Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-10-24
MUCH OvERL OOKED.
State Board of Equalization Given
Startling Figures on Rail-
way Taxation.
Ss,OOO,OOO,O is OMITTED
Attorneys Present Data in Support of
Contention Recently Ad-
Vanced.

Springfield. H.. Oct "a Statistics
showing that in the last 20 years $S,-
600 100000 of railroad property in Hi
nois has escaped assessment were read
to the state board of equalization yes
terdays by Attorney w. b. Fleming
and J. NJ. Duffy. representing Chicago.
The total of $4,000. 100000 includes the
estimated total of the 10 per cent per
annum tax on omitted assessments.
Attorneys Fleming and Duffy were
before the board two weeks ago and
then they charged that an enormous
amount of railroad property has escap-
ed taxation They were asked to file
specific data. The size of the amount
given in the statement came as great
surprise TO members of the commit
tee.
Mass of Figures support Claim.
Attorney Fleming presented a detail
cd statement of total mileage, capital
stock, bonded debt. assessed tangible
property, and estimated value of stocks
and bonds of some thirty railroads in
Illinois entering Chicago. the assessa-
bic values being based upon the par
valuc of stocks and bonds.
According to The figures presented
by Attorney Fleming in another tabu-
lation as to the valuations omitted by!
the state board of equalization in 1905
OF 20 of the railroads entering Chi
cagO. some $500. 000.000 was not as
scssCd by the board i'm 1905
Based ON Franchise values.
In presenting his statistics. Attorney
Fleming said:
Railroad values are based on fran
chise values. These franchises are the
main source of railroad prosperity and
the companies have no right to com
plain if the hand that gives takes a
part of its gift for public purposes. |
The burdens thus imposed should be
borne. but they are not. The |
railroad corporations assume to be su-
pcrior TO the lax and TO the courts. |
even the supreme court of this state, |
and TO the supreme court of the Unitedd
States itself They resisted the taxes
imposed in 1873. They appealed to |
the courts. They carried the case to |
the supreme court of the state
Overlook $500 OOO.OGO i'm 1905.
Beaten. they appealed 10 the su-
preme court. and when that court ap- |
proved the law and the rule fixing the |
manner in which the value of railroad |
capitalization shall be ascertaned |
(which law is still in force). they ap-
pealed from its decision to the mem
5ers of this board, when | am sorry TO
say they met with better success than
hey did in the courts
You will observe that from our point
Of view the total valuations which have
escaped assessment in the cases of 20
roads aggregate nearly $500. 900 900 for
he year 1905, and the probable actual
values for the back years aggregate
he enormous sum of 81 .OOO. .00O. 900.
would More Than Double.
The legal interest upon omitted as
'cssments is 10 per cent per annum
rom the time the assessments should
nave been made This addition would
n effect more than double these esti-
mates for the interest would more
han equal the amount of taxes levied
lnder the assessments. In other words,
he amount of revenue realized would
)e equivalent to more than that based
IN fulI values of SS DOO OO0 OOO