Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-05-24


Amounts not reported which are
a part of the gross earnings:
Car mileage (credit bal
ance) .......... 80. 9iI3007g
Switching charges collect,
ed ...,.. ............. 1886 ,3412Z
Storage, demurrase. etc. I6J,364Os
Rental of tracks and
terminals ..... ...... 64J,S033l
Total ........,. go. SO, 739 $685. IS
The report then takes up at length
the methods followed by the roads in
giving rebates to shippers Among
other things the commissioner says
Rebate Methods.
1t has been the custom of many
railway companies operating in Wis
cousin to pay out each year large
sums of money on vouchers which are
designated as commissions to ship
pers.' In most instances the compa-
MES paying out these sums have de
Quoted the amount so paid from their
report of gross earnings to the state
treasurer. There can be little ques.
ton that these reductions are wrong
and that the state is entitled TO its
percentage on the amounts so deduct
ed. Where this course has been fol
lowed by the roads the amounts so
deducted have been included in the
tables which form a part Of this re
port. This department regards
these payments as unfair discrimina.
tions in favor of the shippers receiv-
ing them. The benefciaries have
been lumber and coal merchants. pa,
ger and other manufacturers. rcfrig-
orator car owners and owners of the
sOcalled industrial lines. The mean
ing of the term industrial line is
probably known to everyone who
reads this report 1t is generally
but system Of sidetracks about the
works of large manufacturing com,
pany in connection with one or more
main lines of railroads. and is built
for the sole convenience of the manu-
featuring corporation and used exclu-
sively for the freight of that corpora
ton. These roads are not in a broad
sense common carriers. and do no
commercial carrying other than indi-
Gated Generally they are organized
and owned by an independent corpor-
alton called "a railway company, but
the stock of this corporation is in,
ariably owned or controlled by the
30 tent concern of which IL is a com
ponent part and the commission or
division of through rate paid TO this
so-caled railway is only a rebate in
disguise The Wisconsin proportion
of gross earnings has been very ma
terially reduced by commissions paid
to the officials of other lines OF rail
ways, prticularly those located in 9th.
or states. Parties receiving such pay.
ments are designated by their proper
official title. occupation and addresses
on the vouchers, but the receipt for
such commission is given to them in
their individual capacity and not as
representatives of the railway compa
MES employing them. Many of the
vouchers for commission are made to
the general freight agents. general
traffic managers and subordinate
freight officials of lines outside Of
Wisconsin In such cases there has
been no difficulty in ascertainins to
whom the sums were paid
Some Paid to Large Shippers.
Other refunds are paid TO large and
favored shippers The course fol
lowed has been for shippers to pay
regular rates of freight and at inter
walls certain proportions of amcauts
paid ara refunded to them in accord
ance with special private under.
standing The amounts are then de
Quoted from the gross earnings AMI
omitted from the total gross earning
reported to the state treasurer. These
refunds amount to illegal preferences
to the shippers receiving them and
when they are deducted from the
gross earnings reported 20 the state
treasurer the amount of taxes the
state should receive is reduced
1t is difficult TO arrive at the exact
facts of some of the transactions re
sulting in freight determinations in
the form of rebates as the vouchers
often give only a vague and meager
statement of the facts. Sometimes
they are very misleading The &C
couutants did not obtain absolute
proof of the legality of many claims
! Of recent date until their investigation
led them back To the years lS91 and
1898. where similar payments were
found To the same parties. which were
not So ineeniously worde3 as the more
recent ones.