Twin-City herald. [volume] (Minneapolis, Minn.) 1927-1940, 1932-10-15

EXCHANGE or STATE AND EEO-
ERAI LANDS.
Amendment of article Ssof the
constitution. authorizing the. ex-
state for lands of the aGnited
States, as the Legislature may pro-
vide.
YES s.........-....
NO ..............
PROPOSED AMENDMENT NO. =.
BY the adoption of Laws 1881, chap
ter 419, the legislature has proposed
an amendment to article 8, section
now reads as follows: -:
1.-The credit of the state shall
never be given or loaned In aid
of any individual, association or =
corporation, except as hereinafter z;
provided. Nor shall there be any
further issue OF bonds denominat-
ed Minnesota State Railroad.
Bonds. under what purports to be .
an amendment to section ten tl0)3
of article nine (9) of the Consti-
tuition. adopted April 18th, 1858.
which is hereby expunged from .,
the Constitution, saving. excepting
and reserving to the state, never
theless. all rights. remedies and
forfeitures accruing under said
amendment. Provided, however,
that for the purpose of developing
the agricultural resources of the$
state, the state may establish and
maintain system of rural credits
and thereby. loan money and ex- !.
tend credit to the people of the
state upon real estate security i'm ?,
such manner and upon such terms -.
and conditions as may be lpre-
scribed by law, and to issue and =
negotiate bonds to provide money
ha lnqnad Tho 'linnff nf m
debtedness contained In section 5 4,
of this article shall not apply to
the provisions of this sections and.
the purposes for which the. credit
ofthe state or the aforesaid mani :
cipal subdivisions thereof may be.
are declared to be public pur- .
poses"
II the proposed amendment is adopt
ed. the section will read as follows:
1.-THE credit of the state shalt
never be given or loaned lin aid tof
any individual. association or Cor
poration, except as hereinaftsg.
provided. Nor shall there be any
further issue of bonds denominat- .
ed Minnesota State Railroad
Bonds, under what purports toftse
an amendment to section ten. tt0)
of article nine (9) Of the Consti-
tuition. adopted April 5.--4 1858,
which is hereby expunged from
the Constitution, saving. except
ing and ressrying to the state;
nevertheless, all rights. remedies. :
and forfeitures accrning under
said amendment. Provided, how .
ever. that for the purpose Of de-
veloping the agricultural re-
sources of the state. the state may.
establish and maintain, a syste@ 6
of rural credits and thereby loan
money and extend. credit to THE
people, of the state upon real
estate security In such manner and
upon such terms and conditions As
may be prescribed by, law. and to
issue and negotiate bonds toafir61
vide money to be so loaned. The
limit of indebtedness contained in
section of this article shall not
apply to the provisions Of this sec
ton. and the purposes for which.
the credit of the StateAor the afo. e.
said municipal subdivisions; 1l,eEer
of NAV be given or loaned as
herein provided are declared to:he
public purposes. -
THE legislature may. authorize
the taxing of any lands, title 10
which is acquired by the state
through the operation of such sys-
TEN of rural credits. during the
state, and for the assessment
thereof for benefits. arising from; :;
improvements, and may provide, for
the payment of such taxes. and q
assessments out of the funds aris-. .
ing from the sale Of such bonds
or the opera ton of SUCH system Of .
rural credits. In lieu of such taxi.
alton the Legislature may appro.i'
pirate out of ). such funEs without.
discrimination 70 all the. school;
districts. towns, counties. cities,F
villages and boroughs In which
such lands are located sums Of
money not exceeding the amounts Z
which would have been realized
by such governmental subdivisions
from the assessments against OF
taxation of such lands If private
ly owned" r. -.
The Purpose Of the Proposed Amendment
BY reason Of the operation Of the: De-
partment of Rural Credit the state. Of
Minnesota has acquired title to "a large
amount of improved farm lands Prop
erty owned by the state is not sub,ect
to taxation. The purpose of this pro-
posed amendment is to give the Iegis-
lature constitutional authority to sub.
Iect lanes acquired through the oper-
alton of the system of rural credits to
taxation and the payment of assess
ments for improvements, and to provide
that such taxes and. assessments be
paid out of funds arising from the sale
Of bonds or the operation of such sys-
tenn of rural credits. !, IT Is further in.
tended to permit the legislature to APP
propriate out of such funds, wthout
to all the school dis
tricts, towns, counties, cities, villages
and boroughs Of the state. in which such
lands are located, sums of money not
exceeding the. amounts which would
have been realized by. such govern :
mental subdivisions from the assessments
against or taxation of such lands If pri-
vately owned.
The Effect of the Proposed Amendment
# adopted, the proposed amendment
will enable the legislature, In its discre-
ton, to subject real estate acquired by
the state through the operation of the
system of rural credits. to taxation and
the payment of assessments, the same