South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-10-29
CHAMBER OF PROGRESS
PROPOSING NEW BILL

In an endeavOr TO assure the pas
sage or favorable presentation of a
proposed bill 10 effectually tax street
railway franchises and TO apply the
principle Of home rule and local self
government 10 the distribution of such
taxes when levied, the directors Of
the Mishawaka Chamber of Progrez
are sending out mail matter 20 the
various candidates for state senator
ships.
The purpose of the letter is to
ascertain the attitude Of the candi-
dates on the bill TO tax street railway
franchises after the manner Of the
taxation Of franchises of other public
utilities and the application Of the
principle of home rule and local self
government in regard TO this question.
Part of Proposed Bill.
The following is section one of the
proposed bill:
Section BE it enacted by the
assembly of the state Of Indiana, that
section one Of an act approved March
3, 1901, being an act supplemental
to an act entitled an act concerning
taxation and approved March 6. 1891.
and declaring an emergency be and
the same is hereby amended to dead
as follows:
Section THAT the word rail-
road wherever it occurs in an act en-
titled an act concerning taxes, re-
pealing all laws in conflict Herewith
and declaring an emergency shall
from and after the taking effect of
this act be considered for all pur-
poses Of taxation as including every
kind Of street railroad, suburban rail-
road or interurban railroad, ssSocia-
ton or company or corporation,
whether its lines of railroad be main
tanned either at the surface, or be-
q 10 rrfu Of ln.
earth, and by whatever power its
vehicles are transported; and every
person or persons: association, or
corporation operating such street,
suburban or interurban road shall
make returns for taxation upon all
property in the same manner that re-
turns are made upon other railroad
property and upon similar blanks, and
taxes shall be levied, assessed and col
lected upon such street. suburban or
interurban railroad property in the
same manner as taxes are now or
hereafter may be levied, assessed and
collected upon other railroad prop
erty; provided however, that in de-
termining the value of such street.
suburban or interurban road for taxa
ton purposes, the value of any and
all permits, privileges and franchises
held by any person or persons, as
ISOLATION or corporation operating
such street, suburban, interurban or
railroad shall be separately desig-
mated in such tax returns and such
franchise value shall be determined
and assessed as already provided by
law for the assessment of franchises.
privileges and permits, and the taxes
levied upon such permit, privilege or
franchise valuation shall be distrib-
uted to the municipality or township
or county granting such franchise,
permit or privilege"
A statement published on the back
of the sample copies of the proposed
bill says that the former law provided
for the separate listing of the value
of franchises and for distributing
such tax to the community that
granted the same. At present 1t is
declared that Mishawaka and South
Bend have granted valuable franch-
ises to a street railway company
which has not paid any tax on such
franchises. If they were TO paw "A
franchise tax under the present law,
Mishawaka and South Bend would re-
ceive but small rate on such tax
for the reason that the tax would be
equally distributed over every mile Of
the Murdoch system running from
Michigan City to Indianapolis, it is
pointed out.
This is the decision of the state
board of tax commissioners made in
test case brought before them by
the cities of Mishawaka and South
Bend July % of this year.
The communication is signed by
Eli +. Seebirt, city attorney OF South
Bend: Ralph II. Jernegan, city attor-
ney of Mishawaka; Isaac Kane Parks,
former city attorney of MiShawaka,
and Charles w. Bingham. attorney
for the Mishawaka Chamber of Prog
resS