Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-05-24
Gives Figures TO Show That Gross Earn
ings Were IncompIeteN Reported
to the State
Railroads Appear to Owe $3.50, 900 in
Back Taxes, According to Experts
Schedules


Madison, May L.
Governor La Toilette last night sub
mitted 10 both houses of the legisla-
ture Il special message that charged
the railroads with wholesome giving OF
rebates, with unlawfuly and fraudu-
lently emitting large items from their
sworn reports of gross earnings and
with lodging state taxes 10 the extent
OF 100000. The report OF the in
yestigation by Railroad Commissioner
Thomas. ordered by The legislature
two years ago in response to special
message by Governor La Toilette, was
submitted. The assembly has passed
a bin ordering the attorney general 10
prosecute recovery suits and the e
suit viii be a great legal battle BE-
.ween TIE rSilroads and the state.
The message will be called violent
by friends of the railroads. 1t is
praised highly by administration ad,
herents.
In the message Governor La Toilette
transmitted Railroad Commissioner
Thomas report of his investigation OF
the books and accounts of the rail-
roads.
Ten Millions Omitted.
The governor summarized the report
III the commissioner, which is a
yOlumtnous document. showing that
the railroads during the last seven
years had Illegally omitted from the
reports of Their gross earnings sums
amounting to s9739.933.95, not includ-
ing the reports of the Burlington,
which it is estimated by he railroad
commissioner would raise the totaf
amount omitted to $40 500 900. On
this amount the total license fees due
a the legal rate of 1 per cent on the
gross earnings, would be 100000
Some Roads Have Paid.
The Northern Pacific, Great North
era and the Duluth. South Shore &
Atlantic have paid to the state treas
nrer all the money due on the amounts
so withheld. The Minneapolis x Sauit
Ste Marie has paid S6,60135 on the
amount due from it on the earnings
nor properly reported but still has q
considerable amount TO pay Suits
have been Instituted by the STA t
against the Chicago & Northwestern,
the Chicago. Milwaukee Il St. Paul.
the Chicago St Paul, Minneapolis &
Omaha. the Wisconsin Central and the
Minneapolis Il Sanlt Ste Marie to re-
cover the penalty of $4,000 for failure
70 properly report gross earnings as
required by the statute. In his mes
sage. the governor assures the legisla-
tnre thar suits will be brought TO re-
cover the license fees due on these
earnings withheld, together with the
accrued interest
The assembly has passed a bill auth
orizing the attorney general to pro-
coed against the railroad companies
for these amounts, and the bill has
teen reported for passage by the Sen
ate committee on judiciary. II there
was anything doubtful as to the mean
ing of the present statute on this point.
there will be none as to the authority
of the attorney general and the intent
Of the law on this point after the pas
sage of this bill.
The report of the railroad commits
siouer takes up the matter of rebates
i'm detail and tells Of the methods OF
the state accountants Expert a.
countants We're employed who had ha0
in railroad accounting lie
nartmants f. NJ Fisher OF Chicago,
for Is years in the accounting de
patiment Of the Rock Island road. ana
w H. Cleary of Spooner, Wis. for
Years a clerk in the accounting de
pagmeni of the Omaha were first
enp'orcd II was found that they
wcuid need assistance and the commits
sioner employed s. W Gilman and E
c Mason of Madison, both expert &C
countants with knowledge OF railroad
methods of bookkeeping
Examined for Seven Years.
They went back over a period OF
seven years in their Investigations Of
the Milwaukee. the Northwestern and
other road The work OF investigat
ing the Burlington Is not vet COM
pleted.
This Investigation went into the re
payments on passenger .rattic as well
as on freight business. Long tables
are appended To the report showing
the amounts each road has withheld
from the reports of its gross earnings
for each of the seven years There
are a,So attached copies of letters and
telegramS showing communications
between shippers and the railroads on
the subject of rebates. The names
are omitted in the report though It is
understood that these are known 10
the commissioner and are q part Of the
records Of his office
Amounts Not Reported.
The total of S97S9.93395 withheld
10y the various roads from their report :