The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-07


Major Carl Lentz'i
which quotation has just been made
there is this proviso:
Provided. that the transit duties ant
all other taxes and dues accruing to TIM
State from any of said companies are no
to be changed or diminished by anything
herein contained
Under this act of 1867, the consolidation
agreement which was entered into, oil
which had been already entered into. wai
ratified n confirmed, n the United
Railroad and Canal companies came into
being.
On the 30th of March, 1868, after such
consolidation. an act was passed to enable
the United Railroad and Canal companies
to increase their depot n terminal facil'
tiles at Jersey City. Up. L. 1853, p. SOD.
This act was a grant by the State to thu
companies through a conveyance to the
New Jersey Railroad and Transportation
Company of what Is known as the HARSH
mus Cove property in Jersey City, this tc
be used for increasing the depot and othei
facilities at Jersey City; and in the sec
ond section of this act 1t was provided:
That any other tax other than that
which Is imposed upon the said companies
respectively, by their respective charters
or acts of Incorporation, Is hereby re-
pealed."
So that his left the charter provisions
with regard to transit duties In lieu oil
taxes in force and If 1t repealed anything
1t repealed simply the provisions of the
act of March Is, 1887. supra. which gave
to the State one-half of certain increase
In railroad fares for the transportation OF
passengers between New York and Phila-
delphia, when the rate exceeded SO per
person.
With this state of taxation existing,
and this contract with the State In opera
tion, the Legislature, in 1869, passed an
act, which is the important statute in this
L POntr0VarSV which Was 4DDrCVp0 M1IC1
4, 1869. and entitled IAN Act Relative to
Transit Duties:"
=. THAT all transit duties. whether pas
enger or freight. shall be and they here
by are abolished.
THAT all companies heretofore paying
transit duties to the State shall hereafter
pay each year a tax of one-half OF one
per centum upon the costs Of their re-
s~pective works until the Legislature shall.
by general aw. impose a uniform state
tax, equally applicable to all railroad and
canal corporations Of this State. and said
companies shall then pay such uniform
tax.
This act shall not apply to any cor
operation having a contract with TINS
State in reference to taxation unless
within three months from the passage
hereof, this act and it's provisions be ac-
cepted by the board of directors of sucf
corporation in place of said contract"
This act was accepted in accordance
with its terms by the above named com
panies, who were then paying transi
duties TO the State, and the effect of thu
first section of that statute was to abolisl
all transit duties, and that form of taxa
ton. as to all companies to which 1t ap
piled, and to establish the method pointed
out in section two of the act of 1859, a.
the only method for the taxation of thu
property of these railroads.
Justice Fort goes on to describe thu
consolidation of the united companies
and their lease to the Pennsylvania
Railroad in 1870:
That no such consolidation agreement
contract, lease or other arrangement shall
have the effect or be construed to releas
or discharge the said United Companies o
any or either of them, or any company o
companies with which any such consoli
dalton agreement, contract or lease ma,
be made, from any taxes, liabilities, CD
legations or duties which they or eithe
of them may be subject or liable to
either to this State or to any other persol
or persons.
This act contains the following
clause:
The consolidated corporation thus au
thorized to be formed shall be vested wit
and hold all the rights. titles, powers
franchises. privileges, properties, immuni
ties and advantages heretofore conferre
Upon or now held by any or either OF sal
three corporations, respectively.
ut will be noted,'' says the court, "tha
through all this legislation there runs
manifest purpose on the part of the Stat
to retain and enforce it's contractura
rights with these companies, as containe
In their original charters or as modified b
the act of 1869, which changed the metho
Of taxation from transit duties to a fxe
percentage.
I'm this condition of the law, the prose
cutor, the Pennsylvania Railroad Com
pany, entered into a lease with the Unite
Railroad Companies for a period of %
years, this lease being made after tn
enactment of the act of March IA, 1877
and after the companies mentioned In thu
act had accepted the same.
by the lease it was provided, that a
the franchises, rights and privileges {
the United Railroad Companies passed
the Pennsylvania Railroad Compan.
under this act, by consent Of the State.
THAT the contracts with relation
taxation existing between the lessor con
, panies and the State, as found in the
, original charters, were deemed to be II
) repealable contracts, is so firmly settle
l by the decisions of this court that 1t wi
Knot be deemed here to be an open que
ton"
, After quoting decisions by Justic
t Depue the court says:
l That the method of taxation provide
. for by the act of 1869 was substituted II
that contained in the respective charte
OF the several companies composing II
United New Jersey Railroad and Can
2 Companies. we have no doubt. The lal
guage of this act makes its purpose clea
/, Before 1t was to become operative 1t w;
to be accepted by the corporations
e which it might apply. 1t was so accept,
by the United Companies. as we ha'
! seen. BY this acceptance the contract I
e transit duties, in lieu Of taxation, wi
n by the first section OF that act clear
! second section Of the act substitutes Z
q the transit duties previously imposed,
S specific tag of "~one-half Of one p
: centum upon the cost of their respecti'
works, including all their property
every description not otherwise taxed
This we think becomes the substitute
z or modified contract, II any contra
y Thereafter existed between these cor
panies and the State, n this method
d taxation became. If a contract existe
e the exclusive method of taxing such cor
n panies unless and until, as the act pr
vides, 1.-THE Legislature shall by gener
n law. impose a uniform state tax equal
porations OF this State. and said col
d panies shall then pay such uniform tax
h The specific rate tax was. therefor
is after 1863. the only method of taxing I
property of the prosecutors In this ca
SO long as the State failed to a a &c
eral law imposing n uniform tax upon I
property Of all railroad and canal corr
: ratlons Whenever the State saw At
place the property of all railroad a
canal companies. for the purposes OF "a
y alton. under a general law, there "
D. nothing in the act Of 1863 to innlpit
Assuming the act Of 1859 to be a contra