The Irish standard., 1909-11-13
SUPREME COURT ASKED TO PASo
UPON VALIDITY OF TERRI
ToRIAL CHARTER.
BELIEVED THE STATE WILL WIN
State Right to Levy Per Cent Up.
held BY Attorneys.Gener.
al Simpson and
Peterson.

Washington, Nov. 1O.-The fate OF
about 100000 Of back taxes due the
state of Minnesota and of future large
sums to Accrue to the state in rail.
road taxes. is now in the hands of the
United States supreme court. Argu.
ments were concluded in the gross
earnings tax case, and Attorney Gen.
eral Simpson, Assistant Attorney Gen.
eral Peterson and w. R. Begg, attor.
ney 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
present suit. This belief was borno
out by the questions asked by mem+
bers Of the court during the final
arguments. The questions were did
rected mainly toward determining the
construction which had been given
In the past by the Minnesota courts
to the territorial charter of the Gread
Northern, but indicated an attitude q
mind on the part of the court which
tended to support the states side Of
the case. The Great Northern had
refused to pay more than per cent
tax on any of its earnings within
the state of Minnesota.
The roads principal contentioni
however, is as to the so-called main
line" from st. Paul to Breckenridge
and the so-called branch line" from
East Minneapolis to Sank Center Il
the Great Northern secures decision
W hich a ff1r rms 10 ri uht n a 2 oor onud
tax on these two original lines, aus
thorized by the territorial charter, n
will consider it's case won. The state,
on the other hand, expects to secure
authority to levy the per cent ta1
on the earnings OF all the lines oper-
ated by the Great Northern.
Formerly Hold Valid?
The states case WAS presented in .
forcible manner by Attorney General
Simpson and Assistant Attorney Cen
eral Peterson. MIR. Begg. for the
Great Northern, set up the plea that
up 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
or Of the Great Northern to be valid.
For this reason. he said property
right had been created. The Great
Northern, he asserted, when. 1t made
the lease of the st. Paul. Minneapolis
and Manitoba. had right to believe
that 1t had secured the privilege of
immunity from other taxation than
specified in this territorial charter,
namely. per cent.
Attorney General Simpson declared
that no such property right existed.
He cited opinions to prove that tho
real question now at issue, the right
of the state to levy taxes had never
been before the court as to the Great
Northern's territorial charters. The
general rule of practice, he pointed
out is that states right to levy
taxes cannot be contracted away, and
in the present case he asserted the
courts had never established proper
rights by holding the old territorial
charter to be binding upon the pres
ent state, as to it's 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 3 per cent
tax. had been superseded by the new
charter of 1865, issued by the present
state of Minnesota, and which does
not give specific per cent tax to
the assignees of the old Minnesota
and Pacific. .
The case of the Great Western road,
similar in many respects to that of
the Great Northern, was not argued
before the court, both sides agreeing
to submit 1t on briefs.
The Great Western claims to have
charter right to 2 per cent tax.