St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-02-26
Attorney General Hahn Makes Move
Against Certain Alleged Railroad
Company Interests.
Another Day Devoted to Questions and
Answers in the Kelly Extra
dition Case.
MUCH LAND INVOLVED.
TheiAttorney General Moves Against
Alleged Railway Corporations

for a writ of quo Warranto in the case OF
the State of Minnesota ex rel w. a. Ham,
attorney general, VS.. The Southern Mime
sofa Railway Extension company and the
ST. Paul 81 Sioux City, Southern Minnesota,
Minnesota Central and Hastings d Dakota
Railway companies. The writs were yes
terday allowed by Associate Justice Dick
inson and issued by the clerk Of the
supreme court. The writs command each
company to appear before the court April
6. 1886, at IL a. IN, TO show by what
alleged right it enjoys and retains certain
liberties, privileges and franchises stated IN
the information. and why the same should
not be forfeited to the state and its charter
vacated. This move is probably the be-
ginning of long and interesting
litigation, as the companies VIII
not surrender their vested rights
and privileges without vigorous hight. Inc
process has been contemplated by the attor-
new general for good while, but the labor
required in the preparation of the case and
the press of business requiring immediate
attention has delayed it until now. 1t is
also said that it has been contemplated by
previous administrations.
The companies named as respondents
were originally. by various legislative enact
ments, chartered and endowed
with extensive grants of land
for the purpose Of building and
operating certain lines Of railway within
the state. These lines were wholly or par
tally built and afterward sold TO other and
larger railroad corporations, the original
companies reserving their land grants and
corporate existence. At the time the grants
were made in aid Of the several companies
they were exempted from taxation in con-
sideratiOn of the payment into the treasury
of the state of per cent. OF the gross earn
ings during the first three years of operation.
per cent. during the next seven
years and 3 per cent. thereafter.
The corporations named have sold every
mile of completed line, including all rail-
way property and rights of way and still
exist, holding their unsold lands exempt
from taxation. 1t is charged in the in
formation and given as the reason for the
application of the writs that they now
maintain their corporate existence solely
for the purpose Of
SECURING THEIR UESoLD LANDS
exempt from taxation and the process is
instituted for the purpose of bringing them
under taxation. The success of the state
would not work the forfeiture of the
lands, but by dissolving the
companies and annulling their
charters would compel sale of the lands.
or distribution among the ndividul stock
holders, which would place them on the
assessors lists.
The history of the several roads has been
published at various times when they were
made prominent by virtue of completion,
legislative enactments, sale or litigation,
but the following brief facts may be again
set forth.
The Southern Minnesota Railway Extension
company was chartered by an act approved
Feb. q, 1873. 1t completed road from Win
nebago City westward to the state limits, and
on Jan. 1, 1880, il was sold TO the Southern
Minnesota Railway company, which, on the
same day, transferred it TO the Chicago, Mil
waukce j. st. Paul company.
The st. Paul g. Sioux City was incorporated
in 1855 as the Root River Valley a. Southern
Minnesota, and prior to 1870 the name was
changed 10 the st. Paul & Sioux City railway.
in 1881 il was transferred TO the Chicago st.
Paul. Minneapolis & Omaha Railway COM
pany.
The Minnesota Central company was incor-
porated in 1856 as the Minneapolis 81 Cedar
Valley Railroad company. In 1862 the road
was transferred to the Minnesota Central
Railway company. In 1867 it sold to the
Chicago, Milwaukee & st. Paul Railway COM
pany that portion completed from Minneapo-
lis to Austin, and in 1870 the same company
acquired the balance of the road, extending
from Austin to the state line.
The Hastings a. Dakota Railroad company
was incorporated as the Hastings, Minnesota
River & Red River Of the North Railway com
pany, and i'm the same year the Chicago, Mil
waukee & S. Paul acquired Il title TO that
portion extending from Hastings 10 Glencoe
and in 1850 acquired the balance, which ex-
tended from Glencoe TO Big Stone lake on the
western boundary OF the state. In 1882 the
branch running from Benton TO Minneapolis
passed into the same hands and the Hastings
Il Dakota Railway company passed out of the
railroad business.
The Root River Valley & Southern Mime
sofa Railway company was Incorporated in
1885 and in 1859 became the Southern Mime
sofa Railway company. Its completed road
also afterwards passed into the possession OF
the Chicago, Milwaukee ~ st. Paul company
These roads have been the subjects of a GOOD
many Legislative enactments. and two, the
St. Paul Is Sioux City and the Hastings s
Dakota, have been very prominent in public
attention at different times.
THE LAND OWNED.
These companies still maintain an active
corporate existence and still possess. collec
lively, over a million acres of Minnesota
lands. In 1851 the real estate owned by eacl
company was given as follows: Minnesota
Central, 10000 acres; Hastings
Dakota, 100000 acres; ST. Pau
u Sioux City, 100000 acres; Southern
Minnesota, 100000 acres; Southern Minnesot,
railway extension 100000 acres. The orgina
grant 40 the Hastings d Dakota company wa
$4,000 acres. The Minnesota Central nov
has about $1,000 acres, having cancelled con
tracts made in 1881, which makes up til,
difference. The original grant was 90
acres. The st. Paul Sioux Cit!
company has disposed OF its land
rapidly as possible, and ha
4 left about 10000 acres. The Omaha roat
has residuary interest in the remainin,
property of the st. Paul & Sioux City com
pany by which il will, in 1891, come into DOS
session of all lands remaining under In
title of the Sioux City corporation. The re
latiOns Of the two companies are quit
intimate in various ways, and the Omaha
company will probably aid in the fight to pro
tect its own interests. The attorney of tina
road was out of the city last evening an
nothing could be learned OF the future dc
feusive action of either company. Officers O
the Sioux City company say very emphatic
ally that the question of land taxation is
minor point with them, and that the priv
leges ami franchises now enjoyed are of grea
value and viii he defended at any cost Fun
Gher, that the proposed action would annu
valuable existing contracts, and confidence
was expressed III the validity OF their tenure
). II. Drake, land CON missioner of the Siou
City road, expressed surprise that the ques
ton should be raised at this time, as it in
volved the point AT issue in case now pend
ing III Henhepin county.
The interests OF the la tingS & Dakota an
the Minnesota Central companies are repre-
scented by Gordon y. Cole OF Faribault an
The hcadqJO rs of the Southern Minnesot
and the Southern Minnesota Extension CON
panies are located 1t Milwaukee
DRAGGING ALONG.
The ExtTadiiion Case OF BuIldO: