The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1908-08-25
RAILROAD
TAXATION.
Has Resulted IN Reducing the
Local Taxes to a Very
Considerable Extent.
PROTECTION FOR TAXPAYERS

button for the hrSt Time UnlS year "
the taxes on the main stem, Justlfles a
statement as to what the RepuDllcan
Party has done toward the relief OF
local taxation in the State. The Re
publican Party inaugurated the policy
of distributing the surplus FUNDS IN
the State treasury to the various local
tiles to be used for the purpose OF pay
ing local expenses and reducing the
local tax rate accordingly. Our State
is, perhaps, the only State that can
make this showing to its taxpayers.
By reason of the economies practised
and the increase of revenues under the
Republican administration, the sums
for distribution in the different locali-
ties, grew from year to year, until the
amount of the aid, direct and indirect,
to the taxpayers from the State treas
ury when the taxes on the main stem
are distributed, will total Sc, ,873 900, or
over % per centum of the total taxes
of all individuals in the State. This
large dividend to the taxpayers has ac-
crued under the laws and administra-
tion of the last ten years, and none of
it is derived from the taxation OF 1ndi-
vidual property. Experience proves
that these monies were not always
used as intended, namely, for the re-
duction of local taxes, but were used
for new items of expenditure, so that
they benefited the tax spender more
than the taxpayers.
HILLERY TAX ACT
In order to protect the taxpayer and
to insure him the benefit of this dis
tribution of funds from the State
treasury, the so-called Hillery Act was
passed. This Act provides that the
burdens of the taxpayers shall not be
increased, but that the tax rate shall
be reduced ten points on the 800 per
annum, where the rate is above two
dollars, and five points per annum,
where the rate is below two dollars,
until the rate reaches $1.75. The Act
further provides that to cover emer-
gencies in any one year, a rate not ex-
ceeding forty points above the lawful
rate may be levied.
The purpose of the Act is to insure
the use of the monies received from
the State treasury for the benefit OF
the taxpayer, that might otherwise be
used for new items of expenditure
without relieving the taxpayer at all.
Both the taxpayers who have suffered
from high tax rates and the students
of municipal finance who observe the
annual increase both in the bonded in
debtedress and the tax rates of our
municipality, will appreciate the bene-
fits of this measure. The charge that
the Hillery Tax Act has reduced the
taxes on the railr ads, is without
foundation, as will be shown hereafter.
The railroad tax both on the main
stem and second class property are
much greater than they were three
years ago, when the recent railroad tax
legislation was inaugurated. 1t is true
that the tax on the second class rail-
road property of 1907 is less than the
tax on the second class railroad prop
erty of 1906. THIS WAS NOT DUE TO
THE HILLERY ACT. A small portion
of it is due to the fact that the in
creased amounts distributed from the
State to the localities, resulted in re-
duction of the tax rates to all tax
payers. The greater proportion OF
this reduction, however, indeed prac-
tically all of it, is due$o reduction in
the tax rate in Jersey City. In 1906
the tax rate in Jersey City was $2.49.
In 1907 it was reduced to S1618, re-
duction of over 81 points. Whatever
the cause of this large reduction, it
was not due to the Hillery Tax law.
That law, at most, could only have
caused reduction in the rate of ten
points as against an actual voluntary
reduction ons the part of the city au-
thorities of over 81 points. The
amount of second class railroad prop
erty in Jersey City is S39, 9,OO0, 900; APP
plying to this sum the reduction in the
tax rate in Jersey City, it will be OBJ
served that practically all Of the differ
ence between the tax on the second
class railroad property in 1906 and 1907.
is accounted for.
RAILROAD TAXATION.
The Republican platform of 1904
promised an adjustment of railroad
taxation, so that there should be
in the taxes paid by indiyid-
uals and the taxes paid by the rail-
roads. THAT PLEDGE HAS BEEN
KEPT. In 1905 the so
called Dutfield Act provided that here
after the second class railroad property |
should be taxed at local rates. In 1906,
the Perkins Act provided that the
main stem franchise and personality of
the railroads Should be taxed at the
average tax rate of the State. The re-
suit of this legislation follows
In 1904, before the increase of the
tax on second class railroad property,
the total tax thereon amounted to
1866, ,282.46
In 1905, after the passage Of Dnffield
Act, the tax amounted to 81, 1876, ,281. 90.
Iii 1906. it amounted to 81. 1888, 100. so.