In the case of the Northern Pacific Railroad Company vs. Carland (5th Montana, 146), the supreme court of Montana held that

By virtue of the above (section 2 of the company's charter) exemption from taxation formed a part of the consideration for the undertaking and contract on the part of the company, and that such contract can not be impaired by the national legislature, much less by an act of a Territorial legislature, which owes its existence to its organic act given by Congress. As well might such Territorial legislature undertake to repeal the organic act which called it into being as a Territory.

Under the charter of the Northern Pacific Railroad Company it is clearly exempt from taxation. If what is known as the gross-earnings law is in conflict with section 1925 of the Revised Statutes the question presented is, whether or not any system of taxation can be adopted by the Territorial legislature without Congress first taking some action. If the charter of the company operates as a contract between the National Government and the company to the extent of excluding taxation as provided by section 2 of its charter, does it necessarily follow that Congress has not power to legislate in such a manner that it may provide for or authorize the Territorial legislature to impose a tax upon its income or gross earnings which would be valid and susceptible of being enforced? The interpretation of the gross-earnings law, that all other railroad property is exempt from taxation, has exempted from taxation nearly one-eighth of all taxable property in the Territory.

LEGISLATIVE NEEDS.

The limited number of subordinate officers allowed each branch of the Territorial legislature and the limited amount, $3,750, allowed for public printing is inadequate for legislative needs and has led past legislatures to provide therefor by appropriations from the Territorial treasury, which is in direct conflict with the laws of Congress, and should not be continued. Such has been the development of the Territory (our population being now 600,000) that the needs of our people have given rise to a large increase in legislative work. Recognizing the rapid development of the Territory, Congress, by act approved June 12, 1884, increased the numbers of the members of the council in Dakota Territory to twenty-four and the number of the house of representatives to forty-eight, just twice the number allowed before said act, but failed to provide for an increase of clerical help. The number of subordinate officers and limit of expense for printing remain the same as provided by chapter 329, second session of Forty-fifth Congress.

POWER TO VETO APPROPRIATIONS.

The matter of providing for the maintenance of our various Territorial institutions and officers and general expenses of the Territorial government and the passage at times of excessive or unnecessary appropriations and the habit of tacking on proper appropriations unnecessary and excessive items, commonly called riders, suggest the propriety of the passage by Congress of such law as would enable the governor to veto items of appropriation in bills, and approving such as are unobjectionable.

SPECIAL SESSIONS OF LEGISLATURE.

The interests of the Territory require that a special session of the legislature be provided for on permission being first obtained from the INT 88-VOL III- -48

President. As the law now stands no special or additional session of the legislature can be held in Dakota, there being no provision therefor, and in case of emergency making a special session desirable, great det riment to the interest of the Territory might arise by want of such provision.

ALIEN LAND LAW.

I would quote from my last report regarding the "alien land law," lately passed by Congress:

While it prohibits aliens from acquiring great and extensive tracts of land, it also prevents our people from receiving the benefits of foreign capital seeking investment on mortgage security. The object the law has in view is desirable, yet if some modification could be made to enable capitalists or moneyed corporations to loan money in the Territories (as they did previous to the passage of this act, in large amounts), and in case of their becoming owners of property through the medium of an investment thus made, allow them a certain time to dispose of the same, and to surround the main feature of the act with such further safeguard as prudence dictates, our people would have access to a larger amount of capital, which would greatly aid in the development of our resources and would lighten the burden that a high rate of interest imposes upon the borrowers, who in a country like this are necessarily nu

merous.

MILITIA.

The militia of the Territory is designated as the Dakota National Guard, and consists of twenty companies of infantry (two mounted), and one of artillery, two regiments. The infantry is fully equipped with late improved model Springfield musket, caliber .45; the artillery company is furnished with two 3-inch rifled cannon with carriages and equipments complete. The command is under the supervision of Col. Mark W. Sheafe, senior ranking colonel. All orders issue through the adjutant-general's office. The general staff consists of an adjutantgeneral, a quartermaster, and commissary of supply, inspector, judgeadvocate-general, chief engineer and ordnance, surgeon-general, and usual number of aids-de-camp. The effective strength, at present date, is 1,020 enlisted men and 84 commissioned officers of the field, staff, and line. The general staff consists of 22 commissioned officers.

Blunt's system of rifle practice, the same as adopted by the United States Army, was commenced at the encampment held at Huron in September, 1887. Tactics and uniform conform to United States regulations. The command is required to attend an annual muster and inspection, and each company is obliged to perform not less than twelve additional drills, parades, musters, and inspections per annum. annual muster is provided for. The legislature appropriated $18,000 for militia purposes. Experience, however, has shown that two annual musters or encampments can not be held and the expense be confined within the appropriations.

An

The annual expenditure for armory rent is $6,250; clothing allow ance, $7,014; total, $13,064.

This year no encampment or muster was held owing to a disinclination to incur an expense in excess of the appropriations.

In conclusion, I would quote from my report of 1887:

The wealth of our Territory and her vast resources, the number of our people, their education and culture, honesty of purpose, patriotic intent, unexampled energy and industry entitle them to some recognition from the States of the Union, and to that reward the nation should confer without hesitation for the unsurpassed development of her territory Dakota's people have wrought, and whether admitted as one or two States there are many reasons why the people should not be longer deprived of the right to manage their own affairs. The character of legislation necessary to the ad

vancement and development of our Territory and the well-being and happiness of 600,000 people can not be obtained through the medium of Congress, the members of which are far distant from the people whose interest they have in charge, and who necessarily can not be familiar with their wants or their many existing and rapidly growing needs which can only be secured through the means of a direct responsibility of the governing powers to those whose interests they have in charge, which means are self-government through statehood.

I am, very respectfully,

Hon. Wм. F. VILAS,

LOUIS K. CHURCH,
Governor of Dakota.

Secretary of the Interior, Washington, D. C.

REPORT

OF THE

GOVERNOR OF IDAHO.

EXECUTIVE DEPARTMENT,
Boisé City, October 20, 1888.

SIR: In compliance with your request of July 14, I have the honor to submit the following report of the affairs, progress, and development of the Territory of Idaho during the present year, and make such suggestions relating to the Territory as in my opinion should receive the attention of the Department and be referred to Congress.

POPULATION.

The last census of 1880 gave the population at 32,610, and the vote for Delegate in Congress for the same year was 7,223; for 1882, 11,620; for 1884, 12,288; for 1886, 15,358. Estimated vote for 1888, if all take the test oath, 22,000. In 1880 fully three-fourths of the population were adult males; there were but few women and children, and they were confined to the towns and villages, while now we have our children of school age, scattered all over the Territory.

The vote cast in Idaho does not fairly represent our numbers. Our population is scattered over a large region inaccessible to voting places, and more particularly in the mountains, mines, and stock ranges; a very large number will not go to the polls, arguing that all our Territorial officers are appointed by the President, and while we are American citizens and have a deep interest in who shall be President of the United States, we are refused the franchise in his selection, consequently thousands will not go to the polls and deposit their ballot for a Delegate and county officers. From the most reliable data gathered from assessors and the best informed citizens in the different counties, I can safely put the present population of Idaho at over 100,000.