The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-13


fact that the deposits are invested in gov
eminent bonds. Railroads that derive their
chafter ana existence from the general
government and are used in part as gov
eminent appliance are taxed upon the
Vaiue or their property. telegraph lines
are taxed on values Notwithstanding part
of their value is because of their operation
under government grants"
HUGE TAXATION LOOPHOLE.
He declares that if it be true that this
company is exempt from taxation to the
extent that the value of its stock IS de-
pendent upon the patent rights that 1t
owns. 1t would be difficult to forecast what
would be the extent of values in this State
that would likewise escape taxation. Tele
graph, telephone, sleeping car railroad and
manufacturing companies all have more or
less of value invested in patents and pat
ented articles-for taxation purposes it
would usually be more-that could we'll
claim to be exempt from taxation to that
extent If the claim here made is a legal one
IL would be difficult to give a satisfactory
reason for exempting the one and taxing
the other In discussing the question of
connect eiLt OF authority, the attorney general
IF the rights of the State could be pre-
served py yielding to the contention of the
company temporarily, in order that this
9 9?e9u might not even seem to entertain q
inherent view upon q question OF federal
law from those apparently entertained by
any of the judges of its courts, L should
recommend such q temporary yielding. But
the law of the State is so drawn that Tn
Tess you snail assess the property as L have
lndlcated; the State, the county and the
GUY VIII be remedileSS in the premises. The
pan OF taxation requires the assessment
or these companies to be made in the first
instance by the County Board of Review
upon the value of its stock. In the alb
sence Of an appeal that decision is final; ;
thereafter no further proceedings are pos
SloIe. IN the case of an individual he may
be assessed upon omitted property if he
nave Such, but in the case of a manufac-
turing corporation the boards in turn are
REQUIRED each in its appropriate place, to
ascertain and assess. The assessment by
the county board was of some Sc, 600. Upon
the nearing it was shown thai stock had
changed hands recently at par. While the
president of the company, who is more
familiar with it's business and values than
any one, says 1t IS easily worth two for
one, While its net earnings over and above
all expenses and salaries were shown to be
$4,000 in 1885, $57, 900 in 1885, and that they
were expected to be about the same in 1897
1t was urged that the stockholders paid
taxes upon the money represented by their
dividends; The dividends paid in 1896
amounted to 10 per cent, equals $36. OO0
Upon inquiry at the assessors office L find
that the three stockholders whose names
We're made known to the board report for
assessment for this year in the aggregate
$500 OF money on hand.
If the Supreme Court of the United
States shall hold that the plan of assess
ment adopted by this State is with respect
to the values represented in patents an I'M
constitutional one it is an easy thing to
get rid Of the taxes that have been levied
agsalnst this company An auditors GER
complish it. If it should BE- teld that the
plan was not obnoxious to the Constitution
and that taxation measured by the value of
the capital stock was permissible, and the
assessment made by the County Board of
Review was permitted to stand, the State
county and city would be forever deprived
OF the taxes that should have been assessed
upon the difference in that assessment and
tn the ~, amount which you shall ascertain to
be the value of the stock"
The board spent the whole morning trying
the appeal of Major Lacey from the action
of the Wayne county board in the case of
the MORRISON estate. Tt had been the de-
cision of Elder Hibberd, the administrator
of the estate, and his attorneys Judge
Kfbbey and John J. Robbins/n mot to appear
but to stand upon their denial of the furis-
diction of the board. However. the night
before Mr.. Hibberd made up his mind to
come, and they came. AS soon as the SEES
sion opened they raised this question of
jurisdiction. but the board having ruled on
this in the Dickinson case, decided to hear
put upon the stand, and. though the at
torneys objected to his testimony the board
heard him through.
Then Mr.. Hibberd was placed on the
stand and examined by F. /, IJttleton af-
torney for Lacey. The charge was that
Morrison, and later his estate, had owned
since 1888 stock in the MORRISON e Plum
mer Co, of Chicago, to the amount of
$4,000 Mr. Littleton put two or three ques-
lions at Mr.. HibbeTd designed to bring this
fact out, but the witness, upon advice of
Judge Kibbey. declined to answer. Gov
ernor Mount stopped proceedings and sent
for the attorney general, who engaged in
q rather warm argument with the Rich
mOnd attorneys. He gave 1t as his opinion
that the evidence was competent. and after
much talk on the subject the witness pro-
duced an inventory of the estate. which
showed that Mr.: Morrison owned this stock
at the time of his death. The case was
taken under adViSement by the state board