Re: CNJ-CRP tax dodge [was Bieber 1947 4th quarter *02 cars]


Schuyler Larrabee
 

That is correct, Bill, but CNJ was not the only road so burdened. It was, probably, the road most
afflicted, because it wasn't a long distance road with the potential, at least, to offset those
taxes with the revenues from long distance operations. Specifically, the ERIE suffered a great deal
from Frank Hague. But this approach extended through the state government as well, so all railroads
serving New Jersey were highly taxed.

SGL

Part of the reason for the CRP was the remarkably high taxes levied on the
CNJ by the State of New Jersey, which appear to have been based on the
line's revenues throughout the system - including the out-of-state
operations. Some commentary suggests this was a substantial part of the
reason for the CNJ's receiverships in the last century. Certainly, Frank "I
am the Law in Jersey City" Hague began his rise to power by arguing that the
CNJ was undertaxed, and once in power, provided a very high level of social
services by taxing the railroad, perhaps to death. More comments on this
would be welcome.

Regards,
wb

On Sun, Nov 22, 2009 at 5:31 AM, <tmolsen@udel.edu> wrote:



In regard to the tax dodge that the CNJ had by setting up the lines in PA
as CRP, it has to go back to sometime in 1945. The July 1944 ORER (effective
date being April 1944) shows the CNJ only while the January 1946 ORER
(effective date being October 1945) shows both the CRP and CNJ as separate
entities. Remember there is always a 3-month lag between the ORER reporting
date and the ORER front page publication date to allow the railroad
companies to submit their data.

Sometime between October 1952 (January 1953 ORER) and January 1953 (April
1953) both the CRP and CNJ reporting marks were recombined under the Central
Railroad of New Jersey ORER listing.

New Jersey was not buying the two separate railroads dodge and I am sure
the state banged the CNJ for a ton of back taxes and penalties dating back
to sometime in 1945.

Best regards,
Tom Olsen

Thomas M. Olsen
7 Boundary Road, West Branch
Newark, Delaware, 19711-7479
(302) 738-4292
tmolsen@udel.edu <tmolsen%40udel.edu>






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