Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1889-01-31
RAILROAD TAXATION.

peal OF the GROSS Earnings Law
The biennial report of the territorial
auditor has just been issued, and con-
tains some interesting statistics in view
of the act introduced by Senator Glasrell
which passed the council last week, for
the repeal of the present law taxing rail
roads upon the basis of their gross earn
ings. That law which was passed in 1888
fixed the assessment at three per cent on
the gross earnings of the roads, in lieu of
all other taxation. According to the in
terpretation in force at the time of it's
passage this was fair assessment, as it
was understood to exempt only the prop
erty on lands used in the operation of
the road, and the 3 per cent was levied
on the whole business OF the road in the
territory, both local and through traffic.
The auditor says in his report: "a
fair Interpretation would seem to be that
this law exempts only such property as
is used or needed for railway purposes.
This was undoubtedly the intention of
the legislature of 1883, for at that time
no other property was exempted by its
provisions, as no railroad corporation
within the territory was authorized to
own or hole real estate not used or need
ed for rairroad purposes, (the only excep-
tion to ehis was in the case of lands
ranted by the general government. The
lands Of the Northern Pacific railroad
company were at that time wholly ex-
empt from taxation on account Of a lien
by the government for unpaid survey
fees. The attention OF congress was
called to- the injustice OF this exemption.
and in July 1886, that body passed an act
restoring these lands to their appropriate
rights of taxation, Notwithstanding the
lien of tue government upon them for un-
paid survey fees. This act Of congress
transferred the responsibility OF taxation
of sevepF ,illion acres OF surveyed land,
ntalnetl Is the original Land grant to
the Nolthern Pacific railroad company,
upon the territorial legislature of 1887.
AS that body did not provide suitable
legislation for the proper assessment and
taxation of these lands, this department
had no other alternative but to order
their assessment which has been done
for the years 1887 and 1883 as heretofore
stated ra ...
From this order the Northern Pacific
company appealed to the courts to re-
strain the county treasurers from selling
the land for taxes, but on Dec. 81, Judge
Rose sustained the demurrer to the
whole of complaint IN the cases against
Foster and LaMoure counties and dis
missed the action. The cases will now
90 to the supreme court and II the de.
cision of Judge Rose is upheld 1t will
result IN adding above half a million dol
lars to the treasures OF the counties
along the line of the road.
Another important change II the con-
struction of the law took place in April
'86 when the supreme court OF the
United States decided in the case OF
Fargo VS. Michigan 121 U. S. reports 23O
that "a state statute which levies tax
upon the gross receipts of railroads for
the carriage of frelghts and passengers
into, out Of, or through the state, is tax
upon commerce among the states, and
therefore void" This decision was fol.
lowed by the territorial supreme court
and this decision revolutioniZed the law
of taxation upon gross earnings, and pre-
vented any business being considered tol
the purposes of taxation which did not
originate and terminate within the terri
| tory of Dakota AS we have no internal
trade and very little Of such business.
| this Interpretation of the law practically
worked az exemption from taxation OF
all railroad property within the territory
Tie auditor proceeds:
| therefore respectfully recommend the
repeal OF the ..gross earnings law" for as
| interpreted by the supreme court OF the
| United States it is practically an exelnp-
ton Of railroad property from taxation
| and worthless as a means OF raising the
public revenue.
70 avoid the confusion of Irregular and
double assessment the legislature should
provide that list OF all railroad proper
ty. such as road bed, rolling stock and
other enumerated property used In the
operation Of the road be furnished to
the territorial board OF equalization for
assessment and taxation when any por-
ton of such property is situated In more
than one county, the board to be author,
lied to value and assess the property oi
the corporation for each mile OF its
road, and to certify to the county clerks
of the counties in which the property is
situated, the assessment per mile, specl-
flying the number of miles and the
amount in each of the counties, the
county commissioners to decide and ad-
| lust the number of miles and amounts
with each precinct. township or school
district, and canse such amounts to be
entered upon the list of taxable prop
erty.
Minot Rustler Tribune: Every young
ster in town seems to have been the re-
cipient of harmonica or tin whistle
for Christmas present. As one becomes
surrounded by these youthful musicians
| he wonders if worse tortures can be
sprung in hades, and then asks himself.
ais marriage failure?'