Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-03-03
THE RAILROADS.


as to What Constitutes "Gross Earnings"
OF a Road--Excitement In Northfield
Over an Attempt Being Made to XIII
Favorlte Enteiprfse-Personal and Mis-.
csllaneous Notes
A. d. Bode, general traffic manager of the
Minneapolis q st. Louis road is in st. Paul
John B: Frawley, travelling agent of the
Wabash, st. Louis & Pacific, is in st. Paul.
Col. Newport land agent of the Northern
Pacific, is confined to his room with illness.
B. McHugh superintendent of the Minneso.
ia division OF the Northern Pecfc, who has
been st. Paul for some days, left last night
for Brainerd.
John K. Hogan, northern passenger agent
OF the Galveston, Harrisburg & San Antonio
railroad, with headquarters at Chicago, is
looking about st. Paul.
A big immigration party is on it's way to
Manitoba, filling twenty-five coaches besides
twelve cars OF baggage. A part of the party
WIN come upon the Omaha
road this morning probably, and
another part about noon with extra cars at
tached to the regular train.
A delegation of people from Ripon, Wis.,,
have been in st. Paul for day or two on
their return from Montana where thew
have been for the purpose of
selecting, land for colony of 100 families who
propose to come in the spring and settle. The
location was made near Green River, Mon
Jana. Some estimate can be formed of the
extent of this movement by the fact that the
gentlemen made contract for seventy-five
carloads OF household goods.
Under date of Feb %, the following circu.
lar was issued: Mr.. c. NJ Vance has this
day been appointed general agent of the COM
pany, with headquarters at Duluth He will
have Jurisdiction over all employees, and look
alter all matters pertaining to the interests of
the company, between Northern Pacific juno.
ton, Cloquet and Duluth, and his orders must
be observed accordingly. 8. R. Stlmson, Gen.
eral superintendent, st. Paul & Duluth road,
Decisions of Railroad Commissioners Boher
Below we give the return of the Northern
Pacific railroad company to Railroad Commits
sioner Baker, of the gross earnings of the
company, for the year ending December 3lst,
1881, under its contract with the St. Paul.
Minneapolis & Manitoba company, from Sank
Rapids to St. Paul: Freight, 1854 OF 10
Passengers, $126, $500. Express. s24. 179. q.
Telegraph, $5261S. Total, S415, ser IS. Tax
on the same at 3 per cent, $12,467 O3.
10 this return is attached the following
note: b
"This report is presented to tie railroad commits
sioner for his information only. The railroad com
pany Is advised by counsel that it is not liable To nav
any taxes upon the earnings specified therein for the
reason that 1t Is not the owner nor lessee of the
road on which said earnings occurred The com
psny declines to pay any taxes on the said gross
earGl igs on account of its non liability therefor
M. P. MARTIN,
Auditor N. P. R. r. Co.
DECISIONS OF GEN. BAKER.
In response to this note, Gen. Baker, under
date of March LIST, sent Mr.. Martin the fol-
lowing letter:
in which, as will be seen, he takes a different
view as to the liability of the Northern Pacific
company upon the point in issue, and also
That the occasion is improved to give his con-
structlon OF what constitutes the 'sgross earn
lngs" OF railroad company, under the law.
matter upon which much difference of opin.
ion has been shown. Gen. Baker saws:
Inis once has had under consideration the spec.
report OF the gross earnings OF the Northern Pa
enc halroad company, on the leased line of the St
Paul, Minneapolis Manitoba, from Sank Bspids to
st Paul. 1t appears therein that by advice of coun-
SOAAHoay
gross earnings for the reason that 1t ia NOT fhe
or lessee OF the railroad which said earnings oc
Cured. w
Endless confusion would if the state entered
into al the minor consideration and leases rentals
rebates ETC.. as betwe N reads The state has ony
to do with "gross earnings of whatever form or n
ture The legislative authority has established. aud
your company has accepted the mode and rnIeo of
measuring these taxes In this return thera arc
gross earnings of S45,56I g 50 rendered to This Of
nee under oath, as earned by your company. As
these earnings cannot escape taxation who is liable
Tor the tax? By the terms of your fagreement with
the Manitoba iine," Your company receives and en-
joys these earnings, and therefore must nav the
lax. ~
We find by reference to this "aereementn ~ Won.
company with the Manitoba company BEARING iate
Aug !, 1879. that your company is as a matfer of
fact the lessee of that portion of the Manitoba avs
tenn on which these said earnings occurred. In the
said agreement it is set forth that the Northern
Pac nc desires to fun and operate through trains of
cars and engines from St. Paul to Sank RAPIDS and
vice versa" and to Establish connections and
q division Of business which shall he
just and equitable This was done
as appears ito avoid the construction of ,ateral
competing lines" And in aid "egreemsnt,, IL Is
further set forth that the Northern Pacific "shal
hencefo til have, possess and enjoy the free and nm
obs ructed perpetual use and the right to such use
in common WITH the Manitoba line For these said
privileges and rights the Northern Pacific agrees to
facts, shown by the articles of agreement betwae
the two said companies constitute the essential ale
ment of lease. Wv
But whether it is lease or not in the Judgment Of
this office the state has nothing to do with ths lessor
and lessee. The Northern Pacific Company have
sworn to said gross earnings inurng to their enet
snd enjoyment and the state, therefore, looks to
that company for the tax, and declines "a discus.
the question to who Operates the line in oueson
To admit such principle OF evasion would establish
principle which, pursued to its logical end MIGHT
rob the state of every dollar of its railroad tar for
all any railroad company would have to do would he
to make such an agreement" with parties rnnn;np
trains upon their track, and there would be then In
your view, no one liable for taxes.
We take this occasion to say that the Hgross "a
ings'' Of railroad, held by this office to en-
brace the gross income Of any line, or company,
from all sources whatever rentals rebates even fine
ages and appurtenances of the railroad proper. ex
elusive of the lands which produce income No
matter whether the road is operated by its own COM
pany, or In common with another, or wholly by an
other party All gross income of whatever natures
derived from the operation of rails
road proper, is the subject of this
tax. The railroads of this state eniov ex.
traordinary privileges in exemption from every other
form Of tax, by reason of this percentage on prose
income. Their lands are exempt until sold, and no
matter what may be the dire exigencies of the state
In increasing taxation upon the private citizen, the
very constitution itself now exempts the railroads
from additional burthens in this direction, no diff
ference how vast their properties and wealth. Thew
should not therefore, seek to evade BY specious
pretexts the payment Cf their just taxes
These views have received the approval of the
honorable the attorney general and in accordance
herewith have this day certified the tax on these
gross earnings to the auditor of state his will be
Sl2i6 TO- in addition to your other regular returns
Unrvy ffr,Isx