§ 552. Provisions of Minnesota Constitution as to State Aid: "Minnesota Railroad Bonds." "The credit of the State shall never be given or loaned in aid of any individual, association, or corporation." 1 Subsequently this section was so altered and amended as to read: "The credit of this State shall never be given or loaned in aid of any individual, association, or corporation, except that for the purpose of expediting the construction of the lines of railroads, in aid of which the Congress of the United States has granted lands to the territory of Minnesota, the governor shall cause to be issued and delivered to each of the companies in which said grants are vested by the legislative assembly of Minnesota the special bonds of the State, bearing an interest of 7 per cent. per annum, payable semi-annually in the city of New York, as a loan of public credit, to an amount not exceeding twelve hundred and fifty thousand dollars; or an aggregate amount to all of said companies not exceeding five millions of dollars, in manner following, to wit: whenever either of the said companies shall produce to the governor satisfactory evidence, verified by the affidavits of the chief engineer, treasurer, and two directors of said company, that any ten miles of the road of said company has been actually constructed and completed ready for placing the superstructure thereon, the governor shall cause to be issued and delivered to such company bonds to the amount of one hundred thousand dollars, and whenever thereafter, and as often as either of said companies shall produce to the governor like evidence of a further construction of ten miles of its road as aforesaid, then the governor shall cause to be issued to such company further like bonds to the amount of one hundred thousand dollars for each and every ten miles of road thus constructed; and whenever such company shall furnish like evidence that any ten miles of its road is actually completed and cars running thereon, the governor shall cause to be issued to such company like bonds to the amount of one hundred thousand dollars; and whenever thereafter, and as often as either of said companies shall produce to the governor like evidence that any further ten miles of said road is in operation as aforesaid, the governor shall cause to be issued to such company further like bonds to the amount of one hundred thousand dollars, until the full amount of the bonds hereby authorized shall be issued; Provided, that two-fifths and no more of all bonds issued to the Southern Minnesota Railroad Company shall be expended in the construction and equipment of the line of road from La Crescent to the point of junction with the Transit road, as provided by law: And further provided, that the Minneapolis and Cedar Valley Railroad Company shall commence the construction of their road

1 Minn. Const. of 1857, art. 9, § 10.

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at Faribault and Minneapolis, and shall grade an equal number of miles from each of said places. The said bonds thus issued shall be denominated Minnesota State Railroad bonds,' and the faith and credit of this State are hereby pledged for the payment of the interest and the redemption of the principal thereof. They shall be signed by the governor, countersigned and registered by the treasurer, and sealed with the seal of the State, of denominations not exceeding one thousand dollars, payable to the order of the company to whom issued, transferable by the indorsement of the president of the said company, and redeemable at any time after ten and before the expiration of twenty-five years from the date thereof. Within thirty days after the governor shall proclaim that the people have voted for a loan of State credit to railroads, any of said companies proposing to avail themselves of the loan herein provided for, and to accept the conditions of the same, shall notify the governor thereof, and shall within sixty days commence the construction of their roads, and shall within two years thereafter construct, ready for the superstructure, at least fifty miles of their road. Each company shall make provision for the punctual payment and redemption of all bonds issued and delivered as aforesaid to said company and for the punctual payment of the interest which shall accrue thereon in such manner as to exonerate the treasury of the State from any advances of money for that purpose; and, as security therefor, the governor shall demand and receive from each of said companies, before any of said bonds are issued, an instrument pledging the net profits of its road for the payment of said interest, and a conveyance to the State of the first two hundred and forty sections of land, free from prior encumbrances, which such company is or may be authorized to sell in trust for the better security of the treasury of the State from loss on said bonds, which said deed of trust shall authorize the governor and Secretary of State to make conveyances of title to all or any of such lands to purchasers agreeing with their respective railroad companies therefor; Provided, That before releasing the interest of the State to such lands, such sale shall be approved by the governor; but the proceeds of all such sales shall be applied to the payment of interest accruing upon the bonds in case of default of the payment of the same, and as a sinking fund to meet any future default in the payment of interest and the principal thereof when due; and as further security, an amount of first-mortgage bonds, on the roads, lands, and franchises of the respective companies, corresponding to the State bonds issued, shall be transferred to the treasurer of the State at the time of the issue of State bonds, and in case either of said companies shall make default in payment of either the interest or principal of the bonds issued to said companies by the governor, no more State bonds shall thereafter

be issued to said company; and the governor shall proceed in such manner as may be prescribed by law to sell the bonds of the defaulting company or companies, or the lands held in trust as above, or may require a foreclosure of the mortgage executed to secure the same: Provided, That if any company so in default, before the day of sale, shall pay all interest and principal then due, and all expenses incurred by the Stte, no sale shall take place, and the right of such company shall not be impaired to a further loan of State credit; Provided, If any of said companies shall at any time offer to pay the principal, together with the interest that may then be due upon any of the Minnesota State Railroad bonds, which may have been issued under the provisions of this section, then the Treasurer of State shall receive the same, and the liability of said company or companies, in respect to said bonds, shall cease upon such payment into the State treasury, of principal, together with the interest as aforesaid: Provided further, That in consideration of the loan of State credit herein provided, that the company or companies which may accept the bonds of the State in the manner herein specified shall, as a condition thereof, each complete not less than fifty miles of its road on or before the expiration of the year 1861, and not less than one hundred miles before the year 1864, and complete four-fifths of the entire length of its road before the year 1866, and if any failure on the part of any such company to complete the number of miles of its road or roads, in the manner and within the several times herein prescribed, shall forfeit to the State all rights, title, and interest of any kind whatsoever in and to any lands, together with the franchises connected with the same not pertaining or applicable to the portion of the road by them constructed, and a fee-simple to which has not accrued to either of said companies, by reason of such construction, which was granted to the company or companies, thus failing to comply with the provisions hereof, by act of the legislature of the Territory of Minnesota, vesting said land in said companies respectively." 1 By an amendment ratified in 1860, this section was so altered and amended as to read: "The credit of the State shall never be given or loaned in aid of any individual, association or corporation. Nor shall there be any further issue of bonds denominated Minnesota Railroad bonds,' under what purports to be an amendment to section ten of article nine of the constitution adopted on the fifteenth of April, eighteen hundred and fifty-eight, which is hereby expunged from the constitution, excepting and reserving to the State, nevertheless, all rights, remedies, and forfeitures accruing under

