122 Minn. 106 | Minn. | 1913
Action to recover certain taxes claimed by the state to be due from defendants upon their gross earnings for the years 1909 and 1910. Defendants had judgment below and the state appealed.
The facts without unnecessary detail are as follows: Defendant, The Minneapolis & St. Paul Suburban Railway Company, was duly ■organized as a street railroad corporation under the laws of this state and constructed and, during the year 1909, operated certain suburban lines of road radiating from the cities of St. Paul and Minneapolis. In December of that year defendant, Minneapolis ■& St. Paul Suburban Railroad Company, was duly incorporated and .succeeded to all the property, rights and franchises of the railway company, and during the year 1910 operated all the suburban lines •of road, acquired from its predecessor. Several different lines of road were so operated by defendants, each of which connected with the street railways of the cities of St. Paul and Minneapolis, and some of the lines extended in fact a short distance within the corporate limits of those cities. The car tracks are of standard gauge, and the cars of defendants were operated upon and over the local .street car tracks.
One of such lines extends from Hopkins, in Hennepin county, through Minneapolis to St. Paul, from which place the cars return to the terminus at Hopkins. Another line extends to the city of ■Stillwater, in Washington county, through the same and to some point beyond. Within the cities the cars are run upon and over the local railway tracks without change of conductors or motormen. Hnder an operating agreement between the several companies, all fares and revenue receipts, during the years stated, were paid over to the Transit Supply Company, a corporation, the joint fiscal agent •of both car lines, and by that company credited to the respective car ■companies in accordance with the earnings of' each; the earnings of the suburban companies outside the cities being paid to them and the earnings inside to the local company. The employees were paid •on the same basis, each receiving compensation in accordance with the time employed within and without the cities, and paid by the local or suburban line accordingly. Defendants reported their gross
1. The action is founded upon chapter 454, p. 552, Laws 1909,
In this contention we are unable to concur. We have no particular difficulty in sustaining the conclusion of the trial court that the agreement of the different companies for the apportionment of the revenue receipts by the surburban companies, whereby 'the fares received for the transportation of passengers outside the cities were paid over to those companies, and the fares received within the cities to city companies, was a legitimate and proper arrangement for the distribution of earnings thus accruing. The distribution was clearly equitable and fair, and in harmony with the legal rights of the parties and undoubtedly what the law would have awarded in the absence
What we have said on the subject of the various suburban lines applies, by the facts disclosed, to all such lines operated by defendants, including the Minnetonka line. If, as suggested by the attorney general, any inequities or collusion arise to the prejudice of the state, resulting from the method of determining the gross earnings of defendants, the remedy by legislation is adequate for the correction ■of the same. In fact we are impressed that defendant companies, and others similarly incorporated and operating partly within and partly without municipalities should be either commercial or street railways and not be burdened with both characters. But this is a matter for the legislature.
Order affirmed.
[R. L. Supp. 1909, §§ 1003-1 to 1003-6],