Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1909-11-12
TAX CASE UP TO
SUPREME COURT
CASES INVOLVING MINNESOTA
GROSS EARNINGS LAW FINALLY
ARE CONSIDERED.
GREAT NORTHERN is THE FIRST
Validity of Contract Of Territory Of
Minnesota With Predecessor
of Great Northern Is In.
volved.

Washington, Nov. S.-After waiting
the entire week for an opportunity,
Minnesota attorneys were able to pre-
sent the Minnesota gross earnings
taxes cases to the United States SUI
preem court. The Great Northern
case was called by Chief Justice Full
er about IL minutes before time for
adjournment, and w. r. Begg, at
torney for the Great Northern road,
spent 10 minutes in briefly outlining
the case. The arguments will be TAX
en- up again Monday morning.
Attorney General Simpson and Geo.
w. Peterson assistant, will divide the
time for the state when Mr.. Begg has
concluded his argument. The court
exhibited a keen interest in the case
when it was brought up. Mr.. Begg
stated the position of the Great Nor
thern to be substantially this: That
the company operates the road built
under the contract made by the ter
ritory of Minnesota in 1857 with the
cid Minnesota and Pacific.
This provided for 3 per cent tax.
and the company has refused to COM
ply with the per cent tax law passed
in Minnesota in 1908. The case now
before the court involves only the
taxes for 1905, the one per cent in
dispute amounting to 100000.
The state of Minnesota has total
of over 100000 at stake in the case,
however, representing the disputed
taxes for 1905 and succeeding years
in the Great Northern and Chicago
Great Western cases.
Definite Ruling Expected.
The United States supreme court,
when it finally passes upon the Min
nesota gross earnings tax cases, will
decide definitely, it is believed, whe-
| Their or not the charters issued for the
Territory of Minnesota to the Great
Northern and Great Western main
lines, contracted away the states right
to levy future taxes. Although these
charters have been the object of form
er decisions in the Minnesota courts,
| the attorneys for the state declare
that the real question Of contractual
|
The territory of Minnesota granted
charter to the Minnesota and Pacific
railroad in 1857. The rights given by
this charter are supposed to have de-
seconded through many foreclosures
and assignments to the ST. Paul and
Pacific and later to the ST. Paul, Min
neapols and Manitoba Railway Com
pany, from which the Great Northern
now leases it's main line. The Great
Northern claims that the territory
bound the future state to a 3 per cent
gross-earnings tax on this line, and
refuse to pay the per cent tax now
| In effect The state of Minnesota
claims that the Great Northern has no
contract that prohibits the state from
exercising its full taxing powers.
The gross-earnings tax cases are
/ brought to the United States supreme
court by the railroads from the Mime
sofa supreme court, where the rights
| of the state were upheld. In the orig
inal action of the district court Of
Ramsey county, the right of the Great
/ Northern to a per cent. tax and the
! Great Western to a 2 per cent tax
were declared valid, and these deci-
sions were reversed by the state SUI
preme court. The Great Western
claims to have charter granted to
the Minnesota and Northwestern roads
in 1854, and amended in 1856 provid-
ing for 2 per cent tax. This case
is submitted to the United States SUI
| preme court on briefs and will prob
ably not be argued.