The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-09-27
IT WILL COMPROMISE
STATES LITIGATION WITH UNION
RAILWAY COMPANY TO END.
Company's Valuation to He Placed at
s4,OOO,OO0 and the Appeal to
BE Withdrawn.

1t is understood that the financial differ
ences existing between the State Tax Com
mission and the Indianapolis Union Rail-
way Company are about to be settled.
This litigation has been in the State courts
for the last two years and has at last
reached the Supreme Court
Last year suit was brought in the
Marion Circuit Court to collect the delin-
Railway Company for 1891. 1892 and
1898 The suit came to trial be-
fore special Judge Reinhard The State
Tax sGommission had been assessing
the railway company on the basis Of $780,
900 a year. This was the appraisement of
the Belt railway, Union Station and the
general equipment of the Union railway.
The company contended that its property
was being rated at double its actual value
and resisted the attempt to collect the
delinquent taxes The constitutionality of
the law of 1891 was also attacked. After a
three weeks hearing, during which time
large number of witnesses testified as to
the values of railway property, the case
came to close. In his decision Judge
Rcinhard sustained the State law and
found against the railway company. The
case was at oncce carried up to the SUI
preme Court. where it is yet pending.
|. Last summer while the Tax Commission
was in session attempt was made by the
Union Railway Company to effect COM
promise. bat some of the members objected.
The question was discussed on numerous
occasions until the last of the session.
when an agreement was reached between
the members of the board The board has
agreed to reduce the valuations placed on
the railroad property TO $4.000,000, which
will save the company at least 100000.
The company is to pay up its delinquent
taxes with interest added at the rate of
per cent. and is to concede the validity
OF the law under which the board acts.
This concession on the part of the COM
pany is considered by the State as the i'm
sportant feature of the settlement 1t will
leave the tax board for the first time free
from litigation and will give the commits
sion the right to assess 1t as It plesses next
agreed TO dismiss its case in the Supreme
Court. AS the matter stands now the ap-
prevail of the Supreme Court is all that is
required to ratify the compromise. II this
body consents to make the settlement
matter of record the adjustment will be at
once completed and funds amounting to
100000 will be turned into the treasures
OF the State and county.
There is some doubt among attorneys
familiar with the terms of the
preme Court will agree TO approve
the settlement, coming up as it does
in an informal way This would shift
part OF the responsibility upon that trib
unal, which already has its own burdens
TO bear. Attorneys think that the only
way in which the matter can be adjusted
is TO put the terms of the settlement I'm
writing and take it into court. The State
officials are sanguine of speedy results
One member of the commission said. liz
reference to the litigation:
I'VE had hard time In getting the
members of the board to agree to set
| Element Some of them wanted to go on
and fight il out with the company. Others
OF us thought it best to make settlement
| If ii could be done on reasonable terms
We don't know what questions might come
up before the Supreme Court and how the
case might end. The greatest benefit see
about il is the fact that IL will take a lot
OF litigation of our hands. 1t has grown
very wearsome and all of the members
of the board will be glad to get rid of IT,
We are confident that we will have no
trouble in securing the approval of the
Supreme Court when the question is
brought before them. This will be done in
short time Il Think