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I
FIGHT
On Tax-Dodging
Corporations
Beg
ins.
County Judges and At
torneys Meet and Urge
Appointment of Spe
cial Counsel To Assist
Attorney - General in
Tax Suits Involving
Millions.
Justus Goebel Makes Strong
Speech at Meeting.
At a meeting of the county judges
and county attorneys of the State held
at the House of Representatives,
Frankfort, Ky on Nov. 8, the follow
ing resolution was adopted:
"Resolved, That we, the county
Judges and county attorneys of the
8tate, In convention assembled, heart
ily approve and Indorse the action of
the State Board of Valuation and As
sessment In placing upon the great
corporations of the State, enjoying
valuable public franchises and privi
leges, their Just share of the burdens
of taxation and we commend their acts
to the people of the State as consti
tuting the greatest tax reform of many
years, and while we entertain the very
highest regard and respect for the
ability of the Attorney General and
his assistants and the Hon. John L.
Rich, of Covington, employed as as
sistant counsel, we are unwilling that
any lack of counsel on behalf of the
State should endanger the Just and
patriotic action of the State Board of
Valuation and Assessment, and we
recommend to the Attorney General
and the Governor of the State that an
emergency exists and that the most
eminent counsel be employed to de
fend the action of the State Board of
Valuation and Assessment In the
United States Court."
Justus Goebel, of Covington, made a
speech before the assemblage, plead
ing for the employment of additional
counsel for the State. Mr. Goebel
said:
"Mr. President, Gentlemen and My
Brother Kentucklans:
"I am most happy to meet with the
county Judges and county attorneys of
the State. I am grateful beyond my
powers of expression for the Invita
tion of your President which permits
my presence here, and asks some ex
pressions from me on this occasion.
"You, the gentlemen of the respect'
lve counties of the State, who havo
been elected to office and charged by
law to protect the Interests of widows
&nd orphans estatos In tho hands of
trustees the every cltlien and taxpay
r who voted for you or against you, as
well as those who did not vote at all;
jos, all of you. in your official capacity
have sworn duties to perform, and out
of gratitude to those who have hon
ored you, you must have great desire
to perform those duties well. With
referenoo to tho business of this day
to tho subject-matter hero to be dis
cussed your sworn duty Is to protect
the Interests of every taxpayer of the
county you represent.
Corporations Deny People Rights.
"You are here to consider a matter
of lnflnlto interest to your people as
a wholo. The subject involves an in
herent and constitutional right whicu
has long been denied them because ol
corporato avarice and greed and the
weakness, if not dishonesty, of soma
In whom the people In the past have
placed their trust.
"That the great common people
should bear only their fair and jusi
proportion of the burden of taxation
Is one of the greater blessings to our
kind for which my brother, William,
labored and prayed and because of
-which be was finally assassinated.
"Is it surprising then that I am here
tilled with a profoundly earnest de
sire that the people of my State, of
the State of my martyred brother,
hall come Into tne enjoyment of a
right to which In all law;, and In corn
son honesty they are entitled T
Unjust Taxation Upon People.
, "Tm long, altogether too Wag, has
ther been unjust discrimination
agatathe people, usjwt and burden
some taxatioa open the people as eoav
pared with what has bees required to
te paid by the big corporations ol our
Bute, corporation lawyers bats bom j a franchise valuatlea of only
Ingly Mid Tho death of William Ooe- $1,889,870, and In 1911 on a valuation
bel was a benoflt to the oorporaUOBa.' 1 0f oniy $4,610,320, whereas, the board
If this were true, the question Is, how found their 1912 assessment should be
much longer shall tho people be held $HJ46,857. The L. & N. R. It. In 1901
In bondage because of hla deatht pald taxes on a franchise valuation of
"God knows tho corporations now oniy $6,604,879 and In 1911 on a valua
suing the Xtate havo been able to tlon of only $11,899,200. whereas, the
proouro (and tho word procure Is used
advisedly) Immunity long enough from
paying their Just share of tho taxes.
People Are Awakening.
