4

CAPE MAY HERALD. THUkSDAY, OCTOBER »o, 1904.

CAl'E MAY HERALD

Lewis T. Stcvcns Fmo^rictomWaRRCN C W<AL. -IDllllAStR.

AN INDEPENDENT WEEKLY.

Pvbll»hc4 Every Thsr»4ay Morelag •t 506 We»hln(t»e Street. Cape May. N. J. subscription: Onc Doll*A Rea Ykar in Aovancc

TH K HERALD, CAPE HAY. N. J. Kotercd at the poat offlee at Cape May, N ]., u aecood-claa* mail matter. March II, IQOI. Adrertiaimc rate* npo» application.

fiiEsrm m

Facts and Figures Showing How Democratic Plan Woo Id Cause Loss to Counties.

lUCrS AMWEXTS EIPL0K1.

Tkb CoNaty, Like the Other Coontfe* la the State. WoaM Get Back Mach Lcm Money For SchooU.

THURSDAY, OCTOBER 20. 1004.

He publican Ticket.

For Prtiideht, TH EODOBE ROOSEVELT. or Nmr yobk.

For Face PrttvU»U CHARLES W. FAIRBANKS, or iMDiAtta. Prrndtntial Fir cion At Larjje—Caal H. K'Carter. of F^ex; Wanhinyton A. Koebling.of Meroer. Firat Diatrict—Joaeph W. Cooper, of Qunden. 4 Second Diatrict—Alexander C. Wood.of Barlington. Third District—Lewia S Thompson, of Monmonth, ronrth Diatrict—Adolph Mack, of Somerset. Fifth Wat' ict—Richard H. Williams, of Morris. • Sixth Watrict—J. Hull Browning, of Bergen. Seventh District—Henry Dickson, of Essex. Eighth District—Arthur B. Beach, of Eaaex. Ninth District—Jacob Ringle, of Hod-

son.

Tenth Diatrict—Aaron S. Baldwin, of Hod son. For Goternor . EDWARD C. STOKES or criiHxaLASD cocvrr For Comgrcuman JOHN J. GARDNER or ATLANTIC COCSTY For Autmbly JAMES M. E. HILDRETH or CATE KIT CITT For County Clerk JULIUS WAY or mnDLXTowKsmr . For Skerif WILLIAM H. BRIGHT or HOLLY BEACH For Coroner ROBERT S. MILLER or N1DDLX TOWNSHIP /Vr Alderman FRANCIS K. DUKE Fdr Council JAMES J. DOAK, JOSEPH R. BROOKS, T. MASKEL SHARP.

The Democratic party Is trying to hoodwink the taxpayers of New Jeracy In thla campaign by rialmlng that It stands for equal taxation. It pretends that, if Ita plan ia carried ont and railroad projierty la taxed at local valuations and at local rates, the taxpayers of New Jersey will be relieve^ from part of their burdene of taxation. Equal taxation of all property la provided for by the conatltutkm. Educational. religious and charitable property la exempted from taxes. The constitution was adopted In 1875 and ia binding on all proi>erty in the state of New Jersey which ia subject to its provisions. There are, however, certain classes of property which are not subject to constitutional provision, fdr the reason that the state had granted special charter rights and privileges prior to the adoption of that constitution and could not take those rights away. Under the cry of equal taxation the Democratic party la attacking only one class of‘property, and that'is railroad property. If the railroad property of the state la not paying Its full share of the taxes and can be made to do so It should be made to do aO. In order to understand the question It will be neceaeary to consider the classes of railroad property', how they are valued. what Is done with the money received from taxing these different dosses and bow the local communities will be affected If a change is made in the present system.

by calculating the market value of the stocks and bonds of the ml I raid system. then subtracting from the sum thus obtained the valu# of the throe other classes at ml I road property nod taking 60 per cent of tbe remainder for the value of the franculae for taxation. Tbe allowance of 40 per cent ia made In order to eliminate the speculative value of stocks and ‘bonds as shown by the market <inotations at the

time tbe value Is Uxed.

