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Show HILL liOMMV FOWIT ! CHHRTER UNDER WHICH IT EVADES TAX PAYMENT 8T. PAUL, Jan. 25. Attorney-General Young today began mandamus proceedings in the Supreme court to compel the St. Paul, Minneapolis Manitoba Railroad company to show cause why its charter should 1 not be forfeited. This company, formerly known as the Minnesota & Pacific, is really the parent company of the Great Northern Railway company, and the Oreat Northern is Joined in this isirae, as it is the owner of the Manitoba company's stock. Attorney-Gene ral Young has given the Associated Press a digest of the allegations set up in the hill filed in the Supreme court. He says: "We have begun action against the St, Paul, Minneapolis &. Manitoba i Railway company to compel forfeiture of its charW because ever since it transferred its railroad, with all its equipment snd appurtenances, to the Great Northern railway, February 1, 1890, it has cessed to perform the functions func-tions for which it was created, and therefore has forfeited its right to exist under our laws ss a rsilwsy company. com-pany. " We bavfy joined the Great Northern Railway company as a party to this action because it is the owner of all the stock of the Manitoba company, and for the further reason that, in the alleged purchase of the propertv a very large amount of watered stock was issued by the Great Northern com pany, which, we claim, is void under the laws of this State, upon which the public is now, and ever since its is- snance, has been paying large divi- ' dends. "It seemed that the Great Northern companv was created solely for the i purpose of making it possible to inflate the capitalization of the system by ' making a sale of the properties to the Great Northern at a price in excess of their value. When the gross earnings tax on railroads was raised from 3 to 4 per cent, in 1 S9o. the Great Northern company refused to pay the increased rate on that portion of its road in this State, which was originallv constructed by the Minnesota Pacific company. The latter company had a charter from the territorv, in which it was provided that the company never should be ; called upon to pay more than 3 per j cent on its gross earnings. The company com-pany became bankrupt, and in 17J j the Manitoba companv purchased its j road and franchises, with the approval I of the Legislature. "Last March, when the taxes for , 19rtj became due on this road, the ! Creat Northern, which operates the road under an alleged lease from the Manitoba company, paid onlv .1 per j cent, and soon afterwards the State : commenced an action against il for $12iVhi being the unpaid 1 per cent nf its taxes tinder the new law. In that suit the claim to immunitv of the manv increases above 3 per cent in its taxes is made under the charter nf the j Manitoba companv by virtue of the rights it claims to have acquired at j the purchase of the road.' |