The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-10-18
This section now reads AZ followvs


corporation, except as hereinaf-
ter provided. Nor shall there be
any further issue of bonds de-
nominated Minnesota State Rail-
road Bonds under what purports
to be an amendment to section
ten (10) Of article nine Coy Of the
Constitution, adopted April IL,
1858, which is hereby expunged
from the Constitution, saving, ex.
cepting and reserving to the state.
nevertheless, all rights, remedies
and forfeitures accruing under
said amendment. Provided, how
ever, that for the purpose of de.
veloping the agricultural resources
Of the state, the state may estab-
fish and maintain a system Of
rural credits and thereby loan
money and extend credit to the
people of the state upon real es-
tate security in such manner and
upon such terms and conditions
as may be prescribed by law, and
to issue and negotiate bonds to
provide money to be SO loaned.
The limit of Indebtedness con-
tanned in section of this article
shall not apply to the provisions
Of this section, and the purposes
for which the credit Of the state
or the aforesaid municipal sub.
divisions thereof may be given or
loaned as herein provided are de-
clared to be public purposes"
II amended as proposed by the leg
islature this section will read as fol
lows:
1.-THE credit Of the state shall
never be given or loaned in aid
of any individual, association or
corporation, except as hereinafter
provided. Nor shall there be any
further issue of bonds denominat.
ed Minnesota State Railroad
Bonds under what purports to be
an amendment to Article Q, Sec
ton 10 Of the Constitution, adopt
by expunged from the Constitu.
ton, saving, excepting and re-
serving to the state, nevertheless,
all rights, remedies and forfeitures
accruing under said amendment.
Provided, however, that for the
purpose of developing the agri.
cultural resources Of the state,
the state may establish and main.
tain a system 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 negoti.
ate bonds to provide money to be
so loaned. The limit Of indebted.
ness contained in Section Of this
article shall not apply to the pro-
visions Of this section, and the
purposes for which the credit Of
the state or the aforesaid munich
pal subdivisions thereof may be
given or loaned as herein provid-
Q6 6nN1o rod tn ho yoNSt,tfN
poses.
The legislature may authorize
the taxing of any lands, title to
which is acquired by the state
through the operation Of such sys.
tenn of rural credits, during the
period such lands are held by the
state, and for the assessment
thereof for benefits arising from
improvement, and may provide for
the payment of such taxes and as
sessments out of the operation Of
such system Of rural credits. In
lieu Of such taxation the legisla-
ture may appropriate to the school
districts, towns, counties, cities,
villages and boroughs in which
such lands are located sums Of
money not exceeding the amounts
which would have been realized
by such governmental subdivi-
sions from the assessments
against or taxation of such lands
II privately owned"
It will be noted that the presen
Section 10 of Article 9 remains un
changed as the first paragraph Of tn
proposed amendment but that q sec
ond paragraph is added to said SEQ
ton.
The Purpose and Effect Of the Pro
posed Amendment
p The purpose of the proposed amend
ment Is to give the legislature tn,
power to do one Of two things which
Il now lacks the constitutional powe
to do, namely: first, to authorize tn,
taxing of any land, and the assess
ment Of benefits for Improvement
against any land, which the state ha
acquired and owns or may acquIr,
and own through the operation of tn,
system Of rural credits and to pro
vide for the payment Of such take
and assessments out Of the funds o
the Rural Credit Department; or, sec
ond, to appropriate to the counties
towns, school districts, cities, village.
and boroughs in which are locates
lands acquired and owned by tn,
state under the rural credit act.
sums Of money not exceeding tn,
amounts which would be realized b,
said governmental subdivisions from
the taxation OF such lands and from
the assessment Of benefits agains
such lands II owned by private per
sons.
Under the Rural Credit Act tn,
state has become the owner Of thou
sands Of farms located In variou,
counties Of the state. A. our Stat.
CnnSfIfnftan Of A..
being owned by the state, cannot b,
taxed. 1t naturally follows that othe
land within the same taxing distric
must pay higher taxes.
Likewise, the legislature does no
now have the power to appropriate {,
the counties, towns, school districts
cities, villages and boroughs an,
funds Of the Rural Credit Department
to reimburse them for losses suffere,
by them because large areas Of Ian,
acquired by the state under The rura
credit law thereby have been re
moved from the tax rolls.
The effect Of the passing Of thl
amendment, If the power thereb,
given Is acted upon by the IeaIsIa
ture, will be to make good to thes
local subdivisions, in whole or In part
the loss they now suffer because the,
PROPOSED AMENDMENT NO. 8.
By the adoption Of Chapter Az o
the Laws of 1888, the legislature ha.
proposed an amendment to Section
of Article 9 Of the State Constitution
This section now reads as follows:
1.-THE power of taxation shall
never be surrendered, suspended
or contracted away. Taxes shall
be uniform upon the same class
Of subjects, and shall be levied
and collected for public purposes,
but public burying grounds, pub.
lie school houses, public hospi.
tails, academies, colleges, univer.
stiles, and all seminaries Of learn.
ing, all churches, church property
and houses Of worship, institu-
lions Of purely public charity, and
public property used exclusively
for any public purpose, shall be
exempt from taxation, and there
may be exempted from taxation
personal property not exceeding in