The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-07-21
FIXING RAILROAD TAXES.
The State ROard of Equalization Com
pletes It's Work and Reports.
A Considerable Reduction in the Total As
seSsment Over Last Year, and the
Reasons for the Decrease.

The annual tax assessment upon the railroad
property in Indiana finally completed yes
teTday by the State Board of Equalization. The
work has consumed more time this year than
usual for the reason that the board has proceeded
rather slowly: disposition to give more consid-
Grafton to the pleaGings of railroad representa-
tives for reductions in the assessments has been
manifested, as the results of their work show,
the total amount of the assessment being $74, ia
less than last year, although there are sixty
FIVE miles more road than in 1884 There are
several reasons given by the board for making
this reduction, and in explanation there is some
reference made in their report to the arguments
which were presented during their session oy
the officers of the railway companies operating III
the State 1t was urged that the general depres-
sion in business had caused material reduction
in the earnings of all the roads. 1t was claimed
that the assessment should be reduced because
there has been a decrease estimated at from ~
TO 20 ner cent in the cost of all materials that
enter into the construction Of railroads, which
lessons their physical value. 1t is also argued
that the construction and operation Of parallel
lines has had the effect to make the
competition in transportation very dam
aging, and has largely reduced the earnings
Of the competing lines, the result of which will
be that the few roads that have paid dividends
will be compelled to pass them, and the deficits
of roads that have not paid expenses heretofore
will be increased. AS further reason why the
assessment should be reduced the point was
urged that the railroads had largely increased
the value of property generally In the State,
and, therefore, there should be no dlscrlmlna-
ton against them IN the levy TOR taxation. 1t
was the intent of the law authorizing the
annual valuation of railroad property, it is
claimed to give elasticity In its assessment,
which should be increased or decreased as the
earnings rise fall, as business prosperity or
II. A M OF
decrease in the assessment, it was urged that
upon the basis of valuation it not l. 10 of the
total, yet it is assessed more in proportion than
other property. The mileage is q. 10 per cent,
while the valuation is 40 Taking last year as
basis the average assessment should not exceed
$1,2l3 mile while circumstances should con-
troll in making an assessment on this average, as
the condition of the different roads might sug
gest.
In the expression of opinion by railroad men
regarding the rule that should govern in making
assessments, there was wide difference. Some
thought that the assessment should be made
according to the cost of construction, some that
it should be on the basis of the gross earnings,
and others that it should be according
to the value as income-p paying property. There
was general complaint about the system OF
assessing side tracks and it claimed that it
should be reduced proportionatey with the value
and cost Of construction
The board asserts that under the act concern
ing taxation, it is not its province to change the
assessment dILer III mas Deen HXeu a perlOQ OF
six years, except on the improvements and roll
ing stock, or when a new road has been built or
line extended, but it should correct erroneous
assessments. AS there will be new assessment
next year, for the succeeding six years, any irreg
ularities that may exist can then be remedied.
The board states that it fully concurs in
the sentiment that the burdens of taxation
should be equally imposed upon all interests.
In the discharge of their duty, they regard it as
incumbent upon them to continue the valuation
as heretofore fixed, and they have only made such
changes as an equalization of the taxation sug
gested. The assessment for the next year on
the different roads operating in the State has
been fixed as follows Oh main track, rolling
stock and improvements: