The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-29
Railroad and Other Taxes.

To the Editor of the Indiana polls Journal:
Reports from the State Tax Board indi-
cate that the railroads are making a very
determined effort to have their assessments
for taxation materially reduced. Mr.. In
gals, of the Big Four, seems to be lead
ing in the attack and makes a strong plea
for a reduced assessment on his lines, say
ing among other things:
Il think you will be rather amazed when
I tell you that the Cleveland Cincinnati,
Chicago q ST Louis (and for short | will
call it the Big Four Railway in the last
year has paid out in taxes in Indiana per
cent of all its gross earnings and IS per
cent to speak exactly of all its net earn
ings. That doesn't include bonded interest.
That is, after we have earned thousand
dollars and have paid our men and kept up
our property, of that which is left. the
State of Indiana has eXacted practically
one dollar in five. over the Peoria &
Eastern, which is a part of the Big Four
system, and poor part, we have paid out
one dollar in every four of the net money
for taxes. Now, is there any business in
this State that is taxed so heavily as that?
/ do not believe there is. | think in the
cry against railways and corporations that
has spread over the country the State of
Indiana, in 1891, adopted false policy, and
one which has been carried out ever since.
They have assessed the railways beyond
any other property in the State"
Now, while the showing of Mr.. ingalls,
establishes the fact that taxes in Indiana
are very high and burdensOme in the eX-
IRENE it does not prove the fact he asserts
that railroads pay heavier taxes in proper
ton to value than other classes of property
in this State 1t is true he makes the bold
assertion, but he gives no figures to prove
it, Mr.. ingalls, having furnished the figures
as to the amount of taxes paid by the Big
Four Railway namely per cent. of it's
gross earnings and is per cent. of its net
earnings there is little difficulty in ascer-
tai nj fha eaIc Of Ct
ment. Let US, for example, see
what per cent. Of net earnings
way of taxes Money loaned at interest
yields on an average 6 per cent. in Indiana,
and is taxed at about ? per cent, which
is 80 per cent. of the net income therefrOm.
National banks as a rule pay 10 per cent.
of their gross earnings in taxes and 70 per
cent. Of their net earnings. Good dwelling
houses in Indianapolis. where the tax rate
is low, are taxed to the extent OF % per
cent. of their rental value. The taxes on
farm lands will easily average % per cent,
or more throughout the state, OF the net
incomes therefrom. The examples furnished
are sufficient to show that Mr.. ingalls,
is very much in error when he asserts
that no other class of property is so heaV-
lily taxed in Indiana as railroad property.
Many manufacturing corporations have not
earned dollar for the past three years.
but they have had to pay taxes just the
same as in the days of prosperity.
Taxation is not and cannot be adjusted ac-
cordlng TO the productive capacity or prop
erty but must be measured by the value of
property. The State must have just so much
money 10 pay its expenses, ana II mas 10
come out of the property within its bor-
ders, no matter whether that property be
productive of income or not. If Mr. Ingalls,
prayer should be granted by the State Tax
Board and the 81 0000 600 reduction he asks
for be made. it simply means that the bur
den taken Off of his railways must be trans
ferred TO the farms of Indiana or some
other class of property that now pays its
just proportion Of taxation. The State Tax
Board VIII make great mistake II II al
lows itself to be swayed by the sophistries
Of this able railroad magnate 1t Is not
fact and cannot be shown that railroad