St. Paul daily globe., 1886-12-18
THE SUrREME COURT.
Decision Against the State i'm an
Important Railroad Case-.Other


Decision Against the State i'm an
Important Railroad CaSe-s0theF
OpiDi0us.
In the supreme court yesterday decision
was rendered in a case OF more than usual
Importance, being that brought by the state
against the Northern Pacific Railroad com
pany. The case was tried in the district
court of Ramsey county in which decision
adverse to the state was rendered. The
state appealed to the supreme court and the
former decision has now been affirmed.
Following is a summary of the opinion:
This is action 10 recover per centum of the
gross earnings of the defendant for the year 1885.
from two different sections of the line operated
by It. The circumstances affecting the obligation
OF the defendant different in respect TO the
two sections of road referred to and are cons d.
cred separately The line extending from
Brainerd TO Wstab was part of the line over
whlc lch the Minnesota X Pacific Railroad company
was by the act Oi 1871 extra SESSION., and by
subsequent enactments authorized to construct
its road. this read not having been built By that
company, nor its successor. the ct. Paul Pacific,
in 1871 the franchises were declared forfeited 0
the state, the law providing that they could be
thereafter acquired By any railroad company con-
forming to certain conditions, which was done :
the Westeru Ia lroad company, which constructed
the road and leased it to this defendant.
By act OF 1868 the st. Paul & Pacific company was
declared exempt forever from taxation, in coEs d.
Grafton of the payment to the tI.e yearly OF
per cent. OF its gross earn ngs for first three
years, after thirty miles : completed ana IN OPP
Grafton; per cent. durln- the next seven years,
and per cent from and after the expiration Of
ten years from the completion OF the thirty miles.
The controversy Is as 20 whether the per cent. to
be paid, in respect TO this line, is to be deter
mined with regard T. the time when the st. Paul
& pae fc comp eted and put in operation thirty
miles OF its road system OF roads or only th
regard the me OF the construction of this par
ticuiar line OF road, or thirty miles of 1t by the
Western .aliroad company. If the former rule is
applied. defendant is chargeable with 8
per cent for 1885; if the latter rue is
APPLIED, it is chargeable with only per cent
If the road had been built by the st
Pau ! Pacific, or by any company with separate
cooperate existence. in con1erFing its franchise
there 40 doubt bat that, by the law of 1865, il
would have to pay per cent. for the year 1885.
In opinion the act of 1877 only be con.
strued as transferring to the succeeding corpora.
tion the rights and fanchlses of the st. Paul 6
Pacific pany, with respect TO their line of road
as the same had been enjoyed by that company,
and not freed from the attendant obligations. The
st. Paul X Pacific was granted eXem ;stion from
taxation only on the ground of the payment OF a
certain percentage Of IFS earnings. 1t is not
pertinent whether the Westerd Railroad company
was SUBJECT to the general law in 1877 for any
company subject to that law could have availed
itself of the privileges of TINS CT.
TIE OTHER BRANCH.
The second branch of the case relates to the
road from Watab TO Minneapolis. This was com
pleted by the Western road in 1884. Prior TO that
date thirty miles Of the same had not been con-
structed At the time this line was leased by the
Western company TO defendant the latter had by
act OF 1871, accepted and become subject 10
that law relating to this line of road. The st.
Paul, Saltwater & Taylor's Falls road
was to pay the state per cent for
three years after January, 1872, per
cent for the three years next thereafter ana per
cent from and after the expiration of ten wears
from J. n l, lo72. 1t is ella mel by the stat that
defendant became subject once TO the same pei
centage the ST. Paul, saltwater & Taylor's
Falls RailrOai company, that the ten years having
already expired, per cent was chargeable with
out regard to the time the road was constructed
This contraction OF the act cannot be sustained.
We think the pur ose is clearly expressed to ia
fhe road by this graduated system from the date
of the completion of the first thirty miles. This
is in accordance with policy generally followed
in the tie. 1t is also claimed by the state that
defendant was at least liable TO 4 per cent tax,
because il and the line from Brainerd were
cont nous. We cons der that these two sections
OF road must be deemed 10 be distinct and epar-
ate lines our conclusion is that this line is
chargeable with per cent. of its gross earnings
Tor three years after comll elton of thirty miles
not regarding that line built under the charter of
the st. Paul Pacific company.