Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-09-27
Chilly 9ress and 1akptaiay
TAXING RAILROADS. IN DAKOTA.

Bismarck, OAK, Sept. 25.-A Very i'm
portsnt and unexpected meeting of tb,
county commissioners occurred .o-6n,
in an assembly room at the capitol
Recently Mr.. McNanght, attorney o
the Northern Pacific, wrote Gov. CGuTol
a letter suggesting u meeting Of the
commissioner OF the counties along BIZ
line for the purpose of coming 10 OIL
emica bic understanding abous the rail
read tax question ihst has been bother
ing the administration, the company anc
the counties. pbs governor replied thaI
he thought such u meetiug proper anc
to.dey was agreed upoL. The railroad
COMPANY ttndereu i.ee transportation
to the commissioners Of the twenty five
counties affected by The railroad laIC
tax. There we're representatives eno
commissioners from Usss, Stntsman,
Bnrleigb, Morton, Starr, Biilsues
Barnef, Steele, Foster, McLsap, Me-
Intosh, Trail and Emmons. Not pres
ent but invited BY governor, Kldder,
GrigRs, X cblsnd. Logan, Sargent, Ran
som, LIN Moure Etdy al d Dlckey. The
railroad company has prepared twenty
five %lDlunctions restraining all the coun.
ties within their belt frcm selling in
ctober the lands advertised for sale for
delinquent taxes. There are over 1000.
600 acres of these lands, end they have
been assessed under Instructions of the
administration both last year and this.
1t was the opinion of Gov. Church and
Auditor Ward, as the pubic knows,
that these abroad lands were tsaabIe.
MIR. Mcknight says they have be. n as
seesed I'VE times as much as their lands
In Montana and three times Us much as
their lands, Just IS good, in Washington,
have been assessed. He further holds
they are not taxable, As their
were about to enter upon the wholesale
business of inJunctions the counsel
thought it wise to give the counties and
the administration q ohanee to save
themselves fot the present at least. The
meeting was organized by electipR j. s,
Underhill OF Stare county chairman.
Besides the commissioners there were
present several comfy attorneys, and
Attorney Ball of Fargo for the railroad
company. Assistant General Manager
Ainslie, Superintendents Greene. Nc
Gable and Alex McKsr zie, OF the North
ern Pacific, Gov. Church, Auditor Ward
and Attorney General Templeton. Gov.
Church came forward and clearly and
like a judge stated the object of the
meeting. He said:
Gentlemen, as you are aware, this
matter of the LEGATION OF railroad proper
ty IN this territory has been o source of
considerable discussion between the
Northern Pas tc on the one hand and
the territorial officials on the other.
(The governor then went over the ysri-
ops steps that had been taken by the
legislatures to get the tax mat
ter adjusted, and e~ontinaed). The
question now before Us is as TO whether
or not under the gross earnings law the
lands OF the road are taxable in addition
the gross earnings. We differed with
the railroad officials in the way we
OF the case, and the result was
thai the company, which had been pay
ing some $50 900 as gross earnings tax,
this year declined to pay it. The terri
torial treasurer then, Mr.. Raymond,
made a levy on some of the rolling stock
OF the road and when the case came be-
fore the supreme court of the territory
they decided that under the gross earn
law only those earnings were to be
which were for traffic that
and ended in the territory.
Mr.. McNauRht had a conference with
me, and | tried to find some way out of
the dilemma which we had got into. But
| could not, as we differed ns to what
rights OF the road and the aathorl-
ties we're. Mr.. McNaught claimed and
SILL claims that the authorities had no
right to order o tax levied on the lands
the company. But we are not here
to discuss the merits or the law of the
question, but to see if we cen arrange
that will be amicsble and
satisfactory for all parties concerned.
Mr.. Mcknight makes this proposition
to You that you order vacated the assess-
ment for 1887. Have it struck off the
books and they will at once pay the
amountdue on their gross earnings, under
the old system. amounting to the sum of
SOB 1857 n. Another proposition is
by the company and that ia that
me commissioners order the county
to postpone the sales of rail-
Q ~ lands that are ordered for the first
OF October and have the matter adjusted
by the Legislature when it meets within
hundred days. We stand almost on
b threshold OF another meeting of the
Within ninety days, within
one hundred at least, the legislature will
be convened at this work. I present this
question for your consideration. lis it
Wise FOR you to go on and sell these
Litigation will necessarily follow
the different counties, expensive llti-
cation, and it may be years of litigation.
are we not running the risk of precipi.
upon the community q question
shat will give rise to q great deal oil con-
and bad bloodp Ga the one
side the people will feel that the cor.
porations are moi paying their proportion
Of the taxes and on the othes hand the
railroad companies will feel that II is a
,ase OF self preservation with them.
Following the governor Mr.. Mcknight
made o quiet statement of the PROPOSE
the company offered and went over
the question In q general wsy. Heshowed
low much more money the company had
paid IN taxes than the law required, that
heir roe bed and improvements we're
rec from taxation, and their lands were
rec under the territorial law and that
hey had been paying annually greatly
u excess OF the requirements under the
gross earnings law before the present
administration authorized the assess
nent OF their lands. He showed how
more they had paid than other
Dads with greater mileage, and showed
hat the company had acted in q gener-
,us spirit. Under the present interpreta.
Ion of the gross earnings Law they
Tould pay this year some $l5. 900, being
he tex on earnings received on traffic
and terminating in the ter
Under the old Interpretation it
would be nearly 0 G.000 and they would