St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-03


state of forfeiture, and constantly SUBJ
Ject to Investment until March 6, 1883,
when the legislature by all act of that
date waived that forfeiture, and allowed
tnat company an extension of time
until March 6, 1881, within which to
complete its road. When this act was
passed both grants had become vested,
the former on March 9, 1875, the
latter Oh Feb, IS, 1879; but the
ftprmer had become forfeited and
the latter had not The state
gould then resume the former or not, at
IFS option. 1t elected not to resume it,
and thereby became obligated to carry
out both grants according to- the terms
qf each. 1t will also be seen that the
Question now before the legislature of
+ loo9 Is Identical with that before the
legislature of 1888, so far as allquestions
Or power are concerned: and that. if the
act OF 1888 was valid, then it is COM
Petent for the legislature to now waive
FORFEITURE OIL part of the Duluth &
Winnipeg Railway company and allow
~ farther time to complete its read pre-
qlsely as was done in the other case:
and consequently nothing remains but
a question of public policy.
Third-lt has been contended that, in
aSnuch as the state now has the power
to enforce the forfeiture incurred by the
Duluth d Winnipeg Railroad company,
the legislature ought to enforce it, and
thereby subject the granted lands to
the operation of the constitutional
amendment of 1881, because the inter-
est of the state will be promoted there
by.
Answer-That the state now has the
power to resume title to the lands
granted to aid construction of the Du-
!uth d Winnipeg railroad is conceded;
but that the interest of the state at large
Will be best subseryed by exercise of
that power is denied. When congress
saw that its land grants of 1857 to aid
construction of the principal railroads
In this state were about to be forfeited
through failure to complete those roads
within the ten years originally limited
therefor. it did not conclude that the in
tereSt OF the nation would be promoted
by resumption of those grants: but, on
the contrary, it granted to this state an
eight years. extension, and under such
extension those roads were completed.
The legislature of this state found it
necessary to grant to every one of the
railroad companies assisted by those
grants two, three, four. and in some
railroads were built without two or
more extensions of time. Can
it be that the legislatures of
those years were acting against
public interests? Take the last case,
that of the extension allowed to the
Duluth d Iron Range Railway Company
in 1883, and assume that the grant of
that company passed 100000 acres of
swamp land, and that every acre of it
could have been ultimately sold by the
state at S1.50 per acre "a liberal esti-
mate). Under that assumption the state
would have ultimately realized $3.50, 900
for Investment under said constitutional
amendment, at about 6 per cent per
annum interest (anOther liberal eSti-
mate). Under these estimates the state
would nave finally derived all annual
revenue of $4,000 from that source.
Now, who does not know that many
years would have elapsed before that
result could have been attained? And
who does not know that the state al
ready realizes more than that amount
annually from the completion of the
Duluth IL Iron Range railroad? The
wisdom of the extension act of 1883 is
now undeniable. 1t induced permanent
Investment within this state of many
millions of dollars of foreign capital.
That investment must, in the nature of
things, remain here subject to taxation
forever. Moreover. region forever in
accessible without that railroad has
been opened up. developed and dotted
with villages; and iron mines of price
less value have been rendered pro-
ductive, and with them numerous cog
nate industries have sprung up in that
part of the state. The value of the
swamp lands affected by the waiver of
1854 bears no comparison whatever with
the value of the results thus attained.
hat o,.fh Inn fr,ln ynr,lI
!, those swamp lands have ever been to
this state without that railroad to them?
Under the Law railroads pay per
.cent of their'gro earnings to the state
in lieu of other taxation. 1t is a well
understood fact that this rate of taxa
ton is, in excess of the rate actually
borne by other property. for the reason
that much other property does not get
On to the assessment rolls at all. Com
pletion of the Duluth 81 = Winni-
peg railroad would bring into
this state about S16,000,000 of
foreign capital, and when done it would
along its line, through what is now
wilderness. Every one of these villages
would swell the assessment rolls for
taxation.
Upon this point it must be needless to
consume farther time. Public policy
clearly demands the building of this
road. This land grant is necessary to
secure that result. Waive the forfeit
ure and render it available, and the road
will be built under the proposed extern
sion; otherwise the money with which
to build it cannot be obtained.
Fourth-There are parties who are do
ing all in their power to secure the pas
sage of the forfeiture bill above NEIL