Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-05-28
WITH GOODRICH
ASTOCKHOLDER A
UTILITIES GAIN
He's Not in Car Company Here
and Tax Basis Is 8 Million
Above Rate Figures.
SHOWN BY COMPARISON

Through the manipulation of the
valuations made by the state tax
board and the public service commits
sion, both of which are subservient
to the slightest wishes of Gov.
James P Goodrich, who appoints
their members, the people of Indian
apolis who patroni7e Street cars are
paying an unjust proportion of taxes.
And indianapolis street car patrons
are also suffering from a lack Of service
directly attributable to compulsory
diversion Of revenue provided by these
patrons which might otherwise be de
voted to the purchase of new street cars
The proof Of these statements lies In
the comparisons OF valuations fixed by
the state tax board and valuations either
fixed or tentatively accepted by the
public service commission.
For example, the public servic9 com
mission in Its last rate order 10 the
Indianapolis street Railway Company de-
clared that the company was entitled TO
a revenue that would permit 1t to earn "A
reasonable return on between $4,000 90
and $140O00OO valuation.
The commission did not definitely fix
the valuation, although the public utility
law provided years ago that it should
value all utilities for rate-making pur-
poses.
TAXED ON VALUATION
ToTALLING S1s,055. $40
The state tax board recently com
pleted a valuation OF this same company
and fixed the valuation for taxing pur-
poSes Of property, not otherwise taxed.
at Sl6.3J5.5T0
This faftar uuu, 10 fr ,dRftfCr
valuation for taxing purposes fixed by
Marion county at S2,7O0OOo.
Therefore MS the valuations for taxing
purposes stand today the Indianapolis
Street Railway Company must pay taxes
on a valuation of S19055.5TO although the
highest valuation considered by the pub
lie service commission in the fixing OF
rates Is s1G,O00O00
In other words, the property OF the
street railway company is worth Si9iO53,-
$40 when a Goodrich board prepares 10
tax II and worth only S16O0O.OOO when
Gosdrich board sits to determine on what
valuation II shall be permitted to earn a
reasonable return.
The taxes on this shrlnkage of 81. .o55 $40
Is the sum that street car patrons are
contributing because this corporation is
not getting a square deal" from one or
tHS O{uer OF the Go0Irlrh boards.
AND HERES ANSWER
TO READERS QUESTION.
James p. Goodrich. governor Of Indiana.
does not boast ot any personal interest
in the indianapolis Street Railway Com
pHny
He does however. admit IN luterest in
the Washington Light Heat and Powe-
Company, which operates utilities In
Washington, Ind
This company has frequently been he-
fore the public service commission with
piea' fcr increa scd rates and Il IL not of
record that the Goodrich combustion ever
refused 10 hear its petition
Some time ago the comml ssion fixed a
valuation for rate making purposes on
this company OF S3cO 500
At the same time the valuation for taxes
as dKed by the Goodrich tax board was
Sl6S,s60 and tho local county assessment
was Sll7 $40, making total OF S2s2. 200.
Therefore, the Washington company en-.
Joys the distinction of being allowed to
earn reasonable return on SIT 500 more
than the total for which Il Is assessed for
taxation.
or, the Washington company is per-
mitted rates designed to give IL a return
Continued on Fage Fourteen.)