Muncie Post-Democrat, Muncie, Delaware County, 15 August 1930 — Page 1

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VOLUME X—NUMBER 27

MUNCIE, INDIANA, FRIDAY, AUGUST 15, 1930

Price 5 Cents—$2.00 a Year

VALUATION OF GAS COMPANY CUT $100,970

Hardly had the ink on the Post-Democrat dried telling of the increase of T 1 /^ per cent in the net earning of the utility <, e >p of which the Central Indiana Gas Company here is a unit until we were informed that the State board of tax commissioners had sliced off $100,970 from the val-

uation of the gas company’s property in Muncie. That’s true, the last year’s valuation of $759,470 was

■ cut to $658,500 for this year by the tax board which sits 60 miles and two-foot of stone wall distance from Muncie. Well their plant and property ——

here ought to be listed above the $1,000,000 mark easy. The joke is that the water company with less actual investment had a $1,080,000 valuation and the gas company got by with about half that sum. Somebody’s off their nut someplace along the line. Of course the gas company changed hands not so long ago and we lost ex-ccnxncilman Budd as the general manager here, so perhaps Frank was a valuable man to lose after all. The next man knocked off $100,970 that was Budding along last year. Bitt we don’t think that the gas company lost a value of $100,970 when it lost its previous general manager, although there are some who may differ with us. t Perhaps the reduction in valuation will be followed by a plea by the gas company to permit them to reduce the gas rates here, but we don’t put much stock in that hunch although we would like to

do it.

Now the Indiana General Service Company deserves some kind of recognition for it stood pat on its valuation of $2,885,435 in Muncie and didn’t try for an under par score. Utility valuations somewhat reflect the general prosperity of the community and by the Indiana General Service Company we seem to be rated as good as last

year. As for the gas company, L R R tJie mana g e ment go however, were a red dash wTOft ‘^luatfxm Wa

happy career' of dividends and

earnings.

It’s our guess that Sammy Insull tipped off the new management of- the gas company how to increase its net earnings still more by an eighteen or so percent slice in valuation. Muncie will lose exactly $2,940 in taxes by the juicy melon cut obtained by the gas company, but that won’t curtail municipal activities for the Chicago utility barons can take the three grand and stick it away in tax exempt securities so far as we are concerned. If the Chicago bunch in control of the gas company think, that they will be justified in short changing the city $2,940 next year, it’s their privilege aided and abbetted by the distantly located state 'tax board. The Hampton council annexed a lot of new customers for the gas company, and the reward of this new business is the plea, successful for the opportunity to short value the community out of $2,940 of taxes in 1931. Speaking of Sammy Insull we could have told that he had acquired the property of the Union Traction Company without even a notice from his press agent, for as Insull always does he got a reduction of the tax valuations of the property he acquires. He succeeded in putting a reducing gear on his Union Traction, now- Indiana Railroads, Inc., property from the state tax board. For

the Union Traction property here in Muncie the valuation was cut from $145,205 to $117,800. The Indianapolis, Newcastle Eastern Traction Company property was cut from $2,340 to $1,755. The Muncie-Portland chop was from $5,130 to $3,530 and they did’t need the cut at all for they are going to cut out that line entirely. From $8,895 to $6,830 was the reduction in the Muncie, Hartford & Fort Wayne property. So Insull is here to stay with low tax valuations and high rates—you can’t beat that combination. Steam railroads were the transportation angels as the Big Four’s valuation was increased from $618,245 to $648,895, and that’s a sizeable gain. The L. E. & W. moved up from $237,550 to $248,890 and we ought to be mighty proud of the C. & O. for that railroad took on an increase from $160,920 to $208,845 without a whimper from the Van Swearing-

tons.

The Pennsylvania Railroad lost a couple of shingles off the freight house and also $130 off its former valuation of $103,265 but that wasn’t so bad considering every-

thing.

The Muncie & Western took on an additional $4,050 which was a break over the last year’s figure of $41,400. On the Fort Wayne &

ot

lopped off $62,280 which isn’t any cause for three cheers and a tiger. Coming to the Muncie Belt we find a peculiar situation for the last year’s valuation of $100,325 was cut to $86,875 despite the fact that the Yorktown Pike new plant of the Wanier Gear Company is expected to bring in some new freight business. The reduction, however, when analyzed shows

what happened.

