Morris tribune., 1910-05-20
STATE GETS $4,000
AS Result of Law put Thru by
Representative Biclnell.

Another result of Representative
w. G. BicknelI's work in the legislat-
ure has just come to light in decision
of the supreme court upholding
Chapter 80, of the laws of 1907, where
by in this instance alone, the state is
= the gamer by $4,000.
Former Attorney General E. i.
Young discovered while prosecuting
the Western Union Telegraph Com
pany for non-payment of taxes, that
the law imposed no penalty for the
non payment of such corporation
taxes. He accordingly drafted bill
covering this point, and entrusted it
to Representative Bicknel, who in
sroduced it in the house, and succeed
ed in having it enacted into law.
The subsequent history of the suit
was given in Saturdays st. Paul
Dispatch, as follows:-
Minnesota today won $4,000 VIC
tory from the Western Union Tele-
graph company.
The supreme court, Justice E. A.
Jaggard writing the opinion, with JUS
tice T. D. O'Brien taking no part, re-
versed former decision and gave the
state interest on delinquent taxes for
the years 1901, 'O2, 'O3. 'O4, 'O5. In an
opinion handed down in December
last the state was granted the taxes,
amounting to nearly $4,000. At that
time it was held that the interest
could not be collected.
The case, which so far as the state
courts are concerned, was brought to
a close today, started in 1906. At that
time the state begun action to collect
the $4,000 taxes. In 1907 the legis-
Iature discovered that there was neith-
er interest nor penalty attaching for
the non-payment of these taxes. Ac-
cordingly law was passed making
the interest on back taxes IL per cent
and declaring that the interest should
be collected on all corporation taxes
due at the time the law was passed.
It was this back action phase of
the bill that was attacked by the com
pany and held by the court to be
void.
Following the decision in December
the Western Union asked for a reargu-
ment of the entire case, which was
denied. Attorney General Simpson
then asked for reargument of the
interest part of the case. This was
also denied. Upon further considera-
ton, however, it was decided to re-
open the case for argument on the
interest question. AS result the
state represented its case and cited a
long list of authorities and cases to
show the states right to enforce the
law.
The decision today is the result.
It is likely that the Western Union
will take the case to the United States
court.
In his opinion Judge Jaggard says:
GAS the state may in the first in
stance enact that taxes shall bear in
terest from the time they become due,
SO without conflicting with any pro-
visions of the federal constitution it
may, in like manner, provide that |
taxes which have already become
delinquent shall bear interest from the |
time the delinquency commenced.
"The former holding of this court |
must be reversed unless sufficient |
basis for differentiation is afforded by /
the fact that the case at bar is peculiar |
because in the cases cited no proceed
ing for AN enforcement or collection
of taxes had been initiated and were
pending at the time of the passage of
the law imposing the interest. The
rate of IL per cent per annum was not
or excessive. Accord
ngly the previous Judgment entered
herein is modified in so far as it ex-
,Iudes the allowance of interest under
the act of 1907"
The syllabus follows:
Ramsey County-State of Minnesota,
VS.. Western Union Tel
,graph Company, appellant.
AS the state may, in the first in
tance, enact that taxes shall bear
interest from the time they become
lue, SO without conflicting with any
provision of the Federal Constitution
may in like manner provide that
axes which have already become
delinquent shall bear interest from {
he time the delinquency commenced.
This is adding no novel or extraor-
Iinary penalty for interest, and is the
ordinary incident to the non-pay-
nent of obligation. League VS.. Texas,
2 s. @. r. 4s5, followed and applied.
Modified.
Opinion by Justice Jaggard