United States. Interstate Commerce Commission.

Railways in the United States in 1902. A twenty-two-year review of railway operations; a forty-year review of changes in freight tariffs; a fifteen-year review of federal railway regulation; a twelve-year review of state railway regulation; and a twelve-year review of state railway taxation online

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Online LibraryUnited States. Interstate Commerce CommissionRailways in the United States in 1902. A twenty-two-year review of railway operations; a forty-year review of changes in freight tariffs; a fifteen-year review of federal railway regulation; a twelve-year review of state railway regulation; and a twelve-year review of state railway taxation → online text (page 26 of 65)
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annually in the office of the auditor of state, on the first Monday of
August. The State Board of Tax Commissioners has for this purpose
all the powers given to county boards of review. They are not bound
by facts as stated in the reports. This section also enumerates the
auxiliary powers of the board and provides among other things that
it shall have power "to punish for contempt any one who refuses to
appear and answer questions, by fine not exceeding one thousand dol-
lars and by imprisonment in the county jail of any county not exceed-
ing thirty days, or by both." , It is provided that appeals shall lie to
the criminal court of Marion county from all orders of the board
inflicting such punishment, said appeals to be governed by the laws
providing for appeals in criminal cases from justices of the peace, so
far as applicable.

^j Mi,T. I. s., ^§ 5. Act 36, Mar. rpj^g ^^^^^^ scctiou of the above act was amended by Act 36, 1895,

with regard to assessment, in the following respects: It is provided
that the meeting for assessment shall be on the second Monday of
July annually. The members of the board are required as well to
assess property belonging to sleeping-car and similar car and trans-
portation companies. (See Sleeping-Car Taxes, below.) They must
convene on the first Monday succeeding this first session for the pur-



OESCKIPTION OF RAILEOAD TAXATION INDIANA. 215

pose of lieuiiiiii' "appeals and applications for icvisiiju of iisscssincnts
which, by law, tiioy arc required or permitted to make." The pr()\i-
siou that the board shall not be bound by the reports of the companies
and the provision concerning powers of the l)oard are to the same
general etfect as in the preceding law. The provision for continemi^nt
in case of contempt and appeal from sucli confinement are, however,
wanting. The section also introduces certain provisions for appeal
from the assessment. (See '' Remedies," below.)
All real estate, other than that denominated •' railroad trade" with all improve- § 636g, Eei-iscd

Statutes ] H H 1 ■

ments thereon is to be listed as "lands "and " lots," as the case ma}^ be, in the §8soo,e!s., isga!
count}^ township, citv, and town where located. It mav be described, wherever a ton's 'Indiana

■1 J 1 1 1 , . • ■ ■ 1 « , 1 statutes, 1897.

railroad company makes and records a plat of any contiguous lots or parcels of land
belonging to it, as designated on such plat. All personal property of any railroad,
except that specifically taxed, including the tools and materials for repairs, machinery,
fixtures, and stationary engines is to be listed and assessed in the countj^, township,
city, and town wherever the same may be on April 1st yearly.

3. Ajqiortionment of Yaluntion.

It is provided that "The value of the 'railroad track' shall be listed and taxed §6363, r. s.,
in the several counties, townships, cities, or towns in the proportion that the length ^8^4; 1 902?! T'.^'i!
of the main track in such county, township, city, or town bears to the length of the *'' ^*'''
road in this state; except the value of the side or second tracks, all turn-outs,' and
all station houses, depots, machine shops, or other buildings belonging to the road,
which shall be taxed in the county, township, city, or town in which the same are
located." The rolling stock is to be "listed and taxed in the several counties, town- §6364, r. s.,
ships, cities, and towns in the proportion that the main track used or operated in i894; §9028] f. i.
each county, township, cit}', or town bears to the length of the main track used or
operated by such person, company, or corporation, whether owned, operated, or leased
by him or them in whole or in part."

The auditor of state must certify the assessment of "railroad track" and "roll- § 64io, r. s.,
ing stock" made by the state board to the auditors of the proper counties, and the i894; §9089! T.'il
county auditor must distribute the valuation to the townships, cities, and towns in '
his county entitled to a proportionate value of such railroad track and rolling stock.

If.. iJetermination of the Tax.

