The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1924-03-06

food and materials.
The measures were opposed by rep
resentatives of railroads that will be
affected by the grant Of power. They
gave the impression that the bills
contemplated the condemnation OF
the property and title to the rail-
roads and not the use" only. This
was contravened by Julius H. Cohen.
counsel for the Port Of New York
Authority.
Hoboken and Jersey City were an
tagonistic to the bills in their origi-
nal form because they threatened to
take away millions of dollars Of tax
ratables. Last week Mr. Fallon and
Mr.. Cohen got together and Mr. Fall
lon finally drafted an amendment,
agreed to by Mr.. Brogan and ac-
copied by Mr. Cohen, that is designed
to insure the rights Of the munich
palities to taxes from any properties
which the Port Authority may ac-
quire in this State.
Mr.. Brogan. during the discussion,
brought up the possibility that. in
asmuch as Congress was a party to
the Port Authority compact between
the States. the property might &C.
quire a Federal status and therefore
would not be subject to taxation.
Railroad property under the Port AB.
thority would then be in the same
status as the piers in Hoboken which
were taken over by the war depart
ment To avoid this it was suggest
ed that Congress be requested to
pass a special act to permit taxation
of Port Authority property.
| Another possible course proposed
was for the Port Authority, if it Sc
cured control of any property, to en-
ter into an agreement to pay bulk
sum in lieu of taxes.
1t is probable the committee win
adopt the amendment of Mr.. Fallon
and will enact the bills subject to
similar action by the New York Leg
islature and by Congress.
Allen Strong, counsel for the Penn
sylvania railroad, proposed that the
Port Authority be required to secure
ratification of all details of its plan
from the Legislature before condemn
|
| boken had good reason to oppose the
bill because Of the danger that rail-
roads would be taken out Of the tax
ratables.
Albert C. Wall for the Hoboken
Land and Improvement Company
said that corporation owned s15,000,-
| 600 of Hoboken's tax ratables. Rail-
roads represented $16,000,O00 more
of ratables, which might be lost to
the municipality.
Mr. Brogan pointed out that the
great waterfront properties of Jersey
| City would be endangered. He said
grave question existed whether prop
erty OF the Port Authority could be
taxed.
Senator Richards inquired if it was
not true that any property the Port
Authority took would be free Of taxa
| ton. Mr.. Brogan said this was prob
ably true. Mr. Richards suggested
that railroads might sometime find it
to their advantage to consolidate and
sell out to the Port Authority and
would thereby escape taxation.
Mr.. Lichtenstein, speaking for the
Hoboken Chamber of Commerce, sub
mitted the amendment prepared by
Mr. Fallon, which would protect the
taxables so far as the municipalities
go.
Mr.. Cohen gave assurance that the
| policy of the Port Authority was TO
protect the taxes to the municipali-
ties. He said that while nothing in
the law specifically freed the Port
| Authority Of taxation he was impress
ed by the thought Of Mr.. Brogan that
participation of Congress in the
1 treaty might give a Federal status to
| the Port Authority. II that were true.
he declared, so far as the States are
/ concerned no action either New Jer-
| sew or New York could take would
operate to negative the aspect of the
Port Authority as a Federal agency.
Later on Mr.. Cohen said he would
be willing to have Congress enact a
law TO make the Port Authority liable
| for taxes.
Mr.. Cohen indicated that the Port
/ Authority planned to construct great
piers in Hoboken. This would have to
/ be done by the Authority's own fnanc-
/ ing and the financing might be affect
ed by the question of taxes.
! He said the object of legislation
needed was to "defnitize" tax rela-
lions between the Port Authority and
the municipality.
| In response TO a question by Senator
/ Case, Mr.. Cohen said he accepted the
amendment proposed by Mr.. Fallon.
He said he and Mr.. Fallon worked
J three days on the amendment He
! drafted one and submitted it 10 MI
Fallon but the latter changed it so
that the language was now Mr. Fal-
| Ions.
| Dealing with opposition from the
railroads, Mr. Cohen said that the pro-
! posed Port Authority line would save
money to consumers. He said rail-
roads are shifting freight 40 miles to
o1lx- Rua T1afTaS anarf He