The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-16
TAX ON RUNNING STOCK
SUPREME COURT RULING DISCUSSED
BY THE STATE TAX BOARD.
Building and Loan Property Taken Up
Railway Officials Before the
Board Yesterday.

The State Board of Tax Commissioners
met yesterday morning and listened to ar
guments for reductions of assessments on
various properties. The board is being con-
fronted by a serious question. Recently the
Supreme Court, in a construction of the re-
cent law relating to the taxation of building
and loan associations, declared in an opin-
ion that but four classes of property are
free from taxation, according to the Con-
stitution. These are public, church, benev-
client and educational properties. This dis
tinction does not include running stock on
building and loan associations, and the tax
board construed the opinion to mean that
such property is taxable This has been
contrary to rulings of the board in former
years, and the reason such stock was eX-
empted by the law was that the legislators
We're of the opinion that such taxation
would be double The tax board then is
sued a circular to county assessors to tax
such stocks, and the reports come in that
in many counties the assessors are neglect
ing to do this, and that class of property is
not being taxed. The board decided to is
sue another circular letter to assessors
directing them to assess for taxation the
running stock of the building and loan as
sociations in their counties, as follows:
THE State Board OF Tax Commissioners
has received information that in some coun-
ties of the State the county boards of re-
view have neglected or refused to assess
building and loan stock for purposes of tax
alton Such action is in direct conflict with
the law, as construed by the Supreme Court
in the case of DeniStOn, auditor, VS.. Terry,
reported in l4l Indiana, Page 6l7 and fol-
lowing, as well as in conflict with the opin-
ion OF the attorney general as delivered
to this board under date OF June 9, 1897,
and is in entire disregard of the instruc-
II such action has been taken by the Board
of Review in your county it is your duty
to at once appeal therefrOm and bring the
matter before this board. 1t is, also, your
duty as county assessor, in case it shall
be too late to perfect the appeal, to make
diligent search for all such stock, as well
as Tor all other kinds of omitted property,
and to see that the same is added to the
tax duplicate as provided by Sections 113
and 142 of the laws of taxation For your
information as to your powers in securing
information your attention is called to Sec
t Gon "a OF said law as, also to the case OF
Indiana, Page l. and following. Prompt
and efficient action on your part is desired
and expected by this board" This circular
is signed by l. n. Walker and Thomas b.
Buskirk, tax commissioners.
O.. G. Getzen-Danner of Cleveland, the
assistant general counsel of the Lake Shore
Railroad, appeared before the board and
argued Tor a reduction of the assessment of
that railroad He was assisted by Godfrey
Jaeger and T.. T. Glennon, of Chicago.
sistant counsel. The arguments of the at
torneys were for reduction of the valua-
ton of the Fit. Wayne and Jackson branch
of the road and the Sturgiss, Goshen &
st. Louis branch. These two roads were
assessed at $4,000 per mile in 1896 and the
attorneys say that on the FIT. Wayne &
Jackson branch in the past year the ex-
penses exceeded the gross receipts by $40,-
900, and that the Stnrgiss Goshen &
st. Louis branch it took 70 per cent. of the
gross receipts to pay the taxes. On the
main line of the LakeaShore the assessment
is $57 600 to the mile, second largest in the
State, and the attorneys have no complaint
to make of the assessment