, 1875-11-18
Settlement OF tho Long~PcndIns
Illinois Central Tax Cnsc.
Aow the Company Saved 1927, les, M,
Lost g241, ,o04.
lnlnors Concerning d Change In Tho In.
dian Comn,lsslonerslllp.
Tho Vice-president Still Very Weak, BIZ,
Improving Slowly.
THE ILLINOIS CENTRAL TAX.
A FINAL RErfL1:MENT.

Spsciat Dtstateh 10 The Gaieago Tribune,
WAsuisuroH, d. e., Nov. l7.-In Au1u,,
1870. tho Illinois Central Railroad Coma ;,
1nalo dividend at sl,2co,776, upou whics, !,
September. 1871, tho United H.Atos Go9eruuea,
n:aaaaed dividend tax ot 9G1,is3. THE co,..
}any obtained Al Injunction aRainst tle c.,
]ec:or Of 1uterEal Revenue, Which WAS ms,
timed for long time. although II has sacs NJ,
reared that the Court bad nu ri8bttul aa.ha-.
ity to thus enton United States o.6t,r
Tue Company claimed that a pods,
OF tho dividend vas tlerisnl ha,
pa1e5 Of the lAnt!a granted BY T.,
General Oovesnmens. Agents OF Tho Goy,r.
n,tnt were directed TO mako tho necessary e..
animation OF tho books OF tho Company At CHI,
.uso, and Of sllolr land-books a. New yott
! Ihi. examination ahowod TINT a!l Of tho tvicsoi
except s721, ,271 wAs derived from, tEo salts Ct
such land. Tho total amount OF dividend TIM,
xh,ci. tho Government 1nado its aeaoHsrnea, "a,
about al,25D.0oo. lforo than onc-halt Of tl,
| dividend waa derived from diEessns ua;rt
! than tho roal earnings Of tho road. Tho Trs.,.
nry Department haa to-day
| Ar1rs7ED THIS AccocNT
by potm.tlng the 1ilfnola Central Coupsrs +,
1py $50. .069, with interest from, Sep TENT or, Isl
| in full for tho entire assessment. The tod
| nu,ouns which tho Company viii 10 reluit Il !,
pay of tax. interest, and penalty, ia a5ol77. T..
GoVernmeas originally claimed 49l,'i96 u.
Company las succeeded IN reducing this osieiu,t
demand OF tho aoyeruR,ont by s27125
Tho succoss Of the COMPANY Id sbss dit,ctioa
| Ia ineignulcaut In comparison with lis b,u,ls,
in an0tl,or. rbo Commissioner Of 1L;.su.l
Ke, enue 1.as recently doclded thst s&'cs 0! La!
! Erapte1 by tho Government to r1tlrohIB IRE ire,
iron, tax, With the exception ct sAs lnt.re i ia,
may accrue upon nptoa. Or that Ia tlcludod 10
notno takeD for Bales OF aucl laud wt,h Ls
ualca aro mado on tlmo. THIS decision oi tt,
Commiasioner Is y construction nf an CID Inv
WHICH ucemB very p1aiM md nuambguous in Ia
either ignorant Of this law OF
FAILED 1fuM1LY 70 INTERPRET II,
for that Company has already pail reEessHe Il,
upon sll7!donda derived from tho salcs If Ii,
| GomuliBslunor OF 1ntornal Royonro now deeds;
thar ts,.s tax ueel not havo haoti paid. u su;A
land, ,ea.eH arc exempt from taxatiou. Tho IT,.
no,s Central allthoritos hayo tho satlsfat'lo, 1t
knowing that the suit by which thoy tess:ol .l!1
payment Of tho aasoesn'cnt upon tho d'sidonl
decIarod from tho HalcH Of land nagod Tho CON.
pRny e27.l25; also DISCLOSED Tho fact
that thoY Ind nec{aesafy paid tho GoroFamslt
ta141 .U04. ThiF nonoy catnot bo recovered ffou.
tho Treasury by any procesa Of Inv, a. tie t;Ga
within which It might lawfully be refunded eI.
pirad by legal limitation on 1tlne o. lb7j.
THE oELT REMEDY
for tho Company is by special act Of Congress.
, Complaints havo boen msdo that in fo.Ia:;
dispatches On the SubIees, tho dividend upon
which +ho qorornmeLt losicd tho tax Of 49Gs6'5
| waa characterized AZ fictitious. Tho 1:ailroad
Company haa oven lodged = complaint ~Ah .hs
| Treasury Department on acoount Of the nse ol
tho word fictitious. Tho Treasury authorities
don't understand t!,at the diyideud was hc,cu!
| iu tho sense that tho mouoF was pot aiEdfd
among tho ssookholders, but It ie admitted T.
, tue Company that tha aum Of 81 ,2o9, ,1i5 ~
composoii Of earnsngB Of tho road, Hh,lc ID fAa
Of this amount tho Bum Of 4,29l wAa der!Ssa
? from tue aa1ea OF lauds. Tho fiction canslsu
only "a the dividend uns
ONLY PARTLY EARNED.
The Stockholders could east}y know. II tht toMsaf'
Of tho Compangdid NOT, that aafes Of 1rar! lamb
: wers not properly taxable with divide d ti1
D aud that the proceeds Of such sn'cs co.la 10
bo returned as dvidondh. The stoekho!d'rs noa
know that while for tAreo years thev soo1sel !
d dividend OF 10 per cant 1nstoad Of pr cens
3 Which tho legitimate earnings alone "ar:a5iel
: tho Company has paid dividend TAI Of ps
a cent upon 5000 sos, the aggregate proc .eds =
!. the sales Of gran. 'auds, upon w4sch nu ~ "t
= duo. lhs dividend Was cortasuly not hcs,tioos
bnt tue 10 psr cant dividends vera deciMt u2a
Q the earnings Of tbs road alone.