It shows that the state tax board did’t like the way the Hampton council annexed a lot of territory in effort last summer to get in enough new voters to beat' the editor of The Post-Democrat, In the annexed territory the valuation of the Muncie Belt was $13,450. This amount was added to the Muncie Belt valuation last year, but taken away this year, so the Muncie Belt is back to its pre-annexation valuation, but $13,450 short of its last year’s valuation. Take a day off and figure the logic necessary to convince the state tax board that they could disannex the annexed territory valuation of the Muncie Belt and still everyone

would be satisfied.

The above paragraphs are the history of the special privilege in valuations, but the increases, happily for the city, just about match up the cuts. Insull gets by with less taxes and the steam road crowd pays more. Seems fair enough, we guess, but it isn’t.

MILLION DOLLAR EXPANSION PLAN BY GAS COMPANY

Plans for the expansion of Central Indiana Gas Company’s service to include every city, town and village within its territory, have been officially announced. Actual work on the program is to begin shortly, it was stated and contemplates the delivery of either artificial or natural gas to every region within the company’s natural boundaries. In addition, it was made known that Central Indiana expects to spend in the neighborhood of $1,000,000 for additional gas production equipment and that arrangements are being made for an additional supply of natural gas for industrial use exclusively, as the Company is particularly interested in the growth and operation of industries within its doman. Consequently with the announcement of its purpose of development, it was stated that franchises have already been granted Central Indiana to furnish gas service to

Summitville, Jonesboro, Gas City, Dunkirk, Redkiey, Albany, Farmland, Upland, Chesterfield, Frankton, Yorktown, Gaston, Eaton and Parker. A franchise is also under consideration in Montpelier. In cities and towns where franchises have been granted 78 miles of high presesure transmission mains and approximately 100 miles cf distribution' mains will be laid to sbrve customers. Purchase has already oeea made of apparatus to equip three large pipe lines crews. This consists of trenching, welding and back-filling equipment and tools. Regulating and motoring stations are to be built in conjunction with the construction of the transmiosion and distribution mains. Officials of Central Indiana pointed to the fact tha some of he pres en unemployment situation will be relieved through the new gas service program as it is planned to employ local labor in the building ef the lines.

MERCHANTS NAT’L BANK STATE TAX BOARD VALUATION CUT $51,000

* 4

Valuation of the Merchants National Bank by the state i xhe valuation set for this company was $1,480 and on that tax board was cut $51,000 this year. This information valuation the city tax was just $46.51 for the privilege ol came in the certification of the valuations of banks, build- transacting business in Muncie this year, ing and loan companies, and utilities received by the county | For this $46.51, according to the last statement of auditor from the state board. ! Chauncey L’s company and associates, they did $1,650,800 Last year’s figure for the bank was $446,000, but the of mortgage business. They had savings accounts of $1,certification for this year carried the valuation at $395,000. i 254,000 with surplus of $20,500. Now cash on hand is a Frank Bernard, president of the bank, presented the bank’s ^taxable item and how the state tax board arrived at the plea for reduction of the state board valuation for this year, i valuation it did with that much cash on hand we are unable

Valuations of the two other banks were boosted by thejJto determine,

state tax board, the Delaware County National Bank re- jy Perhaps, you readers can solve the mystery for the ceiving a valuation of $367,600 which is an increase of fetate tax board raised the valuation of the First Rural Loan

$15,900 over its 1929 figure of $351,700.

Council Utilities Group Studies Report of City Attorney Regarding Acquistion of Muncie Water Company Out Of Its Earnings—Expects To Delve Thoroughly Into Steps Needed To Carry Out Campaign Plank.

Valuation set for

the Merchants Trust & Sav'ngs Company was $296,400 againsd the last year's figure of $29^,200 making a gain of

$13,200.

