Omaha daily bee., 1906-10-08
TAx-DoDeING BY RAILROADS
Chicago Makes a Move to Collect
what IL Its Due from the
Tax STRIKERS.

Corporation Counsel J. Hamilton Lewis
OF Chicago has written a letter to the
Illinois State Board of Equalization in
sistng on a revision OF assessments of
railroad property, 20 that these corpora
lions shall pay their just proportion OF
taxes. The letter asserts that Cook county
and the city of Chicago have been cheated
out of hundreds of thousands of dollars
Of taxes each year through undervalua-
lions of railroad capital stock.
The vital point of the argument of the
corporation counsel is his assertion that
the railroads are permitted to make re-
turns not In accordance with law, and are
assessed on such returns rather than in
accordance with the law. This condition
Of things, the corporation counsel says re-
suited In the loss OF 1867 1856 to the city
OF Chicago on the assessments for 1905.
"As the corporation counsel OF the city
of Chicago" says Mr.. Lewis, at the be-
ginning OF his letter. land having as
part Of my honorable duty the aiding OF
the county officials in securing to the city
of Chicago the greatest amount of the
tax fund due it. take the liberty to bring
to the attention OF the board that after
investigation I have reached the conclu-
sion that your honorable board. through
q Tnisconstruction OF the law, has for the
single year Of 1906 alone permitted the
railroads of the state of Illinois. particu-
larry those entering the city OF Chicago.
! to deprive the city OF many thousands OF
dollars.
"As an Illustration OF the position which
I respectfully take by this memorial I call
TO your attention that by the process. n,
your honorable board the six principal roads
entering the city Of Chicago and having ia
I'LL
& Indiana. the Chicago & Eastern Ini-
nois, the Chicago. Burlington & Quincy,
the Chicago Terminal Transfer company,
! the Chicago & Northwestern and the Chi
cago & Alton, have been permitted to es-
cape assessments upon their property.
Had the assessment been laid as I re-
specially insist under the law IL should,
for the year 1906 the city OF Chicago would
have realized for itself. apart from the
county OF the state. the sum OF $50 es5."
Proceeding, the corporation counsel calls
attention to the forty roads running out OF
Chicago Assessment OF these roads on the
| basis laid down for the six roads named
would mean $4,000 more taxes for the
city. according to Mr.. Lewis, for the year
1906 For 1906 the corporation counsel asks
assessments not only in accordance with
his Interpretation of the law. but also back
assessments to the year 1877.
After quoting the law requiring sworn
reports from railroads. disclosing the stool,
paid up and the valuation of tangible prop.
erty. including franchises. and the penalty
for violation-Sl.0Oo to $4,000 for each Of
fense-the corporation counsel continues:
The railroads were assessed upon their
capital stock for 1873 at se4OOo.OOO; In 1877.
! at s3i.Ooo.Ooo; In 1876. at 81. 100000; in 1879
at slO.ooo,ooo speaking in round hgures).
You will notice that as the state in.
creased in population ana the railroads in
created in size, In earnings. and I'm value
the assessments decreased in proportion"