The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-07-16
STREET.RAILWAY TAXES
OFFICERS OF LOCAL COMPANIES BE-
FORE THE STATE BOARD.
A PIea Made In the Interest of the In
dianapOIis Company and VAR
fous Interurban Roads.

Before the State Board of Tax Com
rnissioners yesterday morning, represent
atives OF the Indianapolis Street railway
Company argued at length and presented
masses OF figures to show that the assess
rnent OF the c0mpany's property should not
be increased and that, If anything, ii is
now too high Attorney Charles n. Thomp-
son did most OF the talking for the COM
pany and his statements were reinforced.
every now and then. by remarks by Presi-
dent Hugh ]. MCGOWAN. Secretary Milhoi-
land and Attorney Ferdinand Winter. The
total assessment made on the property last
year was 5000 900. and that this assess
rnent should not be increased was the bur-
den OF the representations made 10 the
board yesterday.
In his talk to the board, Attorney Thomp-
son said that the return of tangible prop
erty for this year is 81, 1896, sos. S. in 1901 it
was less by S9O4,5S2.03. But last year, Mr..
Thompson pointed out to the Governor and
the other members of the board, there was
on hand about s2sS.OOO in cash. which was
later paid out in interest on bonds; there
fore the valuation this year is really about
the same The gross earnings in 1901 were
81, 1875 764. 90: this year 81. 367, SLOTS The net
earnings were s152, PISS. more than double
the net earnings OF 1901. Then Mr.. Thomp-
son told where this years earnings have
gone.
SURPLUS SPENT FOR REPAIRS.
Every cent made he said, has been spent
for repairs to the property. Not cent has
been distributed as profits. Track work, he
said, has cost the company an immense
sum during the past year. and he gave the
of he at nd WaS
ton streets as s15,646.47. Paving has also
cost a mint of money. Mr.. Thompson as
sured the board. Lacking a few dollars, it
cost the company $4,000 TO pave between
tracks on the principal streets For trucks
and motors, for overhead work, for boilers
and generators, a sum amounting to more
than 100000 has been spent.
Governor Durbin, who sat armed with a
bunch Of figures and intrenched behind a
formidable barricade of papers, put in
question now and then that the street-car
men answered clearly, If with some hesita-
earnings were not earnings even if they
were expended for improvements. In addi-
ton, the Governor held that interest paid
bonds represents earnings and should be
considered in fixing the valuation of the
property.
The Governors most effective question
ing came after he had examined some fig
ures submitted by the attorneys for the
street-railWay company. Il see that you
have submitted the return on real estate
and barns that was made before the Tax
Board raised il $40, co., he said. why do
you not give us the real return last year
instead of the old one?'
Mr.. Thompson replied that the company
presented the old figure because il believes
that 10 is the true one. A similar objection
was brought by the Governor to the return
for the LOuisiana-street barns. which was
raised $4,000 by the Tax Board. Secretary
Milholland answered the Governor by saw
ing that the old return is the given as
n lF0far and saaN
President MCGOWAN declared that no in
trinsic value could be placed on the stock
There Is so much money needed every year.
ne said, for improvements that the earn
ings used up as they are made He pre-
dicted that the chance for dividends next
year will not be any better than il is this
year. The company hopes to pay dividends
some day. Mr.. MCGOWAN told the men,
bers of the board, but until the interurban
situation adjusts itself and the projected
roads are built. there does not seem to
his talk by saying that when the old COM
pany had gone TO wreck the new company
had taken charge. assumed its liabilities
and protected the good name of the city
and the State.
, FOR OTHER PROPERTIES.
In the afternoon the board heard state
ments OF Judge Olds, of Fort Wayne. in
behalf Of the Fort Wayne & Southwestern
Traction Company. The new interurban line
was also represented by its general mana
ger. s. r. Nelson. On account of the fact
that the road is new and that until ApriI
j II had shown a deficit instead of a diyi-
6end. the speaker thought the board should
be considerable in fixing a valuation The
road Is still incomplete. they said and still
unballasted. An immense amount of money
VIII Still nave TO be spent in order TO bring
Il into perfect condition. The representa-
tives asked the board to take into consid-
Grafton the values OF other interurban roads
In fixing the assessment on it, The road
has had no opportunity, they told the board
70 make money as yet. No schedule of earn
ings was presented by the Fort WAYNE men
because they assured the board that the
road Is not yet In shape TO present such a
schedule.
Mr.. Joseph l. Irwin. owner and president
OF the Indianapolis. Greenwood a Franklin
Company. appeared before the board 10
ask for a reduction in the cOmpanys as
sessment- The assessment made last year
of Sill .0O0 per mile is much too high he
said, when the roads earnings are taken
into consideration. and also the assess
ments made on other interurban properties
Alludlng 10 the statements made by Mr.
Irwin. member or the board said after
the meeting that while the property OF the
Union Traction Company of Indiana Is as
sessed at $500 per mile. and the proDertv
OF the Indianapolis. Greenwood & Frank
lin Company at $1l.0o0 per mile Vet the
extent OF the mileage and the value of the
properties must be taken into consideration
II IS the rule or the State Board 10 first
NIX the total value OF an interurban or a
railroad property and then. for the sake
OF convenience. 10 distribute the valuation
on basis OF mileage. The extensive svs-
tenn OF the Union Traction Company. which
he gave an instance. would reduce fts
per-mile valuation 10 a figure below the
per-mile valuation OF the INDIANAPOLIS
Greenwood & Franklin. which he also men
toned for purposes or illustra ton. but in
that. ne said. there would be no Injustice
To-day the board will hear statements
from representatives OF steam railroads.
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