The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-08-04
TILT BEFORE THE BOARD
GOVERNOR INQUIRIES INTO STREET.
RAILWAY EXPENSE
Mr.. McGowan Asked IL Personal Feel.
ing Entered Into the Questions
Van Vorbfs's Appeal.


filed notice of appeal with the Board of
State Tax Commissioners from the assess
ment of the Indianapolis Street-railway
property as fixed by the Marion county
Board of Review. The appeal was heard
yesterday. The present assessment of the
company, as fixed by the Marion county
board. is $2,5O0,OO0. Mr.. Van vorhis insisted
that the property of the company. includ-
ing the franchise, stocks, etc, had total
value of about 100000 and said the Tax
Board ought to raise the assessment to at
least s5OOO.OO0.
Ferdinand Winter represented the street.
railway company. He maintained that the
tangible property of the company was
taxed for all it was worth, and said that
as the Legislature had not provided for the
taxation of intangible property, the present
assessment of the company could not be
raised.
The hearing of the appeal occupied the
whole day. President MCGOWAN stated that
the company was expending much money
in improvements.
Governor Mount and Mr.. MCGOWAN
locked horns in the afternoon during
the hearing of evidence. w. r. Milholland,
secretary and treasurer of the street car
company, was on the stand undergoing ex-
animation as to the cost of operating the
plant and its general value. He had stated
that the amount entered on the company's
books under the head of wages and
operating expenses was $4,000 in round
numbers The Governor evidently did not
catch Mr.. Milholland's entire answer and
thought he had said wages alone, since
he Immediately inquired IL $4,000 not
"A n
MIR. WINTER ANSWERS.
Ferdinand Winter jumped 10 his feet in
stantly and said with considerable feeling
manifest in his voice: Several years ago,
Governor, when this company was resisting
the 3-cent-fare law in the United States
Court long statement made under oath
was filed by me. and this statement went
into the cost of operating the plant with
exceedingly minute detail. That state
ment has never been questioned by any
body, and Ii showed that the cost of
operating the street railroad even at that
time. when its force of employees was not
nearly so large as now, appropriated $780,
COO. L have been attorney for the company
some twelve years and there has never been
a single year in all that time when the
operating expenses did not approach half
million dollars. This board does not ap-
pear to understand the magnitude of such
an enterprise nor that IL takes an enormous
amount of money to carry il on
After Mr.. Winters forceful remarks the
Governor appeared satisfied for a time, but
amounts which made up the aggregate sum
OF $4,000. He asked what part of it was
used in paying salaries of the general off,
GERS, such as president, vice president, sec
rotary and treasurer and general manager
During the making of these inquiries Mr..
MCGOWAN was seen to be moving about
in his seat very nervously. Finally he
broke out with Governor L have been be-
fore a great many taxing boards in my
time, but have never met one which went
with such minuteness of detail into the
private affairs of a corporation
This board is not to be criticised by YOU
Mr.. MCGOWAN" retorted the Governor.
TALK OF PERSONAL FEELING.
81 did rot exactly mean to criticise the
board" responded Mr.. MCGOWAN. but I
would like 10 know whether the board is
putting these questions merely to get in
formation upon which to base its official de-
cision as to the proper assessment TO be
placed upon this plant or whether any per-
sonal feeling enters into the matter" At
this the Governor said with considera BILE
asperity; 1T is not the province of this
board, Mr. McGowan, TO be questioned as
TO its motives. This board has a right to
know how the street-railroad company is
expanding its earnings, and the questions
| this object i'm view"
Lawyer Winter promptly came 10 the
rescue of his client and said: 81 think this
whole trouble originated with a misunder-
standing. When Mr.. Milholland said. as I
and doubtless the rest OF you thought. that
this s5lSO0 represented wages j. of course.
| being attorney for the company. understood
| full well that he meant operating expenses
also"
With this explanation the Governor
| seemed satisfied and peace once more how
| cred over the proceedings of the taxing
| tribunal.
a great deal of amusement was occa-
l = cd IN no n h< ard ovaA
| tors when DR.. Van Norhis inquired of Mr.
Miholland n he considered the amount
| specified as expenses OF damage suits a
| legitimate fixed charge" of the company.
/ Mr. Winter at once said that II certainly
| was. since damage suits were continually
| being filed against the company and would
/ be as long as IL existed. DIR. Van Vorhis
i persisted In his assertion, when he was
met with declaration from Deputy Attor-
| ney General Moores. who was acting as
| the boards legal adviser during the ses-
| sion. There can be no possible doubt
i that expenses of damage suits is a proper
/ nxed charge" he said