Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-02-08


of which they rescind
these princely grants of land, and without
which they never would have received
them. 1t was for the avowed purpose of
shielding the lands from taxation that the
railroads making the sales and conveyan-
ces did not include the lands IN their
sales, but continued still to hold them free
of taxation. And now the question is, for
what purpose are these lands now held
and parceled out among the individuals
who once composed the present railroad
corporations, such as the Sioux City Il
Winona and st. Peter roads! They are
not held for the purposes for which they
we're originally granted is construct
ing and operating railroad, for these
corporations have voluntarily sold and
disposed of their roads and
do not claim to own any.
They have put it forever out of their power
to do this by transferring their charters
and charter privileges to other companies,
and have retained their lands, well know
ing that they were never to be used for le-
gitimate railroad purposes, but only for
private gain and speculation. Now the
legal question arises, can corporation ex-
list after it has voluntarily Invested itself of
all power to carry out the purposes of its
creation? If such a corporation can exist
at all, it is not as railroad corporation;
but merely as land company. How comes
it then that if these lands are
held by a mere land company, that
they should be exempt from
the burdens of taxation, which the rest OF
us are made to bear?
One of the former railroad corporations,
the st. Paul & Sioux City, is said to own
over million of acres in the southern and
western parts of the state. The value OF
railroad lands have been greatly enhanced
in value by the labor and money Of the
poor men who have settled on the alter
nate sections. They have built school
houses and churches, and opened up roads,
thereby greatly increasing the value of the
contiguous lands. To my mind, therefore,
it is plain that all lands of this character
should at once be made to bear their
share of the public burdens, and that the
proper state and county officers
ehall be directed to place the same on the
tax duplicates for taxation. If under the
terms of the grants by which their lands
are held, they are not in fact subject to
taxation, this is judicial question to be
determined by the courts, and my object
| in introducing my bill was to set the ma
ehinery of the law IN motion, so that the
question might be brought to a speedy
settlement. 1t can work no injustice to
| the parties owning these lands to have the
question once, and for ever, settled. 1
therefor hope that the bill will not be in
definitely postponed, but that the same
| will be printed and then go to the COM
mittee of the whole.
Mr.. Cole, of the railroad committee, said
| the gentleman from Blue Earth did not
appear to understand the status Of the
grants. The facts were that in 1858,
| whether wisely or not the state made a
contract with certain land grant roads,
that in consideration of the early compile
| ton of their roads, such lands should be
| relieved from state taxation. Since then
these roads have changed hands, the origi-
| nal corporations, however, retaining the
lands. The claim is now made that
| upon this transfer, the lands became taxa
BILE. This is matter for the courts, not
for the legislature, and a test case has
already been commenced, which will come
| before the supreme court at its spring
term upon its merits, all technicalities hav-
ing been waived by the corporations now
in possession of the lands. IL this suit re-
suits in declaration of the right of the
state to tax the lands, then the lands will
be put upon the tax duplicates at once,
going back when the tran.fer of the roads
was made, and therefore the legislation
proposed is unnecessary.
Mr.. Brown did not agree with Mr.. Cole
that no more legislation was needed. 1t
would be two years before there would be
another session of the legislature, and IN
less there was affirmative legislation at this
time giving the state authority and
power to act the land corporations would
be able to evade taxation for another two
years. He had no war to make upon the
railroads but would protect them the same
as the humblest citizen of the state.
Mr.. Cole again reiterated there was no
necessity for legislation at this time, as
the machinery to settle the question was
already at work. The plan pro-
posed by Mr.. Brown would result
in having suits commenc ed in
every county where such lands are
located, while as it was now progressing
the contest case in the supreme court
would settle the matter, and if the decis-
sion was in support of the right of the
state to tax, the lands without further
action would be promptly placed upon the
tax duplicates.
Upon vote being taken tho motion of
Mr.. Brown to print and refer to the COM
mittee of the whole, was adopted.
Upon motion of Mr.. J. E. Child like
action was had upon the other of Mr..
Browns bills recommended for indefinite
postponement.
INDEFINITELY POSTPONED.
The senate bill Senator Wilson's,) pro-
hibiting constitutional amendment pro-
hibiting the voting of bonuses to railroads,
or other purposes, except upon two
thirds vote, was reported back from the
railroad committee with recommen-
dation of indefnate postponement, which
report was accepted.
Jas. Smith, Jr., of the committe on cor
porations, reported back three bills, to
amend village charters, with recommend
alton for indefinite postponement, such
legislation being prohibited by the consti-
tutional amendment prohibiting special
legislation. In explanation of the report
Mr.. Smith said general law governing
such matters was being prepared, which
would meet all the objects
aimed at by the bills in
question. Other bills were recon-
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