The county auditor must enter on the proper tax duplicates the railroad prop- § 6372, r. s.,

•' . 1 1 , • t V n 1 1881; §8506, R.S.,

erty of all kinds as for taxation, and the valuation as " assessed, corrected, and equal- 1894; § 9036, t. 1.
ized." And he must compute and extend the taxes against such value, the same as
against other property in the townships, cities, and towns.

o. Pa y III ent of the Tax.

The tax is to be collected Ifv the county treasurer in the same manner as is jiro- ibia.
vided for other taxes, and he must pay the sums over as other taxes are to be paid over.

' Such a mistake as to suppose that the side track is assessed in the county where situated must not be made.
Although it is taxed there, it is assessed by the State Board of Tax Commissioners, as previously stated (Footnote,
p. 211; see also definition of railroad track, p. 212) and the assessment, as thus made, is certified to the counties to
be placed upon the duplicate. It is assessed differently from thejnain track, but only machinery, stationary engines,
and fixtures are assessed locally.

And, as provided in the same connection, the buildings on the right of way are assessed by the state board.
These assessments are not included in the general valuation and apportioned according to mileage, but are placed
upon the duplicate and credited to the townships in which such buildings are situated. Thus, if there is a station
in Green county, Tatoka township, the state board fixes the value of such station, and certifies to it to the county
auditor, who places it upon the duplicate under "Tatoka Township."



216 RAILWAYS IN THE UNITED STATES IN 1902.

6. Default of Payment.

There are no provisions peculiarly applicable to railroads under this heading.
The general revenue laws here control.

7. RevfiedieH.

There was no provision, except such as are contained in the general revenue

laws, for remedies, according to the law as operative at the beginning of the decade.

S 9081, Thorn- , §6 Act36, Mar. ^^^ 3g 189,5, amending various sections of Act 99, 1891, among

ton's Indiana l' ■'■o9o. 770 o

statutes, 1897. them scction 12'.t of that act, provided that the State Board of Tax

Commissioners shall meet on the second Mondaj^ of July of each year
for the purpose of assessing certain of the railroad property, and shall
reconvene on the first Monday succeeding said first session for the
purpose of equalizing real estate whenever such equalization is to be
made as provided by law. During the years when they are required
to equalize real estate, they are to remain in session such length of
time as their business may require, not exceeding twenty days, and
not exceeding fifteen days in other years. They are required to con-
vene on the first Tuesday succeeding the expiration of such limitation
of time for the purpose of hearing complaints as to the assessment
made b}- them at the first session. This last session maj- not continue
more than ten daj's. It is further provided that the board, before it
adjourns its first session, must designate in what manner parties desir-
ing to be reheard shall petition. It is provided that the assessment
made at the first session of the board shall stand unless application be
filed with the auditor of state at least five days before the third session,
and the assessment when finalh' determined bj- the board is to stand
as the final assessment, and be certified to the proper official by the
auditor of state.

C— TAX ON SLEEPING-CAR AND SIMILAR CO]\IPANIES.

Because of the fact that the laws of the period 1890-1900 present, for different
j'ears in such period, two systems of taxing sleeping-car and similar car and trans-
portation companies that are diametrically opposed, the tax as it was in operation
down to 1893 being on gross receipts, succeeded in that year by a tax based on the
general property valuation, the method usually followed in these outlines is here
abandoned for the moment and, instead of considering both taxes together, under
the general headings, "Nature and Application," "Assessment" etc., each system of
taxation, with its proper amendments, is considered under distinct headings. There
are two major divisions, thus: I. Tax on Gross Receipts, Operative to March 6, 1893;
11. Tax on Property, Operative from March 6, 1893, on.^

I. Tax on Gross Receipts, Operative to March 6, 1893.
1. Nature and Application.
§ 2, Act 221, This tax is a tax of ten per cent upon the gross receipts arising from business

Miir. 11, 1889. ... T ..., ,, -r,.

originatmg and terminating m the state. It applies to sleeping-car carriers oper-
ating in the state. And for this purpose a sleeping-car carrier is defined as follows:
§1, ibid. "Any person or persons, joint-stock association, company,, or corporation engaged

in the business of conveying to, from, or through this state, or any part thereof,
passengers and travelers in palace cars, drawing-room cars, sleeping cars, or chair
cars on contract with any railroad company, or the manager, lessee, agent, or
receiver thereof. "



' Act 56, March 4, 1901, amends the law bo as to include fast-freight lines, lines of oil cars, refrigerator cars, etc.



