The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-27

or sixty millions The price of those bonds
has not changed in the market practically.
The reason for that is they are distributed
among Investors, and very few of them are
being solo. and | suppose the market price
or the bonds to-day is practically the same
as It was in 1891. when your predecessors
made this valuation OF this forty millions
OF stock the fair proportion 10 Indiana
would be 40 per cent. or sixteen million.
That sixteen million of stock has shrunk
IN market value since 1891 40 per cent, or
S6,4OOOO0.
NOT A FAIRY TALE.
Now, I am not telling any fairy tale.
II am telling you just what~you can get
from any financial paper. Go hack to 1891.
and the preferred stock of the company
sold at los; to-day it is offered in New York
at Sc and no takers. That is on ten mil
lions. The eomomn stock was in demand in
1891 al 20, and to-day It is offered in quanti-
ties al 2S. There is twenty-eight millions of
stock on which the shrinkage is AZ per cent
So that think 1 am within bounds in say
ing that if the tax board of 1891 were in
session to-day and the members were max
ing up their valuation upon the same plans
and the same basis that they made it up
then, instead of taxing the Big Four Com
pany for $16 220. 600 worth of property, they
would have to tax it for tribe over ten
millions | want TO be fair and meet every
objection that can be made. Some may
say, Is not this a temporary reduction
wish it was, Mr.. Governor, | would be very
body would insure me that l will gladly
pay the Indiana taxes on that valuation If
you will insure me that. With the Big
-four their earnings nave gone down every
year and their operating expenses have
gone up. We have had to give more TO the
public, growing out of competition, other
lines have been getting business that We
used to get. Our stock has not had sud-
den drop, it has been gradually shrinking
from month to month. From 70 you can
follow its course every month down to the
present time, when it is five points higher
than it was last March. 1t was down then
to %. 1t has gone up, owing TO the general
points. There has been six millions of val
uation wiped out on the Big Four road in
it not seem to you that there ought to be
some relief in valuation with that
shrinkage, especially when you take into
view the fact that our earnings nave gone
down from fifteen millions gross to thir
teen; that our net earnings have shrunk
one-third; that per cent OF every dollar
what we earn goes to the State of Indiana
for taxes; that 20 per cent, of every net
dollar that we earn goes for taxes; are
we not entitled to some relief? | do not
expect that you gentlemen can do us JUS
tice. There isn't a man sitting on this
board who could afford to take off from
this valuation what his honest judgment
here as public functionaries and with
reasonable regard for the interests of the
State you could not afford to do that. The
citizens along our lines of road would find
fault, and it would be too great reduction
to ask of you; but | do say that One-third
of that amount should be taken off of that
valuation. Where we show a loss of six
million there ought to be, at least, two
million taken off. You have got 325 miles
us $29, 900 a mile on Now, the first thing
that you want to do is to take off $4,000
a mile from that valuation; that would
give $4,000 a mile. 1t would be as high
then as the other trunk lines of the State
that compare with it and 1T would be a
fair valuation. In addition to the $29.O00 per
10 for ooiy aolx XOll al a
a mile for equipment. The sworn return or
our agent on equipment is $l750 per mile.
Now, won't you tell me, gentlemen. by
what process of law, morals, or anything
else. you make that raise of 100 per cent.
on that equipment? Do you do II with any
other property. Do you take the horses,
and the mules, and the cows, and the hay
and the grain that the farmer returns ana
add 100 per cent. to it? Have you ever IN
vestigated the equlpment OF Ine Dig rout
road to see whether that was an honest
return or not? And if not, how can you
make that raise? Why should you do 1t?
Right on that let me make a little ex-
PLANTATION to you about equipment. What
/ will say perhaps does not improve the
Big -Four, but nevertheless it is true The
valuation of the equipment tive years ago
was $500 a mile You have not changed 1t
a dollar: it is the same as it was in 1891.
In 1892 added a trite to that equipment
We have not added anything since. NOW,
there isn't a gentleman l suppose sitting
around this board but knows that the life
of a railway engine, car or coach, is con-
gentleman in the railway business Will tell
you that is a fair sample. 1t is the custom
of good railways to buy engines and loco
motives and coaches enough each year TO
keep their number of good ones about the
same / know that is the custom or the
line of road that l represent south of the
river hut that does not come into Indiana.
| know that is the custom OF the Pennsyl,
vania and the Lake Shore and other good
roads. For instance, if you lose by de-
struction wear and tear one hundred cars,
you buy one hundred and charge the ex-
pense, whatever it may be. to the equip
ment account Each one of these years the
Big Four road has not earned enough
money to do that and the equipment has
been getting constantly less each year and
yet there has been nothing less on the
taxes.
BOOKS OPEN FOR INSPECTION.
Il want to say to you that our books are
open to the examination of this board. If
you are not satisfied with this statement
you can send any one you please to ex-
anime our books. We have got 344 locomo
tives this years as against 3S1 last year,
a. shrinkage of thirty-seven. Those thirty
seven locomotives got too old and were too
small and they were worn out and they
are lying out there on the tracks lifeless
and useless and we are trying to sell them
for $1,000 They are worth $500 for scrap
iron If we can find some poor road down
South that will give $3.50 for them we will
probably let them go. Now as to freight
cars; in 1892 reported to this board for
taxation on the whole road and its portion
to Indiana To- 744 freight cars; in 1898, 1929;
in 1894, 10 96o; in 1885, 11,50l; IN 1896, Il, o6l;
in 1897 1095+ Now gentlemen there is
shrinkage of five thousand cars, or one
third in five years. Isn't it an honest claim
that YOU take off one-third Of the taxes for
rolling stock? 1t seems to me that you GAN
not escape from it. If a man in 1892 had re-
ported $50 mules for taxation, and in five
years fifty of them become worn out and
killed and unfit for service, and he has but
one hundred left you would not tax him
still with the $50 would you? Now the way
attention to our sworn reports and shutting
YOUR ewes and those of your predecessors
and taxing US in lump sum, and on that
theory you can go on indefinitely until the
road is taxed out of sight.
Colonel Walker said: This matter OF roll
ing stock is valued every year, just the
same as other property. We have classlhed
it as between engines and cars and every
thing of that kind. We have simply placed
the values upon your road on the oasis
we have assessed all other roads-so many
engines of each class and so many cars;
that is the way the valuation is made every
Mr.. ingalls,: Isn't it remarkable that you
should have the same value Tor the de-
creased number of cars?
Colonel Walker: Perhaps your showing
may show the very same thing
Mr. ingalls,: IA know it is very easy TO
take a lead pencil and fix out an assess
ment on equipment like you have been the
past five years. What l ask is the exercise
of your judgmenI
Colonel Walker: I'VE could not very well
make a calculation without using lead
pencil We have tried to be absolutely fair
in assessing rolling stock every year. and
each wear we have classified ii. The first
year your road showed preponderance,