"A hundred million dollar lnoreaso In
tho valuo of corporation property for
taxation opons a now era In tho State's
affairs and has awakcnod tho people
and brought them to a realization of
what has been done to them through
all tho years of tho past. As certainly
as truth, though crushed to earth, will
rise, just so certainly will thoro be a
further awakonlng which will correct
abuses equally as great as unequal
taxation, and its effect will bo that
henceforth overy man who would hold
ofllco by preferment of the people must
bo a progressive, and no imitation, no
mcro pretender will satisfy them;
they will sweep asldo and into ob
livion as old chaff any man who hesi
tates or dares to stand In the way
of Improvement and bettorment of
conditions for the whole people.
"No ono doubts, had William Goobcl
been permitted to live, that that which
was recently dono by tho Board of
Valuation and Assessment would havo
been done more than a decade ago,
and today, instead of the large public
Bervico corporations fighting in tho
courts and by sinistor methods en
deavoring to perpetuate unjust and un
equal taxation; attempting to throttle
tho action of tho present State taxing
board, the first to act fully In the in
terest of the people, such corporations
would long ago have been paying into
the State, county and city treasuries
their Just proportion of the taxes.
JUSTUS GOEBEL.
"Equality is all I want""
"Some of you may think this is mere
speculation but to those who so think,
I say I know whereof I speak, and I
believe tho railroads well understood
what he would do wero he permitted
to live.
William Goebel's Way.
"Had William Goebel been per
mitted to live, one of his first acts as
Governor would have been a demand
on the State taxing boards to delve
Into tho matter of values of the prop
erties ot tho wealthy public service
corporations of the State, and further
that those properties be adequately
assessed. If the Railroad Commission
or Board of Valuation and Assess
ments had failed or declined to make
assessments according to what was
Just and fair he would instantly have
called an extra session of the legisla
ture and had it appoint a committee
with directions to thoroughly Investi
gate, to find and report the true fair
value of the property of such corpora
tions. The facts thus obtained and
presented by that committee and its
experts he would have given to the
public and simultaneous therewith
would have gone forth his demand
upon those State boards to assess
those properties for taxation In ac
cordance with the truth; If thon the
State board had still tailed or refused
to do their sworn duties to the people
he would hare lmpeachod them and
driven them from office. If tho present
Board ot Valuation and Assessment
had not done its full sworn duty by
the people, that Is just what should
have been done to them, but thank
God, for once It has acted In the In'
terest of. too people.
"Necessity for action In the Interest
of the people has grown as years have
passed, until It has developed into
what Is today a crying shame from
which relief must come. .
"It Is very evident that In Kentueky,
as In other States, big corporations
will nover pay a cent more of taxes
than they are made to pay.
"Gentlemen, I am going to prove It
In a few minutes. Take the case cl
the C. & O. Railroad. Where la Mr.
Wall? I would like for him to hear
me.
Low Valuation of C. 4 O. Railway.
"Take the case of the C. & O. Rail
road. In 1911 that road on Its entire
system In Kentucky paid taxes on a
total valuation ot only $9,318,270,
whereas, the street railway company
of the city of Louisville was made to
pay on a valuation of $10,800,000.
Think of It gentlemenl
, "The C. & O. R. R. In 1901 paid
taxes on a franchise valuation ot only
$2,171,189, and In 1911 on a valuation
of only $1,743,350; whereas, the board
found that their 1912 assessment
should be $18,798,630. The C. N. O. A
T, P. R. R. in 1901 paid taxes on a
franchise valuation of only 13,110,197,
h4 I 1911 -is jl valuation of eajy
$S,t(l,!tt, whereas, the" board' found
their 1911 aasassmeat should be $19,
NOW, Tha L O. la 1,901 pai4 taxes
board found their 1912 assessment
should be $45,428,074
Fight Must Be to a Finish.
"I want to tell you gentlemen, that
that assessment Is fair and Just, and
If we get Justice In the courts we will
win. But, no less a man than the Hon.
