The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-04-15
MIR. JACOBSON'S FIND.
THE LAC eur EARLE STATESMAN
THINKS HE HAS MADE A
DISCOVERY
ta,tsffr
SENATOR scHELLBAGH's BILL

SENATOR SCHELLBACH'S BILL
1t Passed the senate, but ON Reach
Ing the House a Request Was
Made for an Opinion From the
Attorney GeneraI7-Hs CONSTITUTES
1t as Being e VERY Bad
Bill. - %
In reply to a request from Mr.. Jacob
son (Rep.) of Lac qui Parle. Attorney Gen.
eral Douglas has notified the member from
Lac qui Parle that s. r! 5sl. by Senator
Schelbach Rep.), of Yellow Medicine,
would be very bad lay r. have enact
The bill was passed by the senate
March 81, under suspension of the rules,
and according to Senator Schellbach and
other members of the senate it provid-
ed for the submission Of a constitutional
amendment to the people at the next
general election eon the question of
whether railroads paying less than per
cent on gross earnings should be reauir-
ed to pay the same rate as paid by other
railroads in the state.
The bill was to provide for test as
to whether the territorial charter under
which the Chicago Great Western road
now pays 2 per cent on Its gross earn
1ngs was valid, the other roads paying
per cent on gross earnings.
The bill reached the house April 5, and
was referred to the judiciary committee
where 1t is row. Just about the time
the bill came from the senate that body
sat down very hard on the pet measure
of Mr.. Jacobson, which provided that the
gross earnings tax on railroads be in
creased from 8 to per cent.
Mr.. Jacobson had his attention called
to S. F. 591, and he requested an opinion
as to the merits Of the bill from the
attorney general. The opinion of the
legal department of the state holds that
II the bill was passed without amend
ments 1t would by implication repeal the
Anderson law. which provides for the
teXation of unused railroad lands.
The text of the attorney generals opin-
lon reads as follows:
Hon. ]. r. Jacobson, House of Repre-
sentatives-Dear Sir: Replying to your
inquiry made on behalf Of the committee
to whom senate file No. 591 has been re-
ferred beg to report that the bill in
question seeks to amend section /, of
chapter Il, of the General Laws Of 1887,
now known as section 1869 Of the General
Statutes of 1894. u sSr
Chapter II Of the laws of 1887 sought to
provide for the taxation of certain rail-
upon their gross earnings In lieu Of all
taxes. both upon the right of way, rolling
stock and other property used in the man.
agement OF the road, as we'll as upon the
companies as per the terms sof chapter i'll
OF the Special Laws of 1873, specifically re-
ferred to In said section, The enactment
not accepted the terms iof said chapter
Ill, or some other act sora acts relating
TO the taxation of the company accepting
the same" y-isf
The only substantial difference between
the pending bill and chapter II Of the
Laws Of 1887 is that the words In quota
ton marks are left out Of the proposed
proposed act submits the question to the
determination of the legal voters Of the
state, as required by section 80 Of ar
ticle of the constitution of Minnesota.
me result OF Its passage and adoption by
the electors Of the state at the next gen
eral election would be, in my Judgment,
to provide for the taxation Of all railroad
properties in the state of such companies
Ill Of the Laws Of 1873, on the basis of 3
per cent upon the gross earnings In lieu
Of all other taxes whatsoever. The objec-
tons to the bill before your committee,
In my Judgment, are serious, in this:
Flrst-Chapter of the Laws of 1887,
sought to be amended, Is clearly void as
the constitution referred to, in this, that
1t was not submitted for adoption to the
legal voters of the state at any election.
ana the consequences incident to the
amendment OF an unconstitutional and
void act, even where the section is en-
tfrely revamped, may be problematfcal
Second-Chapter II was passed prior to
the change in the law with reference to
taking lands owned by railroad companies
In the state under the terms of chapter
!68 OF the General Laws Of 1896, known as
the Anderson bill, and without regard, of
course, to the latter act; and the pro-
posed enactment seems also to have been
drawn without regard to its effect upon
the law known as the Anderson bill, and
would place. in serious jeopardy the law
known as the Anderson bill, and doubt
less operate to repeal 1t by implication
The substance of the proposed enact
owning or operat ting, or which may here
after own OF operate any line or lines
of railroad in this state, which has not &C
and 2 of chapter III Of the Special Laws
of 1873 relative to taxation of railroad
companies, and accepting the same, shall
become liable to pay and shall hereafter
pay a. percentage OF its gross earnings
in lieu of all other taxes In accordance
with the provisions OF chapter Ill Of the
Special Laws of 1873"
chapter Ill of the Laws of 1873 reads:
Provided, that the lands of said COM
pany shall be subject to taxation as soon
as sold, leased or contracted to be sold
This provision clearly implies the tax
alton of railroad lands only after their
sale. And its adoption will clearly OPP
crate to provide for the taxing Of ali rail-
road properties. including lands owned
by them, on a per cent gross earnings
basis. That this provision has by i'm
the Laws of 1885 cannot, in my Judgment,
be urged with force as a reason why 1t
cannot be re-enacted by the contract pro-
vision of the proposed enactment In
event fOn ma
serious complications to warrant it's being
presented, unless the entire question Of
a change in the policy Of taxing railroad
lands and repeal of the Anderson bill
is thought to be desirable, which, of
course. is question purely for the leg
islature.
the author Of the proposed act was to
provide for the testing of the question in
the courts as to the right Of certain
rair9a ID company n.y. to pay per cent in
ings in lieu of all other taxes. Under the
existing legislation 1t is quite doubtful
whether this question can be raised. The
presentation OF. this question to the courts
is clearly desirable, and I suggest the
entire revamping of this BILL including
it's title, or the Introduction of a new
ton of all railway properties, other than
lands, ETC., included in the law known as
the Anderson bill, on such a basis as to
erwise, as shall be deemed sufficient. with
out regard to the contract provisions of
said chapter Ill of the Laws of 1873, or
other special Ie or general enaetments.
W. B. Douglas,
Attorney General
Mr.. Dunn (Rep). of Ramsey, chairman
Of the house judiciary committee, when
asked about the Schellbach bill last even
ing. said 1t was still in the committee
Some of the members are afraid and
the others dassent," said Mr.. Dunn 1--WE