The forum. [volume] (Springfield, Ill.) 1904-192?, 1908-07-18
Case Against Illinois Central Pend.
ing in LaSalIe County Cir.
cult Court.
MANY MILLIONS IN BACK TAXES
investigation of the Roads Accounts
Started by Governor Deneen-
School of Civics and
Philanthropy.

nois Central Railroad company involv-
ing $15,OOOOOO back taxes which it is
claimed is due the state is pending in
the circuit court in LaSalle County.
The investigation upon which this suit
was started was made under the di-
rection Of Governor Deneen. 1t was
conducted by the institution auditor.
beginning Dec 2, 1903. At times as
many as eighteen accountants have
been employed upon the work. The
investigation is still incomplete When
the court has fixed the proper basis
for an accounting of the gross income
between the state and the railroad
company. the work will be completed.
So far there has been an expenditure
of &7,6GS.S1 OF this amount SS,24S 10
has been expended from the appropria-
ton of 100000 made by the last gen
eral assembly to the executive depart
ment for the prosecution of this in
vestigation. While much has been said
concerning this suit there never has
been published any statement of the
relation Of the state and the railroad
company and the claims which have
been made the basis Of the suit
On Feb. 10, 1851 the general assem-
act Incorporating the Illinois Central
Railroad company and granted to the
company 2,595,OOO acres of land to aid
in the construction Of the road Sub
sequently the company sold the great
err portion Of the land and realized
therefrom sum in excess Of $300O0,-
600. The cost Of construction of the
902 miles of charter lines in Illinois
was more than covered by this AMOUNT
State Entitled to Per Cent.
The line from Cairo to East Du-
buque was placed in operation during
the year 1856. In consideration of
the grants, privileges and franchises
conferred by the state upon the COM
pany it was agreed that the company
should pay into the state treasury on
the first Mondays of June and Deem
Der Of each year a sum equal to, at
least, per cent of the gross receipts
OF the company, and for the purpose of
ascertaining the amount of the gross
receipts the company was required by
Its charter to keep an accurate account
and to furnish a sworn copy thereof
to the governor Of the state, who was
authorized to verify the same. Un-
der the direction of Governor Deneen
an investigation Of the accounts of the
company was made during the years
1906 and 1907 and the fact ascertained
that for many years past the company
had failed to include in its reports NIL
merous items of gross receipts amount
ing in the aggregate to many millions
of dollars. The matter was then re-
ferred to the attorney general by Gov
ernor Deneen with the request that
he take such action in the courts as in
his opinion might be necessary to re-
cover from the Illinois Central Rail
road company such sums as might
justly be due the state. In compliance
with this request the attorney general
filed a bill for an accounting against
the railroad company in the circuit
court in LaSalle county, Illinois, in
June, 1907. where the case is still pend
ing. In the bill filed it is claimed in
behalf of the state that the company
has failed to account to the state for
Z per cent of the following items OF
gross receipts:
Receipts of Cairo bridge. ....$ Z, 497, 100
Receipts of Dubuque bridge. 3,155,696
Receipts from Investments. 61902,35S
Receipts from express. 5000 900
Receipts from restaurants, no.
tells, etc. .................. 1900 900
Receipts from Chicago real
estate ................... ss.1ss
by foreign lines ........... 5000. 600
Receipts from grain elevators
in Chicago ................ 7SS.374
Receipts from grain elevators
in Cairo .................. s7.1s5
RanoiIatc from ixafa m