St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-26

Railroad Holds Only Make d Title
The Real interest Is in the
Lumber Company Which Has
Possession by Contract Will
Result in Heavy Back Tax Pay
ments.
In the Pine county tax cases, involv-
ing the taxation of the interest in rail
road land through the purchase OF the
timber standing thereon, the naked title
remaining in the railroad company, the
right to cut and remove extending over
periods ranging from eight to eighteen
years. the supreme court holds that the
contract gives taxable interest There
are about 100000 acres of land involved,
on which the taxes for the year in QueS-
ton were about $4,000. ana they be-
come subject to taxation for succeeding
years. A higher price was paid for the
timber on the superstition that it would
not be taxable. The lands were part
of those granted to the st. Paul IL Du-
luth. and at the time of the assessment
and levy the naked title remained in
the railroad company. 1t was conceded
by the state that the interest of the
company could not be taxed, but the
court below held that because of certain
timber contracts there was taxable i'll
tereSt. The contracts are with Durant,
Wheeler IL Co., and TaZer $4,000, COW
ering eighteen years, another with
TOZer for 500, 600 and ten years and an
other with the Empire Lumber COM
pany for $4,000 covering eight years.
The trial court found that the principal
value of the lands was in the timber
covered by these contracts, and that
under these contracts the purchasers
had secured the right to enter upon the
land and to cut and to remove, and Sc
cured the benefit of many years'growth,
and that their interest was taxable in
tereSt. Their interest the supreme
court holds was taxable interest and
that it attached to the land and it was
and is subject to execution and sale not
as personal property, but as real estate.
The cases are remanded with inStruc-
tons to enforce the collection of the
taxes imposed upon such interest of the
estate.
The syllabus reads as follows:
In the matter of the proceeding to enforce
payment of taxes on real estate i'll the
County of Pine State of Minnesota, re-
manning delinquent on the first Monday in
January, 1889. COLLINS, j.
Held, that under certain contracts,
the nature thereof fully appearing in
the opinion, made between the appel
liant railway company and the other
appellants, the latter acquired all in
tereSt or estate in the lands described
i'll the contracts, which was subject to
assessment and taxation under the laws
OF this state for the year 1887.
The syllabi in other decisions handed
down are as follows:
James Iverson and Fred Iverson. CO. partners
as James Iverson d Son, respondents vs.
j. W. Cirkel and August Cirkel, partners
as j. W. Cirkel d Son. appellants. Order
affirmed. COLLINS, j.
1. AT law, as in equity, when by the
answer the making OF the contract sued
upon is admitted, either expressly or by
necessary inference, a defendant desir-
ing to have the benefit of the statute of
frauds as defense must claim it in the
same pleading.
2. Alleged errors in the ruling of the
court below when receiving evidence
and when refusing to instruct the jury
as requested by defendants, of no par
ticular Importance, considered and dis
posed of.