The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-03-25
ASKS FOR RECEIVERSHIP
ATTORNEY GENERALS SHORT ctr
ON THE WESTERN UNION COMPANY.
Company Refused TO Pay the Interest
Due the State-Other Affairs
of the Court.

An application for the appointment of a
receiver for the Western Union Telegraph
Company was made yesterday by Attorney
General Ketcham i'm the suit of the State
to collect back taxes. including penalties.
now pending in the Circuit Court. Before
the suit for a receiver was brought yester-
day an execution for $42. n 80 was placed
in the hands of the sheriff of Marion coun-
~ on a judgment rendered In favor of the
State last year. His return showed that
there was no tangible assets of the COM
pany in this county nor in the State ex-
cepting telegraph poles. lines, instruments,
Office fixtures, etc, used by the company
in conducting an interstate telegraph bust
ness, In its nature quasi public, the inter-
ruption of which would work hardship and
injury to the public of this and other
States as well as foreign countries who de-
pend upon il for the transmission of i'm
portant messages. 1t is further stated that
for the sheriff to attempt to take possess
sion of these assets of the company would
interrupt its business in contravention Of
the interstate-commerce law. The COM
plant says, however, that the company
holds and has on deposit moneys. securi-
ties and other assets which are under the
jurisdiction of the court and which could
be controlled and applied to the payment of
the States claim if the property of the
company were placed in the hands of a re-
ceiver.
The petition for the appointment of a re-
ceiver recites at length certain proceedings
had in the same court a year ago. April
"a. 1886. the attorney general filed a suit on
behalf OF the State to recover taxes alleged
to be due from the Western Union Tele-
srr,Vh T~oo 4rioinnI pnrnnrainf
showed that the State Board of Tax COM
m%issioners had assessed the company's
plant at 1851 a mile throughout the various
counties of the State through which it
operates: that this valuation was certified
by the auditor of state to the various coun-
ty auditors, who delivered tax duplicates TO
the various t~reasurers, all of which the COM
pany refused to pay. 1t was alleged that
delinquent after the third Monday in April.
1886, aggregating $42,5l3.1O. May 70, 1896, the
defendant filed an answer in three para
graphs. the first in confession and avoid
ance, the second in general denial and the
third containing a pies OF payment, On
0li.2 20, claiming this was the total IL owed,
including taxes of S25, 467.45 and the 10 per
cent. penalty, amounting TO ~$2.546.I5. The
State admitted the amount of the tender to
cover the amount of taxes due, including
the penalty of 10 per cent, but refused 10
receive the money on the ground that it
did not include interest after the third Mon
day in April, 1896. did not include the % per
cent. penalty. did not include the attorneys
fees provided by statute in case the suit
was brought by the attorney general, and
that the attorney general had no right to
receive any tender that did not cover all
the penalties, costs, etc., provided by the
statutes.
Thereupon the issues being joined. the
court rendered a Judgment for the State in
the sum of S42.02l.S0. The court allowed no
claim for interest, but required the de-
PENDANT 10 pay the penalty of 90 per cent,
amounting to 81, 001 10, the price the COM
pany paid for resisting the assessment OF
the tax commissioners.
There was an appeal TO the Supreme
Court from this decision. Not long ago the
decision of the lower court was affirmed.
On last Saturday the Western Union Tele-
graph Company made a tender on the bal
itself with the $2S,014.20 tender made last
July and interest thereon since that date,
amounting to about 81. 200. The attorney
general refused to allow the interest claim
made by the company. IL Is In order to test
this point that the sheriff was directed to
make good the execution and the subSe-
quent application for a receiver was made.
s. O.. Pickens. attorney for the Western
Union Telegraph Company, said last night
that he had acknowledged service on the
application for a receiver and that 1t would
be given a hearing probably this afternoon
or at any rate as soon as the court can take
IL up. He said that the company Is ready
and willing to pay the balance of the judg-
ment against IT and has the money for that
purpose. Mr.. Pickens was unwilling to in
innate anything as to the course that will
be pursued before the case gets into court.