The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-07
More Than $2,5OO,OOO IN
Annual Taxes Involved
in Cases.
GOES TO ERRORS COURT
Justice Pitney, in a voIumineus
Opinion, Discusses the Issues
Clearly and Finds Against
the Railroads on Every
Point of Importance.
Especial to the evening star.l

IHENION, aug time supreme
Court today decided in favor of the
State in the suits to settle the question
of railroad taxation in New Jersey
The litigation involves the sum Of
$2,500000 of annual taxes payable by
the railroads on their main stern prop
erty. The decision relates to the con-
stitutionality Of the Perkins act of 1906
in relation to the taxation of railroads
and canal companies, including the
Average rate law" and the act of
1888, of which it is supplement-
Justice Pitney declares for the State
on every point involved in the branch
of the subject upon which he wrote
the opinion.
Justice Fort decides against tho
claims by the Pennsylvania Railroad
Company on behalf of the United Rail-
roads of New Jersey. of which it is
lessee, that by the charters of these
roads and legislative act passed In
1859 the company is exempt from all
but one-half of l per cent. of tax on
its property in New Jersey.
The cases were argued at the Feb
ruary term of the Supreme Court, the
railroad lawyers being r. V. Lindabury,
George Holmes, Collins & Corbin and
William d. Edwards. The State was
represented by Attorney General Nc
Carter, Bennett Van Syckel and John
R. Hardin.
The issue will now be taken to the
Court of Errors and Appeals, and q de-
cision by that court is expected this
year.
The voluminous decision fled by JUS
tice Pitney covers forty-two pages Of
type-written legal cap. 1t is written in
clear, luminous style. 1t takes the
ground of the entire constitutionality
of the taxes levied by the State Board
of Assessors for the year 1906 upon the
main stem, tangible personal property
and franchises of the railroads under
the Perkins act of that year, and I'M
der the act of 1883, which 1t is sup
plement thereto. The syllabus of the
decision is contained under ten separate
heads as follows:
SYLLABUS.
d) The revised act of 1888 for the
taxation of railroad and canal property
Up. l.. 1883, d. 269, Gen. stat, y. 3324l,
ms amended by Chapters 81, 122 and $50
of the laws Of I0O0 Up. L. 1905, D. 12i,
d.
(2) The acts referred to do not vio-
late article A, section z. paragraph -.
of the Constitution of this state. which
requires that "property shall be as
sessed for taxes under general laws,
and by uniform rules, according to its
true value"
go The acts In question do not de-
privc the taxpayer OF property without
due process of law, nor deny the equal
protection OF the laws. within the
meaning of the Fourteenth Amendment
of the Constitution of the United States.
6D Chaptcr 81 of the laws OF 1909
Up. l.. 1905. D. 12D, which imposes upon
the main stem or waterway and the
tangible personal property and fran
chIse of every railroad and canal com
many the aaverage rate of taxation,v to
he ascertained by computation from the
taxing rates prevailing In the several
tnxinr districts of the state, is not un-
constitutional.
90 The so-caIIed Perkins act (P. L.
1906, u. 571). which requires that what
is known as "seeOnd class" railroad and
canal property shall be assessed and
tnxea in each taxing district, in the
same manner and at the snme rnte as
other property located in sueh district
and that the tax thereon shall be paid
to The proper officers of the several
taxing districts, Is not unconstitutional.
t6D The fact that all property used
for railroad and canal purposes may be
set npnrt in a class by itself, as distin-
guished from the general mass Of
in the state, Sor purposes Of
taxation. does not negative the pro-
prIety of subdiViding this general einss
of property into minor classes for the
purpose OF taXation' nor Is the suh-
classification special. and hence uncoa-
stitutionaL provided 1t rests upon
of discrimination Inherent
either in the character of the property
or its situation and circumstances, sach
as to render the distinctions reasonably
to the purposes of the
classification.
t7) The legislative purpose being to
divide property used for railroad and
canal purposes into two parts. upon
one of which taxes are to be levied for
the support of local and mnHicipui gov
ernment. either together with or sep
nrate from taxes for the support Of the
general state government. leaving the
residue to be subjected to taxation for
general State purposes only. Held.
that the setting apart of what - known
as sssecond-cIass" railroad and canal
property for local taxation. second-elass
being defined In substance az
Including passengers and freight build
ings and all other real estate nsed for
railroad nnd canal purposes ether than
the roadbed or waterway not exceed
Ing one hundred feet in width. l. rea-