Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-06-15
Bic RAILROAD
CASE OPENS
WHOLE DAY CONSUMED IN TAX
ING OF DISPOSITIONS.
MAY LAST SEVERAL WEEKS
Attorney General Sturdevant Says
That According to the Railroad
Commissioners Report the Total
Amount of Taxes Withheld in 1902
Was $513,499.73.
Madison, June IA

MdulSOh, June It
| The drawing of a jury and the tax
| ing of dispositions consumed the whole
| day in the circuit court Tuesday in the
case of the state Of Wisconsin against
| the Chicago 4 Northw estern Railway
company. This IS one of a series of
suits which the state has brought
against the railroads to recover penal
ties of $4,000 for alleged failure to
correctly report the gross earnings for
purposes of taxation. This will be a.
! test case and no matter which side
wins it will be carried into the su-
preme court for final decision.
Three car loads of evidence and sew
] en- railroad attorneys constitute the
/ formidable array against which the
state is pitted. The Chicago K North
western is represented by Lloyd w.
Bowers of Chicago and Burr w Jones
OF Madison; the Chicago, Milwaukee &
ST. Paul by Burton Hansen of Chicago,
James NJ. Clancy Of Stoughton. G. H
Van Alstne of Milwaukee and John
g. Sanborn; the Chicago, St
Paul, Minneapolis & Omaha by
Judge Thomas Wilson of St Paul, Tor.
merly of the supreme court of Mime.
sofa and John B. Sanborn
the Wisconsin Central by Thorn
as H. Gill of Milwaukee, Attorney
General Sturdeyant appears for the
state, and is assisted by H. w. Chyno-
weth A. H. Bright of Minneapolis
comes for the 500 today.
At the opening of the court an
amendment to the defendants answer
made some time ago was filed. The
effect of the amendment is to show
that there is a federal question in
volved which may require final settle
ment before the United States court.
1t claims that the Northwestern road
extends into eight different states in
the union and hence does an inter
state business. Federal statutes
ere sent for and Mr.. Sturdevant and
Mr.. Chynoweth( after a few minutes OF
private conference with Railroad Com
missioner Thomas, raised an objection
that it should not be allowed. Judge
Stevens allowed the amendment. how
ever. upon the payment of $40.
In opening the case Attorney Gener-
al Sturdevant said that from about
| 1854 until 1903 the railroads were not
taxed on the value of their property
but their license tax was based upon
the gross earnings. Relating TO the
examination of the books of the rail
road companies by the railroad com.
missioner he said that according to
Mr.. Thomas estimate the total amount
withheld in 1902 was $5l3.499.73. The
most important items of this were
money refunded through rebates
which were not taxed. amounting to
1921 ,075 for the repayment on passen
ger tickets s1O2.45S: for car rentals
$50. 462: for switching charges S93,-
900; and for the rental Of tracks 70
iother roads s9.304 Mr.. Sturdevant
said that no account had been made
of these in the report of the company
to the state treasurer and railroad
commissioner.
In his statement to the jury Mr.
Jones contended that the case was not
lone to collect taxes but whether or
mot the company had made false re-
ports Mr. Bowers took up the great.
er part of the afternoon for the North
western road.
The jury consists OF John Kading
Julie Remer. Erick Lewis ]. c. Melon
aid. Thorsten Thompson. Godfrey
Schmale. Martin Pennewell John
Clark, George StumDf. Hans Peterson
John King and Hugh McWatty,