Even Oliver Storer’s Muncie Banking Company received an increase, not a whole lot but enough to show that Oliver and his associates were right on the job and wouldn’t

V7I1VCI CtlftU Ills CISSUVICI tes W Cl c: llglll UI1 me 0.1111 VV vJ vl 1 Al 11 v i Ills g i. clilp pmu ivl m mi. VAV. take a reduction in tax valuation at this time of widespread ♦ they also paid tax on the building in which they are located, unemployment and general upset condition that the Repub- fit they own it. Well if they rented, they would pay the tax

licans loudly declare to be a mild readjustment in the coun-

try’s prosperity, if any.

His Muncie Banking Company valuation for last year or if they owned their quarters,

was $17,900 by the state tax board and this year we hear no squawk from the city’s original 42 percenter when the board raised the valuation $100 to a new high total of $18,000. That $100 increase in assessment means just $2.94 more for the city from the Muncie Banking Company which shows conclusively that Oliver is doing his share even if some others are shirking to the tune of $51,000 less valuaton. V

The fact that the state tax board only rates Oliver’s i, slightest hesitancy probably declared proundly, we’ll help.

Report of City Attorney Cary A. Taughlnbaugh on steps to acquire the Muncie Water Company’s plant and distributing system out of its own earnings is being studied by the council’s utility commit-

tee.

Headed by Councilman Clifford V. Smith, the committee composed of Councilmen Harry A. Kleinfel-

& Savings Company to $1,700 a great big gain of $320. Boy, ider and August Maick is conduct-

gg* ' ■ *■ .... ^ ~ ~ ing a through study of the report

and the steps to be taken to carry out the purchase which was one of the important planks in the municipal campaign platform of the

Democrats.

The significant fact is that .most Indiana cities and towns own and operate profitably their own water plants while Muncie, Indianapolis

ijin the rental somewhere, so the actual use and occupancy jg^ n g® n c e iti ^ u ^ e a ”^ e a 0 ^y y 0 Q e e ^ taxes don’t really count for they would paid if they rented j receiving water service from pri-

jvately owned and operated plants

So rate this $320 boost in valuation. Chauncey L. are sold mines t0 their own '

must have taken on a few highback chairs or etc. or painted

the bars and counter.

it must have taken a lot of brains to figure out that $320 'boost, or perhaps it took the brains to keep from figuring a higher valuation. But anyway the $320 boost is in the right direction, although it is not nearly far enough. Chauncey L. will likely say that in addition to this

$46.51 his group paid to do business in Muncie this year.

Journey down to Mr. Higman’s Mutijal Home & Sav’iugs Association at the northeast corner of Mulberry and

ers.

Mayor Dale centered a great part of his campaign on the public ownership of the water company and started the ball rolling for its

Charles street. We find that the state tax board raised the t^th^^ouncil ^sking^they^take valuation of that authorized capital stock of $12,000,000 steps to carry out, the platform

. concern just one share, that it $100. Highman without the plan .^-

business of the Muncie Banking Company at $18,000 may hurt the pride of Mr. Storer, but if he feels amiss we have never heard of it so naturally we believe he must pocket his pride and profit in the one and same spirit. Getting down to the building and loan companies we find that the state tax board, after following several special privilege statutes and rules so favorable to this type of financial institutions, did stimulate the city valuation a

little.

For instance take the First Rural Loan & Savings As-

sociation,

went wild on

why we’ll toss in a whole share of $100 boost on our valuation and no questions asked. This too is a step in the right .direction, but it is amusing for last year the valuation set the state tax board was $1,300 and this year it went

ock Marketish to $1,400.

j I Oddles and oddles of prosperity for we see by the published phamphlet recently issued that the assets of the Mu-

City Attorney I was directed by

Taughlinbaugh the council to

prepare a report of the procedure necessary to purchase the water company out of its own earnings and completed that work about ten days ago. Upon submission of the report to the council at its last session, it was turned over to the utilities committee for review and study. Action on the purchase proposal by the utilities committee is expected within the next month and the path opened for the acquisition of the water company. Profitable operation of the water plants of Indiana cities and towns is shown in the annual report of the Indiana public service commission and in their tables may be found the facts concerning profits for the community in municipal ownership. Profits, of course ai the privatey owned water plants in the few fcities premitting their operation in this day and age, goes to the pockets of owners and in most cases these owners are the utility and power barons about whom we read so constantly. This plan of purchasing the water company out of its own earnings is being widely used throughout the United States by municipalities desiring to regain the utilities from private ownership to municipal ownership and operation.

