The Cairo bulletin., 1906-10-11
RUDE JOLT GIVEN
BY EXPOSE OF
TAX FRAUD
STATE BOARD OF EQUALIZATION
SHOWN DISCREPANCIES m
RAILROAD TAXATION.
ONLY FOUR ASSESSED
Of Misunderstanding Statements
Cause Them to Sit Up and
Take Notice.

I Springfield H., Oct 10 Not since
the Chicago teachers few years ago
assailed the assc sment of the street
using corporations of Chicago has the
State Board of Equalization been SO
iirr a up as II was today when Judge
I r. w. Fleming and J. NJ Duffy, repre-
! scnling tho corporation consel of Chi
cago fired a broadside into the tax
/ lodging railroads of this state
In sub tance they alleged that last
1 year the railroads escaped taxation on
property worth more than $Goo,oo0
600 Not only this, pui for thirty two
years back they have been escaping
taxes on immense property values
pror TO 1879 the State Beard Of
Equalization assessed the capital
stock and franchises Of the railroads
In 1873 the capital stock and fran.
chises were assessed at $G5, 600 900
Since that time the assessment of
| thcse property values has been so
small that II has in practice amounted
10 nothing, Last year the total was
'esa than s3,o00,00o. distributed among
four roads out of tne 130
Judge Flcm ne also showed that of
he 1870 railroads in the state only
four were asscs.e cd last year on CAPT
tai stock and franchises, and that
none of them comply wi h the law
which requires a statement to The
qualizcrs OF the value of their stocks
and bonds.
StartIes the Board.
! III the third place judge Fleming
startled the board b. announcing that
FthaTe arc serious discrpnauci eS in The
reports of mileage. In their sworn re.
ports to tho gtatp THifrUat bUaTd Ger
tain roads have reported twice the
mileage the state Board of Equallza,
tion has assc sed them on.
These facts were sprung with light
ming rapidijy, and the members of
the board if not before coCni2ant of
Their truth. sat up to take notice.
Judge Fleming began his statement
to the board by referring to condi.
tions in Chicago whore revenues
have not been large enough 70 con
duct the necessary institutions of gov.
eminent Various remedies have been
suggested aud finally said he. Mr.
Lewis decided to investigate the qucs
ton Of assc- sment To determine if
the rich private and corporate beings
were paying ON what they own,
Considerable degree Of success has
attended the crusade against private
concerns. but it was when the inquiry
entered tho railroad world that sen
s1tional discrepancies and conditions
were found
what the Reports Show
Judge Fleming spoke as follows:
In look 'ng into this matter Il WIS
discovered that the board in It's late
annual reports gave no information
whatever in regard Ia The capital
stock and franchi q values Of l2G ont
of the 1870 railroad corporations re.
porting 10 IT, This lack of informant ~
We found supplied IN part boy tine an
nual report of tn Railroad and Ware
house commission,
Tho report of the latter for the
year 1905 disclosed thu fact that the
total capitalization of 125 railroad
companies reporting 10 It was StG25-'
0O0.oo0. or This amount the capital
stock is S1.gG9. .0G7UG2 and the funded
debt S2G55.935.i75. ON this your board
for that year assessed only $59G.750.
Tb5 total capitalization the Rs lroad
and Warehouse commission apfor
toned To Illinois. upon the ratio of
whole mileage 10 the state mileage. /
Is SGo2.00b.0o0.
The Railroad and warehouse com 1
mission reports the assets of these
corporations TO DE s5.225.9i72e2. as
against Their capitalization of SlG25- /
lc5.537 So that it appeared that 'hc +
taken as q whole was .
worth more than par.
Discrepancies Shown.
Again. taking the census report 4
We find that the valuation of the rapi
tai stock of railways apppr ioned to +.
Illinois was SS05 o5T.e .e01 This. corn
pared with ths canitUiatiou of Sf93
poo 600. also seemed to show that t1a
bonds and stocks taken as whole
were more than of par value
From this deduct the total vaiIa-
ion of the 'aneible property. si5.5Sl
l57. and VS. would have s2fti1So5e L
These last figures represent values
hat seem to be- wholly unassessa a. i
Deducting the assessed value 500 f.
100000 We have sG1an1a0eo. This ,
vas a startling revelation and ind
,a-ed to us that this board had made /
! terrible mistake. and tha. this mis- /