William J. Bryan, the great champion
of the people, has stated that courts
do not always do Justice to the peo
ple; and that other great champion of
the people, Hon. Theodore Roosevelt,
Bald the same thing, and recently
charged that some of the Judges he franchise of tho L. & N. Railroad, In
put on the bench proved dishonest. 1 1902, the assessment against this corn
Gentlemen, I want you to go Into this pany did, at. no tlmo, reach the equal
fight, with an ardent heart and with 0f tho 1902 assessment of $10,774,899
loyal lawyers, and fight to a finishand until 1911. and this, in Bplte of tho fact
to death, If necessary. Now, I want to that Milton H. Smith, president of tho
say to you I am no corporatfon hater, l. & N. R. B-, testified in the United
I am a business man. I know.WrfTiave states Court at Frankfort In 1906 that
to have corporations, and big ones, the tangible property value alone of
but we don't have to have them to the tho L. & N. Railroad in Kentucky in
disadvantage of the people. I want 1905 was $70,000,000.
them to have dividends. But I do not ( "Gentlemen, I am quoting from pub
want,them to reap them at the expense nc records.
of the people and the other taxpayers. "This is more proof of how our State
Let them pay what the other taxpayers has been robbed. Accurate Information
pay. Equality Is all I want 'enables me to Bay for Hon. C. C. Mc-
"Wlthout excoptlon all these com- chord and Auditor Henry M. Bosworth,
pan.es and tho two others now suing two gentlemen who sorted on State
wanted tho samo assessment for 1912 Taxing Boards In years past that they
that they had In 1911. The Board of wcre at the mercy of a majority ad
Valuation and Assessment based their verso to their viewB and inclined
1912 assessments on convincing proof against the Interests bf tho people,
of values placed before them, and the what the Increased Valuation Means.
assessments are uniformly just and
fair, and of tho more than four hun
dred corporations assessed by the
board this year, only eight have pro-
tested In tho court and these aro
among those that havo always pro-,
portionately .paid the least.
State Robbed of Millions.
"In the last twelve years, since the
death of William Goebel, the State, I
counties and cities havo boon robbed
(and the word robbed is the only word
hat fits tho case) of more than ten
million dollars In taxes.
"I am going to prove It
"In the years from 1902 to 1911, In
clusive, a period of ten years, there
has been an average Increase In the
franchise assessments ot tho tour
largest railroads in the State of only
1 per cent yearly.
"Think of It I and this almost un
believable record of astonishingly
small Increases was made In the ten
best years for earnings that the rail
roads of this country ever saw.
Inadequate Taxation of Railroads.
"The picture hero presented of the
previous inadequate franchise assess
ments Is astounding, but when one
examines into tho situation regarding
the tangible assessments made by rail
road commissions of tho properties of
four of the corporations now suing
the State, the word 'astounding Is In
adequate and here must bo supplanted
by the word 'dumbfounding to state
more correctly what the tangible as
sessment picture actually presents.
"Take the case of the C. & O. R. R.
and tho records show that the tangible
property of this company in 1892, 20
years ago, was assessed at $8,019,577.
Notwithstanding the much addod mile
age of road, double tracking of a vast
system, acquiring much now real es
tate, probably more than doubling the
equipment of engines and oars, and
meantime increasing by earnings tho
value ot Its stock 660 per cent this
company's tangible property was as
sessed In 1911 at only $6,270,270, or
21 por cont less than In 1892, 20
years ago. Further comment to show
that our State has boen robbod Is un
necessary. "The other railroads have bean sim
ilarly Inadequately assessed on their
tangible property for many years.
Corporations Prevent Honest Valua
tions. "In fact until this year the Board of
Valuation and Assessment has 'been
controlled In the lntorost of the
wealthy corporations by some hook or
crook, either friendship, politiool favor
rendered or to be rendered, bribery or
intimidation, but never before has the
State, counties or cities been given
what they wero rightfully entitled to.
"Another ot tho many examples of
flagrant abuse ot public trust
"I wish I could leave out of my
remarks what I am about to say, but
that Is Impossible under present cir
cumstances. Until now, I have said
vtry little about the L. & N. Railroad,
Some may say that I have an old anl
moslty to the L. & N. Railroad Com'
pany, because of the assassination of
my brother. I say, gentlemen, that la
a mistake. In my state of health and
at my age, I have nothing but love
for my fellow men, whether they agree
with me or not Next to the last words
that my dear brother spoke were
these: 'They do not understand. I
forgive them.' There may be some who
now do not understand me, Qentle
men, the men elected to office did not
do their duty. I hate to say so, but I
am here to speak the truth, and all I
have fought for n the past seven
months Is Justice and fairness for the
people. (
"Another of the many examples of
flagrant abuse ot public trust Is to be
found In the records ot our State per
taining to the franchise assessments
by the Board ot Valuation and Assess
ment of the L. 4 N. It R. In 190.1 this
company's franchise assessment was
$6,504,879. In 1902 tbe asssssmeat was
increased to ,$10,774,899, and the L. A
N. breat...l(Ji tou ewfrtojftsjtats
froaa collecting ea this tasrsase of
M.ne.ow.
