Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1905-05-22
Gives Figures TO Show That Gross Earn
ings Were IncompIeteIy Reported
to the State
Railroads Appear to Owe $3.50, 900 in
Back Taxes, According to Experts
Schedules

are also attached copies of letters and
kilograms 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 TO
the commissioner and are a part of the
records of his office.
Amounts Not Reported
The total of $9,739,933.95 withheld
by the various roads from their report s
of the gross earnings during the last
seven years is made up Of various
items, tabulated by the commissioners
as follows:
Wrongfully deducted from the gross
earnings:
Repayments to shippers 5,077,1 1921
Repayments on passenger
traffic ..-..... ........ 872,66l.a0
Expense of operating ho-
tets ...--. IoUu.9o
Amounts not reported which are
part of the gross earnings:
Car mileage (credit bal
ance) ......... 49,. 977,3Oo.73
Switching charges collect
ed . .. 1,9S6,341.22
Storage, demmrrage, etc. 165, 364.05
Rental of tracks and
terminals $50. $3.50. 645,803. 81
Total ..----... -. $9, 1SSyS35 y D
The report them 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
consin 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 it's
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
tons in favor of the shippers receiv-
ing them. The benefciaries have
been lumber and coal merchants, pa
per and other manufacturers, refrig-
orator car owners and owners OF the
so-called 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 a large manufacturing COM
pany in connection with one or more
main lines of railroads, and is built
featuring corporation and used exclu-
sively for the freight of that corpora
ton. These roads are not in broad
sense common carriers, and do no
commercial carrying other than lndl-
Gated. Generally they are organized
and owned by an Independent corpor-
alton called "a railway company, but
the stock of this corporation is III
variably owned or controlled by the
parent concern of which it is a COM
ponent part and the Commission or
division of through rate paid to this
so-called railway is only a rebate IN
disguise. The Wisconsin proportion
of gross earnings has been very ma
terially reduced by commissions. paid
tC the officials of other lines OF rail
ways, PARTICULARLY those located in 9th
er 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 ascertaining to
whom the sums we're paid.
Some Paid to Large Shippers.
"Other refunds are paid to large and