The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-01-18
SUIT FOR millions
BEGUN By ILLINOIS
ATTORNEY GENERAL WANTS !
c.. RAILROAD TO PAY AlLEG-
ED BACk TAXES.
improper Bookkeeping and Jugelery
of Receipts of Branch Lines Are
Charged - Documents Are VoIu-
ninous.

Springfield, ILL.,, Jan. 15.-The suit OF
the state of Illinois against the Illinois
Central railroad for the collection OF
several million dollars which the state
alleges has been withheld from the
states share of the gross earnings of
the railroad was filed in the state SUI
preme court Monday morning by At
torney General Stead. Summons in
the case was issued by the clerk of
the court and served on N. j. Neer,
local agent of the Illinois Central, in
the absence from the county of Presi-
dent Harahan.
Expect Fight on Jurisdiction.
The supreme court convenes again
on Feb. 5 and at that time the attor-
neys for the railroad will appear in
court and answer the summons. A
fight on the jurisdiction of the state
supreme court is expected and it is
possible that the attorney for the rail
road may attempt to have the case
taken into the federal courts. In case
the supreme court assumes jurisdic-
ton master in chancery will be ap-
pointed to hear evidence in the case.
The state will fight hard to have the
supreme court assume jurisdiction, as,
if it is successful in this, it is hoped to
have the case settled before Governor
Deneen's term expires. In case the
supreme court does not assume juris-
diction, however, arrangements have
already been made for prompt filing
in the circuit court.
The papers make voluminous doc
ument, comprising 60 pages, besides
exhibits, each consisting of the semi
annual reports made by the road to
the state since 1877 and which are de-
clared to be inaccurate. There are II
divisions to the bill and each is fol-
lowed by one or more specific in
stances by which it is claimed the
gross revenues of the road were re-
duced.
Improper Bookkeeping Charged.
To great extent, according to the
allegations in the petition, this seem
ing reduction in gross revenue was ac-
complished by means of various book
keeping devices and the policy of the
management which gave the branch
and subsidiary lines the lions share of
returns on all business. Another
method was by making an arbitrary
charge of so much for every 100 pounds
of freight passing over the bridges at
Cairo and Dubuque, although, the state
claims, these bridges were owned by
the railroad.
One allegation made is that from
1859 to 1896 there never was filed with
the state auditor a list of the stock,
property and assets of the road. This
was not done because it was held that
Z per cent of the gross income was
the maximum amount which the state
could take from the road, and it was
easier to reckon this on the reports
made by the company. Gen. Stead,
holds, however, that the states in
come should be equal to at least per
cent. of the gross receipts and that the
railroad property should be taxed the
same as that of other roads.
1t is further held that the state
should receive it's share of the income
derived by the Illinois Central on
stocks and bonds of other roads which
it holds. The amount so derived by
the company since 1896 is given as
$33,000,000.