St. Paul daily globe., 1892-12-26
-BeIOW zero.
p f. LYONS Local Forecast Official.
TAXATION OF RAILROAD
LANDS

A convention of persons who think
The tax laws of our state need bettering
meets next month. Representatives
elect from the northern part of the
state have already expressed their in
lention to move for legislation which
will subject the land grants of the rail-
roads to taxation. The convention will
also discuss the same proposition.
A bill was before the legislature at
The last session to make these lands
subject to Their share of the burden. 1t
was reported on adversely on the ground
that if passed it would release the
roads from the payment of the gross
EARNINGS tax. The amendment to the
constitution which was rejected was re-
fused largely because it was believed
that it covered an attempt of the roads
to avoid that tax. \ review of the con-
dition Of the law is therefore not in
Opportune.
In 1873 the Legislature passed an act
providing that the st. Paul, Saltwater
81 Taylor'S Falls road might, in lieu Of
all other taxes upon any of its property,
including any lands granted it by the
state or congress, pay into the treasury
percentage Of its gross earnings. in
creaSing by terms until it reached the
present per cent. 1t also provided
that any other road then existing or
thereafter constructed might, by res
OlutiOn OF its board of directors duly at
tested and filed with the state treas
urer, come within the provisions OF the
act.
Either the railroads found this method
Of taxation at that time so favorable 70
them, or the Legislators thought the tax
so good thing for the state, that, to
prevent any change in the act, an
amendment to the constitution was
adopted year or two later, which yir-
tually Incorporated the act of '73 into
the constitution by requiring any act of
the legislature changing that act in any
manner to be first submitted to popu-
lar vote and approved by majority Of
those voting OH the proposition.
1t is thus apparent that the legislature
is pUWerleSS to fix tax Oh these lands
of its own yOlition. 1t must amend the
AoN ~. otlihiiIS Oub IiO vi
the granted lands and then submit it to
n vote OF the people. But while the
state is thus bound, there does not seem
to be anything TO bind the companies.
1t is this peculiarty, one usual in cor
porf ton legislation, which lends color to
the suspicion that both the act of '73 and
the amendment TO the constitution,
originated in the councils of the com
panIes. There are certainly no vested
rights in any method of taxation,
neither is there anything in the nature
of contract inViolabie by later legis-
latures. The roads incurred no con-
tinuing obligation to pay 3 per
cent gross earnings tax Without the
amendment, which only binds the state,
the legislature might make any change
of amount Or method it saw fit and the
roads could not make valid objection.
Not being bound with the state by that
amendment there is nothing TO prevent
the Goard of directors of any road from
resinding the resolution accepting the
act OF '13 and refusing to pay the tax.
Theyp it now because it Is the cheap
est, but will they withdraw when it be-
cOmesmOre bUrdensOme than a valua-
ton tax anu there is nothing to pre-
vent them from so doing.