DESCRIPTION OP KAILROAD TAXATION INDIANA. 2l7

6^89i^'^^'^^'^^"' -^^'^ ^'^^ 1891, detiiics sleeping'-car companies practically as above,
but applies only to such associations, companies, or corporations
" incorporated under the laws of any other state," but provides that
the tax shall be two dollars on every one hundred dollars of that pro-
portibn of the gross receipts which ' ' the distance traveled in the state
bears to the whole distance paid for."

^. Asseffsmenf.



Such companies must, between April 1st and INlav Istannuallv, make a report to § 2, Act 221,

■ •- 1 1 ,. I • ' rr- 1 Mar. 11, 1889.

the auditor ot state, verified by the oath of the carrier, officer, or agent making such
report, giving the " entire receipts of such agent of such carrier on account of busi-
ness originating and terminating in this state, for the year then next preceding the
first of April, for and on account of such carrier, including the proportion of gross
receipts for business done liy such carrier in connection with other carriers, where
such business originated and terminated in this state." And it is provided that such
receipts shall include as such receipts all sums earned or charged in business for such
preceding year, whether actually received or not.
cS'l*^*'^'*'"' ^^^^ ^^^ 1891, takes the place of the above, providing that the return
shall be made to the auditor of state annually between April 1st and
June 1st. under oath of an officer or agent of such corporation, giving
the " gross amount of all their receipts within or without the state,
for fares earned or business done by such company within this state
for the 3'ear then next preceding the first day of April of the current
year." It is provided that in computing the gross receipts "the same
shall be in the proportion that the distance traveled in this state bears
to the whole distance paid for."
It is provided that for failure to comply with any of the provisions of this act, §2, iwd,
the sleeping-car carrier shall forfeit fifty dollars for each day while in default, to be
recovered in any court of competent jurisdiction, it being the duty of the attorney-
general at the direction of the auditor of state to bring the action.
mL "'isti' ^' ^^^^ ^^1 18^1' provides that for failure to report accurately for thirty
days after June 1st and to pay, the company shall forfeit twenty -five
dollars for each additional day such report and paj^ment shall be
delayed, the same to be recovered in an action in the name of the
State of Indiana, on the relation of the auditor of state, in any court
of competent jurisdiction, the attorney-general being required to con-
duct such prosecution.
The auditor of state may, upon the filing of the report, call for any papers iwd.
or books relating to such receipts and the same must be filed with him within one
week after demand. And the auditor of state may correct the report.
ML'e'isgf '^' Act 99, 1891, contains no express provision concerning the above
matter.

3. Determination of the Tax.

It will be seen from the matter under the preceding headings that the assessment
or ascertainment of the value on which the tax is to be based, is made in ihe return
of the company taxable. And this return, together with the statutory provision for
the per cent of gross earnings to be taken, or definite assessment on each one hundred
dollars thereof, also determines the tax. If these steps are regularly and satisfac-
torily taken, the intervention of no third party is necessary.

4. Payment of the Tax.

The carrier must Day at the time of filing the report a sum equal to ten per cent §2. ibid.
of the aggregate gross receipts as shown by such report.



218



RAILWAYS IN THE UNITED STATES IN 1902.



§ 2, Act 221,
Mar. 11, 1889.



mL^6'i89i' 99. Act 99, 1891, provides that the company shall, at the time of mak-
ing the report, pay into the state treasury two dollars on every one
hundred dollars of gross receipts for business done within the state.

5. Default of Pnyment.

The penalty for default, and provision for the collection thereof, is the same as
for failure of return (supra).
6 |;!,j'^^*99.^ii'' Act 99, 1891, provides a penalty for each day of failure to report
and pay, described under " Assessment," above. It also provides that
in case of such default the company shall be prohibited from carrying
on such business until the payment is made. And all railroad companies
and persons operating are prohibited from handling the cars of such
company while it is in default. For each violation of this prohibition
such companies are liable to pay the state one hundred dollars, to be
recovered in a proper action, the attorney-general to prosecute at the
request of the auditor of state.

II. Tax on Peopertt of iSleeping-Cak C'ompanies, Operative from March 6,

189;:!. OX.

1. jVafiire and AppJuxttion.



§ S484, Revised
Statutes, 1894; §
9014, Thornton's
IndianaStatutes,
1897.

§ 9011, T. I. .S.,
1897.



Act 171, Mar.
1893.



§9, ibid.
§ 4, ibid.



