Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-21
NUGENT ANSWERS
SENATOR PIERCE
ON BANK TAX BILL
City Counsel Declares He Be-
Iieves Present Measure
Unconstitutional.

City Counsel James r. Nugent last
night replied to a statement by Sena-
tor Pierce relative to the State bank
tax. Senator Pierces statement.
which was issued yesterday, pur-
ported to show Mr.. Nugent and Mayor
Haussling were mistaken in their
opinions of the effect the tax would
have on this city. Mr.. Nugent also
made reply to an editorial on the
State bank tax question published in
the Newark Evening News, He said:
There is no apout-face' in my
present position on the taxation Of
bank shares. ] have always been in
favor of taxing bank shares at their
true value. 1t was in pursuance of
an opinion given by me to the local
Board of Assessors that the method
of taxing bank shares at their true
value-that is. under ordinary and
normal conditions their exchangeable
value in the market, and not their
book or lauidating value - was
adopted
my opinion was sustained by the
Supreme Court and the Court of Err
rors and Appeals in the case of the
city of Newark VS.. Tunfs. During
the controversy brought on by this
opinion, Mr.. Herbert Boggs, then
after consultation with me, prepared
q bill which was introduced in the
New Jersey Legislature, and a copy
of which was sent to Senator Pierce.
"This BILL which conformed to the
constitutional taxation provision,
would have settled this matter and
the banks would now be paying about
the amount now asked for by Gov
ernor Fielder. | tried, but could not
get anywhere with this bill, and could
rot interest Senator Pierce, who is
determined to have his own way with
this kind of legislation.
"As | have stated in former inter
views. in my opinion the present bill,
Senate No. 176, is unconst 'tutional,
and ! am assured that my opinion
is concurred in by many of the lead
ing lawyers of the State, including
the one-time and, I believe still, per-
sonal counsel of the editor of the
Newark Evening News.
"The passage of Senate Bill No. 176
would put the Senator Pierce joke,
not upon Mayor Haussling or myself,
but upon the taxpayers of Newark.
who, when the assessments for two
gears-the probable time taken by the
courts to settle this question-would
be SET aside, would lose the money
spent and would have to refund it,
and lose even an amount equal to
yvbat was received last year l.. taxes,
about s53, 600.
"Keeping In mind the fact that the
best that the city could get this year
was some form of the Pierce bill. ]
thought it best to accept the offer
of the banks-that is, one-half of 1
ner cent. the banks committee agree
Ing not to contest this assessment,
which would give Newark $1S8,5o0.
.'The city conference did not agree
with Senator Pierce's bill as it was
presented. 1t did agree that it was a,
step in the right direction. At the
conference I questioned the constitu-
fionaiity of the act, but advised the
conference to go on record in favor
of the bill, as it would probably be
amended so as to make 1t stand the
scrutiny of the courts.
"Senator Pierce's contention that
the city would get the benefit of
about 70 per cent. of the bank tax
money. the city being charged with
about 20 per cent of the expenditures
Of the county, was answered by
MAYOR IIaEssling when the Mayor
stated, Maybe we would get some
benefit: maybe not
There Ia nothing in the Pierce bill
rauuirlng the Board of Frecholders to
use the money to lessen the budget.
they may epssd 1t for ssher pur-