The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-08-26
Panhandle in This State Earns Less
with More Mileage than Elsewhere.
Net Earning Capacity of the System Is Out
side Of Indiana, Where Taxes Are to
Be Paid on Higher Valuations.
Bankers Before the Tax Commissioners
Decline to Answer Questions.
Three of Them Fined and Ordered Sent to
Jail for Contempt in Refusing 10 Give
Lists Of Their DepositOrs.


THE PENNSYLVANIA PROPERTY.
Earnings of that Company In This State
Less than Those in Others.
A large and wealthy corporation like the
Pennsylvania Railroad Company could
scarcely be expected TO take less than half
q day to the presentation of its case to the
Tax Commissioners. The entire forenoon
session of that body was occupied in listen
ing to Col H.. b. Du Barry and j. T. Brooks,
OF P~lttsburg, the former tax agent and the
latter second vice-president and general
counsel of the Pennsylvania road. who
gave the board the benefit of their ideas on
railroad taxation. Colonel Du Barry ex-
planned that the P%lttsburg, Cincinnati,
Chicago a. st. Louis was q new corpora
ton, formed during the past year of the
Pittsburg, Cincinnati & st. Louis. Chica-
go. st. Louis, & Pittsburg, Cincinnati &
Richmond, and Jacksonville, Madison d
Indianapolis railroads, the total mileage of
which was Loss. The gross earnings for last
year BY divisions. were: Pittsburg division,
S6.275.0O0. or $40, 1853 per mile. Indianapolis
division, $500 900, or s12, SCI per mile; Chi
cago division, 49, lie. 900, or $40, $50 per mile:
Richmond division, 81. IFS. 900, or s6.622 per
mile: Louisville division. 81. s. 4.0OO. or ss,146
per mile. With q mileage of 81 per cent in
this State, only 60 per cent of the gross
earnings of the Pittsburg division were de-
rived from Indiana. and the other divisions
showed . relatively similar state of affairs.
The grand total of gross earnings was SIS
452. 932, an average of S13.5O2 per mile, of
which 6295 per cent. was derived outside
and 87b per cent. inside the State of Indi-
ana. Thus. the Colonel explained that,
while the length of road outside the State
was small. its gross earnings were much
larger than within the State.
Regarding rolling-stock, the Colonel said:
"You will receive for the year 1891 q very
large addition to the amount heretofore re-
turned. This is brought about by the con-
solidation with our lines outside of Indi-
ana, where the larger part has heretofore
been owned. This consolidation will take
from Ohio and othex States q valuation of,
say 100000, which will be added to Indi-
ana" The average assessment per mile
last year was $40. 7B1 for the main track
and $4,000 for branches. The average, he
main track and $4,000 for branches, so that
the main track has been appraised 1880,
and the branches $500 more per mile than
their true value. making a actual over
assessment of $751;, 1858. He called attention
especially to the .Jeffersonville, Madison 81
Indianapolis road, the tax valuation of
which was reduced in 1889 from ST.. 900 to
$40 900 per mile. and increased again in 1880.
without just cause, he held, to $4,000.
This be desired to impress upon the board
as unfair. Real estate, he remarked, was
appraised in Indiana once every six years,
and railroad property every year. The lat
ter is likely to increase and decrease wear
w and la wlahad the hoard IN narffcnIarlu
note the fact that his road had been in
creased over 20 per cent. since 1885. The
average net earnings per mile In Indiana. he
stated, were S2.306, from which 10 to be de-
Quoted the fixed charges on the bonded in
debtedness.
NO EARNING CAPACITY.
The Colonel directed the boards atten-
ton to the indianapolis & Vincennes. q
road owned and operated by the Pennsyl-
vania, and which had no earning capacity.
1t takes over IS per cent. of the gross earn
ings of this road to operate it. leaving
about 1414 per cent. or s66,690 last year TO
deficit of S136, 4S0, and the road now owes
nearly 81, 800, coo, which obligations have to
be met by the Pennsylvania. The net earn
ing capacity, the Colonel impressed on the
Indiana, and he called attention TO the
carefully prepared figures in his written
statement to eubstantiate this claim.
While the company desired to meet all its
obligations, the money with which to do
this came principally from the other States
through which the road runs. In other
words, the money with which to pay Indi-
ana taxes and other debts comes largely
from outside the State. He said he had
read q good deal in the newspapers about
poor railroads figuring before the board.
The Panhandle was not poor
road. he was proud to say.
when m SSo. 1t i1 Isali Gsns So profits. RRGS%Rsly
and all Its betterments are not charged 10
expenses, rs is the case with many rail
roads. They are charged to construction
would deal fairly with his company. and all
that was asked was that the road be ap-
praised with relative fairness as compared to
other such property. The Governor asked
second-class railroads in Indiana. Col.
DuBarry could not understand why the
roads should be classed. at which the Gov
ernor made his question general and the
be reproduced in this State, exclusive of
rolling stock. buildings and personal prop
erty. for S17,0 900 q mile. That estimate, he
said, included main and side-tracks. right
of way. depot grounds and terminal facili-
ties. Some roads in Indiana, he remarked,
could be reproduced for $4,000 n
mile and the figures ran ali the
way from that amount to $1,000. For
twenty years past, COlOnel Du DaIIy paiu,
lt had been the custom in neiRhborlng
States to have railroad property appraised
by experienced business men OF undoubted
judgment and character. In that way the
values fixed have, as q general thing. been
fair and Just. They have viewed the matter
from all stand-points and their judgment
does not err very often. In this State rail-
road real-estate is assessed by men who are
| paid $3.50 n day. He thought IL was impos-
| sibie to get much of o man for that work at
that figure. and that Indiana makes q great
mistake in paying such a SMALL amountfor
important services requiring experience,
/ judgment and other qualifications neces-
sary TO a proper discharge of the duties of
the position. The State would be the
gamer, he was confident, if it was TO pay
$40 instead of 81. so q day for these services.
PRINCIPLE OF VALUES.
Mr.. Brooks followed Col. Du Barry. and
his argument was able and exhaustive. He
I said he would talk of both the P%ittsburg.
Fort Wayne & Chicago and the Panhandle.
but that he wasnot there for the purpose of
asking . reduction in the assessment Of the
aforementioned road, and he did not know
that he cared to ask it for the Panhandle.
In what no had to say he would conhne
himself to the principles which he thought
should govern the board In the difficult
task Of determining railroad values. and TO
pointing out what principles II would 90
unsafe to adopt. lie remarked that he was
q strap0 ar I'm fha State. largely unfamiliar