The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-06-06
TWELVE PAGES.
WEDNESDAY, JUNE 6, 1894.
APPLY THE LAW.

One point in the decision Of the Indiana
tax cases by the supreme court, which is
OF especial interest to Indianapolis and
Marion county. is the recognition by the
court Of the extraordinary value of
terminal property in cities. The court
says:
It is true there may be exceptional
cases, and the testimony offered on the
trial Of this case in the circuit court
tends TO show that plaintiffs road is one
of such exceptional cases. as, for in
stance, where the terminal facilities in
some large city are of enormous value,
and so give 10 a mile or two in such city
q value out Of all proportion TO any
Similar distance elsewhere along the line
OF the road. or where. in certain local
files, the company IS engaged in partic-
ular kind Of business requiring for sole
use IN such localities an extra amount
of rolling stock.
The testimony to which the court here
refers was that of the secretary and gen
eral manager of the road. who swore that
the terminals of the Big Four road in
Cincinnati. Cleveland and Columbus were
worth $6.OOO.OOO. We do not question for
a moment that this is true. although the
total valuation OF the road in Ohio for
taxation, as fixed by the Ohio tax COM
missioners. was only Ss.4S7.572. and al
though the company operated over S42
miles Of track in Ohio. The reason of
the seeming discrepancy is that the tax
assessment in Ohio is far below actual
value as would readily be shown by the
testimony Of the railroad officials if they
were interested in proving true value.
In Indiana. ordinarily, no distinction
ran be made between terminals and other
portions Of the road. because the law re-
Quires the valuation to be equalized by
the mile. without regard to value. 1t so
happens. however, that in this city and
county the terminals Of all roads. prac-
tically. are under one ownership. and the
owning corporation has its entire prop
erty in this county. that property being
the Union railway, and the Belt railway,
which are practically owned by the same
persons. the Pennsylvania company own
ing three-ffths and the Big Four two
fifth Of it. The question of true value
Of these properties therefore, is of very
great interest to Indianapolis and Marion
county. and yet the tax officials have
never been able to get from the owners
any statement Of actual business done
and profits made by which their value
could be ascertained. for this is one case
IN which stock and bond valuation can
not be applied. The owners have lodged
taxes with a success that is marvellous,
and they are now escaping just taxation
TO a greater extent than any railroad in
the state.
In 1886 the total assessment Of the two
combined was only s52s.S96. By persist
ent effort Of the old board of county COM
missioners. who really originated tax re-
form in this state. it was increased to
l,lO9 $50 in 1890 In 1891, under the new
tax law. it was increased to 81. 910,O 900 for
the Belt. and $S,O64OOO for the Union
railway company. and these assessments
did not exceed so per cent. Of the actual
value Of the property. The same valu-
alton was retained in 1892. but last year
the Belt was reduced to s2.4O1, 925 and
the Union to S2,55S.OOO. making a total
loss OF taxable property to the state and
TO this county Of s1.O12.O75.
It SO happened that last year. for the
first time in several years, Marion coun-
y was not represented before the board
and this was entirely the fault Of the
commissioners, for they were notified
that a movement was on foot for the re-
duction Of these assessments and advised
to send an attorney before the board,
Out failed to do so. Possibly they might
not have been successful. but it was their
duty to resist and protest against this
injustice to the taxpayers Of the state
and OF this couny. We trust that this
year they Will have sense enough to have
their attorney before the board and ask
redress. II the terminal facilities of one
road in three Ohio cities are worth S6,000,-
600. certainly the magnificent terminal
facilities OF a dozen roads in this city,
Furnished by the Belt and Union rail
roads, are worth that much. As a matter
Of fact they could not be bought for &c.
100000. and their earning capacity would
show handsome interest on that valu-
alton.