"J said a whHe aaa thai the serper-
atlerts will never pay a asut mere
than they are nade to pay, awl yen
will see that proven
"In 1903 with the validity of the
1902 Increase pending ia the United
States Court, the Board for some In
conceivable reason fixed the franchise
assessment of this company at $2,688,
994 less than the 1902 assessment. In
1904, with the validity of the 1902 In
creased assessment still pending In
tho court, the Board fixed tho fran-
chlso assessment ot this company at
, $2,140,259 less than the 1902 assess-
ment. In March, 1905, tho suit of the
L. & Nt Company against Auditor
Coulter was decided In favor of the
State, tho court holding the -1902 fran
chise assessment of $10,774,899 to be
valid; but, notwithstanding tho fact
of this court proof of valuo of the
"What does the hundred million dol
lar Increase made by tho present
Board of Valuation and Assessment on
corporation franchises mean to the
people of different sections of the
stato and to the whole State?
Tho one hundred million dollar in
crease means half as much as tbe
amount of tho total valuo of all the
property equalized for taxation In the
county of Jefferson, which Includes
tho city of Louisville,
"Comparing the Increase with the
counties that contain the three largest
second class cities of the State the In
crease equals tho amount ot the total
valuo of all property equalized for tax
ation In the counties of Campbell, Fay
ette, Kenton and Franklin, which in
clude the cities of Newport Lexing
ton, Covington and Frankfort.
"Comparing the increase of one hun
dred million dollars with the Westeru
section of tho State, It equals the
amount of the total value of all prop
erty equalized for taxation In the en
tire First Congressional District em
bracing thirteen counties, and, in ad
dition thereto, of all the counties of
the Second District, with tho excep
tion of Henderson and Davles.
"Comparing the Increase ot one hun
dred million dollars with the Central
portion of the State, it equals the
amount of the total value of all prop
erty equalized for taxation in the
Eighth Congressional District embrac
ing ten counties, and In addition there
to tho county of Fayette, which In
cludes the city of Lexington.
"Comparing the one hundred million
dollar Increase with the Eastern sec
tion of tho State It equals tho amount
of the total value of all property
equalized for taxation In all tho coun
ties embraced in the old Ninth and
Tenth Congressional Districts, with
the exception of the county of Fleming,
or, In all twenty-elx counties. ,
Crisis In Kentucky's Affairs.
"This Is a crisis in the affairs of
Kentucky. It is a fight brought by
eight tax-dodging corporations direct
ly against tho more than 2,000,000
souls who livo in the 98 counties of
this State, traversed by their lines.
"This Is a fight ot wrong against
right; inequality against equality; un
fairness against fairness, and injustice
against Justloe.
"Those last words of my brother
'Be brave and fearless and loyal to the
great common people,' have nover
ceased burning In my brain, and in
my heart and when In August last I
was beselged to agree to a reduction
of many millions on the new 1912 as
sessments, I gave tho exact feeling
that possessed me thon and It la the
same today T would rather loso my
life than be a party to a shameful
compromise of what I know rightfully
belongs to tho Stato and the people.
"I am opposed to making a political
asset of the matter of employment of
additional counsel to pay debts or pur
chase a favor. What I have done to
assist the board, any other private citi
zen could have done. If some ot those
who were so quick and prompt when
there was a Job in sight to lntercedo
for certain attorneys, had In years
past turnod their attention to reliev
ing the sufferings ot the State and
people from unequal taxation, they
would at this hour be rightfully en
titled to some consideration in tbe se
lection ot special counsel.
Corporations Again Show Hand.
