The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1884-03-07
TAXATION OF RAILROAD LANI'S.
The Most Important Question to Mon
tana Before Congress.
THE SENATE SUBSTITUTE AND PRO-
POSED ACTION.

/ FSoID r~iaSHs
From Congressional Record, FEB, q.
The bill Is. COZ to declare certain lands
subject to taxation was considered as in
Committee Of the Whole.
The bill was reported from the Committee
on the judiciary with an amendment to
strike out all after the enscting clause and
insert:
That all the lands granted by the act of
| July /, 1852, entitled "An act to aid in the
construction of railroad and telegraph line
from the Missouri River to the Pacific Ocean
and to secure to the Government the use of
the same for postal, military and other pur-
poses," and the act amendatory thereof, ap-
proved July 2, 1864, to the several railroad
companies therein named, which have been
selected and surveyed, and to which said
companies respectively have become entitled
to receive patents upon payment Of the cost
of surveying, selecting, and conveying the
same, as provided by section q of said
amendatory act of July 2, 1864, notwithstand-
ing such company have not made such pay
ment, shall be subject to all legal taxes i'm
posed under authority of any State or Terri
tory in which such lands are located, to the
same extent as they would have been had
such costs been paid and the lands conveyed
to said railroad companies: Provided, That
this act shall not be construed as applying to
lands already forfeited by said railroad COM
panles, or either Of them, nor shall it operate
10 relieve any such company from any for
fixture heretofore incurred: And PROVIDED
further. That prior TO the payment of such
costs Of surveying by said railroad companies
no taxes shall be imposed except in organ
lied counties.
SEC. 2. That in any sale of such lands for
taxes the moneys due or to become due the
United States under such acts for such costs,
fees, &C., shall be and remain first lien on
such lands, and shall be paid by the purchas-
er at such tax sale, who shall thereupon, his
title under the tax-sale being complete, re-
ceive patent for the land so purchased by
him, and which patent shall operate only as
evidence of the tax.title, which title shall be
subject and subordinate to all the rights Of
the United States in respect of such lands
growing out of the lien and security on such
issued by the United States in aid of the con-
struction Of said railroads, which facts and
reservations shall be stated in such patents
Sec. 3. That any railroad company or its
assigns to which lands have been granted IN
der the provisions of the said act of July l.,
1862, and the act amendatpry thereof, APP
proved July 2, 1864. referred to In section Of
this act, shall, within ninety days from the
passage Of this act, pay into the Treasury of
the United States all the cost Of surveying,
selecting, and conveying all such lands upon
which such costs shall not have been already
paid.
SEC. 4. That in the event of failure by any
such company, or its assigns, to comply fully
with the provisions of section of this act,
the Secretary Of the Interior shall immedi-
ately give notice to the president or treasur-
err of said company that he is ready to deliver
to the company, or its assigns, patent or
patents for all the tracts or parcels of land to
which the company would be legally entitled
ifsaid costs of surveying, selecting, and con-
veying had been paid, whenever the said
costs are paid by 1t or its assigns; and If said
company, or its assigns, shall not, within two
months Of said notice, pay such costs and ac-
cept such patent or patents, then and there
upon the Secretary of the Interior shall noti-
fly the Attorney General of the United States
of such failure, and of the amount Of such
costs, as nearly as may be; whereupon the
Attorney-G General of the United States is au-
and directed to institute forthwith,
in the name of the United States of America,
in the circuit court of the United States for
the district in which said tracts or parcels Of
land are situated, any and all proceedings
against said company necessary and proper
TO secure the payment Of all said costs, and
of the further cost of all such legal proceed
ings, for which the United States shall have
a prior lien.
SEC. 8. That on and after the date of the
above notification to any such company by
the Secretary Of the Interior of tender Of
patent as aforesaid, all tracts and parcels of
land to which such company would be legal.
ly entitled upon the payment of said costs
shall be subject to any and all legal taxes i'm
posed under authority of the laws of the
States or Territories in which the said lands
are located, to the same extent that they
would have been IL such costs had been paid
and the lands conveyed to such company or
its assigns.
Mr.. ALLISON. Let the report be read.
The Secretary read the following report
submitted by Mr.. Garland January 20, 1884
The Committee on the Judiciary have had
under consideration the bill Is. COY to declare
certain lands subject to taxation, and they
report the same back with several amend
ments, with the recommendation that the
bill as amended pass; and the committee beg
leave to report specifically.
The original bill contemplates subjecting
the lands granted by the act of July /, 1862,
and the acts amendatory thereof, to aid In
The construction of a railroad and telegraph
line from the Missouri River to the Pacific |
Ocean, &C., to all legal taxes imposed under |
Of any State or Territory in which |
such lands are located, to the same extent as
they would have been had the cost of survey
Ing, selecting, and conveying the same been
paid.
The committee are of the opinion this is |
200 broad, and, IL adopted, would lead to |
much confusion and sometimes to great In |
Justice. While 1t is true by the well-estab- |
ished rule Of law these grants are In pr9senti |
-vesting title Immediately making the per-
Torrance of any conditions attached relate |
pack to the date Of the grant lBaldwin's case,
o3 U. 8. Rep, p. 426; Van wyke's case, 106 |
H., p. 800; McLaughlin's case, 107 10, p. 526),
ret the full performance Of these conditions |
% as to vest title absolutely and the relative |
iuties and obligations OF the General Gov |
'rnment, the railroad companies, and of the
states and Territories In which the lands are /
ituate are not SO clearly and definitely rs
'ertained.
The Supreme Court of the United States
Prescott's case, 16 Wallace, page 603), In
passing upon the acts named In this bill, |
eern to have held these lands could not be
axed a. contemplated by this bill; that the
title still remaining in the Government, q
ax-sale Of any Of the lands would vest no
title. This leaves the lands TO be used and
peculated on by the railroad companies I'M
II they see at to perfect title, and At the same
lime prevents their being disposed Of by the
General Government for homestead or other
purposes, and the States and Territories in
which they lie can not derive any revenue
rom them. To meet these difficulties, the
ommittee think IL best to limit the taxation
Il these lands In Hnrh m have haan selacfs.d |