The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1909-11-12
S>oSsNs cclST ASNEC TO PASS
>JeS> VALIDITY OF TERRI
-oS1sl cNASTES.
Sssss Sight 70 Levy 4 Per Cent Up
nelc Sy sttorneysGener>
al Simpson and
Peterson.

Washingto ton.-The fate of about
$500 900 Of back taxes due the state
il railroad taxes is now in the hands
Of the United States supreme court
Arguments were concluded in the
gross earnings tax case. and Attor-
neH General Simpson. Assistant A.
torney General Peterson and w. Il.
Besg attorney for the Great Northern
road. have returned to ST. Paul
The impression prevails here that
the state of Minnesota stands much
more than an even chance to win the
out by the questions asked by men,
bers of the court during the final
arguments. The questions were di-
rected mainly toward determining the
construction which had been given
in the past by the Minnesota courts
10 the territorial charter OF the Great
Northern. but indicated an attitude Of
| mind on the part Of the court which
tended 10 support the states side OF
the case The Great Northern had
refused TO pay more than a 3 per cent
tax on any Of its earnings within
the state Of Minnesota.
| The roads principal contention,
however is as to the sO-cOlled main
line" from St Paul to Breckenridge
and the socalled branch line" from
East Minneapolis to Sauk Center If
| the Great Northern secures a decision
which affirms its right to 8 per cent
tax on these two original lines. au-
thOrized by the territorial charter it
will consider its case won. The state.
on the other hand expects to secure
authority to levy the 4 per cent tax
on the earnings of all the lines oper-
ated by the Great Northern.
The states case was presented in a
fOrcible manner by Attorney General
lSimpsOn and Assistant Attorney Gen
Ieral Peterson. Mr.. Begg for the
Great Northern. set up the plea that
lup to the time of the recent decision
In this gross earnings case, by the
Minnesota supreme court, that body
had always held the territorial chart
er of the Great Northern to be valid
For this reason, he said, a property
fright had been created. The Great
Northern, he asserted, when it made
the lease of the st. Paul, Minneapolis
and Manitoba, had a right to believe
that ii had secured the privilege of
Immunity from other taxation than
specified in this territorial charter
namely, 3 per cent.
| Attorney General Simpson declared
that no such property right existed
He cited opinions to prove that the
real question now at issue, the right
of the state to levy taxes, had never
been before the court as to the Great
lNorthern's territorial charters The
general rule of practice. he pointed
IOut, is that states right TO levy
taxes cannot be contracted away, and
in the present case he asserted the
lcourts had never established proper
rights by holding the old territorial
charter to be binding upon the pres
lent state, as to its tax provisions.
The state also made the point that
the territorial charter issued in 1857
to the Minnesota and Pacific, under
which the Great Northern claims i'm
munity from more than per cent
tax, had been superseded by the new
lcharter of 1865. issued by the present
state OF Minnesota. and which does
not give specific 3 per cent tax to
the assignees of the old Minnesota
land Pacific.