New-York tribune., 1913-11-23
Senator Elect Egan, of
Hudson County, Behind
the Project.
WOULD MAKE STATE
INDUSTRIAL GIANT
All Household Goods, Merchan-
disc and Machinery To Be in
the Exempt Class.

Plans TO make New Jersey tho great
est industrial state in the Union are
now in process OF formation, ard when
completed will be turned Over to the
coming session of the New Jersey Legis-
lature for adoption. AS at present out
lined. they comprise some radical changes
in the tax law of the state, which. II Is
believed. will make New Jersey par
ticularly attractive TO manufacturers
and workmen.
Senator-elect Charles NJ. Egan. OF
Hudson County. is behind the propo-
sition. which consists, briefly in exempt
ing all personal property from taxation.
with the exception OF that owned by
railroads and utility companies. The re-
suit of this would be that the house
hold goods merchandise and machinery
of the individual would not be taxed
only the land and improvements being
assessed II an act of this kind were
passed by the Legislature. those sup
porting Mr. Egan's plan declare that
within a comparatively few years New
Jersey would become a vast manufact-
uring state.
The method by which this is to be
brought about has not yet been definitely
decided upon. but there isn't much
doubt that when the legislation is
finally prepared it will prove novelty
in tax legislation and will make the
tax sharps of many other states sit up
and take notice.
one of the plans suggested for bring
ing about the elimination of the tax on
the personal property of the individual
IS the division of the taxable property
of the state into four classes. the first
10 comprise the railroad and canal COM
panies of the state, the SECOND the pup
lie utility companies. the third class the
banks and insurance companies and the
fourth class all other property not In the
first three classes ..fter this classifca-
ton has been defined by law the plan
is to make land and the improvements
thereon the only property in the fourth
class that can be taxed, the result. or
course, being that the personal property
Of the railroads. the utility companies
and the banks and insurance companies
is taxed as heretofore.
Another plan that has been suggested
Is TO make a straight-out exemption OF
household goods, merchandise and ma
chinery of the individual ani manu-
facturer without any reference TO GAS
sihcation. 1t is claimed that both OF
these methods are constitutional, ana
that the only question involved is the
relative amount of work either OF the
methods would entail.
That there will be complaint from the
railroads and utility companies over
LEGISLATION of this kind seems reasonably
certain 1t is pointed out however that
the suggested changes are sound eco
nomically, and that while there may be
some opposition at first II Will rapidly
disappear when their full purport be-
come known.
In the first place, those interested IN
the plan assert. instead of placing an
undue tax burden on the companies It
will really help them. and this is backed
I'D by sound economic argument With
New Jersey made particularly at
tractive place for manufacturers, II
won't be long before they will be-
gin to locate there IN larger numbers.
The result will be increased business for
the railroads and utility companies and
increased deposits for the banks. with
the result that they will more than make
I'D for the slight increase in their taxes
caused by the readjustment.
In addition the influx of manufact-
urers will also produce an increase in
real estate values. so that the net result
of the plan will be to make New Jer-
sey prosperous without at the same
time imposing an unnecessary tax bur-
den on any one in so doing. II will
also do away with the present obsolete
and discriminatory personal tax on in
dividuals, which at the best is un-
fairly and unequally assessed. primarily
through the Ignorance of the assessor
for there are few tax assessors. indeed,
who are competent TO fairly assess ma
chinery and the like.
II is expected that the bills carrying
out the proposed plan of changes in the
New Jersey tax act will be introduced