Page:North Dakota Reports (vol. 2).pdf/376

 could exercise its power to classify in the matter of taxation. We may also mention here another reason that has influenced us in reaching this conclusion. The right of way of appellant’s railroad was expressly exempted from taxation, within the territories of the United States, by § 2 of the charter. There can be no doubt but that if congress had seen fit, it could also have exempted appellant’s land grant from taxation within said territories. But congress did not go to this extreme. It left the question to be settled by each territory of the United States through which appellant’s road might run. Dakota territory saw fit, by its legislature, to pass the gross earnings law of 1883, thereby exempting appellant’s land grant from taxation. The statute is, in its legal effect, in precisely the same position as a similar statute passed by congress would be. The jurisdiction of congress over the territories of the United States is supreme, and corresponds to the powers of a state over its municipal organizations. It has full and compete legislative authority over the people of the territories and all the departments of the territorial governments. It may legislate directly for the territories, and such legislation will be the supreme law of the land, and cannot be questioned or invalidated. Insurance Co. v. Bales of Cotton, 1 Pet. 511; Bank y. Yankton, 101 U.S. 129. But this power was delegated to the legislative department of the territory of Dakota at the time of its organization, and hence that body succeeded to and became possessed of all the powers of congress in respect of legislation in said territory. Nevertheless, congress could at any time withdraw this grant, or could legislate directly for the territory, and could annul any act passed by the territorial legislature. If congress did not choose to annul any act, then such act became valid and binding, and was, to all intents and purposes, the act of congress itself. Dubuque v. Iowa, 12 How. 1; Bank v. Yankton, 101 U. 8.129. By appellant’s charter, the right of way of the railroad was exempted from taxation within the territories of the United States; and it cannot be doubted that congress could also have exempted the land grant within said territories, had it seen fit so todo. By the organic act, congress delegated this power to the territorial legislature. The latter body exercised the power