The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1909-01-19

from miscellaneous corporation taxes have
also run very uniform for the past six
years.
From 1903 to 1903, inclusive, these were as
1908, $2.10, 2G7.s1; 1904, 50. sO1 .oS5.54; 1905.
2.422. 1924; l916, g, 1874, 065.S1; 1907, 81, 5S3,-
$685. 60; 1908, 50, 4S4, 769.47.
There are no other sources Of possible in
come for the State that can meet increasing
demands, except it -ome from these two
sources, or the railway tax be entirely
abandoned and a direct State tax substi-
If the direct State AK method be adopted.
then, Of course, chapter 146 of the laws Of
1876, which directs the payment of all the
lax on main stem, personal property and
franchises of the railways, in excess of
the amount produced by one-half of |
percehtum, to the counties for apportion-
m2nt among the school districts falls, and
all school taxes, except the present direct
State tax for school purposes of two and
~three,quarlers mills. will be required to be
raised locally.
The State will. under the direct tax sys-
tenn, collect only sufficient taxes to meet
the demands of the State government.
There has been much agitation in the
State for the taxation of railroad prop
erty locally, at local rates, and if we are
to come TO "A State tax, that should be
done. Under u direct State tax for State
purposes it would seem that it must be
done. because otherwise there Is no excuse
for the present system of a railway taxa
ton. When that system was devised, in
1854. it was to relieve the individual prop
erty of the State from any State tax, and
to support the State government by a tax
on railroad property only. Up to 1906 the
system devised in 1884 had worked well.
Every thoughtful man must admit it has
been a good system. Under the acts OF
1875 and 1906, known as the Duffleld and
Perkins acts, respectively, large increases
In taxation rightly occurred in both first
and second-class property. In 1903 the tax
on the main stem, tangible personal prop
erty and the franchises OF railways, alone,
produced $229 GA a. and yet the State for
100000 more In 1908 than it did in 1885 from
this class Of nronerty.
Opposed to State Tax.
Prior to 1896 the tax on the main stem,
tangible personal property and franchises
was limited to one-half of | per centum,
and that year 1t was raised to the average
tax rate throughout tie State. Notwith-
standing all this increase in the rate, chap
ter Jag OF the laws of 1906 expressly limits
railway taxes as will be produced by one-
half OF l per centum. Tint is, no matter
how the State increases in population, in
the needs for its courts. in It's penal and
charitable institutions, in the Legislature
and in its many departments, its revenue
must remain stationary. No more, no less,
as the years go on. The folly Of such
legislation is evidenced in the situation
which now confronts us, The States needs
its growth.
l. an ppPOotb W Il ulTttL SIhle TAX, III the
act of 1906 can be repealed, or modified;
Otherwise, | recommend a direct tax for
state purposes, and the abolition Of our
present railroad taxation system, and the
taxat1on. OF all railway property of every
class locally at local rates and for local
purposes.
The recommendation for a direct state
tax for state purposes is not made because
| believe it wise, but because chapter 14G
OF the laws of 1906 has made this course
absolutely necessary, if that law is to
stand unmodihed or unrepealed.
From the tax of 1903 IN the assessed
value of the main stem. tangible personal
property and franchises of the railways,
It the average tax rate OF 1858, over 81, 200
900 was produced. but about 81. $50, 900 of
this sum must be drawn from the State
treasury for local distribution, under chap
ter 146 of the laws of 1906, no matter what
the needs of the State may be.
FOR oyer twenty years 1t was the policy
or the State. by settled legislation, to use
al the taxes produced by the tax of one
halt OF per centum on the valuations of
the main stem, tangible personal property
and franchises of railroads for the ex-
penses of the State government. When,