The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-08-25
BUSINESS WITHOUT PROFIT
With Poyerty's Heaviest Burdens All
Railroads in the State Are Loaded.
Rolling Stock. Track and Traffic in Rad shape
and Of Little Value When II Comes
10 Assessment for Taxes.

Before resuming consideration OF railroad
valuations yesterday morning the Tax Com
m~issiouers gave afew momcnts to the hear
nj of a couple of bank cases. Cashier +.
j. Vestal, of the Citizens Bank of Knights
town, asked the board not to increase the
assessment OF his bank, as contemplated.
1t was returned at $40, 900 and raised by the
local board to $4,000, at which figure the
cashier was content to let il stand. 1t wss
developed during his statement that sales
of the banks stock were recently made at
90, though 1t was returned TO the assessor
at so. Cashier c.. S. Andrews, of the First
National Bank of Brazil. urged the board
not to increase that institutions $50, 900 val
nation.
The first railroad called was the Louis
willie, New Albany Il Chicago, popularity
known as the Monon. Judge +. e. Field.
of Indianapolis, general solicitor for the
company, appeared for it and said in be-
ginning his plea for q reduction of last
years assessment that it was somewhat
embarrassing to max a statement, because
the law appears to be so underlined as to
how valuations shall be determined. From
reading the discussions before the board
during the past week he had come to the
conclusion there were almost as many diff
ferent views concerning this all-important
point as there were railroads. and he APP
preciated the difficulty OF the
boards task. He had looked back
over some old statutes to see if any basis
Tor liking railroad assessments was sug-
gested, and bad found DC better guide than
that which was long ago in use, and the
principles or which are still applied to
these problems. The old statute in ques-
tion says that, in addition to the compa-
ny's real estate, there shall be taken into
consideration the location of the road for
business, the competition OF other lines, It's
earnings. and its condition for present and
future business. While he did not know
that the board would assess on this basis.
he assumed that the points re.
ferred to would be considered. What
il known as the Airline. between
Indianapolis and Chicago. he said. was built
about ten years ago, as cheaply as possible.
lt was practically built to sell. and the iron
put in was the lightesf, the ties the poorest
and the bridge work the least expensive
possible. The road was constructed as
cheaply and sighted as much as possible.
and since the present company has been in
possession il has tried to build the line up.
1t has. he bought. been scourged worse
than any road in the country by &C
s eenasd. T fhs' old fdo'u com pSi O had pro no
money, however, TO build heavy stone
bridges and improve in other ways because
it was on the verge of bankruptcy ali the
while. The road Is now a better one,
though. as most all the money had been put
In bettering the condition of the line, the
rolling-stock was not the newest and best.
Railroad men remark that they ALWAYS lift
their hats when passing the old Monon
locomotives in Difference to the latteris age.
NEUTRALITY-SUSPICIOUS. ROAD.
Judge Fiel called attention to the Mo-
non & Michigan City branch. fifty-five
miles long, and painted q glowing picture
of a poverty-stricken road. IF you gentle
men could see the road" said he, you
would say the half has not been told. Rails
considered unsafe on the main line are
taken up and put on the branch because
there is so little business as to make the
risk comparatively small. We only run
one trair q DAY each way, and the twelve
enough to span the ties. Yet this branch is
valued for taxation at S360,O00."
In southern Indiana the old line
runs around hills in such manner as to use
up five miles of rails to go a mile and q
half. This was the fault of old-fashioned
construction and gave the road the long
mileage it has. That fact, he thought:
should be taken into con sideration. as well
as the very important one of terminal
facilities. The company might own the
finest line in the country between Louis
Vile and Indianapolis and Chicago. but 1T
would have difficulty In making any money
terminal facilities. For the privilege of
crossing some tracks and q bridge at New
Albany. the MonOn paws upwards of $500
annually. AT Chicago the trains of the
company run over another line, while "a
larger sum of money is paid the Lake Erie
IL Western each year for the use of its
tracks into Indianapolis.
G.. w. Kretzinger, of Chicago. general
counsel of the MonOn, supplemented Judge
Fields statement with an eloquent appeal
for a 1913 per cent. reduction from last
years valuation. The values of all prop
critics, he said, depend upon their use and
the result of that use. While a railroad
company has certain duties imposed on il
by the State the latter, as grantor of GER
tain privileges. Is obliged to give the COM
papy q chance to perform those duties. In
diana imposes an absolute obligation on
the company to keep its road in such con-
ditIon as to afford the public first-class and
safe accommodations If the State imposes
upon the road q tax so great that the CON-
pany must either fail either TO pay
the assessment or to provide these
way, Mr.. Kretzinger asked. When
a road Is handicapped by legislation and
excessive taxation 80 that 1t is unable to
maintain first-class construction he
thought il the States fault, not that of the
railroad company. He said that mortgage
after mortgage had been placed on the
Monon and of the last one which was for
S2. 100000 S1,519.0 600 had been expended last
year to put the line in safe condition. Re-
pairs and renewals. be urged, added nothing
TO the original value of a road. Railroad
properties have no market value. They
are not bought and sold like
commodities on the street. The actual cash
value car only be determined by ascertain
ing the origin al cost of q road and follow
ing out It's financial history from Its begin
ming. Whenever the earnings of a road"
concluded Mr.. Kretzin ger, ARE insufficient
to keep it in the condition required by law
and the demands of the public. then 1t has
only a nominal value for taxation. When
ever taxation tends to destroy il is ex-
cessive and should not be permitted IN any
State in the Union. Notwithstanding the
vast outlay of thirteen hundred thousand
dollars last year. there IS SILL necessary the
expenditure of large sums this year. Thus,
il we do not obtain relief from burdens
such as excessive taxation, mortgages will
be piled mp year after year aud foreclosure
oyertake the property. as in 1872 and 1878.
We ask, therefore. for q reduction of one
third from last years valuation"
o PATRIOTIC AND PROUD.
Judge Gardner. of Washington, ex-Repre-
sentative from Davies county, appeared
for the Ohio n Mississippi, and said that
company was too patriotic and too proud