The Superior times. [volume] (Superior, Wis.) 1870-1912, 1899-01-21
TechnicaIitics in Report.


ThroughOut the report is technical and
deals altogether with details, no general
summary of the work of the commission
being given. In part it is as follows:
The dining and buffet car service of
all the companies examined by us is not
n paying investment. and the gross earn
ingS from that source are not reported as
taxable by any Of the companies. the
Wisconsin Central alone excepted. Our
company, suid one of the railroad Off
cials. buys 500 worth of patahles for
which II gets about so in return. On
the 500 we pay tax of 81. DO You
expect us to pay 50 additional tax for
losing S50T This illustration brings out
the reason for the refusal Of the comra-
tiles to report the dining car earnings as
taxable.
The Wisconsin Central is The only
company reporting dining-CRr earnings az
taxable. which is due To the fact that tn"
sleeping and dining cur service is Under
one superintendent. for which reason this
department is able to show net earnings
THE rentals received from railroad
eating-h houses and hotels are included by
all companies in their taxable earnings.
Some companies include in their taxable
earnings the amount paid for as we'll as
the amount received from rents for
tracks, yards and terminals: other com
panicS include in the taxable earnings
the net balance only.
SECTIONS 32 and 80 of the 'Ciassifica-
ton of operating expenses prescribed by
the Interstate commerce commission pro-
videS that Switching charges balance
represent the net balance paid to other
companies for switching cars or locomo-
tiyes.' and that ear mileage balance rep
resents the net balance paid to other
companies, firms or individuals for use
Of cars int"rchangcd on car mileage
basis Upon investigation we found that
all Wisconsin companies paid ont on
their entire systems more for the two
items mentioned above than they re-
ccivcd and in accordance with the pro
visions quoted earnings from these sour
ces We're not returned as taxable.
Switching Charges.
IF the switching charge is part of the
rate the Wisconsin Central reports such
charge as taxable earnings. The Chi
cago. burlington X Northern railway dis
tinguiShed between switching charges
paid by railroad companies and those
paid by individuals. reporting the latter
only rs taxable earnings.
In checking the Green Bay & West
ern cOmpany's books we found that said
company uses the Chicago x Northwest
ern tracks from Onalaska to Marshland.
For this privilege the Green Bay X West
ern pays the Chicago x Northwestern
about $1,000 per annum, the sum paid de
pending upon the volume of business
done. Said amount is not included hy
the Green Bay * Western company i'll
its taxable earnings for the reason that
the Chicago & Northwestern includes the
amount in its Wisconsin taxable earn
ingS.
"A glance at the railroad map of the
Chicago x Northwestern and the Chi
cago. Milwaukee, X St. Paul shows that
bv iudicous routing both companies
might avoid the Wisconsin tax on the
greatest portion of the Minnesota and
Dakota business to and from Illinois.
When we found that the tax paid by
said companies to Wisconsin greatly ex-
ceeded that paid to any other state trav-
erSed by these companies. and that by
routing the Minnesota and Dakota bust
ness through iowa. the Wisconsin tax
could be avoided, without thereby in
creasing the tax of the companies in
Iowa. We made inquiries concerning this
point. We were assured by the officials.
however. that the routing orders called
for shipment Of all business via the short
limo y