Tbe rail roods are compelled by low to return an exact Mat of every Hem of their personal property, and the hoard •f assessors tlx tbe value of such property. and on that value It levies the

tox.

Other Real Mate. The railroad companies are compelled by law to return to the'state board of assessors a list of their real estate holdings, outside of main stem; ana ••vch separate Item Is valued and aa■eased. nnJf the Ux Is Imposed on all of this property at the rate of SI50 per hundred. Tbe state board of n»«es collects the tax and returns all of It to the local communities. ksllrosd Tss Is I was. In 1003 railroads paid taxes on tbe following valuations of ( their property: Valuation. Main stem end frsncHses....... IU0.M Persons] property SJt

GILBERT C. HUGHES For Collector SOL. NEEDLES For TYtanrer ISAAC K. SMITH Jto Commlooimoro a EDWARD C THEODORE MUELLER THOMAS R WALES F*r CeneUMe HENRY C- BOHM (Heroeer of Poor JAMES CHANDOL

Of coma, if Jadga Paifcar ia petent to mmmmrn swords with tbe aiert and daring Rooeevait, or if tbe Democratic party Incapable of sinking ha dlffarancas and afraid it making a front attack on -tba am frooebmenta Mat for lack of mtA discipline H

Mm

_. Wa prater It and all that it means—open m " good wages for tbe worktagmeo. protection fix American cttlaeoa w abroad, new markets ia the far east J a navy capable n of a party wboae capacity for govarnlng tn the fatwe can be and fsUuras of tba paeL-Phlledefrkte

First.—Main stem, which is the right of way, not more than 100 feet in width, with the rails, ties, ballast, bridges, viaducts and passenger depots. Second.—Franchise. Tbe right to operate tbe railroad granted by the state. Including the right to condemn land for tbe main stem. Third.—Personal property, such as rolling stock, cats, locomotives, ferry boats, all machinery, tools, etc. Fourth.—Other real estate used for railroad purposes outside of the main stem (of a width of not more than 100 feet), such as roadbed, waterways, reservoirs, buildings, water tanks, waterworks. riparian rights, docks, wharfs

and piers.

Tbe first three classes of property are taxed at a cate of one-half of 1 per cent on the valuation, or (5 on each fl.000 of valuation. The fourth -chins is taxed at a rate of 1^ per cent, or $15 on each $1,000 of valuation. Tbe taxes collected by the state from the firat three da sees of property betnng to and are part of the state's annual revenue Tbe tax levied on the fourth daas of property Is asseaaed and collected by tbe state and returned to tbe local taxing district* la which such property to situated, not one dollat being retained by tbe state Tbe railroad tax law was passed in 1884 and provided that a board should be appointed wboae doty It was each

erty and collect tbe tax thereon. The law Ahad the rate of taxation and tbe Hisses of proparty. This

that value by a multiple of three north af tbe Paaoaic river and a multiple of two south of that boundary. In other words, if tbe faff value of tba land hi a locality north of the Passaic river was

was taken aa the vataatioa of tbe toad per acre foe tbe railroad bad. Having obtained that result they added to that the coat of construction, which ' In tbe rails. baHaat ties and

Tbe franchise of a railroad to tbe right granted by the state to Operate tbe read, without which the road conld not be operated. It to that It has a value for p tax-

lUal estate, other than matn •t** I Taxes on this doss oT property which sve returned to 'the \local taxing district* •tZ.Ell *■ Tbe frnuchtoea of the railroads, of New Jersey were taxed In 1003 on a valuation of gso.ooaooo. leaving tbe tax on tbe main stem at $l(n.000.ai0. What the Deasaerstlr Party Proposes to Da. i, Firat.—It proposes to Ux tbe main stem, fbe personal property and tbe other real estate on local valuation* at local rates for local purposes and to Ux the franchises at a fixed maximum rate of one-half of 1 i>er cent The valuatlouH are to be placed upon the property by tbe aUte board of assessors. The tax to to he collected by the same board, and *11 taxes, except franchise tax. are to be returned to the local 'community in which the property to situated. In one paragraph it to asserted that the time for investigation has passsd; that ths subject is simple and easy to be settled. In another paragraph in the same platform It to said, “That, expert knowledge being necessary to dstsrmine the valuations of railroad and canal properties, the assessmoot of valuations shall be made by the six it and paid to the taxing dictriots in which the property Is located." The I'ueetlon. according to the Democratic platform, to very simple, and yet It requirra “expert knowledge.** The |dirty backs and 1111* on the propoattion In the asm* platform. If it ia simple and easy to settle, why is It necessary to hav* - j-.. tet knowledge" in order to fix the valua-

