State v. Northern Pacific Railway Co.

Streissguth, Justice.

In this suit to recover allegedly delinquent gross earnings taxes for the years 1934, 1935, 1936, and 1937, both parties have appealed from the judgment in favor of the state. They respectively challenge and defend the defendant’s failure to report as gross earnings certain recurring items of income to which specific reference will presently be made.

Four of the items involve income which defendant asserts was received from sources other than its transportation business and, therefore, not properly included in its gross earnings. The fundamental principles governing the…