The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-03-27
WESTERN UNION PAYS UP
THE CORPORATION SETTLES EVERY
PENNY 1T OWES THE STATE.
During ~Receiyership Hearing a Mes
sage Arrives That Promptly stops
All the Litigation.

The Western Union Telegraph Company
yesterday made peace with the State Of
Indiana, thereby acknowledging that al
though il is a mighty corporation the State
of Indiana is mightier. The company paid
to the State Si3. $40 "a i'm full settlement of
all claims made by the State for taxes I'M
der the new tax laws of the State. The
settlement admits the contentious of the
State on every point. II is a great victory
for the State. which fought the battle
through the highest courts of the land and
finally was compelled TO ask that a receiver
be appointed before the money was paid.
Last Wednesday Attorney General
Ketcham filed IN the Circuit Court an APP
p~lication for the appointment of a receiver
for the company. The petition recited that
the State had recovered judgment in the
Marion Circuit Court for $i2.0 OH 80. and that
the judgment had been affirmed by the SUI
preme Court. An execution had been issued,
but the sheriff had found no property sub
ject to execution except telegraph lines,
poles, instruments and accessories, which
were constantly needed i'm the transaction
of the business of the company, which Is
of a quasi public nature, and to levy ON
them would seriously Inconvenience the
general public. The court was asked TO APP
point a receiver to tax charge of the bust
ness in this State and pay over.to the State
the receipts OF the company until the judg-
ment was satisfied.
To this petition the company filed a mo-
ton in arrest of judgment, basing its claim
on the fact that when the case was decided
last July the company had paid into court
$2S,014.20, the amount of the taxes due plus
the penalty Of 10 per cent. that each county
10 IlnyrnI 70 IA rrn IL r-nn 4 thu
on account of this payment having been
made the company should not be charged
with the interest on this money from the
time IL was paid into court.
Before the filing of the petition FOR a re-
ceiver the company admitted all Inc claims
of the State except for interest on the
money that has been in the custody of the
court. This was the sole contention i'm the
suit that was dismissed yesterday. Attor-
ney General ketchama argued that inasmuch
as the decision of the Supreme Court was
to the effect that the 30 per cent. penalty
charged by the State against corporations
which failed to pay their taxes became a
part of the taxes Immediately on the taxes
becoming delinquent ii was not within the
power OF a State officer TO accept any part
of the taxes at one time and another part
at another time. The law provides for the
payment in two equal parts at the option
Of the payer, but there is no provision for
a division of the taxes INTO other pay
ments. 1t was therefore the contention of
the State that the alleged tender of the
amount of original taxes plus the 10 per
cent. penalty was not "A legal tender be-
cause no officer of the State had "A right
10 accept the money and could not give
proper credit for such a payment.
The case was called yesterday afternoon
i'm the Circuit Court. Mr.. Pickens. of coun-
sci for the company, presented his motion
for arrest of judgment and spoke briefly on
il. His whole contention was that instead
of there being due $i2,O21.30 with interest,
the amount due was the ~ per cent. PEN
atty. amounting to l4.eo7.l 10. with interest.
together with the amount of money that
was in the hands of the clerk of the court,
which was paid last July.
A TELEGRAM TOP IT.
Mr.. Ketcham. began his argument show
ing that the State had never received the
| money on deposit. and that no legal tender
of the amount had been made. and there
fore the company was liable for interest
on it. While he was in the midst of the
argument a messenger boy entered the
room and handed a telegram to one of the
company's attorneys. The message was
handed to Mr.. Pickens. who glanced at it
and passed 1t on To Attorney General
| Ketcham. Mr.. Ketcham stopped to read
it. He asked if the message should be read
TO the court. Mr.. Pickens informed him
that the was for himself only,
and not for the public.
Mr.. Ketcham stopped his argument and
announced that he thought there would be
no further proceedings in the matter. and
that a short conference would probably re-
suit in a complete settlement. The attor-
neyS retired to the courts private rooms
and discussed the matter for about five
| minutes. when Mr.. Ketcham returned and
stated that a settlement had been agreed
upon and the case would be dismissed as
soon as the settlement was made. He
stated that the company had agreed to all
the claims of the State, including the claim
for interest on the money that has been in
the hands OF the clerk of the court for
nearly a year. Later the company paid
into court enough To make a total payment
of $43.S29.24 and the case was dismissed.
All the attorneys refused to say who sent
the magic message or what Information it
contained. They merely said it contained
Instructions TO settle on the basis of the
States claims.
This is the last of the Western Union
tax cases to be disposed of. This has been
| NAL claim for taxes was for SIS Is. but
the penalties and interest amounted to
81, 1861. 70. This does not include the court
make another $1,000 to so. 900.
The original suit i'm this case was fought
through the lower courts and into the Su-
prenie Court of the State and of the
United States. having gone to the court OF
last resort twice. After the liability for
of the penalty of 20 per cert. caused an
other fight. and this was taken to the SUI
preme Court of the State twice. one case
the question of the interest on the pay
ment made TO the clerk of the court came
UP. and there were indications of further
| trouble, but it was averted by the decision
of the company to get out while it had
enough money TO pay out.
Il liz uiSppctN " dt lut liluldid ldA cases
except those of the three express COM
panies which are now in the Supreme
Court. In every case there has been a COM
plete victory for the State.
Receiver HopiSins's Report.
f. O.. Hopkins, receiver of the Peoria,
Decatur & Evansville. has filed with the
federal court the following report for the
month of February:
Receipts
Agents and conductors............. S96. 467. 43
Foreign companies ............... SOL. 20
Total receipts ...-............... Sl14. HOB
Cash on hand Feb 1...-........... 49,5l5.12
Disbursements
Foreign companies ................ 49,. 0S4. 81
Pay rolls 2s.J4i.03
Accounts payable ................. 81, $50. 90
Total disbursements ...-......... S145. 30i. 81
Cash on hand Feb. 2S........... Is. 325.3 81
Interest on first mortgage bonds. a. 35 an