tual Home & Savings Association on Dec. 31, 1929. right \yithing a, week after last Christmas, was $5,732,148.41. Al4iu that, the statement says they have a $100,000 fund for

Why last year the state tax bpai^d eyjdentlv;-f^®i tingent josses and UNDIVIDED PROFITS of $38,324.39. n the valuation of the concern operated hai isaihe slatemgnt ILsTiquiek assets-hdtlimg EnWriff'Orfft!# 41

Chauncey L. Medsker and his pals at 116 East Main street.

(Continued

Page Five)

SCHOOL BUDGET NEARLY $120,000 HIGHER THAN ALL AVAILABLE FUNDS

With a budget nearly $120,000 higher than the revenues to be available for the coming year and the current balances, the school board of the city of Muncie announces that the same tax rate will prevail next year. How will they do it? Read the section of the school board’s published budget and under these words NOTE-H. Debt Service-During the year it will be necessary to anticipate semi-annual collections by temporary loans in sums approximating $150,000. This will be repaid by current levies in course of collection. Yes we know this temporary loan of $150,000 with interest as high as $7,000 or $8,000 will be paid, for the banks always see that they get their money back, but it will be surprising if the temporary loan don’t turn out to be a permanent feature of the 1932 budget. In the final analysis, according to the published budget, the school board expects to spend nearly $120,000 more than it will have funds available from revenues derived and current balances and the temporary loan will likely be used to supplement the revnues from tax levies instead of just tiding the board over the rough spots. Unless the school board budget is trimmed greatly by the state tax board to eliminate the $120,000 deficit the citizens will find next budget time that the $120,000 must be made up somehow, despite the fact that last year the school board’s plea for increasing the school levy to $1.17 was to create balances. Just like the Hampton’s council balances plea, the state beard permitted the increase, and instead of the balances that the people expected there are only dashes of red. The Hampton council it will be recalled succeeded in getting the tax levy of 89 cents for the city of Muncie by assuring the tax board that they would create a $60,000 working balance for the succeeding administration. How did 4his $60,000 balance exist, never? Furthermore the new administration was maced with an empty treasury and was morced to negotiate a temporary loan to tide over until the spring advance from the county treasurer. The school board in its published budget tells of its necessary $150,000 temporary loan, but we guess Will White, Ed Tuhey and J. Loyd Kimbrough feel that the loan will be temporary, but if they study the budget published under their name we know they will find that at least $120,000 of the $150,000 will be permanent, unless they revise their budget figures decidedly downward. Brothers White, Tuhey and Kimbrough and their advisers are going to ask how we get that way, so by analyzing the published budget we find the answer. In the special school fund budget we find the total to be $315,667.14. On August 1, there was a depository balance of $20,059.05 scattered among the three banks still left in Muncie. The 38 cents levy recommended by the school board for the special school fund will bring in $247,-