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1 Minn. Const. Amendment of 1858, art. 9, § 10.

said amendment." 1 The following amendment was ratified in 1871: "Any law providing for the repeal or amendment of any law or laws heretofore or hereafter enacted, which provides that any railroad company now existing in this State, or operating its roads therein, or which may be hereafter organized, shall, in lieu of all other taxes or assessments upon their real estate, roads, rolling stock, and other personal property, at and during the time and periods therein specified, pay into the treasury of this State a certain percentage therein mentioned of the gross earnings of such railroad companies now existing or hereafter organized, shall, before the same shall take effect or be in force, be submitted to a vote of the people of this State, and be adopted and ratified by a majority of the electors of the State voting at the election at which the same shall be submitted to them." 2 The following was ratified in 1872: "The legislature shall not authorize any county, township, city, or other municipal corporation to issue bonds or to become indebted in any manner to aid in the construction or equipment of any or all railroads to any amount that shall exceed ten per centum of the value of the taxable property within such county, township, city, or other municipal corporation; the amount of such taxable property to be ascertained and determined by the last assessment of said property made for the purpose of State and county taxation previous to the incurring of such indebtedness." 3

§ 553. Private Corporations not to have Municipal or Taxing Powers. "No power to levy taxes shall be delegated to individuals or private corporations." "The legislature shall not delegate to any special commission, private corporation, company, association or individual, any power to make, control, appropriate, supervise or in any way interfere with, any county, city, town or municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or assessments, or perform any municipal functions whatever." 5 "The general assembly shall not delegate to any special commission, private corporation or association, any power to make, supervise, or interfere with any municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or perform any municipal function whatever." 6

1 Minn. Const. Amendment of 1860, art. 9, § 10.

2 Minn. Const. Amendment of 1871, art. 4, § 32 [a].

3 Minn. Const. Amend. of 1872, art. 9, 15.

4 Ala. Const. of 1875, art. 10, 2. 5 Cal. State Const. 1879, art. 11,

§ 13.

6 Penn. Const. of 1873, art. 3, § 20; Const. Montana, 1889, art. 5, § 36 (with slight verbal variations).

§ 554. Laws Permitting Alienation of Corporate Franchises Prohibited. "The legislature shall not pass any laws permitting the leasing or alienation of any franchise, so as to relieve the franchise or property held thereunder from the liabilities of the lessor or grantor, lessee or grantee, contracted or incurred in the operation, use or enjoyment of such franchise, or any of its privileges." 1

"No corporation shall lease or alienate any franchise, so as to relieve the franchise, or property held thereunder from the liabilities of the lessor, or grantor, lessee, or grantee, contracted or incurred in the operation, use, or enjoyment of such franchise, or any of its privileges." 2

§ 555. Corporations not to Employ Chinese Labor. "No corporation now existing or hereafter formed under the laws of this State, shall, after the adoption of this constitution, employ, directly or indirectly in any capacity, any Chinese or Mongolian. The legislature shall pass such laws as may be necessary to enforce this provision.

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§ 556. Existing Rights Saved.- -"The rights and duties of all corporations shall remain as if this constitution had not been adopted; with the exception of such regulations and restrictions as are contained in this constitution." 4 "Corporations created by or under the laws of the Territory of Nevada shall be subject to the provisions of such laws until the legislature shall pass laws regulating the same, in pursuance of the provision of this constitution." 5 "Noth

ing in this article shall be construed to divest or affect rights guaranteed by any existing grant or statute of this State or of the Republic of Texas."' 6

§ 557. Retrospective Laws for Benefit of Corporations Prohibited. "The general assembly shall pass no law for the benefit of a railroad or other corporation, or any individual or association of individuals, retrospective in its operation, or which imposes on the people of any county or municipal subdivision of the State a new liability in respect to transactions or considerations already past."

§ 558. Two-thirds Legislative Vote Required.-"No act of incorporation, except for the renewal of existing corporations, shall be

1 Cal. State Const. 1879, art. 12, § 10; Const. Montana, 1889, art. 15, § 17; Const. Idaho, 1889, art. 11, § 15. 2 Const. Wash. 1889-90, art. 12, § 8. 3 Cal. State. Const. 1879, art. 19, § 2.

4 Conn. Const. of 1818, art. 10, § 3. 5 Nev. Const. of 1864, art. 8, § 4. 6 Tex. Const. of 1876, art. 12, § 7. 7 Col. Const. of 1876, art. 15, § 12; Mo. Const. of 1875, art. 12, 19; Const. Montana, 1889, art. 15, § 13.