The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-05


right; it has passed a law; it has said
that the franchise shall terminate on Jan.
Mr.. Winter argued that this franchise
was or no value now, even if the company
dld make a net income of 100000 in last
years business. 1t was like the lode of a
mine that was about to be exhausted. He
discussed the 3-cent-fare law as another
thing affecting the value of the franchise.
In discussing the market quotations of
the securities, the attorney advanced the
proposition that when a mortgage was be-
low par the property it represented
could not possibly be more valuable than
the market value of the mortgage. This
demonstrated the fact that the stock had
no property value. He explained that the
market value was given by the desire to
control the property and only applied to
such a block of stock as would give a oal-
ance of power TO one faction or another
and was not a taxable property value at
all. In closing MIR. Winter gave a long list
or real estate properties that recently
changed hands that were assessed at much
less than the figures at which they Were
sold, arguing that the assessment of the
company was high in comparison with real
estate assessments.
briefly. He furnished market quotations to
show that the adverse legislation and court
decisions had had very little effect upon
the market value of the property. He CON
troverted the argument of Mr.. Winter on
the question of the value OF stock by de-
claring that if the holder OF an equity IN
d property IS unWllllIB 70 SCH I ACSo
than a certain price, it is certainly aXaole
at that price.
APPEAL OF MERRILL MOORES.
At the afternoon session the board took
up the appeal of Merrill Moores against
the Indiana Manufacturing Company. The
history of this matter in the Federal Court
is we'll known. In 1894 Judge Bake issued
an injunction, restraining the county board
from taxing the company on its capital
stock, it having been proved in court that
the capital stock of the company was in
vested in patent rights which the court
declared not taxable. This year, the board
being advised by the attorney general and
county attorney that the injunction issued
against the old board would not hold
against it assessed the company $21os00O
upon its capital stock. Members OF the
board were Immediately ruled TO appear
before Judge Baker in contempt pro
ceedingS and the board very quickly re-
Sclnded it's action in assessing the capital
stock, It was this more than anything else
that saved the members from being pun
lshed for contempt, and in delivering. ms
opinion Judge Bake that II the
attorneys who had given this advice We're
before him they would not get Oft so east
ly. 1t was a question in the minds of mem
berS of the state board as to what good
could be accomplished by their raising the
assessment. All the local tax officers and
county treasurer rest under the injunction
of the Federal Court restraining them from
putting these increased taxes on the duph-
cate or from collecting them. The attorney
general, however, advised the board to con-
slider the appeal and it was taken up.
The company. presented a statement by
it's attorney citing the action of the United
States Court, again asserting that the cap
ital stock of the company represents moth
ing but the letters patent and giving notice
that 1T would perfect its rights by such
proceedings as might seem necessary.
The officers of the company testified un-
der protest, and Secretary j. k, Sharpe
and President Mccain were both on the
stand. The material points brought out
We're that the company had only about
5000 worth of tangible property, that it
has a floating debt of $40, 600 and bills re-
ceivable of about $4,000. 1t OWLS the pat
ents upon a pneumatic straw-stecker and
sells royalties to the manufacturer of
threshing machines. Its royalties in 1895
amounted to $4,000 and in 1896 to $92,0 00.
On a capitalization of $3.50, 900 it paid divi-
dends of 10 per cent. in 1895 and 1896.
GAS COMPANY ASSESSMENT.
The matter of the Indianapolis Gas Com
pany's assessment was taken UP at q
o'clock and occupied the board until after
6 o'clock. In the course of the argument
Mr.. Van Vorhis made the somewhat sem
sational charge that a majority of the
County Board of Review, Messrs. Schmidt,
Smith and Boswell, had deliberately
worked to shield the company and put It's
assessment at less than it was worth. He
followed the same plan that he did with
reference to the street-car company, and
showed stock quotations of April l of stock
at $130 and the bonds at $1.05. There is
100000 Of the stock and 81, $50, coo of the
bonds. Mr.. Van Vorhis read the transcript
or the testimony before the county board
and laid particular stress on the fact that
when MI. Bell was trying to get from Sec
rotary Pray, of the company, the net in
come of the company in order to base the
assessment upon that, Mr.. Schmidt had
objected TO this method of procedure and
Mr.. Pray had persistently evaded the ques-
ton. 1T was the purpose of this board"
declared Mr.. Van Vorhis, "and we charge
it with the intention; to put the company
on the duplicate at less than it is worth,
and if the board will investigate, the rela-
lions of various men with various corpora
tions it might get some information that
that three men, Messrs. Schmidt, Smith
and Boswell, did all they could to thwart
Mr.. Bell in his effort to get at the true
value of this property"
There were two or three sharp passages
between cen the the sPeak TTin and Mr.: Winter. On
had selected these two corporations and
no others for appeal.
Because they are the most striking ex-
or any other city," retorted Mr.. Van Vor-
his. Mr.. Winter replied at some length. He
declared the aspersions upon the character
of members of the county board to be en-
tirely unwarranted. He declared that one
of the great necessities in taxation was
equality and made the assertion that if the
board should tax the gas company at It's
highest value it would nave to Sit there
the rest of the year bringing the rest of
the property of the State up to an equality.
He declared there was no property in the
State assessed at its full value. None CT
the railroads could be bought for what they
were assessed at. Governor Mount took
issue with this, and said that evidence had
been produced showing that some of the
railroads had been sold at less than the
assessment. Mr.. Winter spoke Of the cleo
trio light competition, and gave a history
of the deal by which the three gas plants
were sold in 1890 and consolidated. They
were purchased for 81, 000,0 600 and the pur-
chasers issued 2.000. 600 of stock and 81. $780,
900 bonds. With each thousand dollars of
bonds sold they gave a bonus of $3.50 in
stock. He enlarged at length upon the pre-
carious nature of the natural-gas business
and declared that the field was rapidly be-
ing exhausted.