Bismarck weekly tribune., 1888-09-28
RAILROAD TAXES.
The Northern Pacific Tax Question
Discussed, Dissected and Settled
For the Time.
The Northern Pacific Officials, County
Commissioners and Gov. Church
.... Hold a Conference.

Good Speeches, Pointed Arguments,
Warm Debate, Lively Sparring
and Friendly Discussion.
The Tax Will Be Paid.
Bismarck wore her legislative gown Tues
day and there was as much buzzing and
excitement around the hotels and capitol
building as when the great aggregation of
law makers is in session. The cause of the
gathering was the notice of conference
between the county commissioners of the
counties within the land grant of the
Northern Pacific railroad, the officials of
the Northern Pacific and Governor Church
with reference to a settlement of the much
mooted question of the Northern Pacific
tax. Solicitor Mcknight OF the Northern
Pacific had two propositions to present.
The matter had became so mixed and en-
tangled that it was difficult to understand
just where the parties at issue stood. In
the first place the gross earnings law un-
der which the Northern Pacific has been
paying taxes on the earnings Of it's entire
road has been so construed as to prevent
the collection of taxes on any business that
does not originate and terminate in the
territory, unless the railroad sees fit to pav.
Auditor Ward issued all order instructing
the assessment OF all railroad lands and in
compliance with this order the land of the
Northern Pacific has been assessed in all
OF the counties along the line and within
the grant. The road refused to pay taxes
on its gross earnings under the old inter-
probation OF the laws and also upon its
lands, claiming that the gross earnings
tax as formerly paid was in lieu of ali
other taxes: AS result the Northern Pa
citic has paid simply upon the business
originating and ending in Dakota and at
present the company is in arrears over
SlOS,OOO on the amount due under the old
Interpretation. This was the status of af-
fairs when the county commissioners, So
ilclt0r McNaught, General Manager Aims
ley, Governor Church and Auditor Ward
met in conference yesterday. Mr.. Nc
Naught submitted
TWO PROPOSITIONS,
either of which the railroad company would
agree upon. The first was that the county
commissioners of the several counties
within the land grant cancel the assess
ments made upon the land and the COM
pany would pay the 100000 due under the
old Interpretation of the gross earnings
law and would also pay the taxes of 1888
when due, amounting to about $1OO,OOO;
under the same system, the county commits.
siOners to postpone the sale for this years
taxes, and leave the matter for the legiSla-
ture to settle. The second proposition was
that the sale OF the assessed lands be
ohInl1rno1 1oHr
until after the meeting OF the legislature
and ii the counties will do this the company
will pay the gross earnings tax
under the Interpretation of the
supreme court, that it shall be upon
business beginning and ending in the terri
tory. AS this tax has already been paid
ana as the tax for 1883 will not be over
$4,000, this would not enrich the terri
t0rlal treasury to any alarming extent.
There were thirteen counties represented
in the meeting this afternoon, and on a
motion to accept the first proposition the
vote stood six for and seven against. Dur
ing the conference
GOVERNOR CHURCH
addressed the commissioners, among other
things saying:
"Whatever you do will do my best to
see that every interest in the territory is
guarded and carefully and cOnseryatiyelv
considered. and that will be done whether
the interests in question are corporate or
Individual. l do not want to occupy the
position OF catering to the granger vote or
be. put in the position on the contrary of
being looked upon by the people as be-
ing too friendly to the corporations.
want as far as possible to stand straight
up and walk in the middle Of the road.
That is the way feel. say as matter
Of fairness to you that whatever may be
the result of the conference, when the leg
islature meets, it am still governor, will
try to do my full duty as far as you are
concerned and as far as the railroad is
concerned. We stand almost on the
threshold of another meeting of the legis-
lature. Within ninety days-within 100
days at least, the legislature will convene
at Bismarck; | present this question for
your considerations: Is it wise for us to
sell these lands? Litigation will neces-
sarily follow to the different counties-ex-
pensive litigation, and it may be years of
litigation. Are we not running the risk of
precipitating upon the community Ques-
ton that will give rise to great deal of
controversy and bad blood? On the one
tions are not paying their proportion of
the taxes and on the other hand the rail-
road comp tnies will feel that it is case of
self preservation with them. AS governor
l have no power in the matter. If I had.
l should be very cautious about using it.
I realize the delicate ground that 1 am
standing upon. am laying myself open
to great deal of criticism and abuse, but
then l am used to that and am getting
to rather like it. At the same time can
see no impropriety in this meeting and am
glad that / have had an opportunity of
meeting you. -,
Governor Church was followed by Solic-
itor Mcknight. who repeated the propo-
sition and regaled the commissioners with