tions?

Second.—It proposes to separate railroad properties Into two classes the franchise. Which la intangible, and tbe other property, real and which to tangible. It proposes to have a rate of $5 per thousand on the franchises and as many different rates for the other classes of property as there are commnnltjea through which the railroads ran. Thera are about 800 taxing districts In the state, and tbe DemocraU tints propose to separate tbe railroads into 800 pereels. Under tbe Democratic plan, aa aet forth In their platform, a railroad main line will be cut up Into as many different pieces or parcels as there are taxing communities through which It runs, and tbe fra neb toe, which ia of value only When K ia connected with the main stem and to as much a part at the value of the main m I the aupei structure, to to

line, and It will have no appreciable

Uaable value. Again, take a

main stem running through Jersey City or Newark. Consider it aa a separate mil* of railroad auconnerted with the rest of tbe line, and It will be worth no more then the here land of a

' nfar-

a rateiy at a fixed rate. Tbe propoei-

udu atan to as atealbU as it would be > tax each separate link la « chain ■ed oo ■ wlndtoaa fur hoisting poroses and Chun to tax the wind toes •parateiy. It to about as reeaonabto proposlttoa as It would be to tax a aan’a bouse by valuing the

Not only la tela as aa to tea fraaUse. hat tbe value of a mala stem la act divisible. Into different parts.

area In tbe same HtyJ The

erege valuation per acre of railroad property in Now Jersey ta WUWkl, and there are approximately tea meres to a mile. Consider each separate acre in this way and its value will be destroyed. It to the continuity of tbe line connecting centers of trade like New York and Philadelphia that gives veins to

tbe main stem.

Taxation of the personal property of a railroad, under tbe Democratic scheme to Impracticable and Impossible. A train of cars on tbe day when tbe tax to levied to probably in fifty different communities. Which one to tain tbe benefit of tbe tax—the one where tbe train to in the morning, where it to at noon or where It to at night? Tbe result would be that the rolling stock, locomotives, etc., would not be taxed anywhere, and the state and local taxing districts would lose the revena* now derived therefrom. ■ New Jersey to fortunately situated In being a state in which terminals of great railroads are located, and owing to its peculiar'pokRion It receives a tax on personal property largely In excess ofgrbat would be received were It s state citeoed by lines of railroad. We now tax rolling stock which today to in Jersey City and twenty-four hours later iu Chicago. It to already being debated aa to whether under the Interstate commerce provision of tbe United States coUKtltutlon the federal government should not take advantage of this branch of taxation and tax this property for its benefit, and the day to not far distant when the amount of tax to be derived from tbe personal property of railroads to likely to be very much reduced. Is It not a good proposition to bold •n to this Income as long as we can? Valaatlss of RollrooU Property Coso> psrofi With Other Property. Under the constitution It to necessary that the valuation of property for taxation must lie fixed at an amount which will equalize It with the valuation placed on other properties of a like kind similarly situated, and H must be taxed at a uniform rate and under a fixed rule. Tbe courts have held that nOtroad tax of 1884 was con stitutional and that railroad profierty wss a class by itself and that It need not be equalized with other property. This to the reason why it to possible to multiply tbe average value of an acre of railroad property used Vor the main stem by a multiple of two or three, and no one wfll be so nnreaaonable as to say that the bare land in Itself used for roadbed to worth three times the amount of a like quantity of land used for other purposes. If tbe present tow to changed to conform to tbe Democratic platform railroad property mast be valued and taxed at a valuation and rat* which will equalize it with other properties of a like kind. Whether it would be constitutional to separate tbe different parts of a main line of railroad and tax it locally Is s difficult legal question. There to no qoration, however, that If It to-be taxed locally tbe valuation placed upon It must be equalized with tbe value of other property, and It will no longer be possible to separate It Into a class by Itself or to take tbe cost of construction ns a criterion of value. Railroad property will be valued at os much as. and no more than, the farm, tbe woods, tbe sands, tbe swamps or tbe mountains through which M nr

