The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-03-04
The Proposed Revenue system.

The Proposed Revenue System.
The revenue bill was brought up in the
house on Saturday and, as might have
been expected. men who have been adj
vocating all sorts OF visionary and bun
combe schemes in alleged opposition to
corporations were at once found arrayed
against this genuine reform measure. In
charity, their opposition may be attributed
TO want Of comprehension OF the intent
and effect OF the bill, but it is certain that
the arguments they use had their origin
with the railroad lobby which is fighting
the bill. There are two evils to be renle-
died by this measure: ~ The state needs
more revenue. ~ The railroads are not
paying their fair share OF taxes. Rail-
roads are taxed as other property, but
while other property is assessed for taxa
ton, on the average, at 90 cents on each
dollar of its true value, railroads are as
sessed at about % cents on the dollar.
This bill is intended to correct both evils,
and it does correct them.
AS matter OF fact the amount of taxes
collected from railroads in this state at
present (aside from town and city taxes)
is almost exactly equal to the amount col
lected for state revenue from the general
property tax. The first proposition OF the
bill is to exchange these-turn the IL cent
state revenue tax over to the counties for
county purposes, and turn the railroads
over to the state for state purposes, as is
now done in several of the most progress
sive states in the union. The next step is
TO increase the appraisement of railroad
property TO an equality with other proper
", which is simple justice to every one
concerned. The result will necessarily be
that the state will get the benefit of the
increased taxation of railroads. the coun-
ties will not be harmed, and the railroads
will be made to bear their equitable por-
ton of taxation. Now what are the OBJ
jections made?
II is said that the bill is unconstitutional
because the constitution provides that as
sessment and taxation shall be uniform
and equal" If so the present tax law is
unconstitutional, and all former laws
were unconstitutional, because the
taxes are to be collected under the
bill precisely as they now are,
and as they have always been. The only
difference is that there is opportunity
given 10 make the assessment uniform
and equal instead of leaving the present
outrageous discrimination in favor of rail-
roads. The law affects only the distribu-
ton of the money raised by taxation. 1t
may be claimed that the new board of
tax commissioners will not assess railroad
property any more honestly than the old
state board OF equalization. The bill gives
them every facility for doing so. and they
will make honest assessments or they will
retire to private life very rapidly. The
people will not tolerate the continuance
Of the existing wrong.
1t is claimed that the bill releases the
railroads from the present II cent state
revenue tax. II does nothing OF the
kind, except as it releases all other prop
erty. The counties have the privilege OF
continuing this tax 70. county purposes,
and if they do so it will be levied on rail-
road property as on anv other property.
II the counties do not need the II cent
tax it will be discontinued as to all prop
erty alike. This is even and exact justice.
No honest man wants railroad property
taxed any higher than any other prop
erty. All that is asked is to have it pay
the same as other property. That is the
central object of the bill. This objection
is peculiarly silly when offered to bill
whose chief purpose is to increase railroad
taxes TO an equality with other taxes.
1t is claimed that the bill will work a
hardship on counties that have large
amounts OF railroad property in compari-
son with other property. There are only
a few counties OF this kind, and let us see
how it will affect them. Take for exam
pie Starke county, which is the extreme
instance-the railroad property there be-
ing nearly one half in assessed value of
the total taxable property. We have said
that the assessment of railroads should
and would be substantially doubled, and
this is true of Starke county as OF other
counties. Take the Monon and examine
its true an I assessed value:
Bonds-s100OO,O lowest premium
in 1889, 12l4 81 225 600
Stock-$5OOOOOO leverage value in
1852 lO.,....... ....................... 100000
Total market DOS. eco
Average per mile owned $40 milesl.s $4,000
Cost OF road and equipmsnt...........1 1914, 337
Average per mile.-.............-........-. 1850
Net earnings per mile, 1sS9....-........ 1,77I.Sl
Value per mile on per cent earn
ing basis 90 $50
The assessed value of this road is as
follows:
Main track per &C. Oc0
Rolling stock per mile......---.....-.....2 2, 100
Sidines (ayeragel per mile.................. $40
Improvements, per mile...................... 100
Total per go