Volume 297 — Minnesota Reports

<bold>Taxation — gross earnings tax paid by railroads — scope</bold>. <block_quote> 1. Under Minnesota Constitution and statutes, railroads pay a gross earnings tax in lieu of all taxes upon all property within this state owned or operated for railway purposes by such railroads. The gross earnings tax law did not change the character of the tax, but establishes a different method of computing the tax.</block_quote> <bold>Same — same — same</bold>. <block_quote> 2. A gross earnings tax as applied to railroads is an "in lieu"<page_number>Page 40</page_number> statute covering property either owned or operated, which necessarily includes nonowned property, and neither type of property operated for railway purposes can be subjected to an ad valorem tax.</block_quote> <bold>Same — same — same</bold>. <block_quote> 3. The provision of the statute covering property being operated for railway purposes is peculiar to railroads and a like provision does not appear in other gross earnings or exemption statutes.</block_quote> <bold>Same — ad valorem taxes — applicability to property operated</bold> <bold>by railroad for railway purposes</bold>. <block_quote> 4. Property operated by a railroad for railway purposes and not owned by the railroad cannot be subjected to ad valorem taxes under Minnesota Constitution and statutory provisions.</block_quote> <bold>Same — same — applicability to leased property operated for</bold> <bold>railway purposes</bold>. <block_quote> 5. Leased property operated by a railroad for railway purposes is an exception to Minn. St. <cross_reference>272.69</cross_reference>, subd. 3, which makes lessor responsible for payment of ad valorem taxes on leased property.</block_quote>

<bold>Criminal law — admissibility of evidence found during search</bold> <bold>prior to placing person in jail</bold>. <block_quote> Where a person is about to be lodged in jail incident to a lawful arrest, it is reasonable procedure to search the person (1) to obtain accurate identification for the "booking" process; (2) to prevent the introduction of obnoxious material into the jail; (3) to protect other prisoners, attendants, and the defendant himself; and (4) to prevent a possible escape. Evidence found during this procedure should not be suppressed.</block_quote>

<bold>Housing and redevelopment — obligations issued by state agency</bold> <bold>to facilitate construction of housing for low- and</bold> <bold>middle-income families — validity</bold>. <block_quote> 1. Notes and bonds issued or sold by Minnesota Housing Finance<page_number>Page 156</page_number> Agency, which was created by the legislature, payable solely out of earnings of housing projects do not constitute a state debt so as to violate Minn. Const. art. <cross_reference>9</cross_reference>, §§ 6 and 7.</block_quote> <bold>Same — constitutionality — act providing aid in financing</bold> <bold>housing for persons of low and moderate income</bold>. <block_quote> 2. Assistance in financing housing for persons of low and moderate income involves a governmental function in protecting the public health and as such does not contravene Minn. Const. art. <cross_reference>9</cross_reference>, § 5, which prohibits the state from becoming a party in carrying on works of internal improvement except as authorized by the Constitution.</block_quote> <bold>Same — same — same</bold>. <block_quote> 3. Minn. Const. art. <cross_reference>9</cross_reference>, § <cross_reference>1</cross_reference>, provides that the "power of taxation shall never be surrendered, suspended or contracted away. Taxes * * * shall be levied and collected for public purposes * * *." Section 10 provides that the "credit of the State shall never be given or loaned in aid of any individual, association or corporation * * *." The application of these proscriptions depends upon a determination of whether the collection of taxes and the extension of credit is for a public purpose. While the act under consideration involves assistance in providing housing for people having moderate incomes as well as those having low incomes, we find that under the facts of this case the assistance to be furnished is for a public purpose and therefore permissible under Minn. Const. art. <cross_reference>9</cross_reference>, §§ <cross_reference>1</cross_reference> and 10.</block_quote> <bold>Judgments — summary judgment — failure to controvert evidence</bold> <bold>supporting motion</bold>. <block_quote> 4. Defendant has submitted nothing to controvert numerous affidavits and exhibits submitted by plaintiff in support of its motion for summary judgment. As a result, summary judgment was proper.</block_quote>

<bold>Schools and school districts — powers of school boards —</bold> <bold>employment of teachers</bold>.

<bold>Drainage — ditch repair — procedures followed — propriety</bold>.

<bold>Principal and agent — representation by insurance agent —</bold> <bold>finding of apparent authority — sufficiency of evidence</bold>. <block_quote> Where there was no conduct on the part of the principal (insurance company) which, reasonably interpreted, would have caused the plaintiffs to believe that the company had consented to the giving of a representation by an insurance agent that they would be notified, during the grace period of an insurance policy, that any premiums due had not been paid, it was error for the trial court to find that there was apparent authority for such a representation.</block_quote>

<bold>Zoning — variances — purpose — propriety of granting</bold>.

<bold>Insurance — contractor's liability policy — construction —</bold> <bold>"completed operations hazard" exclusion</bold>. <block_quote> 1. A grain storage bin which was filled with wet soybeans in an emergency was being put to its intended use within the meaning of the contractor's liability policy and consequently the collapse of the bin came within a "completed operations hazard" exclusion in the policy.</block_quote> <bold>Estoppel — failure of insurer to deny coverage promptly —</bold> <bold>effect</bold>. <block_quote> 2. Failure of a liability carrier to deny coverage promptly did not estop it from asserting an exclusion where the insured was not prejudiced by the delay.</block_quote>

<bold>Criminal law — trial — admissibility of evidence — evidence</bold> <bold>of other crime — effect</bold>.

<bold>Criminal law — trial — evidentiary rulings — improper</bold> <bold>argument</bold>.

<bold>Appeal and error — petition for review of administrative</bold> <bold>board's determination — timeliness</bold>.

<bold>Torts — actions for false arrest and imprisonment and</bold> <bold>malicious prosecution — fact issues</bold>.

<bold>Divorce — custody of children — refusal to amend decree —</bold> <bold>propriety</bold>.

<bold>Workmen's compensation — review — compensation award —</bold> <bold>casual employment — amount of award</bold>.