The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-04-24
TAX DECISION
AGAINST ORANGE
State Board of Equalization
Reduces Valuation of Graves
Estate by $3,l46,IO6.
MEANS LOSS OF s66,6S6
City Counsel Lord Says in Inter.
view That Appeal May Be
Made TO Errors Court.

BY a decision rendered yesterday by
the State Board of Equalization OF
Taxes the city of Orange loses $66, 6S6. 0s
in taxes. The decision reduces the as
sesscd valuation of the estate of Henry
Graves. of Orange. from $3.50, 900 to
$500, S94.19, which cut the taxes collect
ablo on the estate, at SLIT per $1,000,
the tax, rate In Orange, from s72,065 to
s5,S7s.92.
OF this amount the city loses in ac-
tual cash SIG. 532.o4 plus 81, 1896. 90 1t has
been compelled to pay the County
Board of Freeholders. 1t must also pro-
vide for the difference in taxes collect
able, in some way, or there Will be. a
deficit in the city treasury.
The decision of the State board is
based Upon a recent decision of Justice
Swayze in the Supreme Court, in which
it was held that stocks of foreign cor
porations are not taxable in this State
where it is shown that taxes have been
paid on the stocks within the last pre-
ceding twelve months. This decision
was rendered in the suit of the city of
Trenton against the Standard Fire In
surance Company, Inc was cited as a
precedent by the executors of the
Graves estate in making their appeal
before the State board yesterday.
1t was shown at the hearing yesterday
that the Orange assessors had made an
effort to procure a statement OF the
valuation of the personal property held
by the executors of the estate without
success. On advice, of County Counsel
Elvin w. Crane, the assessors procured
a copy of the inventory of the estate
filed with the Surrogate. This inven-
tory showed the estate to be worth
81, 75S, 612.S2, mostly in stocks and bonds
of foreign corporations. The assessors
had fixed the taxable value of the es-
tate at about $3.50, 900, but on advice of
County Counsel Crane this was changed
to correspond with the figures Of the
inventory.
Deduct Bank stock.
Later, and before the amount of tax
able ratables of the municipalities was
fixed. this amount was considerably re-
duced. Non-taxables amounting to
1925, 200 were cut off. hen 5000 de-
probation of the value of a seat on the
New York Stock Exchange was cut off
and some $4,000 assessed valuation of
bric-a-brac, silverware and other prop
erty outside the jurisdiction of the
board was also eliminated. The board
then fixed the valuation of the estate
at SO, 700, 900. Later this was reduced to
49, 5o, 600, when $250,000 worth of stock
in the Liberty National Bank was cut
from the list. This amount was finally
agreed upon by the County Board of
Taxation, on advice of Mr.. Crane, who
held that all the stocks listed in the in
ventory, which included large blocks of
securities in the Philadelphia and Read
ing Railroad, the Lackawanna Rail-
road and the Atlas Portland Cement
Company, were taxable by local boards
at local rates.
At the hearing George Holmes repre-
scented the executors, Henry Graves, jr..
and George Coe Graves, and commended
that the estate, with the exception of
$250,00 worth of bonds in the Spring
field Water Company and $53, S94.19 cash,
consisted of stocks that came under the
exemption declared by the Supreme
Court in the recently decided case.
William Lord, city counse of Orange,
who watched the interests of the mu-
~nicipality, when seen last night, said
that he saw no other alternative for
the State board than to accept the de-
cision of the Supreme Court. He said
that the case might be appealed to the
Court of Errors and Appeals.
Taken from School Money.
Regarding the payment of the coun-
tvs share of the taxes, Mr.. Lord said
that the Board of F~reeholders had
withheld the amount of the taxes, due
them from the city of Orange, from the
school money which is paid by the
State Treasurer to the county for dis
tribution. In the case of the Graves
estate, Mr.. Lord said the city of Or
ange had protested against having this
amount deducted from the school
money because of the unsettled condi-
ton of the case before the taxing
authorities of the State.
He said he thought the city had some
redress in this matter and intimated
that it might certiorari the action of
the Board of Freeholders in withhold
ing this amount. He understood, he
said, that soEle members of the board
were willing to pay the city the amount,
but others felt that the county was en-
titled to it and advised its being with
held from the school money.
Mr.. Lord was unable to see any way
of meeting the deficit in the Orange
city treasury as a result of the decision
against the city, which. he said. was
due largely to, the opinion rendered by
the county counsel.