The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-26
EXEMPT FROM TAXES
Status Of College Endowment Funds
Decided by the Supreme
Court.
An Important Ruling Made in the
George w. jerks Bank
ruptcy Case.

Endowment funds of educational insti-
tutions are not subject to taxation. Inc
first attempt to reach such funds was
foiled to-day by a decision OF the supreme
court. Rice county sought to tax the en-
dowment fund of the Bishop Seabury mis-
sion, which conducts Shattuck school and
the Seabury divinity school at Faribault.
The county brought suit to collect taxes
on $275,000 of productive funds, which
would realize $9,163.S0. Judge Buckham
ruled that the constitutional exemption
of academies, colleges, universities and
all seminaries Of learning applies to the
funds held in endowment. This decision
is affirmed by Judge Brown, handed down
this morning. He holds that the consti-
tuticnal provision is self-executing, that
it is the declared public policy Of the state.
and that the exemption Is complete as to
the institutions, and not limited to any
class of property. The county claimed
that only property Immediately connected
with and used by the institution should
be exempt. This is rejected. Judge
Brown says that endowments given by
generous persons are devoted to the sup
port of an institution and become part
of it. If such funds were taxable, and
over half their income went to taxes, 1t
would tend to discourage future contrl-
buttons, and result in the detriment and
irreparable injury Of the educational in
as much exempt as the library, furniture
or tuition fees paid by students. If the
fund were invested in real property, that
property would not escape taxation, but
so long as it remain intact and is used
in connection with and for the support of
the institution it should be exempt from
taxation. This may seem somewhat In
consistent" says Judge Brown, with the
rule as applied to real property, but 1t
harmonizes with the best interests of such
institutions and the policy of the state
in their encouragement, and we adopt 1t.
The syllabus is as follows:
Rice County, appellant, the Bishop Seabury
Mission, respondent.
pursuant to the statutes of this state as an edu-
catonal institution and seminary of learn
aggregating something like $275 700, which, are
Which IS devoted exclusively yto it's
and support. Held. that the endowment fund
is exempt from taxation within section 8, article
8, of the constitution.
Affirmed. -Brown,J.
A short.Lived County.
Columbia county, whose creation was
set aside by the supreme court, was a de
facto county from last December to April
49, when it's organization was adjudged
invalid. The court so holds in an appli-
cation for mandamus to have case trans
fered from Ramsey to Polk county, which
contains the territory in the short-lived
slice of Columbia. The defendant was a
resident Of Columbia county when the
action was filed in Ramsey and he de-
manded that 1t be transferred. That was
refused and after Columbia was dissolved
he demanded to have the case tried in
Polk county. This demand is ordered
complied with. The syllabus:
State Of Minnesota ex rel. Ole A. Hagen. relator,
vs.. District Court of Ramsey county ct al, &C.
spondents.
First-After the proclama talon of the governor
TO that effect, the county of Columbia was q de
facto organized county until its organization was
declared illegal by this court, in State vs. Larson
ct al, 81 n. W.. 226.
Second-Rule followed. that the fling of the
proper affidavit and demand for change of the
place of trial of an action to the proper county
with proof Of service thereof ipse facto changes
the place of trial. r"-
Per Curfam