The Penn's Grove record., 1920-06-25
Repay Much
To Many Estates

tees Swayze and Bergen In the suit of
the estate Of Ferdinand w. Roebling
against State Comptroller Newton A.
K. Bugbee the court Of errors holds
that the amount of the federal death
tax must first be deducted from an es-
tate in order to ascertain the clear
market value of taxable transfer prop
erty under the New Jersey collateral
inheritance act. These opinions mean
that New Jersey will be required to
Of about 100000.
Both opinions reached the same con-
illusions, but by different legal reason
Ing. The vote of the court reversing
the stand taken by the state cOmptrol-
Ter was unanimous, some Of the mem
bers voting for the Swayze decision
and others for the Bergen opinion.
Mr.. Roebling upon his death left an
estate valued at more than 100000
for taxing purposes. Comptroller Bug
bee levied the state inheritance tax on
that amount, refusing to first deduct
$1,000,000 paid by the estate to the
government under the war revenue
death tax act. An appeal was taken
by the estate to the p~rerogative court,
where Vice Ordinary Backes held that
the amount of the federal tax should
have first been deducted before the
state tax was levied by the cOmptrOl-
Ter. The state then appealed to the
court Of errors and appeals, with this
decision as the result.
In the Roebling ease alone the state
will be compelled TO refund about $780,
600. There are other cases of a SINH
lar nature in which the inheritance tax
was collected without deducting the
federal tax, with the result that about
S270,OO0 more will have to be returned.
Higher Rate Ordered.
Finding that the rate of a cent and
a half a kilowatt hour for electricity
furnished by the Monmouth Lighting
Company to the Jersey Central Trac-
ton Company is unduly low, the Pub
lie Utility Commission has authorized
that the rate be increased to 2 cents.
The board pointed out that the present
rate, besides being insufficient and dis
criminatory, can only result In an n
due burden upon other customers of
the company.
In granting the increase the board
said 1t should not be construed that It
Obligates itself thereby to permit an
increase in the rates of fare which has
been requested by the Jersey Central
Traction Company to absorb the in
creased cost of operation resulting
from the higher charge. Both proceed
ings, the board remarked, must be de-
termined separately upon existing
facts and circumstances.
Upon application of both the Public
Service Railway Company and the Dor
yough of East Rutherford, the commits
sion has approved an ordinance for
the removal of the railway company's
tracks from Park n between Pat
erson avenue and the Erie Railroad
COmpany's tracks in East Rutherford.
In %consenting to the abandonment of
the operation of this spur the board
stipulated that the railway company
Cilull ioi tIoi itI Y w iiitt
now being provided by issuing trans
fers to passengers changing from the
Passaic line to the Hackensack line
at the junction of Paterson avenue and
Hackensack street for the purpose of
riding to the Erie station.
Disposing of an application of the
Central Railroad Company for permits
- l. ..,o &C oO- 900 80
equipment notes, the commission has
signiied it's approval of the issuance
of IS, 775,0 200 under an equipment trust
agreement, dated January 10, 1920.
Must Have Definite Price.
The purpose of issuing the notes Is
to pay for equipment purchased while
the railroads were under control of the
federal government. The equipment
agreement stipulated maximum and
minimum prices which were to be paid
for the equipment, the exact price to
be determined not later han August 1,
1920. The application of the railroad
showed that notes amounting to 3d.
775,000 are needed to pay for equip
ment, the purchase price of which has
been definitely fixed. The board, there
fore, approved notes for this amount,
but refrained from sanctiOning any adj
ditiOnal issue until the purchase price
of other equipment has been fixed def
nitely.
The commission has authorized the
Tri-County Electric Company to issue
SIT, 800 of securities to W. construc-
ton expenditures made or contemplate
ed by the company. The company is
buying power from POmpton Lakes
borough to supply service to residents
of PeQuannock township, Morris coun-
ty and the borough of Wanaque, Pas
sale county.
Based upon the statement by the
Hudson and Manhattan Railroad Com
pany that lowing to the fact that at
no time since issuance Of the order has
1t been possible, and 1t Is impossible at
the present time to sell bonds at 80