The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-03-30
GET INJUNCTION TO
PREVENT COLLECTION
Of INCREASED LEVY
Hearing on Validity Of North
Dakota Statute to Be Held
in Minneapolis
SAY ACT UNCONSTITUTIONAL
One Argument to BE Based on
Passage in Legislatures
Famous Long Day

Fargo, March 80. = R - Federal
Judge Andrew Miller after hearing
attorneys for six utility companies
seeking relief from q 12-per-cent levy
on gross earnings, issued temporary
restraining order against North Da-
kota moving to collect the disputed
taxes and set a hearing Friday. April
8, In Minneapolis before three federal
judges for defendants to show cause
why the injunction should not be
made permanent.
The power and light utilities fol-
lowed three North Dakota railway
lines into federal court seeking tax
relief.
In separate suits seven major utili-
ties filed actions testing the consti-
tutionality Of the u per cent gross
earnings tax levied on them by the
last legislative session. Involved Is
approximately $4,000 anticipated
revenue, the income expected to be
derived from the IL per cent levy on
utility earnings.
Express Firm Files Action
Simultaneously, another far-reach-
ing tax suit was filed by the Fruit
Growers Express company, private
freight car line operator furnishing
refrigerator cars to railways Of the
state. The suit, comparatively small
In itself, is significant, because the
question at stake Is the tax base for
so other similar car lines-including
oil tank car. refrigerator. etc.-op-
Grating within North Dakota and pay
ing taxes to the state.
The complaint alleges taxes In
North Dakota are four times as large
rs the value Of the property warrants.
Utilities In their complaint offered
no partial settlement Of taxes as did
the railways pending action by the
court.
The utilities are testing the consti-
tutionality of the tax system set up
for them by the last legislature, Ed
ward Cox, Bismarck, counsel for
three Of the utility companies bring
ing suit, said, and payment Of any
part Of the tax would be admission
Of the constitutionality Of the meas
ure, the issue at stake.
Are willing to Pay
In q statement the utilities declared
their willingness to pay any tax es-
tablished by court action and offered
to cooperate with the state board Of
equalization for North Dakota, in es-
tablishing such q tax In the event the
court reverted to the old general
property tax system In force before
the last legislative assembly action.
Last year utilities paid $4,000 IN
taxes to North Dakota.
Companies bringing the actions and
their counsel are:
North Dakota Power and Light
company. serving Bismarck west to
Dickinson and north to Beulah;
O'FIare, Cox and Cox Of Bismarck,
counsel.
Northern Power and Light COM
pany, serving southeast from Bis
marck: OFIare, Cox and Cox.
Central West Public Service Com
pany of North Dakota, serving CEN
trail North Dakota and isolated COM
panies: O'I1are, Cox and Cox.
Northern States Power company
and three affiliates, Union Light.
Heat and Power company Of Fargo,
Northern States Power company Of
Minot and Red River Power company
Of Grand Forks: Zuger and Tillotson
Of Bismarck, counsel.
Otter Tail Power company, serving
q wide area in the state; Field and
Field Of Fergus Falls, counsel.
Montana.Dakota Power company,