The forum. [volume] (Springfield, Ill.) 1904-192?, 1910-11-05
DENEEN A WINNER
INCREASES REVENUES OF STATE
BY se,ooo,ooo.
Governors Protest on Illinois Central
Tax Results In Great Victory
for Taxpayers.

The Illinois Supreme Court has
handed down decision sustaining
Governor Deneen in his contention
that the Illinois Central Railroad has
not made adequate returns In its an
nual reports to the State Of Illinois.
The decision IL sweeping victory
for the State. The only disappoint-
ment in the findings of the court lies
in the fact that the State will be un-
able to obtain an accounting prior to
the present administration, which be-
gan In 1905.
Under the decision Of the court 1t Is
estimated that the annual payment to
the State by the company will be in
creased from $1,100,000 to s3,000,000,
and that the total amount now due
the State for the five years since Gov
ernor Deneen made his protest will
aggregate $6,000,O00.
sustains States Position.
The court sustained the following
contentious of the State, all of which
will increase the income OF the State:
That the company must now ac-
count to the State for Z per cent Of
its charter line gross receipts for 1905
and 1906. and all subsequent years.
That all joint earnings of the char
ter and non-charter lines must be d.
vided equltably and fairly, on q mile.
age basis; that the State may receive
all of the per centum to which 1t is
entitled, the court being justified in
applying a mileage pro rate to all
joint earnings In the absence Of other
proof This same holding applies to
the division of express earnings as in
the case of freight and passenger
earnings.
That the railroad company has no
right to deduct from its gross re-
ceipts money paid for bridge and for
switching cars in the city of Chicago
where such services were performed
as necessary incident and solely for
the purpose of enabling the company
to perform its duty as common car
rier
Must Charge for Supplies.
That the company had no right to
transfer from its charter lines coal
and other materials for the use OF
its non-charter lines without making
charge for such services against the
charter lines.
That where the non-charter lines
use the terminal facilities or the en-
gines, cars or other equipment of the
charter lines, proper charge must
be made therefor against the nom
non-charter lines.
Must Account for Passes.
That the income received from din
ing cars, hotels and restaurants is
part of the gross receipts, and where
advertising has been paid for with
mileage books or free transportation.
the value of such transportation must
be accounted for to the State.
That money received from other
charter line equipment constitutes
part of the gross receipts of the char
ter lines, and that neither unlawful
rebates nor fictitious claims can be
deducted from the gross receipts.
Shares In Bridge Earnings.
That reasonable charge, or bridge
arbitrary may be deducted for the
use of the Cairo bridge, and II the
amount charged In any one year ex-
ceeded the sum OF $1S0,000, the an
nual rental stipulated in the lease,
shen such fact would tend to prove
the charge unreasonable. The amount
deducted from the earnings in bridge
arbitraries during the year 1905 was
$1,721,189.77. and in 1906 1t was
$2,04705s.19. The same holding ap-
plies to the Dubuque bridge.
That the company must account to
the State for per centum of the
charter line receipts derived from
hauls between points south OF the
Ohio river and Cairo and Mounds.
That the charter and non-charter
lines must be treated by the defend
ant as independent lines, not only In
division of earnings. but In the pay
ment of expenses.
That because portion of the pay.
ment required to be paid to the State
is derived from shipments to and
from other States, does not constitute
an interference with or charge upon
interstate commerce.
Company Wins Three Points.
The contention of the company is
sustained on three points, as follows.
That the semi-annual statements fur.
nished the governors prior to the year
1905, and which were approved by
them, amounted, under law. to settled
accounts, Justice Hand dissenting.
That the State has no Just cause
for complaint on account OF the d.
version OF freight from the charter to
the non-charter lines.
NThat the interest received by the
company on its bank deposits and
holdings il no part of its gross re-