Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1875-04-29

+ 81. p. r.. r. Co..-60O, 600 Acres OF r. r. Z
Lamd.--lereto1orc Exempt Liable to I
: Taxation. !. .ssr,-.ssl .zz. .,s..z.et.< ~
An important decision of the Supreme :,
Court Of the State, all Of the Judges Coz
curing, was fled last evening. The ecase !
was one involving the taxation Of somo
100000 acres of railroad land, located In
the Southern tier of counties of the State, =
and upon which taxation has heretofore"
been evaded under the railroad eompan.
les exemption act The lands in question :
were included in the land grant of the
Winona & St. Peter railroad, and by tho
company had been granted though not
transferred, to certain contractors to &C.
cnre them for work done on the line, the
company meanwhile retaining possession
of the land, and offering it for sale with
their other lands. The company having
such possession of the lands held that
they we're not liable to taxation. To test
the matter the Auditor of Waseea county
placed the lands lying in that county on
his tax list, and on the Company's refus-
ing payment the case was taken into the
District Court for that county, and de-.
cision rendered adverse to the Company.
Upon that the case was appealed to the
Supreme Court, which now renders de-
clsion sustaining the lower court. The
following is syllabus of the opinion: :.
The State of Minnesota vs.. the Winona &
St. Peter Railroad Company.
The Winona g. St. Peter Railroad Com
pany became entitled to receive and re-
ceived lands constructing its road under
the act of May 22d, 1857, entitled "An oct
to execute the trust created by an act of
Congress- entitled an act making grant
of land to the territory of Minnesota in
alternate sections, to aid in the construc-
ton of certain railroads in said Territory,
and granting public lands in alternate
sections to the State of ALBANIA to aid in
the construction Of certain railroad in
said State, and "granting certain lands to
railroad companies therein named" and
other acts amcndatory thereof and supple
mental thereto.
Before the lands were conveyed by the
State to the company, it being indebted to
B. and associates for moneys advanced to
it, and for constructing one hundred and
five miles of its railroad, made a contract
with them in writing, whereby it agreed
in part payment Of such indebtedness to
sell and as soon as it should acquire the
title from the State, to convey to them OF
such person as they might designate, so
many acres of land to which it was enti~
tied, as it should be entitled to and re-
ceive for constructing the one hundred
and five miles, to be selected by CON-
mencing at Winona, and proceeding west
ward, taking all the land along the line Of
the road till the number Of acres should
be got. There was clause in the con-
tract which in effect gave to B. and his as
sociatcs the option, instead of taking a
conveyance, to leave the title in the CON-
pany and haye it dispose Of the lands for
their benefit.
The lands are claimed to be exempt
from taxation under section 4, chapter
of rhe act herein entitled.
Held, That as the entire consideration
for the lands had been received by the
company, the entire equitable and bcne-
fetal ownership of the lands was vested
by the contract in B. and his associates,
and the company held the legal title from
the time of the conveyance by the State
to it, only in trust for them, the contract
was such sale and conveyance as sec
tion 4, chapter 2, of the act contemplates.
and that the lands are subject to taxation.
The judgment of the Court below a.
frmed.