Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1909-05-22
Decision Of Supreme Court
in Jersey City Matter Af-
fects The Whole State.
TAXES ON SECOND CLASS
RAILROAD PROPERTY LESS
Court holds Increased Value
Due to Railroad Franchise
Cannot be Considered.
Special to tAs BVBNING NEWS.

Special to the EVENING NEWS.
Trenton, May 22:-Justice Garri-
son has filed In the supreme court
an opinion relating to the ASSESS
ment of second class railroad proper
ty in Jersey City that may be far
reaching in its bearing upon the val
uation for taxation of this class of
railroad property throughout New
Jersey. The opinion holds that sec
ond class railroad property must be-
assessed at It's market value, regard
less OF the added value impaired to
1t by its use under railroad fran
chise. The decision, III upheld by
the Court of Errors and Appeals, will
prove a blow to Jersey City In its
fight to secure, an equitable appor-
tionment of the burdens of taxation
upon the railroads.
The gist Of the opinion is as fol-
lows: I'm the ascertainment of the
value of second class railroad prop
erty under subdivision two of sec
tion three, of the revised act of 1888,
for the taxation of railroad and
canal property, the State Board Of
Assessors is required to assess such
property at the value It has In ex-
change for money as shown by the
testimony, l. e., at it's market value.
Additional value impaired to such
property by its use under railroad
franchise should not be included in
such ascertainment.
The duty of the State Board of
Assessors under the supplemental
act of March 4, 1908, is the same and
none other than that required of
them by section three, of the revised
act Of 1883, recited in such supple
ment."
1t is regarded here that the proba-
BILE, bearing of the decision, If sus-
tanned, upon the assessment of sec
ond class railroad property in every
taxing In the state where such prop
erty is located, will be that where
such assessments have been fixed at
higher figure than the regular mar
ket value of such properties, such
assessments in the future will have
TO be reduced to the market value.
The suits just decided by the SUI
preme court were brought respective
ly by the Central Railroad Company
of New Jersey, the Morris & Essex
Railroad Company and the Long
Dock Company against the State
Board of Assessors, upon certiorari
to review the second class railroad
property valuations in Jersey City.
The cases were argued last February
before Justices Garrison, Bergen and
Voorhees,
The testimony in the cases showed
that in making the assessments upon
the second class railroad property a
much higher valuation was placed
upon 1t than upon surrounding prop
erty, the theory being that the use
Of the property for railroad purposes
enhanced its value and made the
higher assessments proper.
In long discussion of the whole
question Justice Garrisons opinion
refers to the original statute of 1884
for the taxation of railroad property
and the Perkins act or 1905 which
placed the assessment of second class
railroad property in the hands Of
local municipal assessors who made
such assessments in 1906 and 1907.
The opinion shows that March 8
1908, this Perkins act was declared
to be unconstitutional and on the
following day the legislature passed
remedial act under which the as
sessments now before the court were
made by the State Board Of Assess
Ors The opinion shows that the
state board, under this supplemental
Perkins act, is charged with the
same duties relating to second class
railroad assessments as it was under
the act Of 1884.
Going on the opinion ays: 1--WE
think that the increase of value over
and above market value that is i'm
parted to second class railroad prop
erty by reason of its use under a
railroad franchise should not be In
cluded in a valuation of such proper
ty by the act of 1888 and that the
opposite course would be directly
contrary to the scheme Of such act:
in other words, that 1t is absolutely
essential to the integrity of the tax
ing scheme of this act that the valu-
alton placed upon tangiable real
property under subdivision of Sec
tion 8. of the act shall not include
Continued on page 4.)