Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-07-13

Upon the Development OF Morrison,
Crow Wing and Other Counties-Litiga-
tion, and Full Text of the Decision of the
Court.
In 1877, the legislature passed an act de-
claring forfeiture of the unbuilt portion of
the st. Paul & Pacific railroad from Watab,
or Sank Rapids to Brainerd, and providing
that any company organized, or that might
be organized for the purpose, should have
the privilege of taking the property from
the State upon the deposit of SIS, 200 as an
earnest of good faith; provided always that
the st. Paul & Pacific company should have
the preference. This deposit was to be
made on or before May |, 1877. I'd
The property thus forfeited consisted of
the franchise, all lands granted by Congress
and all work which had been done prior to
the declaration of forfeiture. The Western
railroad company, of Minnesota, was the
only party to accept of the terms and con-
ditions offered by the State. They pro-
ceeded with the construction of the road,
and in the fall of 1877 completed the road
from Sank Rapids to Brainerd, thus giving
to st. Paul direct connection with the North
ern Pacific railroad, and subsequently by an
arrangement made between the st. Paul g.
Manitoba and Northern Pacific railroad
companies, giving the latter company in
perpstuity its present right of making St.
Paul its eastern terminus.
The act in question also provides, while
comforting this valuable franchise (for there
was no merger or extinguishment of the
franchise) also grant of land of ten Sec
tons to the mile to the Western railroad
company, subject, however, to reservation
of one half of all the land which might
accrue from its construction from the State
up to 100000 acres in favor of
De Graf & Co., and other
creditors, whose money and efforts had SO.
cured in 1872 the grading, bridging and
other work upon this line Of road, and for
which these creditors have received no re-
turn.
Under the law which granted to the West
ern railroad company all its rights, its only
existence as regards the franchise, and all
and every right under the act of 1877, these
creditors, VIM. Crooks and Chas. A. DeGratf,
as surviving partners, would be entitled to
about SO, 900 acres of land, and the remain
ing creditors to about 1000 acres.
This was the situation when the Western
railroad company brought suit to ignore all
the rights of the creditors, and obtained an
Injunction restraining the governor from
selling the lands as provided in the act.
The matter was tried in the district court at
Brainerd, the judge deciding that the gov
ernor could not be enjoined. The railroad
company thereupon appealed the case to the
supreme court of the State, to which by
stipulation of counsel, was also submitted
the question of the constitu-
tionality of the legislation of
forfeiture, and all points of dispute
raised by the act. Yesterday the supreme
court filed its decision, which is appended,
maintaining the constitutionality of the
legislative act, confirming the acts of the
governor and granting the titles of the lands
in the creditor defendants.
Il should also be stated, in giving his
tory of the case, that Gov. Pillsbury, acting
under the spirit and letter of the law, ignored
the injunction obtained by the railroad COM
pany, and proceeded to sell such lands, title
to which was vested in the State by virtue of
patents issued from Washington. Of course,
the matter being in litigation by the appeal of
the railroad company, cast cloud upon the
title made by the Governor under the pro-
visions of the law by virtue of which the
proceedings were had, Land for three years this
valuable property pobably the most valua
BILE in wild lands in the State has been viz
tually Withdrawn from market, and MINNIE
sofa, as we'll as DeGraff & Co., and the rail
road company have suffered in conquenoe.
So, too, have suffered, and that seriously,
the counties of Morrison and Grow Wing,
and in lesser degree the
counties of Todd and Stearns,
which for twenty one years had been par
TALLY closed to development through the
large bodies of land lying waste in their Dor
ders embraced in the Congressional grant,
for want of construction of the road, and
subsequently through litigation of the act of
the legislature passed for the purpose of re-
moving this bar and putting the lands in
question in the market. The following is
the decision of the court: