Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1895-03-22
OFFICIAL PAPER BURLE|GH co.
ANENT RAILRO I'D TAXATION

ANENT kAlIkO lD ALTON.
Pioneer Press: Senator Gregory's III
levview in this paper Thursday, in which
he states that all statutory provisions
fox the collection of railroad taxes are
repealed, and that there is no way to
make the railroads pay a cent of taxes
for this year. created quite ii sensation
at Bismarck. Senator Little, chairman of
the judiciary committee of the senate, was
asked about the matter, and said:
Senator Gregory is clearly mistaken
in his statement. Section l19 of the con-
stiiution of North Dakota provides that
the franchises, right of way, track and
rolling stock of all railroads in the state
shall be assessed by the state board of
equalization. Section 17G of the consti-
tuition provides that the legislature may
provide for a gross earnings tax of the
railroad companies in lieu of all other
taxes on property used exclusively in
and about the business of the companies
AS common carriers, and whenever and
SO long as such gross earnings law shall
be in force, Section 179 of the constitu-
ton, relating to the direct assessment of
railroad property, shall cease to be in
force.
AT the first session of the legislature
it provided for the assessment in each
year of the franchise, right of way, track
and rolling stock of all railroads by the
state board Of equalization, and expressly
provided that if at any time the legis-
lature should provide by law for a gross
earnings tax on railroads, under Section
l1i OF the constitution, during the time
such gross earnings law shall be in force
the provisions of the act for the direct
taxation of railroad property shall be in
operative. At tLa same session, in 1890,
the Legislature passed a law providing
Tor the taxation of the railroads and
e4Glpment, appurtenances, rolling stock,
etC., OF the railroad companies by n gross
earnings tax, both upon state and inter
stale traffic. This gross earnings tax
also provides thar all railroad companies
should accept and become subject to the
provisions of the act, and within the
time provided for in said gross earnings
act all the railroad companies in the
stale. except the Northern Pacific, have
paid taxes under said gross earnings
law. and the Northern Pacific has ever
sine paid under the direct tax law,
although it is probable that the tax could
not have been enforced.
During the present session of the
legislature the gross earnings law of 1890
was repealed, but the act providing for
the assessment of railroad companies
was not repealed and became operative
- a certainty upon the repeal of the
gross earnings law. To save any cues
lion upon the point the legislature ex-
p-essly re. enacted the law of 1890, pro-
v:Cting for the direct taxation of rail
roads. Now the only question that car
possibly arise is this: What is the effect
4: che repeal of the gross earnings law
q: 1890 upon the railroads which have
b-en paying under that system? Under
t:l- provisions of the law the gross earn
in-s Tax Of 1894 is payable one half Feb
rna"y |. 1898. and the balance August -,
1>,fl. Il should be distinctly borne in
mind that this is the gross earnings tax
for l>!'i. II is clear that said railroad
eonparles. having accepted the pro-
VISIONS OF the gross earnings tax law,
h1J thus being liable to pay the per-
c7athge OF their gross earnings in lien of
o74er taxes for the year 1891. that liza
billy would not be discharged by the re-
peal OF the gross earnings act IL March,
ISL. The state board of e~uuallZation
W.. meet next August and assess the
track. rolling stock, etc, of all railroads
II the state. This assessment will be for
$50. The Northern Pacific has paid it's
taxes for 1894; it will, therefore. be Oh
served that Senator Gregory is in error
!. stating that all the statutory pro-
visions for the collection of railroad
taxes are repealed, and there is no way
to make the roads pay a cent this year.
'Ihe senator is also in error in his
statement of the amount of taxes paid
by the two principal companies in the
state, the Great Northern and the North
e-n Pacific. He states the Great North.
ern amount per mile under the gross
earnings system with substantial accu-
racy. He gives the amount paid bv the
Northern Pacific too low. The figures
show that the Northern Pacific paws on
its a llnes in the state SS4 per mile.
While on the main line of that road it is
ABOUT s'Sper mile. This, however, comes
about by reason Of the claim of the
Northern Pacific that under it's charter
the main line right of way and all prop
erty thereon, except personal property,
was exempt, and the assessment of 81, 500
Per mile was the result of a settlement
and compromise to avoid any litigation
over the question of the exemption aris-
ing under the congressional charter, and
1t is generally conceded that the SETTLE
ment is a wise one. The branch lines are
assessed, l think, for $500 per mile.
The fact is that the Northern Pacific
branch lines are paying a higher tax per
nile than the Great Northern branch
lines, but the compromise on the North
ern Pacific main line brings out the aver
ages as [ have stated. In addition to
this the Northern Pacific has paid annu-
ally since 1889 very large amounts of
taxes upon its land grant, amounting to
nearly or quite as much as the tax upon
its railroad property. We will tax all the
railroads this year and every year."
REPORTS of commercial agencies. boards