The Penn's Grove record., 1919-08-08
HEAVY LOSS ON
TAXES FOR STATE
Supreme Court Decision Forces
New Average Rate in New
Jersey.
RAILROADS WIN ALL POINTS.
Opinion, Given in Suit of Long Dock
company-AIso Control Appeals
Brought by Six Railroad
Companies.

Trenton.-The supreme court re-
versed action of the state tax board
III refusing to modify the amount of
taxes against railroads, due between
November 1, 1918, and February 1,
1919.
The modification was applied for on
the ground that 50 far as second-cIass
failroad property, so called, assessable
at local rates, was concerned, the local
rates reported in the state board have
been subsequently reduced after being
held invalid by the decision of the
supreme court, and that the tax on
such property should be correspond
ingly reduced by the board.
As the main stem property, compris-
ing the right of way of railroads, the
railroad company claims that the re,
duction in local rates ordered by the
supreme court, if adopted, would ma
terially modify average rates for the
state under which main stem property
is taxed. The railroads contended they
were entitled to a reduction resulting
from a new calculation Of the average
rate with the reduced local rates in
Jersey City and elsewhere as factors.
The state board refused the applica-
lions of the railroad, both as to second
class and main stem property, reafiirm.
ing the original assessment, from
which the railroads then appealed.
The latter decision was handed down
in the case of Garrison against Jersey
City, in which Mr.. Garrison attacked
the action of the Jersey City commits.
sion in fixing a rate of $3.50 per ST.
600 of valuation for the month of De-
cember, 1918. Following that decision
the railroad appealed, c~Ontending that
the use of the rate Of $3.50 as ap-
plicable to second-class property was
Illegal.
Opinion by Justice Parker.
with respect to s~econd-class prop
erty, the case is quite clear" said
Justice Parker in his opinion recent.
ly. "By Section 8 or the act Of 1883,
each company shall pay a tax at the
local rate fixed and assessed for county
and municipal purposes upon other
property in each taxing district and its
~second-class property as valued and as.
sessed by the board. Necessarily this
means the local rate as lawfully fixed
and assessed against other property.
1T would shock the sense of Justice
to say that when an illegal rate, uni
formly affecting individuals and
s~econd-class railroad property, have
been set aside by the court and a re-
vision made resulting in a lower rate,
individuals should have the advantage
of that rate and the railroads be de-
MED it, mainly because, as apparently
claimed in this case, the official report
from local authorities to the state
board have gone forward and the dates
specified in the statute for their trans
mission to that board have gone by.
'As well might it be said that if the
local officials should fail to send any
report in, in due time, there could be
no tax assessed against the railroad.
The dates are mainly a time table and
not statutes of limitation. And, if, for
example, a boldly Illegal tax were i'm
posed locally and sent forward to the
board and later set aside, the railroads
would not be liable on second-class
property"
Also Governs Main Property.
Continuing Justice Parker said that
the reasoning applicable to second
class property should also govern the
assessment of main stem property in
which the local rates set aside were
a factor to the extent that they affect
ed the average rate of the state.
There is" continued Justice Parker,
mo substantial difference between the
rights Of the railroad touching second
class property and touching main
stem. In each case they have been
assessed to an illegal amount; in one
case directly by imposition of the
illegal local rate on second class prop
erty. and in the other indirectly by its
use as a factor in computation"
The opinion of Justice Parker was
handed down in the suit brought in
the name of the director general of
railroads and the Long Dock Company
against the State Board of Taxes and
Assessment. Justice Parker announced
that the opinion would also control
the appeals brought by the Pennsyl-
vania, Lehigh Valley, Central, Morris
& Essex, New Jersey Junction and
New York Bay Railroad.
Inmates Charge cruelties.
Practically all of the wards at the
State Home for Girls are given a clean
slate by heads of that institution, fol-
an investigation incident to the
fire which damaged a portion of n of
the buildings, except for zone or two
ring leaders and a number of weak
tools, who have been placed under
Girls of the excepted class, accord
ing to the probers, fought never to
nave been left at the institution. Ii