The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-11-17
STATE TAX CASE
BEFORE FEDERAL
C0UR 7 NOV. Is
Issues to Be- Argued Before
Judge Woodrough Of Oma-
! ha at Fargo,
ALL ROADS INVOLVED
United States Pays Taxes In
volved in Some Suits Now
Fendin@for Adjudication

v--------------
Fargo, Nov. 1.-THE final steps in
| the famous railroad taxation cases,
! involving $2,169191.32 will begin in
! the United States district court in
Fargo on Thursday morning. Nov. Is.
Judge J. W. Woodrongh of Omaha,
Neb. will hear the arguments, and
on his decision will hinge the ques-
~ton of whether or not the railroads
shall be compelled to pay that por-
ton Of the 1917 and 1918 tax which
they assert is in excess of the tax
! that should have been levied against.
them. &&f
There are five cases pending in the
federal court assailirg the validity
Of portions of the tax imposed on
railroad property by the state board
of equalization for 1917 and 1918.
The main proposition advanced in
:behalf of the railroads is that their
property was assessed at a rate
higher tna,l @any other class Of prop
erty in the state and that they should
be freed from that part of the tax
which is in excess Of, the amount
they say they should have paid had
their porperty been assessed on an
equal basis with other property.
Testimony INF this case, has been
taken before the examiner appointed
by the district court Miss.~M. Nymon.
More than 100 days have been spent
| IN, ho to1y of aviIAnno ohn11t U0O
witnesses have been examined, there
are about 5000 pages Of testimony
and 16 volumes.
Government Fights Tax.
The most important of these cases
is the one prosecuted by the director
general of railroads on behalf Of the
federal government. 1t involves the
taxes assessed against the properties
of the Great Northern Railway com
pany, Northern Pacific Railway COM
pany, Chicago, Milwaukee e. st. Paul
Railway company, Minneapolis, ST..
Paul G. Ste Saint Marie Railway COM
pany and Farmers Grain & Shipping
company railroad, in North Dakota,
Sby the state board of equalization, foE
the year 1913, The amounts were
protested by the director general and
his representatives, as excessive and
discriminatory. The United States
government has to pay the taxes for
the year 1918, while it was operating
the railroads. The total amount OF
the tax imposed over the protest of
the government representatives, was
S3,675, ,05608. The government paid
two-thirds of this to the various
county treasurers Of the state, $2,45O,-
! O37.53, leaving as the amount in dis
pute in the director generals suit,
1925, ,01S.55.
Roads Bring Suit
The remaining suits are prosecuted
Ilby the railroads in their own right,
and involve the taxes which the rail-
road companies themselves are liable
Cor, and they involve the taxes for
the year 1917.
The Great Northern Railway COM
pany was taxed for that year by the
state board of equalization at 81 1885,
614.52. They paid twothirds of this
amount, 1924 40975, leaving balance
in controversy in it's suit, Of S412,-
20477.
The Northern Pacific Railway CON-
papv was taxed at $1,02S, ,1O1.SS and It
paid two,thirds of this to the various
county treasurers, namely $6S5, 5,4Ol.45,
leaving the amount in controversy III
it's suit, $342,7oO43.
The 500 Railway company WAS
taxed at S53SO9507. for 1917. ana
Hpaid two-thirds Of this to the various
county treasurers, namely $685.
1908. leaving the amount in contro-
yersv in it's suit, S179,365.34.
The remaining suit is that OF the
Farmers Grain & Shipping Company
railroad. The tax imposed was
S16,353.7S. The company pald
Sc, 451.55, leaving s9,9o2.23 in dispute
Judge N. C. Young of Young, Con
nv & Young. of Fargo, and c. j.
Murrhv e. Murphy & Toner, Of Grand
Forks, will represent the railroads
and the director general Of railroads
while F. K. Packard Of the attorney
generals office will represent the
state.