The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1886-04-29

ldA1NU u 1HE HA AILkOAD LANDS.
The cases brought 10y the attorney
general against certain land grant rail
road companies, came up in the SUI
prene court on the 2lst. The compa-
MES involved are the Hastings and
Dakota, the Minnesota Central and
the st. Paul & Sioux City. The South
ern Minnesota Railway company and
the Southern Minnesota Railway Ex-
tension company were also involved,
but they expressed a willingness to
transfer their lands. about 4OO, 900
acres, to private individuals, thus
bringing them upon the tax list. The
suits will therefore be dropped and the
cases stricken from the calendar.
The other cases were argued. That
against the st. Paul and Sioux City
was argued on its merits, J. D. Howe
appearing for the company, the gist OF
his argument being:
The st. Paul Il Sioux City company
was not only a railroad company, but
it Was also Il land company. Having
been authorized to transfer its railroad
its charter could not he forfeited for
not operating Il railroad. 1t had Il
right to exist until it had disposed of
its land grant. 1t is not lawful for the
attorney general to complain Of this
company existing, for by the act of
1881 1t was expressly provided that this
company. after the sale of its railroads.
should continue to exist and exercise
Its franchises. 1t is just as much the
right OF the state to resume these lands
rs to destroy any other vested right
acquired under or through this char
ter. 1t it diSSolves the corporation the
land goes to the creditors and stock
holders. The exemption from taxa
ton does hot become extinct by exiin.
gushing the corporate entity. The
trustees, rs is well known, are about
to dispose OF the lands in execution ot
the trust, 81 that within thirty days,
they say. nearly all will he added to
the mas Of taxable property. 1t was
the intention OF the legislature to keel,
this company alive so us to hold it ne
ulniariIy liable for the percentage of
gross earnings which would be due the
state. - lnry us the statute points to
no duty or obligation, that the rcSpOll.
dent - not diSchar"ing, it has not sus-
pended its lawful business Since the
respondent was chartered, it devnlve,l
lts 'iutieS np"n the Omaha company,
and that company Is carrying out the
charter luti'S. That the company is
kept in being for the sole purpose of
holding it's land grant, is no ground
for forfeiture. The state is +nueavor-
ing to kill the trustee in order to get
rid Of the trust. In regard to the f:,,l
Mre to build the road to Shakopee. the
stat" has waived tie light TO claim Il
forfeiture Ivy the passage Of other acts
giving them additional power.
In his reply to the argument Attor-
ney Genera! Hahn said:
The question before this court is
Whet hti these corporations shall he
dissolved and their charters forfeited
1t is well settled to he Il tacit condi-
tion Of grant of Incorporation that
the grantees shall act up to the end
and design for u hicll they were incor.
porated. This the respondent has fail
ed to do. The courts Of New York
have established the doctrine that il
u corporation suffer acts to be done
which destroy the end and object for
which it WAS instituted. it Is eG,,iva
AShV w q Shl vi us lIxlLS. AZ
to the argument concerning the au-
observed that no case is cited, aud We
confidently believe that none can h,
found, where power to sell, or ratiii.
cation Of sale. or recognition OF
corporation after il sale, which depriv
ed the corporation of the power to sui,
serve the design Of it's creation, wa
hold tn no q 1iDnnco f0 fr>
lst. The proposition that the corpora
tion may be authorized to sell it's prop
erty, and nevertheless, that act, be
cause of its consequences, may he
ground Of forfeiture, is sustained b,
numerous authorities.
The court took the case under ad
visement.
The truth is, the matter is workin,
admirably. The demand of the peorl
for the taxation of the land has no
only been heard but needed. TIL
Southern Minnesota company ar
transferring theirs, it seems, all a
once, so rs to bring them on the ta
list, and the same kind of transfer
what the st. Paul and Sioux City la
been working at gradually for severa
years. They have been making an en-
ergetic effort to get rid of the land
ard have sold them off 80 rapidly tha,
as stated in last weeks ADVANCE
there are not more than 10000 or 40
600 acres left in Mobiles county.
would not surprise us to see all thes
lands sold under pressure of thes
suits, within the next year.
RAILROAD NEWS.