This act of March 6, 1893, is an act amendatory of Act 99, March 6,
1891. It repeals sections 68, 69, 70, and 71 of said act, section 71 pro-
viding for the gross-receipts tax on sleeping and similar car companies
incorporated in another state but doing business in Indiana. This act
of 1893 provides in its stead a tax on the property of such companies,
excepting real estate locally assessed, valued by the State Board of
Tax Commissioners for both state and local purposes. It is provided
that "Every joint-stock association, company, copartnership, or cor-
poration incorporated or acting under the laws of this or any other
state, or of any foreign nation, and conveying to, from, through, in,
or across this state, or any part thereof, passengers or travelers in
palace cars, drawing-room cars, sleeping cars, dining cars or chair
cars, under any contract, express or implied, ^vith any railroad coni-
panj", or the managers, lessees, agents, or receivers thereof, shall be
deemed and held to be a sleeping-car company for the purposes of this
act," and the law applies to all such companies.



.l.s



i^nii'/if.



§ 8483, R. S., §6, ibid.
1894; S 9013, T. I.
S., 1897.



§ 8481, R. S., § 4, ibid.
1894; § 9011, T. I.
S., 1897.



This act provides that the assessment shall be made by the State
Board of Tax Commissioners. To aid it in making this assessment
every such sleeping-car company must annually, between the 1st day
of April and the 1st day of June, " make out and deliver to the audi-
tor of state a statement, \erilied })y the oath of the ofEcers or agent
of such company making such statement, with reference to the first
day of April next preceding, showing: " the total capital stock of such
company; the number of shares thereof issued and outstanding, and
the par or face value of each share; its principal place of business;
market value of the shares of stock on April 1st next preceding and
if such shares have no market value, the actual value thereof; the real
estate, structures, machinery, fixtures, and appliances owned by said
company, etc., and subject to local taxation within the state and the



DESCRIPTION OF RAILROAD TAXATION INDIANA. 219

loe-ation and assessed value thereof in each county or township where
the same is assessed for local taxation; the speeitied real estate,
together with the permanent improvements thereon, owned by such
association, company, etc., situate outside the state, and not used
directly in the conduct of the business, with a specific description of
each such piece, where located, the purpose for which the same is
used, and the sum at which the same is assessed for taxation in the
locality where situated; "all the mortgages upon the whole or any of
its property, together with the franchises and amounts thereof; " ^ and
finally : {a) The total length of the main lines of all the railroad com-
panies over which said cars are run. (5) The total length of so
much of the main lines of all the railroad companies over which said
cars are run as is outside the state of Indiana. (<?) The length of the
lines of said railroad companies over which said cars are run within
each of the counties and townships within the state of Indiana: " '' J'ro-
vided, that where the railroads, over which said lines run, have
double tracks, or a greater number of tracks than a single track, the
statement shall only give the mileage as though such tracks were
but a single track, and in case the auditor of state shall require it, such
statement shall show in detail the number of miles of each or any par-
ticular railroad system or division."
Ma/'e 1893 ^'^' ■^*^^" failure to make the return as required, the company is liable to g^^t^g^^ ^IgJ^t
a penaltv of one hundred dollars for each additional day such report ?oi2' Thornton's

^ ' . IndianaStatutes,

is delayed beyond the 1st of June, payable into the general fund of 1897.

the state and to be recovered in any proper form of action in the name

of the state, on the relation of the auditor of state.
Ibid. The auditor of state must examine the return and, if he deems the iwd.

information given insufficient, "he shall require such officer to make

such other and further statements as said auditor of state may call for."
§6, ibid. The auditor of state must place the statements and other informa- § 8483, e. s.,

1894' § 9013 T I

tion before the State Board of Tax Commissioners upon its meeting s., 1897.
for the assessment of railroad and other property.
§7, ibid. In making the assessment it is provided that the board shall first

ascertain the true cash value of the entire property owned by the
company, etc., "for that purpose taking the aggregate value of all
the shares of capital stock, in case said shares have a market value,
and in case thej'^ have none, taking the actual value thereof or of the
capital of said association, compan}^ * * * in whatever manner
the same is divided, in case no shares of capital stock have been issued:
Pnivid>^d, however, that in case the whole or any portion of the prop-
erty of such association * * * shall be encumbered by a mortgage
or mortgages, such board shall ascertain the true cash ^alue of such
property by adding to the market value of the aggregate shares of

^ The meaning of the provision requiring return of franchises is not definite. In reply to inquir}' addressed to
the auditor of state of Indiana, to whom the returns must be made, concerning this matter, the following statement
is made by him: "I know of no explanation regarding the section requiring the return of franchise and amounts
thereof, except that in considering the value of sleeping-car companies, the franchise of certain railroads, where a
large amount of business is likely to be done, would necessarily be considered by the state board in fixing the value
of sleeping-car companies. However, under the law, the board assesses sleeping-car companies upon the value of
the capital stock, and all such franchises necessarily enter into the value of that stock. So far as I know, there has
never been any return made by any company of any franchise under this part of the law."

