The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-03-11
TRENTON RED
TAPE EXPENSIVE
TO STATE SCHOOLS
City Counsel Interviews Fort OF
Tie=up of Railroad
Tax.
NEWARK NEEDS SHARE
AMOUNTING TO S463,O0O
County Collectors May Unite to
Demand Money Lying Idle
in State Treasury.

As a result of the visit of City Coun-
sci James r. hugent to Trenton to
interview Governor Fort on why the
city has not yet received the $463, 600.
which is his city's share of the ST.
$50, 0C0 railroad tax, due last Noven-
her for the school funds, there is a pos
sibility thai the county collectors of
the twenty-one counties of the state
will combine and demand hat the
money be taken out of the state treas
ury n distributed to the various
school districts as the law provides.
The Newark Board of Education and
other educational bodies which should
now have the money for use in the
maintenance of the public schools VIII
also take action, and there is a posi-
bility that quo warranto proceedings
will be instituted against the State
comptroller for q distribution of the
moneys to the county superintendent,
so that the custodians of the school
funds OF the various districts may have
the money on hand and prevent the ne
cessity of the boards borrowing from
the municipalities before the receipt OF
the money.
The financial officers of this city are
much wrought up over the situation, as
the Governors answer to Mr.. Nugent
yesterday was not clarifying. and the
money has been lying in the State
treasury since last December.
Because of the lac of the money
that belongs to the schools the educa-
tional bodies have been under the
necessity of borrowing money for cur
rent expenses. On the money Newark
has had to borrow because of the tie
up in the railroad tax allotment the
city is paying 1929 interest per month.
The money represents the tax on
railroad property of the first class for
last year. under the law known as the
Perkins main stem railroad act of 1906.
The railroads tested the constitution
atty of the act in the courts. The SUI
preme Cou sustained the legality of
the law, and then when the case was
taken to the Court of Errors and Ap-
peals the decision was upheld. The
railroads Immediately paid the money,
which should have been allotted to the
various county superintendent in De-
cember. 1t was due in November, but
tied up a month on account of the Iiti-
cation.
This tax. amounting to 81, $50. 900, is
now In the State Treasury, instead OF
in the Golfers of the various custodians
of the school funds, and it is believed
that throughout the State the various
educational bodies are paying $l2,0 600
per month on borrowed money for ex-
penses due to the financial red tape at
Trenton.
The city's share for this year. which
has not been allotted as yet. and will
not be until next November, win
amount. II is believed. to approx
mately $3.50. 900.
City Counsel Nugent is now working
on a plan by which the money can be
collected, but it will be necessary for
the various boards of education to call
on the county collectors for the money.
hen it is feared hat a resort to the
courts will be necessary. Essex County,
and particularly Newark, will be among
the greatest sufferers.
Mr.. Nugent declared today that he
thought there was politics behind the
entire matter. Il think that If New
ark does not get back what it adj
vanced it win be because some people
do not want to see the tax rate in this
city lower