Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1886-10-13

OAO POA SOIt 10 jill UAV Ol1u y
sued, viz: $21, 500 annually and If the
bonds run as long as it is provided they
may,) there will be saved by this amend
ment to the state $645 600, and by the
other, reducing the interest from seven to
five per cent for a little over two years as
before explained, over goo, 600. Indeed
this does not state nearly the full amount
Of the gain to the state for by the amend
ments thus made the state saved interest
from January 1882 to January 1884. A.
ter this, even if this were all, it could not
he expected and l we'll knew that the
railroad companies would not look on me
with favor.
Farther, during the former session of
the legislature, when l was a member of
the house and senate, the attempts-(gen-
orally successfully to secure swamp land
grants in aid of railroads were very nu-
merous, and many other bills partial to
corporations and granting them special
privileges were introduced and urged, as
the records will show and as any honest
member of the legislature, to whatever
party he may belong, will testify. Top.
posed them one and all. Such bills were too
numerous to be referred to particularly,
hut 1 think that l may be pardoned for
referring to one or two other transactions
that will explain the feeling towards me
OF the railroad companies and the CAPT.
tons generally.
TAXING RAILROAD LANDS.
AT the session of the legislature in Jan
uary, 1881, it being suspected that extern
sive tracts OF land, in reality owned by
private parties, were being held illegally
untaxed, in the name of different railroad
companies, q resolution was offered by
me In the House, for the appointment of
Q committee TO investigate and report
"whether any lands granted by the state
in aid of the building of any lines of rail-
road have been or arc held exempt from
taxation, after the same have been sold or
contracted to be sold, or after they nave
become the private property of any per-
son or persons, natural or artificial; or
whether by any device or subterfuge any
of said lands are held exempt from taxa
ton, in violation Of law"
The resolution having heen adopted,
and the committee appointed, of which l
was chairman, Upon investigation q. ma
jority of the committee became satisfied
that on a large scale certain persons were
holding their property in the name of
some railroad company, and thus illegally
shielding it from taxation. They there
AVIAN AbCus Ill ACKNOWLEDGEMENT VLdt-
The State Auditor. be instructed, by the
House, to cause to be PLACED on the tax list the
lands granted It to the s.: Paul 4 Chicago Rail;
saltwater + Fergus Falls Railroad Co., and
s S:st R Of 1noss e ga" toy the Southern Mime
TO this report was added, as a c0nces-
sion to those who opposed the report, a
proviso that the %'majority report of the
committee be submitted to the Attorney
General, and that he may in his discretion
stipulate with the different companies
mentioned, for the bringing of test suits
to determine the taxability of the lands in
said. report mentioned; and in case said
course is agreed upon that the other lands
Of such companies, not embraced in such
test suits, may, in 1.-THE discretion, and on
the direction of the Attorney General, not
be placed on the tax roll until such test
suits are determined" This report and
resolutions were adopted by the House.
Subsequently suits were brought in Hen
nepin county to enjoin the taxation of the
lands of the St. Paul & Chicago Railroad
Company and q block of the lands of the
st. Paul & Sioux City Railroad Company;
but these suits were not decided in the
district court until itbe winter of 1885,
when that court held in both cases, the
lands exempt from taxation.
At the extra session of the legislature
In the Autumn of 1881, it was understood
that the taxation of these lands would be
resisted on the following among other
grounds, viz:
l.. That the resolution Of the house afore-
said, not having the force of law, the State
lands ON the tax list In pursuance to it.
2. That the persons beneficially interested in
tho lands not owning the fee, 1t would he ille-
gal to taT the fee.
3. That there was no law requiring. or justi-
flying the taxation Of their interestin the lands.
Therefore though best to introduce a
bill to obviate these and other possible
objections. 1t was also deemed necessary
under the sverest penalties, to require
the railroad companies to report to the
State Land Commissioner such transac-
tions as gave to their stockholders, or
other persons, the fee or any fees interest
in such lands.
While to those who were most earnest
in urging the taxation of the lands it did
not then nor does it now, seem that any
further legislation was absolutely neces-
sary, yet to avoid any embarrassment and
legal technicality or bubble, a bill was
introduced providing that:
"Whenever any railroad company, to which
ing Of its lines Of road in the Territory and
state OF Minnesota, .(and which lands have
leased, contracted or sold by said company
has sold, assigned, transferred or disposed Of,
or ony sn sssa seI'' r asslsn tie, GG tt on ineere or t dasPefse OIL Of
thereto, the right, title, estate or interest Of
such purchaser, assignee, or holder, by what
ever mode or In whatever form, such sale
transfer or assignment is, or may have been
made, shall become and be taxable and shall
be assessed and taxed as other real property
IN "Hhfn Stnt0s ms fhn r m 0prnfN, xnk
tile, interest or estate shall be collected and
enforced as taxes on other real property:
.1ss. % 81 s%y atb say w sRsG1ei stock ST ins Sr 'saa
whatever. is or has been issued by any rail-
roe6 company, to any person or persons, with
or secure, to the person to whom such stock,
or instrument, is issued or delivered, any in
tsrest, right, title or estate, in or to any lands
interest ct ' ca estate Of such ti' person holding such Saeis
stock, writing or instrument, in or to the
,sn Sss. se ,,hs19s ssG SsiS 9r AND xSri GanEs,d Il sSRp Mi,Sis
and ;'s taxed =. aforesaid ID IF any railroad com:
sfock or any certificate, contract or writing
thereof any interest, estate, right or title, In
exempted from taxation as aforesaid, and
shall fail within sixty days after the issuance
to r rsaco pt The same to s,1 he ' land co,m M iSateiaF:
Or auditor Of this state; or if having heretofore
issued such contract, stock certificate. or writ
days after the passage of this act, the failure
70 to report, shall be held to be, and to operate
~, . forfeiture by said company, of its corp0-
rate franchises and privileges: and the AttOr-
ney General of the state shall at once proceed
against said company to have its charter and
franchises declared forfeited" u
ii To this it was supposed there could be
no reasonable objection. for it only pro-
i vided that such purchasers should be taxed on
tAsir property as ordinary indiridudls who ac-
quire such an interest in railroad lands or
state lands or school lands are taxed. Nor
wa it considered either a hardship or In
Justice to require railroad companies, m
der severe sanctions, to report such trans
actions. This bill was drawn with great
care, and in my opinion would havemade
impossible, without the %connivance of the
taxing officers, the success of such fraud
ulent schemes in the future.