Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1904-04-19
The RAILROAD COMMISSIONER
MAKES STARTLING
REPORT.
Milwaukee, Northwestern, Omaha
and 500 Roads Fail to Re-
pert Sl,6o8,O76.
Investigation Covers Only Two Years
FRAUD Cheats the State
Out of $67,923 in
Taxes.

Madison, Wis, April 12.-After
months Of patient work, evidence has
been secured by the state administra-
ton proving conclusively that the
railroads have defrauded the state of
Wisconsin out of hundreds Of thou
sands Of dollars, which they will be
compelled to make good
Ample proof has also been secured
that millions Of dollars have been paid
to favored shippers in the form of re-
bates 1t is the most startling develop
ment that has marked Governor La
Follette's fight for good government
and equal privileges for ALL The COM
plete story of this gigantic robbery is
SO astounding as to be almost unbe-
lievable-but it is substantiated by an
official report made by Railroad Com
missioner Thomas, which is given in
anonther column. The facts now made
public explain fully why the railroad
forces have made such bitter and
expensive fight vainly striving to de-
feat Governor LaFollette.
Railroad Commissioner Thomas on
Saturday made to Governor LaFollette
report of the examination which he
Is making. in accordance with the act
Of the legislature, of the books of the
railroads to determine if the sworn
statements which they have filed with
the state are correct. and he has found
that during the years of 1901 and 1902
the Chicago and Northwestern. the
Chicago. Milwaukee and ST Paul, the
Chicago. Minneapolis and Omaha, and
the Minneapolis ST Paul and Sault
Ste Marie railroads paid to shippers
In Wisconsin over 81 29S, 600 In rebates
and failed to report other gross ear
ings amounting to more than 100000.
making a total of S1,G9SO7673 which
they wholly failed to report and upon
which they failed to pay taxes to the
state of Wisconsin, amounting to $67,-
e23O7. The report in full is as fol-
lows:
Office Of
RAILROAD COMMISSIONER,
State of Wisconsin,
JOHN w. THOMAS,
Commissioner
JOHN NJ. WINTERBOTHAM,
Deputy and Secretary.
MADISON, April 8, 1904.
To His Excellency Robert NJ. La
Toilette.
Governor of Wisconsin.
Dear Sir:
In accordance with your request for
a statement Of the results, progress
and all other information in possession
Of this department relating to the In
vestigation of the books and reports
Of the railroad companies operating
lines in this state, for the purpose of
ascertaining If said companies have
properly reported their gross earnings
for taxation, such investiga ton having
been provided by chapter 431, laws Of
1903, would respectfully report that
the work has progressed fairly well,
In consideration of the great amount
of labor required to check over the
books of the railroad corporations.
whose gross earnings amount to forty
or fifty million dollars per annum,
as is the case with several lines of
Progress and Results.
The Wisconsin Central railway
books have been checked over for 1902,
but the work has not been reviewed,
and is therefore not reported The
Chicago and Northwestern railway is
nearly completed for 1901 and 1902;
that part reported is given herein. The
same will apply to the Chicago, Mil
waukee and St Paul, the Chicago, St
Paul, Minneapolis and Omaha and the
Minneapolis, St Paul and Sault Ste
Marie. For several other years the
work is we'll i'm hand, and will be sub
mitted to you as reported
Repayments to shippers.
I have included herein the results
Of the investigation as reported to me
by the experts for the roads above
named, covering as stated the years Of
1901 and 1902. The work has been
II any, have been paid shippers there
by reducing their rate below the reg
ular tariff rates, rules on classical