The Cairo bulletin., 1909-12-20
ATTORNEY GENERAL STEAD
IN ARGUMENT FOR BACK
TAXES ON EARNINGS.
AFRO BRIDGE INVOLVED
genious Method of Apportionne
Freight Charges Between Char
ter and Non-Charter Lines
Secretary Dickinson.

! stlon of yesterday here was the APP |
earance of Secretary OF War Dckin-
| IN as attorney for the Illinois Cen
. al in the suit brought by the tsate
! recover taxes in arrears on gross
arnines, iMr. Dickinson explained
lat his reason for appearing in the
ase was that ne was counsel for
be road before he became Il member
President Taft's cabinet His ar
! lment was in part that The bill
entral does not charge that the de-
ndant has not paid al least J per
ant on its gross earnings, and there
era what the bill in equity is seek
&g is involved between the per
ant and the ner cent, in this way
lcmdinE the enforcement of the col
ction Of taxes, which is impossible
y means of bill for an accounting
court OF equity 1t is question
HIGH can not be determined on the
retense of obtaining an accounting
Secretary Dickinson left Tor Chicago
st might en- route to Washington.
ttorney General Starts Argument.
Attorney General Stead presented
ne of the most comprehensive argu-
tents heard in many day, giving a
istory of the Illinois Centrals in
uguration. its development, its
Methods Of operation, etc, and admin
tered severe scoring at intervals.
lis argument was under series Of
triking heads and covered every
4 base Of the subject. He spoke in
art as follows:
Land Grant--2,595,ooo Acres.
Illinois, to aid it in building a cen
raj railroad, right of way through
he public lands and every alternate
ection of land for six miles in width
n each side thereof
In 1851 the state chartered the ILL
D ois Central Railroad Company, for
he purpose Of building the road, and
ranted to said company all the lands
5 eeeived by the state from congress,
we'll as large amount of other
q property then owned by the state.
i NE company received front the state
a f Illinois, to build the road 2,595 ,0G0
Il ores Of land The company sold
hese lands for more than $30,0Q0,00
nj USED the proceeds This amount
vas more than sufficient to build the
ntire road.
The company now insists that it
ives tle state nothing because OF
his donation of lands--not even a
ote OF thanks. 1t contends that the
rant was in fact made by congress
it and the state was merely an
instrument to pass the title.
When the grant was made to the
tate by congress. the Illinois Cen
raj was not in existence. The lands
we're granted to aid the state il
building road, and were granted tC
he state. The state could have built
he road itself and operated it, II
ould have built the road and lease
# t. 1t could have granted the lands
III any Other company. 1t was under
10 obligation whatever to grant {
DOT of these lands to the Illinois Cen
raj The claim now made by the Hi
lois Central that it owes the stat,
nothing because of this land grant
as an example of ingratitude, ha.
no parallel since the time OF Iudat
tsc4riot
The Charter Obligations.
When the charter was accepted b.
the company it became a contrac'
The obligations of the state We're Il
convey to the company the lands Il
buiid the road and exempt its PROF
erty from the payment of all take
but state taxes, and these obligation
werc fillly performed
rhe obligations of the company, III
der sections IS and - Of the charter
wdfe; (1) TO build and operate tn
road % to pay into the state treas
ury, ssnli.annually, per cent of tn
gross receipts derived from the road
Beep an accurate account thereof, an
iufuist the governor copy thereof
l3l to list its property with the aud
tor annually and pay state ia
thereon. and in the event the ) pc
cent and the state tax did not amour
to 7 Der cent of the gross receipts
to pas the difference, so that tn
While amount paid should equal a
least 7 per cent OF the gross receipts
IN other words, to the enterpris
of building this railroad the stat
furnished the capital in the form {
franchise. grant of lands and ey
cnYlMion from general taxes. In col
\ sideratioD thereof the company agree
TO shntll the road, conduct the bus
ness ol its operation, keep an accl
rats account of the total receipts
fufhish the governors copies thereo
AMI nay the state each year. on az
codht of its investment, at least pc
cent Of the gross receipts.
Fiduciary Relation.
Under this charter, the compan
runs the road, manages the business
collects the receipts and keeps IN
.lt.