St. Paul daily globe., 1889-01-05
TAXATION OF RAILROADS.
What the Policy ol0the Democratic Ad
ministration Has Accomplished,
SUSTAINED BY COURTS.
Will Enrich the Territory by Half a
Million and Settle the
Question.
Special to the Globe.

Special to the Globe.
BISMARCK, Jan. 4.-Perhaps the
most important action taken by the
present Democratic administration in
Dakota was the assessment of some
$20,000,000 worth of railroad lands
which had previously escaped taxation.
1t will be remembered that when the
now celebrated assessment order was
first issued, Editors Pierce and Cald-
well. who are noted lawyers, wise and
bold enough to tackle and advise the
lord high chancellor of England,
jumped into the arena, thinking an
egregious blunder had been committed.
They cited decision of the supreme
court of the United States, which had
been repealed by act of congress for
year or more, and exhausted all legal
phraSeOl0gy in an argument similar to
what Abraham Lincoln termed IAN as
tonisher in legal literature" after
which this legal pair set back and gazed
at each other in wise
CONTENT AND ADMIRATION.
Greatly to the surprise of these
gentlemen. Gov. Church and Auditor
Ward continued, step by step. the as
SeSSment and collection of the taxes
above mentioned. and paid not the least
attention to the wOrdy fusillade of
mixed law, bOmbaSt and abuse which
duly started, was taken up by
Wheelock, Bowen and the few other
scissors editors to be found, who were
willing to sacrifice the interest of the
public to spite the Democratic admin
istration. The decision of Judge Rose,
just announced, gives this assessment
IIrht n1 nt,1 Full re
the action of the territorial authorities.
This decision, if sustained by the SUI
preme court. Gas it undoubtedly will be),
ENRICHES THE TERRITORY
S500.000 now. and settles for all time to
come the question of taxation of rail-
road property Tot used or needed for
railroad purposes.
Iii the celebrated railroad tax cases
the Northern Pacific Railroad company
commenced upwards of thirty actions to
restrain the collection of the tax. There
were three classes of actions, namely:
First-ThOse ralative to lands within
the original grant of forty miles on each
side of the main line of the road.
SecOnd-ThOSe. relating to the lands
within the indemnity belt of ten miles
on each side of the original grant, and
Third-ThOSe relating to town sites
ONHCo oHOllJ vi IN paw pS llO lNillOdu
company.
The railroad company set up the pay
ment of taxes under the
GROSS EARNINGS LAW
of the territory, and claimed to tax the
lands, would be double taxation. The
company also allege errors, irregulari-
ties and omissions on the part of the
officers charged with the tax proceed
ings, and as to the land contained with
in the indemnity limit the company
allege that they had not such COM
pIete title to the lands as to render
them subject to taxation.
Test cases were made in each case
and, on demurrer, Judge Rose decided
in favor of the territory and against the
railroad company in each case. The re-
suit of this decision is favorable to the
counties in all the cases, and sustains
the theory that lands held by the
Northern Pacific Railroad company not
used for railroad purposes are liable TO
taxation, and can be legally taxed
under our present laws.