The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-20
HOW THEY DODGE.
Revelations Secured by the
Railroad Assessors.
Discover How Taxation on Roll
ing Stock Is Avoided.
CARTRIDGE EXPLAINS.
Gives Details of the Car
Counting" System.
Lieutenant Governor Fitzgerald
Drags Out More Facts.

acler mas Deen secured Dy the state
board of railroad assessors to show that
for years, the railroads of the state
have beel working a system" by
| which they have lodged taxation on
| thousands of dollars worth of rolling
stock.
This information was secured from
E. T. Cartilage, tax commissioner of
the Santa Fe railway, by means of the
| inquisition proceedings which are in
| progress.
Mr.. Cartilage was asked how the
railroad enumerates its cars in oroer
! to ascertain the numbers reported 10
the state for assessment.
! I'VE have what is called car count
ing day." replied Mr.. Cartilage. ON
that day, all the cars in the state are
counted by our station agents. Each
agent counts all the Santa Fe cars at
his station, an6 reports the number TO
headquarters.
and what about the Santa Fee cars
which are on other lines in Kansas?
asked one Of the members of the board
aThey don't get counted replied MI
Cartridge.
especially freight cars, are never listed
for taxation. 1t is known that a SINH
lar system for enumerating cars pre-
walls on nearly all the ralIrosaus ~
which happen to be on the kansas
tracks of some other company on car
counting day." Each railroad, there.
fore, helps to cover up thousands OF
dollars worth of property for otner ral-
roads.
Roads Must File New Statements
Tn view of this state of affairs, the
state board of railroad assessors TINS
morning ordered each OF the ralrodu
oompanies to prepare new scheduiesg
showing the total amount of rolling
stock owned by the entire system, ana
the amount which should be assigned
to Kansas on a mileage pasls. rms
report must be submitted TO the poaro
bv next Wednesday, and on FRIDAY |
April &C. the board will give the tax
commissioners of the various roads a |
hearing as to whether this basis OF |
enumeration shall be adopted.
At the session of the railroad asses
sors this morning. the Santa Fe, ROCK |
Island, Kansas City southern ana
Union Pacific were represented py |
their tax commissioners,
The Kansas City Southern already I
makes it's returns in the manner pro
vided by the new order of the BOARD. !
The Rock Island makes its enumera-
ton by a complicated system OF mile
railroad assessors says is not any bet
ter than the Santa Fe plan of car
counting day.
The board has. not yet decided |
whether it will adopt the proposed new
system of car enumeration. but 1T PROB
a bly will. The Santa Fe is very much |
opposed to it. because it will. result IN
greatly increasing the rolling stock now
on the Santa Fe assessment rolls III
this state. --
Wide Opening for Fraud.
II seems that in the past the assess
oant of rolling stock has been the
omen door for gigantic frauds IN rail-
road assessment. Apparently, railroad
comnanies have lodged millions of
dollars of lawful assessment py jug
,oiY. roll s.
One of the most palpable examples
Of the rolling stock manipulation was
that discovered by Lieutenant GOV
ernor Fitzgerald in the case of the
NT Iise Pacific-and Mr.. Fitzgerald
succeeding in pinning it to that COM
pany when it's tax commissioner, ). l.
Hi rhleyman, was on the witness stand
Mr. F1tzgerald had discovered that
+l,a-a ia a ten mile piece of road be-
tween AxteIl and Seneca, in Nemaha
county. owned by the st. Joseph q
Grand Island over which the Missouri
Pacific runs it's trains on a wheelage
basis In order to account for the
TrheeIage it is necessary that accurate
records be made of the rolling stock
on that little strip of line. These ac-
curatc records were Incorporated in
tb he Missouri Pacific report, and
showed that the average value of the
rolling stock used on that 10 mile
strin of road was $1,000 per mile. But
the renort then went on to show that
u-han the Missouri Pacific rolling
stock left this piece of leased line, and
continued on its journey to Kansas
civ over the Missouri Pacific's own
Ijnes the value of the rolling stock
INN ediately dropped to 1915 per
mile.
"How do you explain that?' asked
Mr.. Fitzgerald of Mr.. Highleyman.
well, I guess there is discrep-
ancv there somewhere" replied Mr..
"The value of the rolling stock on
the leased line is made on a wheelage
basis. isn't it 80
s'Yes.'
And it must be right"
ct should think So"
and everything that passed over
hat leased line had to go over the '
Pacific tracks both before {
md after?''
YES" {
The railroad assessors are therefore
coming to the conclusion that many !
companies have been turn
ng in their rolling stock on an en- !
irely erroneous basis. {
eve are just learning how this I
hing is DONE said one of the mem
,ers of the board. 81 wish we had
mother wear. we would be able to
ret mighty close to the real value of
he railroads on another assessment Z
We have just found out how to do it," !
Ward Had Forgotten Much.
George c. Ward, tax commissioner {
If the Kansas City Southern, was l
orced to admit before the state board I
If railrad commissioners Friday after
locn that he had forgotten" to list
lbout $25O,0o0 worth of railroad prop
,rty in the city of Pittsburg. IL
This unwilling confession was {
r. orIB =