T%* «■

Practically aH of the roads of New Jersey are operated under special .charters granted by legislatures, and in moat of tbo charters special

tax under the tow of 1WM under pro teat, claiming that they still were es titled to their charter rights, and If the law of 1884 to repealed the provisions of the charter* will again Ixa-owe the subject nf legal Interpretation. An interesting Instance of what would happen if a railroad was compelled toP*r the state 8 cento for ascii paaseu gw carried, as provided by the charter. Is to be found la tbe commuting district of north Jersey. If the railroad# were compelled to pay 8 cento per pas senger the development of the counties in which the commuters live would certainly be retarded, aa tbo railroads would add the amount of the tax paid to the charge for a commutation tir-ket This question of tbe old charter righto to a very serious and grave one mid to one of the moat Important eiemeuia In the question of railroad toxat ja. The Democrat* Hove for got tan this, or pretend that they have. Usoaora of a Cfcaaa*. The state of New Jersey ia receiving •n Income of a year from taxation of railroad properties. Under a law devised and paaaed hy Senator Btokes. Republican candim.te for governor, the state apportion* io the local taxing communities of New Jersey 85 per cent of ell their state school taxes. This sum will amount to more than $070,000 thla year, and to a direct dividend returned to the pockets of tbe taxpayers from tbe state treasury. Tbe state could declare this dividend to the taxpayers only because of tbe revenue obtained from tbe railroad companies. If tbe state kwas Its Income from the railroads, the local taxpayer will loae his dividend. The Democratic orators Ignore the most eoaentiai feature of the whole question—via, that the 'tote does not actually retain one dollar of the railkind tax. On tbe contrary. It pays back to tbe localities more than It receives. It returns a 35 per cent dividend on tbe state school Inr. and It also appropriates $250,000 each year for tbe building of good roads. Doagera «• Be 6a*r*e4 Against. The danger that any change in the tow of 1$$4 may be unconstitutional. The dsersaas in the valuation of the through cutting K up into

The docrease in the value of the main stem by separating it from the fronin the valuation of Vailby locality of lika kind. The reverting to the provisions of the

Thlage Wurth I

Ja atom derives its value from its continuity and ita'right to ©prsto under the stats franchise. Railroad property is dot* valued as a separata and distinct kind of property. Tbe highest state courts have decided that its value is not determined by the rules as determine the value ef other adjoining property devoted to dtfsrent uses. Tbe railroads Haim that they bare

nte of taxation to Axed so that It shall do* exceed one-half of 1 pgr cent upon tee true valu*. In others It to fixad ao that tba railroad shall pay a fixed

gravity at teat quae a general railroad tax low, on that as a Axed MB at property.

for state purpooco, oo we And that the rate or taxation to a* oM ne the chorof the railroad and that tea purpose for which the tax waa to be uaad was 'always for nwTttrtbe which provided that they should pay to tea state 8

riaea the sum of 4 casta per aad 6 eeua for a tan of e waa Axod ta Itou ef a

of the charter righto is that the tax shall not exceed one-half of 1 per cent. If tbe railroads traipf *n their riuima of charter righto, the rate cannot ex-

e ef the pm- . It deetarae In favor of tltiag ten report of tbe tax commto i of 1804 In order that It may have

i party to la favor of « end dadoraa tn favor of of all property at l

ar the areeeal syaOem the state cae and dnae three very Important