South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-05-05
TALKS ON UTILITY
FRANCHISE TAXING
EngIedrum Claims City Could
Collect 100000 Back
Taxes From Local Gas
Company.

T. D.
Gently returned from California. star
tied the city fathers at the council
meeting Monday evening when he
made the statement that Mishawaka
with proper procedure could collect
over 100000 from the Northern In
diana Gas and Electric company for
taxes due under the law of this state
taxing public utility franchises, since
the franchise was granted about IA
years ago to the company.
In his talk to the members OF the
Mishawaka common council Monday
evening he showed by quoting the law
from Burns revised statues OF 1903
that public utility franchises in this
state can be taxed. He went into
great detail with the bonded values OF
the several South Bend public utility
companies and into the appraisement
value OF the property. He explained
that the franchise values Of public
utilities were secured from the APP
praised value of the companies, per-
sonal holdings and the bonded value,
or the difference tOtaled from these
amounts. In the case of MishaWaka
in the matter of gas utilities he gave
figures showing that in 1913, or last
year. the Northern Indiana Gas COM
pany were taxed for an appraisemenG
value of S12.940 which included both
personal and franchise value tax. He
then went on TO show that if the rate
charged here of S1.1O per cubic
thousand feet made net profit at
a conservative figure of $4,000 and
the franchise of the company held
out to 1910 the franchise value would
amount to over 100000, making the
taxes received by Mishawaka each
from this utility over $1,000 instead
of the taxes received by the city at
the present time of less than $1IO. lie
stated the injustice of this action at
the present time by showing how the
saloonkeeper is compelled to pay
$500 each year TO engage in business
in this city while the gas company
which has holdings here of over $780,
600 and which receives over $4,000
per year net profit are permitted to
engage in their business for $40 per
year.
Mr.. Engledrum concluded his re-
marks to the council by stating that
he hoped that the matter would be
taken up by the council in as much
! that the city was in great need OF
money at the present time and that
| wit hthe proper procedure and sup
port the proposition would mean sue
cess to Mishawaka in a financial way.
| He added that he was very much
pleased with the support Mayor Gay
lor and City Attorney Jernegan had
rendered him in bringing the matter
| before the council.
! In regard to the correctly taxing of
public utility franchise in Mishawaka
! Mayor GaylOr advised that the coun-
! ell give the matter due consideration
and also that they investigate the mat
ter and follow the suggestion which
Mr.. Engledrum had given them in
| this matter.
An invitation was received by the
! council which was presented by @. A.
Mauer, secretary of the committee APP
pointed to arrange for the ceremonies
/ Ct the laying of the corner stone for
the new Mishawaka postOffice build
! ing that the members of the common
council attend the ceremonies Satur-
day afternoon at o'clock.
! City Attorney Jernegan reported that
| the annexation of the east of the city
/ last year had not been entered on the
/ books at the county recorders office
and the property in the annexed por-
\ ton of the city had not been placed
on the tax duplicate list. He stated in
( this event Mishawaka would lose the
taxes from this source this year.
! A resolution was passed ratifying
| the purchase by the board of works
/ of 200 water meters costing $1,000.
| The city attorney stated that il was
not necessary TO pass resolution
! ratifying the action of the board in
a purchase of less than $4,000 bat
that hereafter it would be the policy
! Of the present board to have such
resolution passed when a large sum
of money was involved.