The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1882-05-05
IA RATION OF RAILROAD LANDS.
A Comprehensive Statement OF tho Legis-
Iation on tho Subject-Test Cases
AIatle-The Land sorip-Oplnion
Of the Attorney General Re
garding Different Glasses
OF Lands.
Pioneer Press.


On the 4th day Of March. 1881. in
the last hours of the session, the
house adopted report of the special
committe Of railroad lands" This
report set forth some specific facts,
us shown by evidence. relating to rail
road lands alleged to be yet exempt
from taxation, though virtually sold.
or contracted to he sold, and had in
fact become the property of private
individuals. The concluding clause
Of this report directed the attorney
general that he might. in his discre-
ton, stipulate with the different rail.
road companies mentioned for the
bringing oi test suits To determine the
taxability Of the lands in said report
mentioned and in case said course IS
agreed upon, the other lands not en-
braced in such test suits, may in the
discretion of the attorney general, not
be placed on the taX-rOll until such
test suits are determined. This in.
struction was not binding upon the
attorney general, for the reason that
it WAS not JOINT resolution. Never
thcleSs he has taken action i'll accord
ance with the direction.
BY agreement of the attorney gen.
eral with the attorneys of the roads,
two test cases have been made to be
brought before the district court of
Hennepin county this summer i'll
time to reach the October term of the
supreme court, where they must 60
for final determination. The first of
these cases is that of the st. Paul &
Chicago railroad company vs.. +. :.
Mcdonald, county auditor, and Frank
Slocum. county treasurer of Henne-
pin county, Gorton E. Cole being at
torney for the road, and the attorney
general himself to appear in hehdii of
the State. BY directio:. of the State
auditor the above officers placed a
tract Of this land on the tax list and
sought to collect tax thereon. This
case involves q class of railroad lands
where the railroad company had made
Il contract with construction com.
pany to transfer to them part of
their lands in payment for work in
the construction of their road. the
construction company Ito have the
absolute separate ownership of the
lands" The report of the house
committee seems to indicate that the
lands were earned by the construction
company, but never transferred to
pl event taxation
The second case to be made is that
of a tract of land belonging to the st
Paul & Sioux City railroad company.
In this case the committee OF the
house alleged that certain specia!
land stock, or scrip, was issued to pay
Il debt, and a block of 400, 900 acres OF
land WAS placed in the hands of the
Hon. VIM. Il. Marshall, rs Il trustee.
the proceeds of the sale of which
land was to be devoted to the pay.
ment of the special land stock. This
trustee was to make all irrevOcable
power of attorney to E. +. Drake, tn
sell and convey these lands to satisfy
this scrip. This scrip carried the
power to locate these lands. In fact
the scrip or land stock owned these
lands. Thus it was claimed that
while the naked legal title to the Ian Is
was not in the owners of the land
stock, they could take title at any
moment, but did not do SO to avoid
taxation. 1t was further set forth
that the present owners of the st.
Paul & Sioux City railroad, represent.
ed by IL. III. Porter, president. had
no right or interest in any of these
lands, and that Mr.. Porter had 81
testified before the committee. II
was claimed, that as u matter of fact,
the lands had gone into the hands OF
private individuals. This case will
tie represented by Judge Palmer for
the company and the attorney general
for the State.
A third class Of these lands are
those of the Southern Minnesota rail-
road, designated as the Clark w.
Thompson special trust lands, and the
233 Wykoff and Thompson land trust
certificates. These embrace two
blocks of land of about $4,000 acres
IN all, located in Houston, Fillmore.
Freeborn, Mower, Olmsted and Mar
Til counties. These lands have been
held by recent decision of the at
torney general august 81, 1s8l,) to
be table. His opinion is based on a
decree Of the United STATES court in
foreclosure proceedings of July IA,
1874. which sets apart certain lands
for the benefit Of the holders of certi
iicateS. SO rs to confer on them the
right to the proceeds OF the sale of
such lands, or the lands themselves if
they choose to have them partitioned.
The supreme court Of the State, i'm
referring to such contingency, hcl Is
''that under such circumstances the
company had sold and conveyed the
lands Estate vs.. trustees of Southern
Minnesota railroad company, vol. 81.
page 35D. The attorney general holds
that such state of facts exists as to
the above mentioned tracts. The
state auditor is now engaged in CERT.
flying all these tracts to the respective
county auditors, so that they may BE-
placed Oh the duplicate for the ensu-
ing year.
A fourth class of cases, of the
greatest present Importance, and on
which the attorney general has just
this day reached "a decision. is this ::
The railroad lands contracted to be
sold have heretofore been assessed in
fee, and according to the value of the
land. These lands are hencefOrth to
be assessed only to the interest of the
purchaser THAT is his payments),
which, together with his improve
ments, are to be taxed us real estate,
(see Edgerton's railroad laws, page
33l, section 81. AS all these lands
have heretofore been taxed In fee,
according to value, the new rule will
work radical change in the whole
system. The radical change Is the
manner of the assessment. When
county auditors sell these lands for
taxes, they can only sell to the extent
of the purchasers interests and i'm
provements. The sale cannot reach
the land, for the fee of the railroad
company lies intrenched and but
tressed in the exemption contained
In their charter, franchise and grants.
Parties having heretofore paid taxes
under the assessment hitherto pre-.
vailing. now finding the taxes do not
fellow the Land whsA they forfeit,