Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-27
ADMITS TAX
AND UTILITY
BOARDS ERR
MisquOtes Figures Presented
in The Times, Replying to
Expose of His Taxes.
MAKES FINE OFFERS

Gov. James p Goodrich. in statement
made public yesterday designed to clear
himself Of the charge of receiving favors
from the state tax board or the public
gArvice commission, has admitted:
L. That the Washington Water,
Light and Power Company, in which
ne is personally interested, has been
valued for rate making purposes by
the public service commission at
many thousand dollars more than it
is really worth
O. That the public service commits
sion has failed to do It's duty as pre-
scribed by the law that created it in
regard to the Jacksonville Water,
Light and Power Company.
8. That both the public service
commission and the state tax board
have deliberately permitted Overvalu-
alton of the Union Heat, Light and
Power Company property.
L. That he is personally interested
in all these companies 30 the extent
of being able to sell stock In them.
Mr.. Goodrich says that the Washington
company would not sell today for a sum
approaching its full appraised value, -
which he says is $4,000
PETITION AND GOVERNORS
STATEMENT DIFFER.
Yesterday there was filed with the pub
Ia seFvice commission a petition for an
advance in rates by the Washington
company in which the petitioner declares
that the public service commission has
valued its water property at $25S,oo0 and
its gas property at s1O2 800 or a total for
If of
S36O5OO.
This, total is $77.30O more than the
governors statement of the total tax
value Of the entire holdings of this
company. and is the value on which the
company is now asking that it be per-
mitted to base it's rates for the people
Of Washington.
Gov. Goodrich further states that he is
willing to sell his holdings in this COM
pany at 20 per cent less than its valu-
alton by the state tax board, thereby
cOntending that the real value Of this
utilities is only S236,560.
Yet, as a stakeholder in this com
pany, on the very day he puts this
valuation on it, he has the effrontery to
ask the public service commission to
permit it to charge rates based on a
valuation of $500, 500, or S133, $40 more
than he admits the property is worth.
In regard to the Jacksonville com
pany, the governor says, at never has
been valued by its officers, by the conf
mission or any one else for rate-making
or any other purpose"
HERE'S WHAT
THE LAW SAYS.
Section Of the act that created the
public service commission in Indiana
says:
"The commission shall value all
She property Of every public utility
actually used and useful for the con-
venienoe of the public
Perhaps Governor Goodrich can explain
why this property has never been valued
by anybody and why its officers report
its value at S274,662 in sworn state
ment to the commission without having
made such a valuation. The governor
does not explain in his statement.
Instead his statement deliberately per
vetts what appeared In The Times, and
is an attempt to base a defense on a
statement that has never appeared in
the complaint against the manipulations
of values before the state tax board
and the public service commission
He says The Times states that the
valuation placed on tlis property by its
officers for rate making purposes is
1912, 107. The Times stated that this
company is valued in a report to the
commission by its directors at S274. 662,
while the state tax board assessed 1t at
$4,000. The additional of local assess
ments in this case brings the total tax
alton value to $256. $40, according to the
governor.
This still leaves a difference of S17,792
. between the valuation for tax purposes
and the valuation for rate purposes and
as usual the difference is in favcr of the
company.
In the case of the Union Heat Light
and Power Company, the governor de-
clares "the property of this company is
assessed today for at least $4,000 more
than its cash value"
The governor over1ooks the fact that
the taxing officials are sworn to value
property at its true cash value and an
generalization is as reprehensible as an
under valuation.
He asserts a willingness to deliver con-
troll Of the property for $4,000 less than
the value Of its stock, which he says the
company reports as worth $142, 200. On
this valuation basis the property would
be worth Sill. 200.
Yet the governor asserts that the work
of the tax board in its valuations is dad
mirable," and, according to his own fig
ures, the tax officials have fixed a valua-
ton for taxes on this property of $215,-
1927.