"I charge, and am willing and ready
to prove If necessary, that emissaries
of those corporations, who, by dark
and damnable methods, tried' thlr best f
to prevent the Board ot Valuation and
Assessment from making- proper as
sessments ot their property, are today
meddling in the matter of the employ
ment ot special counsel to assist the
Attorney General la these oases
against tbe State, and If they eaa con
trol tbe selection they may be de
pended upon to pay 'any man of straw'
mora than, the State will agree to pay,
Ther are men who have said In
pUeaa to our Attorns asaeral Uyt
in the employment of Attorney John
L. Rich, the gtata had soae tar ssaugh,
but to wtk us I would say; Is yaw
I
, sly Interest ta welfare a the people,
. and have ye pwea that there Is no
other Interest that to.gTeater with you," I0 """'" " l" w.r'::ul,
than the people's iBtereetf
"1 would like to see Vieee men
trotted out', se we all may knew what
they leek like and what their connec
tions are.
"It was determined and partly ar
ranged to employ Louis D. Brandete,
'The People's Lawyer,' of Boston, as
published on April 12, 1912, In the
making of the tentative and final as
sessments by the Board, If necessary,
but we did without his services, and
now that the assessments have been
made and the eight big corporations
have Instituted suit against the State
it Is hoped that If Mr. BrandeU, who Is
now spoken of as likely to be a mom-.
ber of President Wilson's cabinet. Is
unablo to accept employment; In dp
fenso of tho State's Interest, thero will
bo employed one or two other counsel,
tho best to bo had In tho United States,
whom Mr. Brandels may recommend
to the Attorney-General to assist In
representing the Stato.
"Ability, known loyalty to tho cause
and assured freedom from corpqratlon
taint, should be the gauge trgovern in
the selection of an attorney 'to assist
in the defense of the State's, and tho
counties' Interest
"When first I determined to give
myself to this work of compelling ade
quate taxation ot corporations, I knew
they would Invoke every power of the
World, the flesh and the devil that
could possibly, by fair means or foul,
be commanded to aid them to proyent
the carrying out of my designs, which
were already a part of the Just law of
tho land, and I have not been disap
pointed. Committee To Assist Lawyers.
"For years I have known the public
men of the State and from many
eligible to be chosen for such service
I havo thought of some who have
studied these questions and who know
who can be trusted to assist in the
effort to have your counties enjoy
what the law Intended, and what the
present State Board of Valuation and
Assessment by Its 1912 assessments
has made possible ot realization. These
men I am not afraid to trust to act In
an advisory capacity in the premises;
they aro and have been prominent in
the affairs of the Stato. I refer to
Governor James B. McCreary, Attorney-General
James Garnett Hon. Can-
slus M. Clay, of Bourbon County, and
Hon. James Richardson ot Barren
County. I would like to be honored by
being on that committee, becauBo of
my infinite Interest in this matter. I
have drawn a form of contract which
I shall read and hand to your Secre
tary jand submit for your considera
tion. I feel that its fairness will at
once address Itself to your honest In
telllgence, and. I bog( tha you return
to your home county and urge upon
the Individual members of your county
fiscal court that it be promptly ex
ecuted, so that our forces may be en.
listed and organized for this legal bat
tle, the first skirmish of which must
be fought on tho 20th day of tho pres
ent month In tho Federal Court here
In Frankfort
Plan for 8ecurlng Counsel.
"This, of course, only with the un-
derstandlng that your fiscal court will
want to make any contract at all for
special counsel. I have never thought
much of this plan for securing the em
ployment of the needed special coun
sel In these cases because, at best
when special counsel are employed
and paid, the people bear the expense
and If the counties rather than the
Stato employ and pay, It Is only taking
money out of the left-hand pocket
Instead of the right the people. In the
end, have to pay all the expense any
way. I turned to this plan only when I
found or there seemed to be no other
way to satisfy the Attorney General
and to get for the people the needed
special counsel. The Attorney General
himself proposed to me the 20 per
cent as a fee to be paid by the coun
ties to Mr. Rich, and said that he would
seoure the making of such.a contract
with Mr. Rich by five counties, and
named them. When this matter was
first proposed to me I said I would
have nothing to do with the matter
unless there was a clause In the con
tract which would give absolute pro'
teotlon to the people to prevent any
lawyer from being paid an excessive
fee for the services rendered. I have
labored for months and years to bring
about the assessment made In 1912,
and that without compensation, and It
III becomes any man to say that he
has a greater desire to economize In
the Interests of the people than have
I. In the form of contract I shall sub
mit I have safeguarded the people by
providing a committee of honorable
men to see to It that no man have
mors than a reasonable fee and that,
together with all other expenses to
the counties, to be within the limit of
the 20 per cent suggested by the At
torney General.
