation, the Governor said, in its
broad sense, is based on the needs of
government, but in this State it has
gradually grown into a system of So
cialism and the State has taken upon
itself obligations which were formerly
borne by the counties and municipal
tiles. For example, the care of the in
sane, feeble-minded and other charita-
innate that the State should do this
work, and if it is continued larger rev.
enues will be required than formerly.
The State has also taken IN another
obligation in the care of roads, amount
ing to about $3.50, 600 a year. New
Jersey now has one-third of the stone
roads of the United States. We have
been getting our money largely from
miscellaneous corporations, which
amounted to owe two million dollars
last year. The steel corporation, for
instance, pays a tax on its capitaliza-
ton of $57 900 per year. The corpora
tons stay here not because our laws
are more liberal but because they are
not subject here to political blackmail
as in some other states, and the courts
have adjudicated on all important
points that are likely to come up and
they know just what to tx pect. Anoth-
er chief revenue has been the taxation
on railroad property. The main stem
is considered not more than 100 feet
wide. All except the main stem is
n.xy e,,liaaf 70 fl,a l,.ol ratio ulo roxr
enues now amount to about "a 300, 900
and we spent $4, 800 900. 81, 100, 900 of
this was returned to the schools. The
Equal Tax agitation grew out of a COM
plant from Jersey City, where it was
thought they were not getting their
share of the railroad tax. This year
the adjustment of the taxation of the
main STEM is to he settled. The scien-
tific way to tax the main stem property
is as IA unity from end to end. Jersey
City doesn't want it done that way.
Three-fourths of the tax on second-class
railroad property goes to Hudson coun-
ty. Their argument is that the whole
of the railroad property should be as
sessed and collected locally, which
would take the tax all out of the State
treasury. Property should be assessed
at the average rate of The State, which
is nearly two Der cent, which would
make nearly five million dollars. The
valuation of railroad properly in pro-
portion 10 other property is about 20
per cent. If the main stem tax went
into the State treasury Vineland would
get about four times as much as now,
and if it is valued locally it would lose
what it gets now. AT present the
whole main stem tax is divided among
the counties in proportion to their rata
bles. 1t seems that the average rate of
the State is The nos equitable. The
railroads are valued by the State Board
of Assessors on the estimated cost of
reproduction. In Massachusetts the
railroads pay a tax on their capital
stock, and other methods are followed
in various states. The railroads also
pay a franchise tax which has been in
cluded in the main stem tax. If the
railroad property is to be taxed locally,
the State must relinquish its liberal
policy of aid to various charitable in
situations.
Tile State of Wisconsin has expended
$50, 900 investigating the Railroad Tax
alton question, and has decided that