Licking Valley courier. [volume] (West Liberty, Ky.) 19??-current, 1912-12-12
JUSTUS GOEBEL'S
PRES. SMITH
Quotes Smiths Sworn State
nent In Court as Proof That
| |. & N Has Evaded Tax
afIon

Frankfort, Ky-(special.) I'm an
open letter to the press, Justus Goe-
bel -sepfics to the recent letter of
President Milton H. Smith, of the L.
G N, in which Mr. Smith discussed
the assessment of the L. & N.-for
franchise tax purposes for 1912.
8 Mr.. Goebel says;
''In the light of the facts which re.
late to and upon which the 1912 as.
sessment Of the L. & N. railroads
franchise was based, and referring to
what has heretofore been made pub,
lie touching the assessments Of that
company's property In past years,
with all Of which facts President
Smith was well acquainted, his letter
can only be regarded as aR-attempt
on his part at peryersion of the truth
for the purpose tof misleading and de-
ceiving the public at large.
'He is merely attempting to gain
sympathy when he says this addi-
tional burden Is on our franchise alone
or for the privilege of doing business
II deny that the L. & N. has ever
paid one dollar In taxes on the priv
ilege of doing business in Kentucky
for the reason that said company has
not to date paid taxes on an amount
In anything like the value. of its actual
tangible property. President Smith
says in his letter that there is noscon.
troversy respecting the assessment of
the tangible property of his railroad
company.
Tangible Property.
r Permit me, please, to say that
ethere never win be controversy with
reference to the assessments of the
tangible property Of his railroad COM
pany SO long as his company, and his
and its confederates in this litigation,
~ in tie past, continue to control the
Rtion Of the Kentucky Railroad Com,
{ssIoh IN f,xsae the values Of tier
tangible property for taxation.
The Board of Valuation and Assess.
ment is called franchise board but
10 In reality and effect a revisory
board, having to do among other
things with the work of assessment
done by the Railroad Commission. II
can not, in so far as the assessed val
uation Of tangible property is con-
cernsd, correct or undo, what the Rail-
road Commission has done That the
State Board of Valuation and Assess
ment was not again this year con-
trolled by the railroad companies
against the interests of the people was
not because the attempt was not
made.
Mr.. Smiths Claim.
President Smith says that for the
purpose of being operated as carrier
Of freight and passengers, all of the
L. & n. railroads property In Ken.
tucky-all Of its tangible property in
kentucky-is assessed at its full value
Or more and taxes pajdsthereon. Let's
see whether or not .snohsis the truth.
Let's compare this unsworn statement
Of President Smith in his letter with
reference TO the value OF all OF the
tgngible property of the La N. Rail-
road Company In Kentucky for taxa
ton. with his sworn statement on the
same subject on file in the. United
States court at Frankfort since 1906
In the McChord railroad rate case,
when he swore that the value OF the
tangible property Of the l.. & N. Rail.
road Company in Kentucky in 1905
was S0,599,4s4.Sl.
"And Notwithstanding which sworn
statement of its very president, the
Kentucky Railroad Commission as
ssssed that property In 1911 at only
p29,l70.S77, although since 1905 the L.
& N. railroad has added 229 miles OF
road 10 its system in Kentucky, &C.
anlred much real estate, generally i'm.
proved and greatly enhanced the value
Of the road, largely increased Its
equipment OF cars and engines, and
added TO It's gross annual earnings
from $3S,599, ,66O.26 In 1905 to S56,415,.
9Be.2l in 1911. Which statement Of
the president OF the l.. & N. Railroad
Company will the people believe
that of Nov 10, 1912, made in letter
addressed to the editor-of the Louis,
Eille Courier-Jounal, or the 1906
sworn statement made In court OF
iuStlceY
The Real Question.
"The question is, what is the value
sf the L. & N. Railroad Company's
property in Kentucky today? Is It, or
10 II not, sufficient to justify total
assessed valuation of S74,59S,451? In
the light OF the foregoing facts, and
n the L. & N. railroads sworn state.
ments and reports, with which its
f, president OF necessity is acquainted
which have been made to its stock
holders, the Interstate Commerce
Commission, Poore's Manual, the Ken
lucky, Tennessee and Alabama rail
road taxing boards, are worthy at al
Of any measure Of confidence and be
lief, then there can be no doubt thai
t7i,5aS.45l, the sum total Of the 1911
assessment OF tangible property fol
taxation, and the 1912 so-called fran
chise assessment, is not unreasonable
unfair, or unjust, The State Board o
Valuation and Assessment did no
have access TO the books Of the L, q
N. Railroad Company to learn thA,
It's own record value Of It's system II
Kentucky. President Smith has tlios,