Mexico weekly ledger., 1899-03-09
TIE Q. . A. BACK TAXES.
An Explanation From Attorney Rob
srtson Why the Company Does
Not Pay on It's Rolling
Stock.

A LEDGER reporter on Monday
called on George Robertson, attor-
ney for the Chicago & Alton Railroad
Company, to enquire about the suits
recently brought against that compa-
ny in the Circuit Court for taxes. Mr..
Robertson said:
tsThs only difference between the
State and the railroad on the matter
OF taxation lie a. to what part Of the
rolling stock should be taxed in this
State.
"According to the return Of the
President Of the road made to theState
Auditor, the average value per mile
OF the rolling stock in this State is
given in at e1,51O. "a, while the State
Board of Equalization has assessed
the average value Of the rolling stock
In this State at 3 ,461.54
''There is no controversy but the
statement made by the President Of
the road Is q true one, and that he
has given In to the State Board OF
Equalization ali Of the rolling stock OF
the company used In this State.
"The rule OF law Is that rolling
stock Is personal property and Is
taxed, in the absence of q statute to
the contrary, at the situs OF the own
or, and according to this rule, the
Chicago & Alton Railroad Company,
being 3 corporation Of the State OF
Illinois, its rolling stock is all taxable
In that state, Notwithstanding some OF
1t is used in the State of Missouri.
''This rule, being regarded as Unfair,
q number of states have passed lave,
among which is the State Of Missouri,
requiring the assessment of rolling
stock of a railroad company used in
this State Notwithstanding the corpo-
ration is organized under the laws of
another state. The law was passed
In this State in 1879, but 1t does not
seem that the State Board OF EquRli-
cation has attempted to enforce 1t,
especially in the manner they are I'M
dertaking In the present instance.
"That law provides that when any
railroad shall extend beyond the linn
its OF this State and into another state
in which q tax is levied and paid on
the rolling stock Of such road, then
the Board Of Equalization shall assess
only such proportion of the value of
the rolling stock Of such railroad as
the number Of miles Of said road in
this State bears to the total length of
the road as owned or controlled by
the company.
SNOW, without being exactly accu-
rate, but for the purpose of illustra-
ton, the Chicago & Alton Railroad
Company operates q track Of 500
miles, 200 Of which are within the
State Of Missouri. According to this
law, the Chicago & Alton Railroad is
compelled to pay taxes on one-fourth
Of Its rolling stock to the State OF
Missouri, when,as q matter of fact,the
principal operations of this road are
carried on in the State of Illinois
and not In the State OF Missouri 'and
the rolling stock actually used in the
State of Missouri and coming within
its jurisdiction for railroad purposes
is only one-twenty-fourth Of the en-
tire rolling stock, and as the railroad
company Is compelled to pay on all
OF the rolling stock used in the State
Of Illinois, it lie therefore compelled
by this latest ruling Of the Board Of
Equalization to pay q double tax
that is, to pay a tax both In the State
Of Illinois and the State of Missouri
on this difference between one-fourth
and onetwenty-fourth. 1t is plain to
see then that the railroad company ID
taxed doubly upon hvetwenty -fourthi
OF It's rolling stock.
1.-THE railroad company has prompt
Iy paid all of It's taxes throughout the
State, reserving the right to contest
the validity of this part which 1t
claims Ia double taxation.
"The purpose Of this tax suit, as of
all others being brought throughout
the state,is to test the question of the
right Of the State to tax agreater part
OF the rolling stock than lie actually
used within this State. There are
other questions bearing upon the
validity OF the tax, but this is the rea
point of the controversy"