Perth Amboy evening news., 1906-01-09
LEGISLATURE MEETS
IN 10th SESSION.
Continued from Page 81

should -e taxed at local rates ana that
the revenue from this source should as
heretofore be turned into the treasures
of the municipalities where such property
is situate. This law increased by $485 900
the amount of taxes annually to be paid
by the railroads. The same legislature, in
pursuance of the policy inaugurated two
years ago, referred to the state board of
equalization of taxes under a joint reso-
luton, 1.-The further consideration of the
taxation of railroad property" This re-
ferred to the main stem, or right of way,
which is confined to a strip not exceeding
100 feet in width and in some cases not
exceeding sixty-six feet in width. TIE
main stem is thus the railroad highway
of limited width traversing the state. The
board of equalization has made a recon-
mendation upon this class of railroad
property. and that recommendation is be-
fore you in a separate report. 1t pro-
vides, in brief, for the taxation of this
class of railroad property as other prop
erty at the average tax rate of the state.
Railroads should pay the same proper
ton of taxes as is paid by other property;
no more. no less. AS Governor Albeit
said, Equal burdens and equal rights for
all, corporations as well as individuals,
are the principles that should control our
tax legislation" In order to produce this
equality not only the rate, but valuation.
must be weighed. One class of property
may pay the same rate as another, but il
it is subject to a lower or higher valua-
ton the principles of equal taxation are
violated.
There are two distinct methods by which
this class of property may be taXed-One
by taxing 1t locally, the other by taxing
II by the state.
Taxation by Local Assessors.
The taxation Of the main stem by local
aScasSnrc invplyas tho QUITTING Yn of this
class of property into sections, contermi-
nous with the boundaries of the taxing
districts through which 1t passes. This
would destroy for purposes of taxation
the value which it derives by virtue of
it's continuity from terminal to criminal
and would result in a corresponding loss
in revenue. AS l said in my inaugural:
Property of this kind is valued as a
whole. Divide it and you destroy it,"
One mile of the main stem of a railroad
is as valuable as any other mile for the
purpose for which it is designed, and yet
under a system of local assessments one
mile of railroad would be valued at one
rate, another at another. One mile, for
example, might be valued at $4,000, an
other at Sc, 5000, another at 10000. The
mere statement OF this fact shows the
possible inequality of such a scheme.
Taxation by the State.
The main stem is a class of property
particularly fitted to be set aside for tax
alton by the state. 1t belongs to no one
city or county, but extends through the
various counties and municipalities of the
state. Its patronage is derived not from
one section, but from all sections of the
state, and the interstate traffic. which
adds greatly to the value of our railroad
highways, cannot be claimed by any one
SECTION, but by all sections of the state.
he revenues out Of which the taxes are
i'd are either contributed by the people
the state or derived from a source in
ich they can all claim equal right. In
d, the authority of the railroad to do
siness is granted by the legislature,
representing all sections of the state.
Equitable considerations therefore would
BEEN to regard this class of property as
a source of revenue for all the people of
he commonwealth. If the main stem
bhould be taxed in this way the applica-
ion to this property Of the average tax
ate of the state would seem to be logical
nd complies fully with the requirements
bf equal taxation.
The average tax rate of this state is
bout Q per cent. The main stein, includ-
frafcffses.~which are figured in the
e of the NAH, 44sm. together with,the
Qnal proberA Produces a revenue to