The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-04
DECISION is NOT FINAL.
Chicago Great Western Gross Earn
ing Tax Case.

A closer reading of the opinion of the
railroad and warehouse commissioner
in the Chicago Great Western gross
earnings tax case, shows that the deci-
sion of the commission is not final. In
the opinion, Mr.. Kingsley writes:
The present company objects to an increase
IN the rate of taxation to per cent, and
bases its objection upon the grounds that
the charter provisions above referred to con-
stitute contract between the Minnesota
Northwestern Railway company and its sue
cessors on the one part and the Territory
and state of Minnesota on the other part,
which contract, it is claimed, is equally bind
ing on both parties, and which neither can
change or modify without the consent of the
other, and that such contract has not, in fact,
been changed OF modified by existing legisla-
ton.
To the first of these propositions we can
not yield our assent. 1t is true that there
have been cases determined in the federal
courts and in the courts of last resort in
some of the states which seem to support the
contention of the company, but the PROPOSE
ton that the legislature can enter into a
contract with individual a corporation
by which the state is obliged forever to
commute upon a fixed basis its right of taxa
ton without reference to the needs and ne
cessties of the government or TO quality or
uniformity of taxation, is one which the
courts of this state must affirm before We,
as public officers, possessing only quasi 1u-
dicial functions, can assent to 1t.
There have been some cases in the SUI
preme court of this state which are along that
line, but in the comparatively recent case OF
State VS.. Luther, So Mimi, 1885, on an appli-
cation for a reargument, the court distinctly
stated that the question is not before the
court in that case. and that it did not intend
to express or intimate any opinion upon the
question of whether an act providing for a
committed system of taxation of railroad
property constitutes a contract between the
state and a railroad company which cannot
be repealed or amended.
In our view this leaves the question open
in this stae and if the objection is based
upon that proposition alone, we would deem
it our duty to certify rate of per cent
instead of a rate of per cent in order that
the question might be directly and authorita-
lively determined if the company should re-
fuse to pay the increased rate.
But the legislation to which we have re-
ferred, we are clearly of the opinion, has not
had the effect to amend modify the act
of 1856 and until that act is amended or
modified the company cannot be required to
pay a higher rate than 2 per cent as a gross
earnings tax.
The attention of the next legislature should
be called to this question in order, If so adj
vised that it may pass an act which, when
approved by the people, as provided in the
constitution, will require this railroad COM
pany to pay tax upon its gross earnings
of 8 per cent. which is the rate paid by all
the other railroads in this state. and which
presumably would be its fair share of public
burden.
Until such a law is passed and becomes
operative the rate of taxation on the gross
earnings of the Chicago Great Western Rail
way company will have to be certified at 2
per cent