The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-18
NO TAX ON GAS MAINS
ny A VOTE OF II TO 3 THE COUNCIL
KILLS THE ORDINANCE.
Arguments Pro and Con-Nr. Golfers
Ordinance Directed Against
barrel Houses.


ordinance and its terms. The fate of the
measure was pretty well understood before
the vote was taken. At the time the or
dinance was laid on the table temporarily
the line between those opposed and favor
ing was clearly drawn. A I that time those
favoring the measure delayed action and
saved the ordinance for the time. hut last
night the majority called up the ordinance
and forced a vote.
Those who favored the ordinance were:
Allen, Clark, Madden, Ohleyer. Payne,
Rauch. Smith, Wolcott. Total, s.
Those whose votes killed the ordinance
were: Golfer, Cooper, Dewar, Dudley,
Kirknoff, Montgomery, Murphy. O'Connor,
Puryear, Shaffer, Sherer, Woody, Costello.
Total. 13.
Councilmen Dewar and Cooper succeeded
I'm bringing the ordinance from the table,
where 1T had been placed in order to kill
it. Having been previously read for the
second time it was placed on its passage.
Councilman Wolcott was the first to state
his reasons for ~favoring the ordinance. Mr..
Wolcott said:
Il am in favor of passing this ordinance,
and the more 1 have thought OF the oues-
ton the more convinced have l become
that il should be passed. This ordinance is
just. If the gas companies were paying tax
on a fair valuation of property / would
not favor a special tax. but the companies
are paying tax on a small per cent. of
actual valuation. 1 have examined the
sworn statements which the agents of the
companies made to the Council Investigate
Tag committee, and | fail TO find any reason
therein why they should escape taxation"
Mr. Woloott spoke of the figures which
were given at that time. Speaking of the
consumers Trust. he said the original cap
ltai stock OF the company amounted 10 81
1s,VV, while taxes are paid on but $4,000.
The company has paid. he said, all obliga-
lions except the original 100000 stock,
while the annual earnings, according to the
statement or Mr.. Lyman, amount TO $780,
COO. This was the condition at the close
OF 1884. and Mr.. Wolcott concluded that
considerable of the original stock must
have been paid by this time. The COM
pany has not made extensive improve
ments. Mr.. Wolcott estimated that even
with a 20 per cent. depreciation in the
company's plant and lines since first pur-
chased. less than 80 per cent. of the prop
erty is now taxed; He said a special tax
main would be equivalent to taxation Of
about $3.50 900.
81 can't see,' continued Mr.. wolcott,
why a company that is clearing, according
20 its own statements, something like $780,
coo a year should be regarded as too poor
torn pay " a au special rsa,s tax AID T the s company gr has
advantages, and 1t strikes me as our duty
TO tax the mains.
There is fne Indianapolis Company. a
corporation which came here and signed
a contract stating that its mains could be
taxed four cents a foot at the end of five
years. We have allowed this company
three years of grace, and do not propose to
tax but a little over half Of what it bar
gained for"
Mr.. Wolcott said the indianapolis Com
pany, as II now exists, swallowed up three
other companies and incorporated with a
capital stock OF s2,ooo.cooo.. Stock TO this
amount was issued on which promise was
Bonds to the amount of s2.s5o.oSo We're
issued on which a promise OF 6 per cent.
quarterly was given. Mr.. Wolcott said the
testimony OF the company was that none
OF this stock was defaulted. Mr.. Wolcott
said 1t followed that the company has been
paying 9 per cent dividends on sf.s5 600.
Mr.. Wolcott closed his speech by urging
support of the ordinance. He said the fig
ures showed the companies to be prosper
GUS; that they had agreed to a sDecial
tax, and that there was no reason why
their property should not be taxed for
privileges, the same as that of other COR
porations. Mr.. Wolcott estimated the city
would derive about $4,000 by the passage
OF the ordinance.
Councilman Cooper followed with a
speech in which he made the Consumers
Trust his theme. He said the trust was
organized at a time a monopoly was threat
ening the city and because of It's o:Ca.niza-
gas in the country. He said the people
went down in their pockets TO establish the
trust. Mr.. Cooper asked why Ii would not
be better to allow the trust to pay off it's
debt and then become the property of the
city. all OF which would mean gas at actual
cost.
the ordinance would mean an end to inn
provements OF the plants, for neither COM
pany could afford to pay the tax and keep
Councilman Clark seconded the remarks
made by Mr.. Walcott. He said the city
taxes the breweries, the electric light plant
aud ~ ~ The - fnH thn -.Aaf
part belong TO people OF moderate means.
He asked why two gas companies should
be exempt. while private individuals and
II believe" said Mr.. Clark, that we are
elected by the tn people 1,iev and ID not otob by the he gas
the passage Of this ordinance"
Councilman O'Connor cited his own ex-
perience to show how much cheaper the
people get fuel than they did before the day
to find anyone in his ward who favored a
special tax of the mains. Councilman De-
war expressed the doubt of the Councils
power to levy a special tax, for the State
law says no company or individual can be
taxed for more than nine miles IN the
have greatly deprecated in value and a
tax of two and one-half cents would prob
ably be more than the law allows. Mr..
Allen closed the argument. He said 1t
seemed that some members of the Council
had great love for the gas companies in a
desire TO relieve them from obligations.
ne FecdlleQ the OTlSlldI contract III WHICH
the companies agreed to q special tax. He
showed how u~ntenable was Mr.. Dewar's
argument as TO power of taxation.
Councilman Golfer introduced an ordi-
nance intended to insure the sale Of pure
liquor" 1t prohibits the sale of impure or
aduiterated liquor and prescrfbes that the
Board Of Health shall investigate and ex-
anime liquors. For the sale of impure or
adulterated liquor a person may be fined
not less than 50 nor more than 500, 10
which may be added Imprisonment not to
exceed one hundred days. The ordinance.
which is aimed a the barrel nou ,ss. was re-
ferred to the committee on public morals.
Councilman Madden introduced a resolu-
ton authorizing the president Of the Coun-
Gil to appoint a committee OF five to con-
slider the remaining OF the streets. The
resolution, which does not intend a general
remaining, but a correction of the present
confusion. was adopted. Mayor Taggart
notified the Council that he has signed
the resolutions asking the city attorney to
notify the natural gas companies that no
more than ordinance rates shall be charged
In any case, the spirit being that the city
attorney shall prosecute any violations of
1 the nr1franoo