Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-15
RAILROADS MUST PAY
Decision of the Wisconsin Court
Will Give the State Sum
fS16O,0oO
WRONG REPORTS WE'RE MADE
Penalt,> Under the State Law
Would Amount to Enormous Sum
Which the Court Says the State is
Entitled to Recover Litigation
Started by LaFoIIette.

Madison. Wis, July 15.-Wisconsir
! is entitled to recover $160,000 from the
railroads operating in the state, ac-
i cording to a decision given by Judge
| Stevens in the circuit court yesterday
| The state won its case against the Chi
cago & Northwestern, Chicago, Mil
waukee & st. Paul, Minneapolis &
/ Omaha and the Minneapolis, st. Paul
and Sault Ste. Marie railroads.
| The court finds the state is entitled
! to recover from each of these roads
$4,000, as these lines admitted they
had Incorrectly filed their reports of
gross earnings made to the state for
the year 1902. The same statute pro-
vides for a separate penalty for each
year that Incorrect reports were filed.
! The state still has an action against
these roads to recover penalties upon
the reports of earnings which they
made for 1908. The state has penalty
suits also against the Wisconsin Cen
trail road. the Green Bay and Western
the Chicago Burlington and Quincy
and Illinois Central
On the basis Of this decision and on
what Is known of the reports of the
earnings of the various roads which
have been filed with the state for 1902
and 1903 the state would be entitled to
recover IA total of 100000
This litigation is result of special
message sent by Governor LaFollette
tn la fpr ~
alties are only small amount of what
the governor says he is determined the
railroads will be compelled to pay to
the state. On gross earnings withheld
he says they still owe to the state 4
per cent upon the total amount of gross
earnings, which will amount to some
$4,000
After reargument of the question"
says Judge Stevens, "the court is still
of the opinion that the act of the rail-
road commissioner in indorsing his APP
prevail on the report of the railroad IS
an immaterial act and that such APP
prevail did not prevent the plaintiff
from maintaining this action. 1t APP
pears from the facts stipulated that the
defendant knowingly and Intentionally
omitted a substantial portion of it's
gross earnings. relying ON the advice
of counsel. This advice is not an ade-
quate defense"
Upon the trial of the railroad cases
in which the decision was handed
down, the facts We're, stipulated by the
parties. the railroad companies admit
ting that they had knowingly and in
tentionally omitted a substantial por-
ton of their gross earnings in their re-
ports to the state. claiming, however,
that such omissions were made upon
advice of counsel that they were not
properly included under the statute.
The railroad also claimed their reports
made to the railroad commissioner
and approved by him We're conclusive
as to the amount of their gross earn
ings for that year,
They also claimed that the license
fees imposed by the statute We're in
conflict with the commerce clause of
the federal constitution. If the statute
authorized or intended that interstate
earnings should be considered In de-
termining, the amount Of the license,
fee.