000 during the 1930-31 Oseal year for the school board. Add the current balance and the revenue to be denved from the tax lew and the total is $267,059.05,vvh.ca is just $48' 608.09 SHORT of the amount of the special schwd b H, • SmSmmo „»<i »«»«. “ in ffSKSff&V S.rrsmffi“u ..a..,.-, but the board provided no levy for this fund in the published report, and its balanee on Aug. 1, of ir .^n ha v e very far in providing the salaries so the $9,^04.24 will have to be made up somehow, perhaps by cerUficates of mdebU edness like the paving trust received from the Hampton b ° ard Now°down to the bond fund we find that there is a balance to that fund reaching all of $43.13 in f t ^ 1 e Q IV ^ r „ C ^ n . t n S National Bank and the depository balance of $19,953.61 m the Merchants Trust & Savings Company vaults, so the bankers don’t fare badly under the arrangement. Ihe budget for bond fund is $136,112.50 and the revenue under the school board’s recommended levy of 20 cents will bring in $130,000. , . Take this $6,112.50 DEFICT on revenues and offset that with the current balance of $19,996.74 and you see the bankers have ample arrangements made to keep the grease coming. And we might add that the budget specifies that out of the $136,112.50 budgeted they expect to pay $92,000.00 of principal and $44,112.50 of interest, almost fifty percent of the bond fund going to interest, isn’t bad at all for the financial ginks. Anyway you look at the school board s budget there looms that figure of nearly $120,000 more than the revenues and current balances, and if it is not sliced off this year’s budget, we’ll have to pav for it next year. To The Post-Democrat the school board budget is just a continuation of the many year’s previous fiascos, in which the figures are placed so high and out of. proporition that it is hoped the citizens and state tax board will overlook them. In event they are not overlooked, then there is sufficient margin to barter back and forth and then come out far in advance of the previous year’s budget. There is no touch of sincerity, or effort to give the citizens the accurate information that a budget is supposed to give. But that is characteristic of the school board budgets for many years past and The Post-Democrat again calls the public’s attention to the high class manipulation, for it is the purpose of a budget to arrange the spending of the money to be derived from the tax levies taking in mind the current balances of each fund and NOT a jumble of figures so far away from the read statement as the school board’s miKlicliosl hiiHo-ot nnnonr’e fn hn

Lambert—St. Louis Field, St. Louis, Mo., Aug. 15—(UP)—Five days short of a month in the air, Greater St. Louis” continued cirjcling over Lambert-St. Louis Field today. L_As hour after hour was added to the refueling endurance record of Dale Jackson and Forrest O’- , Brine, the fliers’ casual prediction that they would remain aloft 1,000 hours became for them a sincere belief rather than a wild hope. At 7:11 a. m. the orange yellow monoplane had been in continuous (flight 600 hours. o Northern Armies Retreating

Shanghai, China, Aug. 15—(UP) —The Government headquarters at Liuho announced today that the nationalist troops had recaptured Tsinan and were entering the city. The announcement said the northern armies from Peiping were fleeing after suffering a severe defeat.

Father Crushes His Child

Greencastle, Ind., Aug. 15—(UP) —The infant son of Mr. and Mrs. Clyde Cash of near Greencastle was crushed, probably fatally, by

the wheels of a truck driven by his father. _The child walked in front of the truck at the Cash home.

Cigarette Causes Bad Fire Connersville,- lnd.,_ Aug.-'^l) — (UP)—Twenty acres of hay >and pasture land was burned over bn the Cleve Lyons farm, after a motorist had dropped a lighted Cjga* ret at the edge of the field, blit a bucket brigade saved all farm buildings.

Reserve Officers Are In Training At Ft. Harrison

Indianapolis, — (UP) —- United States army reserve offeers from four states—Indiana, Ohio, Kentucky and Wqst Virginia are in training at the Engineer Officers Reserve camp at Fort Benjamin Harrison. This camp this year was reported the largest engineer renerve camp ever held in the Fifth Area, and the beginning of a new threeyear cycle of training embodying study of engineering problems and tactics. Major Robert G. Guyer, fifth corps area engineer with headquarters at Columbus, O., is executive, with other regular army engineers acting as instructors. The enrollment was anounced as 124 officers, exclusive of instructors.

New Planet Discovered

Editor Post-Democrat: ’ I see by the papers that some astronomer discovered some new planets this spring. Wouldn’t it be appropriate to name one “Hoover Prosperity?”, as it is so far away that it takes a powerful telescope to see it. Another planet should be named “Farm Relief” as it is still farther away and seems to have two satellites revolving about it—the “House” and “Senate.” With a view of the present prosperity let us phrase as follows: “Hoover is my shepherd, I am in want. He maketh me to lie down on park benches; He leadeth me beside silent factories: He restoreth my doubt in the Republican party; He leadeth me in the paths of destruction for his party’s sake. Yea, though I walk through the valley of starvation, I do fear evil, for thou art against me. “My politicians and profiteers, they frighten me. Thou preparedest a reduction in my salary before me in the presence of mine enemies. Thou anointest my income with taxes and ditch assessments. My expenses runneth over my income. Surely unemployment and poverty will follow me all the day of the Republican administration and I will dwell in a rented house forever.” Disillusioned Republican.