The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-05-27
STATE OFFICIALS REJOICE.
Over Seven Millions of Dollars In
vOlved-The Decisions Eject.


vOIved-The Decisions Eject.
There was rejoicing galore at the State
house yesterday when the news reached
there of the United States Supreme Courts
decision upholding the validity of the tax
law of 1891. Nothing else was talked about
all the afternoon and the State officers fe-
dictated one another quite as much as If
the back taxes of the big railroads were
to be divided among them instead of placed
to the credit of the State. The members of
the tax commission We're in high spirits
and everybody took a hand, or, rather. a
pencil, in figuring out what the aggregate
of taxes would be and what the States
share would amount to.
The railroad property of this State was
assessed for taxation three years ago at
sl6l. 000, Co., Under the law in operation be-
fore 1891 the valuation was s61.eoo,OOO. The
aggregate taxes on the increased valuation
which was contested by the railroad COM
panies, is in the neighborhood of S2.145.000
year, or S7,2i5,000 for the three years, 1891.
1892 and 1s93 during which the matter has
been in controversy. OF this large amount
there remains now to be paid something in
excess of 81, coo actual taxes together
with penalties amounting to nearly half
million more. These figures are exceeding
~ conservative, the probability being that
the amounts will be considerably larger.
Taking $2,000,000 basis of what lis actu-
ally due the penalty is 10 per cent. or $780,
600. TO which must be added, according to
the tax law, per cent. each year for fail
ure TO settle This figures up aggregate
of % per cent. to date, or $4,000 on the
two million basis
Some of the railroad companies have
paid all their taxes. others one-half the
amount due, still others one-third while
several have paid nothing. Some settled
under the old valuation. the amounts be-
ing taken by the county Officers and cred
tied on account: On this &c, account II is din
of what remains due and unpaid in the
way OF railroad taxes. but It is known
that 100000 will be short of the mark
and so II is safe TO figure on that basis,
which is arrived at on $50 valuation
per slO9 Well Informed officials say It is
poses was s5 cents for 1891 and 1892. end 81
cents for 1898. and following the figures
enriched about 500. co., of which amount
$25e,0Cl is from taxes and the balance from
penalties. Some of the State officials say
that the amount will reach half million.
This money will not be paid in before
next December as the May settlement
has been completed.
1t can be readily seen that the railroads
had to gain by compromisea; NV, which : wa,
promise gone through would have been al
least half a million dollars ahead or the
after looking closely after its hand In poker
parlance. STOOD pat. and now has no
occasion to regret its refusal to settle the
panies were under very heavy expense IN
the matter Of attorneys fees. as they
had working on the sc case not comfy only
OF the Pennsylvania and Big
Four roads. but also; according to Alter
Monon. and a number OF Chicago railroad
lawyers, the general counsel OF the s..
sss a5ne the and Other o law Phlaaeaa
in the railway world. John NJ. Butler OF
this city. employed especially TO help out
while the States attorneys claim that John
T. Dye. Samuel Pickens and the other law
round, will receive large amounts for their
work In this litigation. which Is outside
their regular employment and must there
The railroads made their fight almost
solely on the fourteenth section OF the
was violated by the tax law OF 1891. They
contended that the law made a distinction
between corporation property ana otner
that by so doing the statute vas uncOnsti-
tutional- Farm lands. they slaimed, were
frequently assessed at 80 cents on the dol
lar, while railroad property was assessed
at its full value. In addition TO the heavy
attorneys fees the companies must stand
they will have TO pay all the costs OF this
most expensive litigation.
John W Kern and A. J. Beveridge helped
the Attorney-general make the fight They
are paid under section OF the law which
Commission shall sec trat tae law IS en-
forced Their remuneration VIII not be
large considering the amount or money in
yclved A few hundred dollars each Is al
they will get out CT IL besides giory- The
Encouragement viii have 10 be satisfied
with the latter article alone In this In
stance There seems 10 be no ''c1afI'
this time for all the hard work he has
done.
WHAT THE GOVERNOR SAYS.
AS the head OF the State Tax Commission
Governor Matthews the recipient OF
numerous congratulations. His friends
dropped In during the afternoon In large
numbers and there was = running IRE OF