"The eight suits that have been
brought against the State and coun
ties must be fought through all Fed
eral and State courts and are of vital
Importance. They involve for the Stato
$882,389 and for the counties, cities
nd taxia d"tricu $813,398, or a total
annualy ot $1,205,735.
"I feel that your approval of the
form ot contraot which have sub
mitted will provs your loyalty to yc-Ur
oonstltueuts and in the end will ac
complish great aad everlasting good
tor your home county people and all
Kentucky.
A Saddening Ploture.
"lahlnd the saeass thsre Is a pic
tur that Is sasWenlaf ta .me In sen
nsetlen wltfi all tfcla matter. Our
Hats, tho great Mate sf Ktatusky, Is
rsndsrsd Imsst, aeeause the ev
era, the aMaf etty af ew Stale,
. ju.
nel lh8 Attorney General aamwt atrea
Governor Is In favor f asdtttawl ,
counsel, and the Attorney-General says
he has enough, and la willing te aesaat iU
the responsibility of this fight, ansLfaJ
earry-en these suite with the feraaUP I
he now has. I say the responslbllfiAy r?
Is too much to ask him. to assume '!.
"We are fighting a monster, we are '(
fighting a demon that will resert ta
anything and they tried everythinf '
but murder to prevent the board frem
making these assessments.
"They have attempted to corrupt
the Board of Valuation and Assess
ment, and (hey will go further to at
tain their end. If they can, they will
corrupt the courts, as they have done,
ere this. And that Is What I want to
convince you of and warn you against.
Protect yourselves and others In these
cases and" have lawyers who will make
the facts so clear that there can bo
but one course open to the courts, and
then they will follow If
Rheumatism
Sprains
litis O. JtABOXET, of 270S JC. St.,
TV. Washington, J.C, writes : " I suf
fered MlthrliouraatlJin fur flro years
and I hao juit got lioldof yourXInl
uicnt, and ft li:u dono no go much
good. A.y Lncca 60 not pain and the
swelling has gono."
Cuicis tho MVC3
Mill. A.TTCIDMAS, o J Eio!r"i
Bt., Jlaryrlllo, Mo., wrltos 1 " llio
norto In my Icr was destroyed no
years ngo and left mo with a Jerking
Rt night so that I a. -id not flcep. A.
Ulead told motoiry jour Liniment
and now 1 codld not do without it. 1
find alter lta uso I can sleep."
SLOANS
LINIMENT
'Is a good liniment I keep it on
hand all the time. My daughter
sprained her wrist and used your
Liniment, and it has not hurt her
.since."
Joseph
Hatcher,
of Selma. N. O.,
E.FJ).,No.4.
At All Dealers
Price
25c, 60c, $1.00
Sloan's book on
horses, cattle, hoes
and poojtrr sent
tree. Address
Dr.
EarlS.
Sloan,
Boston,
FOR SALE!
Cottage $1,275
Cottage T. i,6oo
Cottage x 2,000
2-Story Residence 3,ooo
2-Story Residence 3,600
2-Story Residence 4,000 ,
Cottage 1 4,000 '
Cottage 3,900
Farm $100 per acre
Farm. .. 125 "
Farm 1... ,- 105
Farm 100 "
Farm ... no "
&c.
W. HOFFMAN WOOD
The Man Who Sells the Earth
Kl
Nur-1 'v-
' RICHMOND. KY.
A Training
School for Teachers
CognMlMllSf ulkmenury,
InttrniwlUU and Lift Buu Crr
tlOetlti. Villi U all futile
So&boU of Ke&tnckT, BimoUI
b CoorMi,TulUonFttoin.
BBR ttnlnt. Vat m....AIA A...
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Auif. 1913
For any pain, from top to toe,
from any cause, apply Dr. Thomas'
ElectricOU. Pain can't stay where
it is used. im
-i i
The BEST is always the cljeap.
est.' If in. need of furniture, wtr-
jmts or rues, see
W. A. Sutton A Son.
.
Home-killed maate at
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Neiaralgia
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