The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1910-11-03
lHOLDS.L. c. LIABLE
FOR BACK TAXES
Supreme Court Order May Dou-
BILE Illinois Annual Income.
DIRECT TRIAL ON MERITS
Decision Of High Tribunal overruIes
Contention in Demurrer That
Settlements Estop Suit to
Recover Unpaid Levies.

Recover Unpaid Levies!
Springfield H., Oct 29.--The state
OF Illinois won decided victory when
the supreme court handed down it's
longexpected decision in the Illinois
Central tax case. The state won every
important contention with the excep-
ton that the opinion holds the ae-
counts prior to 1906 have been ac-
cepted by the state and payment made
thereon, and that therefore they are
not subject to further inquiry
But for the future settlements and
for the settlement of all accounts since
:. Governor Deneen came into Office, the
court lays down hard and fast rules
for accounting by which the state will
reap areward of 81, 100000 year more
in taxes than it has been receiving
from the Illinois Central Railroad COM
pahy. III 5s-.a. ..ssE s
When the Illinois Central rendered
its first payment under Governor De-
mems administration he accepted the
money with the understanding the &C
counting upon which the money was
rendered was subject to revision. This
act on the part Of the governor, the
court holds, makes all transactions
with the road during his administra-
tion subject to further accounting, -
Three Questions Reviewed.
The court considers the case under
three important headings. The first
is whether the amount to be levied
by the state auditor is a tax or wheth,
er it is based on a contract under
It's charter. The court holds 1t is a
contract
On the question of interstate com
merce business, the court holds all in
terstate commerce business passing
over the charter lines, whether orig
mating in Illinois or in other states
and coming into Illinois, is subject to
the Z per cent tax on gross receipts.
" S Then on the question of scope Of the
inquiry it is held 1t cannot extend
back prior to 1905.
Under the head of accounting, the
state wins in its contention that II
should be on the basis of mileage. The
earnings. On the subject Of charter
i. line property for the use of the non
charter lines, the court holds the state
is entitled to a money consideration
for this service The state wins in
fts contention that it should receiys
the contract rate of 7 per cent of thu
receipts from eating.houses and dining
q cars. .~.e-. -
Advertising Is Included.
On the question of newspaper ad
vertising the railroad company loses
the court holding that where 1t issues
mileage for such advertising it SHOULD
be included in the accounting with thu
state. s s ~, "a
About the only point on which tn
company wins, aside from excluding
all accounts prior to, 1905, is that it 4
notrequired to account for interest OF
deposits. u H. ~ -
The court remands the case to tn
Circuit court OF La Sale county, wit
instructions. to proceed in accordanc
with the views in it's opinion. Unles
the railroad accepts the courts dc
cision as final, the Circuit court o
La Sale county will no doubt appoin
a master to go into all the details @
the accounting since 1905, and the cas-
may be prolonged indefinitely. A
present the railroad is paying approx
mately s1,OOO00O to the state ever
year
The opinion handed down is said t
DO the longest and most compreheI
slve ever recorded by the court.
peculiar feature is that three separat
opinions are filed, all reaching tn
same conclusions, but by differen
routes The majority opinion wa
written by Justice Carter.
Ills the contention Of Governor ID
neen that for thirty-three years tn
railroad has been milking the stat
through its system of accounting fo
gross earnings, on which it is require
under its charter to pay to the stat
In lieu of other taxes.