Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-01-26
CITY READY TO
BEGIN FIGHT ON
BANK TAX RULING
Attorney Boggs Prepares Appeal
and Says Newark viii Pro-
coed to Last Ditch.

Writs for the appeal from the de-
cision of the state Tax Board in as
sessment of bank stock rendered by the
board yesterday nave been prepared by
City Attorney Herbert Boggs and are
being held in allegiance only until a
Judgment in the case has been en-
tered. The city law department has
announced that the decision will be
fought to the last ditch. not so much for
what it may mean to the city this year,
but to settle, nee and for all, the
basis on which assessments of bank
stock shall be made and to provide
against the certain loss mex year.
should the State Boards decision be
allowed to stand.
The city's loss this year IS compare
lively small. In most cases the stock
holders have already paid their taxes
and cannot get them back. The amount
which will not be collected is $9,422.
of 10000 shares of the Essex
County National taxes on 6,979 have
not yet been paid. OF the other banks
the unpaid taxes are: Manufacturers,
$3.50 out of $500; Union National, 2,467
out of $4,000. and National Newark,
6.4OO out of 5000. The loss in this years
ratables will be $500, 600.
According to the figures compiled by
the City Tax Board, the ratables next
year viii be cut down ST. 900, II the
present conditions are allowed to pre-
vail.
The rate of $3.50 per share for the
Essex County National case settled
on by the board. is, slightly in excess of
the book value. as arrived at by the
bank, in hat the bank placed the
value of it's real estate at 500, o05. The
city assessed the real estate at 1852. 600.
The board sustained the city decision in
that case. accounting for the increase in
the final rate.
Noah Gutter. secretary of the Tax
Board. pointed out today that the
board was reversing itself in making
this decision. In 1907 the National State
Bank of Elizabeth appealed to the
State Board to have it's assessment
changed. The assessors had arrived at
their valuations by taxing the book
value of the stock. In III case the
book value exceeded the market value.
the appeal to the State Board the
commissioners decided that the true"
value. as meant under the taxing act,
was the value of the stock if disposed
of at a bona fide sale. That was the
position taken by the city in the hear
ing before the State Commission in the
City Hal when the bank stock case
before it, a few weeks ago.
Mr.. Boggs said today that he in
to find out finally what this
true value meant so that in the
there would never be any dis
pute on tile point. To that end he will
the case.
1--WE held at the hearing said Mr..
Boggs, that the market value was the
only true value. / do not mean the
price On any one particular day. Con-
might be such that hat would
not be the rue value, but il the sales
of the stock were taken for a year.
say, a fair estimate of what the stock
really worth could be made.
"The decision of the value of the
stock would be in the hands of the tax
board. At present the members place
values on land. III some cases it is
hard to arrive at a correct value be-
III there have been no sales in the
vicinity for a long period. In that case
the assessors take all the conditions
into consideration and set what they
believe to be the true worth of the land.
They could do the same with bank
stocks
The case has aroused the interest of
every n who has had anything to do
with the city taxes.
Something must be done about
declared one of these today. 'It"s
simply a case of tax lodging. We
must have the taxes. Newark in the
last few years has grown enormously
and many great improvements have
been made. 1t will continue to grow.
and the improvements will grow with
1T. To make these improvements we
must have taxes, Look at what we
have on our hands now. There IS the
trunk w that we must take care of.
Suppose we get our subway bill
through; we must have money to take
care of that, If we go into meadow
improvement the expense will he
enormous
of course we are still well within
the legal amount of Indebtedness
which we may incur n will stay so
but it is not Just that we hould not
derive our revenue from the resources
that W it. While the wealth of New
ark Is constantly on the increase. the
proportion received by the city is con-
stontly growing less"
n