^ Sleeping-car companies are required to return the full numlier of miles of railroad track over which they travel.
It is not probable that they travel over switches and turn-outs, and hence, return of such mileage is not made. The
requirement, then, is simply of the main track of the road over which they run.



220



EAILWAYS IN THE UNITED STATES IN 1902.



?8483, Revised
Statutes, 18 9 4;
§ 9013, Thorn-
ton's Indiana
Statutes, 1897.



§ 6,
Mar. 6,



Act 171,



S 8485, R. S.,
1894; §9015,T.I.S.,
1897.

? 8486, E. S.,
1894; §9016,T.I.S.,
1897.



§ 8, ibid.
§ 9, ibid.



§ 8487, K. S.,
1894; §9017,T.I.S.,
1897.



§ 10, ibid.



Ibid.



stock or to the value of the capital, in case there be no such shares,
the aggregate amounts of such mortgage or mortgages, and the result
shall be deemed and treated as the true cash value of the property of
such association." * * * The board for the purpose of ascertaining
the true cash value of the property within the .state of Indiana must
ascertain the assessed value for taxation, in the localities where the
same is situated, of real estate without the state not specifically used
in the general business of such associations, etc., "which said as.sessed
values for taxation shall be by said board deducted from the gross
value of the property as above ascertained." Said board "shall next
ascertain and assess the true cash value of the property of such a.sso-
ciations * * * within the state of Indiana, by taking the propor-
tion of the whole aggregate value of said associations, * * * as
above a.scertained, after deducting the assessed \'alue of such real estate
without the state, which the length of the lines ■■ * * within the
state over which said cars are run, bears to the length of the whole lines
over which said cars are run * * * and such amount, so ascer-
tained, .shall be deemed and held as the entire value of the property of
said companies * * * within the state of Indiana." From the
value so ascertained the board must deduct the assessed value for tax-
ation of all real estate, structures, machineiy, fixtures, and appliances
owned l>y the eompan}^ and subject to local taxation within the state,
"and the residue of such value so ascertained, after deducting there-
from the assessed value of such local properties, shall be by said board
assessed to said association."

The board is empowered to require the appearance before them of
the agents or officers of the company with such books, papers, or
statements as they may require, or they may require additional
statements, or compel the attendarice of witnesses, in case they deem
it necessary, to enable them to ascertain the true cash value of such
property.

■S. Apportionment of YaJuation.

The board must divide the value assessed to the company in the
state "by the number of miles" of the line within the state, then mul-
tiply the value per mile by the number of miles in each county, as
reported, or as otherwise ascertained, "and the result thereof shall be
by said board certified to the auditor of state, who shall thereupon
certify the same to the auditors, respectively, of the several counties
through, into, over, or across which the lines or routes of said associ-
ation * * * extend, and such auditors shall apportion the amount
certified for their counties, respectively, among the s(>veral townships
into, through, over, or across which such lines or routes extend in
proportion to the length of the lines in such townships."

To enable the county auditors to make their apportionment, they
are authorized to require the agent of said association or company to
report to them, respectively, under oath, the length of the lines in
each township.

If.. JJeteriiii nation of the Tax.

It is provided that each county auditor shall add to the value as
apportioned to his county by the State Board of Tax Commissioners
"the a,ssessed valuation of the real estate, structures, machineiy.
fixtures, and appliances situated in any township, and extend the taxes
thereon upon the duplicates as in other cases."



DESCRIPTION OF RAILROAD TAXATION INDIAN TERRITORY. 221



Online LibraryUnited States. Interstate Commerce CommissionRailways in the United States in 1902. A twenty-two-year review of railway operations; a forty-year review of changes in freight tariffs; a fifteen-year review of federal railway regulation; a twelve-year review of state railway regulation; and a twelve-year review of state railway taxation → online text (page 26 of 65)