The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-10-04
This section now reads as followss


never be given or loaned in aid
OF any individual, association or
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 Q0) Of article nine (9) of the
Constitution, adopted April Is,
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-
lish 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"
If amended as proposed by the leg.
islature this sectioa win 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 shah there be any
further issue of bonds denominat-
ed Minnesota State Railroad
Bonds under what purports to be
an amendment to Article 8, Sec
ton 10 Of the Constitution, adopt
ed April 18th, 1858, which IL here.
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
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-
dnRIorn6 RI NJ yNI1h
poses.
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-
SlOuS iTOu lHS assessments
against or taxation of such lands
If privately owned"
It will be noted that the present
Section 10 of Article 9 remains UNI
changed as the first paragraph Of the
proposed amendment but that sec
ond paragraph is added to said sec
ton.
The Purpose and Effect Of the Pro-
posed Amendment
The purpose Of the proposed amend
nent Is to give the legislature the
power to do one Of two things which
II now lacks the constitutional power
to do, namely: first, to authorize the
taxing OF any land, and the assess.
ment Of benefits for improvements
against any land, which the state has
acquired and owns or may acquire
and own through the operation of the
system Of rural credits and to pro-
vide for the payment OF such taxes
and assessments out of the funds Of
the Rural Credit Department.; or, Sec
ond, to appropriate to the counties,
towns, school districts, cities, villages
and boroughs in which are located
lands acquired and owned by the
state under the rural credit acts
sums Of money not exceeding the
amounts which would be realized by
the taxation Of such lands and from
the assessment of benefits against
such lands II owned by private per-
sons.
Under the Rural Credit Act the
state has become the owner of thou.
sands Of farms located In various
counties OF the state. AZ our State
Constitution now stands, such land,
being owned by the state, cannot be
taxed. 1t naturally follows that other
land within the same taxing district
must pay higher taxes.
Likewise, the legislature does not
now have the power to appropriate to
the counties, towns, school districts,
cities, villages and boroughs any
funds OF the Rural Credit Department
to reimburse them for losses suffered
by them because large areas Of land
acquired by the state under che rural
credit law thereby have been re-.
moved from the tax rolls.
The effect Of the passing Of this
amendment, II the power thereby
given is acted upon by the IegIsia.
ture, will be to make good to these
the loss they now suffer because they
cannot tax rural credit land.
PROPOSED AMENDMENT NO. 3.
By the adoption of Chapter 442 Of
the Laws of 1888, the legislature has
proposed an amendment to Section I
Of Article Of the State Constitution.
This section now reads as follows:
"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-
sites, and all seminaries of learn.
ing, all churches, church property
and houses of worship, institu-
tons of purely public charity, and
public property used exclusively
for any public purpose, shall be
exempt from taxation and thara