The Cairo bulletin., 1905-10-20
CL AIMS ROAD IS
BIG TAX DODC[R
Attorney Generals New Inter-
pretation OF |. G. Charter
OWES STATE MILLIONS
OF DOLLARS nv UNPAID TAKES
DATING BACK TO 1s5e-LEGAL
BATTLE LASTING YEARS
IN PROSPECT.

Chicago H., Oct 19-The Tribune
SAYS this morning.
THE Illionis Central railroad II
escaping the payment of more than a
million dollars year in taxes In this
state, according to the attorney gen
erals Interpretation of the law and
the roads charter.
II the state officers are right. and
| they have arrived at their opinion
after exhaustive search of law and
statutes, the Illinois Central should
have paid last year $2144.979 in taxes.
instead of s10G2,57l. which amount 1t
did pay
Going backward, the road, on this
basis, would owe the state millions
more of unpaid taxes.
Attorney General Stead rendered
the opinion yesterday in Springfield.
and Auditor Mccullough is expected
to levy this years tax accordingly.
The road will fight the matter In the
courts.
II always has been held by the COM
pany and by every state auditor since
the time of Jesse K Dubois, 1859 that
7 per cent OF the gross receipts CON
stituted the maximum amount the
company could be required TO pay
under It's charter, and the returns
have been made on this basis. II now
appears from the Interpretation pur
IN the charter by Mr.. Stead, that the
per cent. constitutes the minimum
the road should pay, and that above
that amount it liz liable for the state
TAX ON all it's stock, property, and as
sets CT whatever form.
The company has listed no prop
arty with the state auditor since 1859.
end no effort hitherto has been made
o compel it do so, but with this
opinion in hand the auditor will
notify the officers az once TO furnish
! statement OF assets. consisting Of
stocks ana bonds of olher roads. its
lands, spurs and allnther tangible prop
CIV. for the purpose of taxat on.
The attorney general also holds that
the lines acquired or leased by the
Illinois Central since the construction
Of the original line must be listed for
taxation the same as any other rail.
road property.
The corporation is certain to resist
this ruling. and the matter then will
be placed in the hands of the attorney
general who will institute proceed
ings A long drawn out legal battle
expected to follow. and il may be
years before The case is finally decided
hrorney General Stead has spent
nearly four weeks preparing the opln-
ion, and the authorities cf several
states have been consulted In = the
framing Of IT, The document com.
prises over G000 words. and cites
rul ngs of the supreme courts of half
A dozen states
John c. brennan. attorney for the
illinois Central. who has charge Of all
lax matters. expressed surprise last
evening at the opinion of the attorney
general He said he had not seen
he opinion, nor did he know such an
opinion had been asked for
We have been paying into the state
reasury ever since 1859 sums based
N a percentage Of our gross receipts
n lieu of all other taxes. Our char
er specifically provides that We shall
Tot be required TO pay more than the
um which will be equal TO PEE cent
4 the gross receipts and income de-
ived from our original road and
that being about 700 mile
We always have Included every
TEN In our statement OF gross receipts
ven TO the rent Of a hay scale, and
Though the cry was raised that we
ID not include our local suburban
usiness we we're able TO -efute that
barge cannot understand Why
here should BE- any quest on raised
{ this time. bur until see a copy OF
he opinion shall not be able TO say
hat attitude the road viii take in
he matter.
The opinion rendered by Attorney
eneral Stead Is the direct result Of
resolution which wa- introduced in
ie legislature last winter BY Repre-
.ntative Mann. ealing upon Gov.
eneen &c have the books OF the Ilii-
lis Central investigated, 10 ascertain
IL vas paying its full proportion Of
Xes. The resolution was lost but
e exposures made az that time. and
lich have since been made by Mr.
ckering. have resulted in Auditor
cCull0ugh's request ng the attorney
neral 10 reiuterpret the charter and
define his powers in leTying taxes
the railroad corporation. Mr..
cad has said that. in his opinion.
2 railroad company IS not compelled
pay any percentage Of the gross re
ipts derived from the operation Of
9 branch lines Eoi ssSciGed IA its
arter But these branch Has must
listed under the head Il assets.
4 the company should BE COMPELLED