It was the purpose of Congress, as evidenced by the original
Northern Pacific Land Grant Act of July 2, 1864, c. 217, 13 Stat.
365, and the joint resolution of May 31, 1870, 16 Stat. 378,
extending the indemnity limits, to confer substantial rights to the
lands within the indemnity limits in lieu of those lost within
place limits.
The right of the company to lieu lands lawfully embraced in
selections filed with the Secretary of the Interior excluded lands
to which rights of others had attached before the selection and
also excluded
Page 219 U. S. 381
the right of others to appropriate lands so embraced in such
selections pending action by the Secretary.
The power of the Secretary to approve selections is judicial in
its nature, and implies the duty to determine as of the time of
filing the selection, and the doctrine of relation applies to
decisions as to validity of such selections.
In this case,
held that the company's rights to lieu
lands embraced in a selection were superior to those of a purchaser
under the Timber and Stone Act who filed pending final decision by
the Secretary and between the time of decision of the Secretary
holding that the selections were unlawful and the subsequent
reversal of that decision, and that the final decision related back
to the date of the original selection.
Sjoli v. Dreschel,
199 U. S. 564,
distinguished.
General expressions in every opinion are to be taken in
connection with the case in which those expressions are used. If
they go beyond the case, they may be respected, but they are not
controlling when the very point is presented in a subsequent
case.
General expressions in an opinion such as those in
Sjoli v.
Dreschel, 199 U. S. 564,
will not be made the basis for overthrowing a uniform rule of the
Land Department, involving destructive effects upon property rights
existing under different conditions.
The contention in this case, overruled by the Secretary, that
the company was not entitled to lieu lands within indemnity limits
because not on the same side of railroad as the place lands lost,
held to be without merit.
Where a matter regarding selection of lieu land is wholly within
the jurisdiction of the Secretary deciding it, this Court will
assume that the facts on which the decision rested were properly
proved.
Humbird v. Avery, 195 U. S. 485,
followed as to construction of provisions of Sundry Civil Act of
July 1, 1898, c. 546, 30 Stat. 597, 620, and decision of Secretary
in this case sustained; but
quaere, and not decided, as to
effect of such provisions on purchasers under the Timber and Stone
Act.
Where the object of the bill is to charge the defendant as
trustee of land included in lieu limits of a railway grant for the
complainant, if it appears that a valid selection was made, proof
that defendant's grantor never acquired title to the land would not
establish complainant's right to it.
161 F. 324 reversed.
The facts, which involve the construction of the Northern
Pacific Land Grant Acts, are stated in the opinion.
Page 219 U. S. 382
MR. CHIEF JUSTICE WHITE delivered the opinion of the Court.
Conflicting claims to forty acres of land in the State of
Minnesota is the controversy which this case involves. Both parties
assert title derived from the United States, the appellants in
virtue of a patent issued under a land grant made to the Northern
Pacific Railroad Company and the appellee as the result of an
alleged purchase under the Timber and Stone Act. The facts are
these:
The Northern Pacific Railroad Company, in 1883, filed in the
Land Department a list of indemnity selections which embraced the
land in question. In 1893, a rearranged list was filed, differing
from the previous one in that it specified the particular tract of
land lost in the place limits for which each described selection
within the indemnity limits was made. The Land Department having
ruled that the eastern terminus of the Northern Pacific Railroad
Company was not at Ashland, but at Duluth, a point west of Ashland,
the selections, so far as they related to lands east of Duluth,
among which was the land in controversy,
Page 219 U. S. 383
were cancelled by order of the Secretary of the Interior.
Following this, in December of that year, Richard B. Jones applied
to purchase the land under the Timber and Stone Act. A few months
after, on February 28, 1898, the Secretary of the Interior made an
order formally withdrawing from entry the selected land east of
Duluth in order, as was declared, to preserve the right of the
railroad company, if any, resulting from the selections previously
filed, pending the decision by this Court of cases involving
whether the eastern terminus was at Duluth or at Ashland. About
nine months after this withdrawal, in December, 1898, Jones made
his final proof and paid the purchase money, $100. The receiver of
the local land office, however, recited in the receipt issued to
Jones that his rights were "subject to any claim the Northern
Pacific Railroad Company may have to the lands herein
described."
In 1900 (
Doherty v. Northern Pacific Ry. Co.,
177 U. S. 421,
177 U. S. 435), it
was decided that the eastern terminus of the Northern Pacific road
was at Ashland, and therefore that the Land Department had erred in
holding that such terminus was at Duluth. The Secretary of the
Interior then formally reinstated the list of selections previously
filed by the railroad company, the entry of Jones was cancelled,
and the selections were approved and patents issued to the Northern
Pacific Railway Company as entitled to all rights under the
selections. The railway company conveyed the tract in controversy
to Weyerhaeuser and Humbird, the present appellants.
This suit was then begun by Hoyt in a court of the State of
Minnesota, against Weyerhaeuser and Humbird, to compel a conveyance
of the land, and to restrain the cutting or removal of timber
during the pendency of the suit, on the ground that the title was
held by the defendants in trust for complainant. The right to
relief was principally based upon the contention that the purchase
by Jones under the
Page 219 U. S. 384
Timber and Stone Act was paramount to the indemnity selection
previously made by the railroad company, and hence that the Land
Department had fallen into an error of law in patenting the land to
the company. In addition, there were numerous other grounds upon
which the right to relief was predicated, but we do not deem it
necessary now to detail them, as we shall come to state and dispose
of them after we have passed upon the contention concerning the
paramount nature of the timber and stone entry. The case, having
been removed into a circuit court of the United States upon the
ground that, on the face of the bill, it involved the construction
of acts of Congress, was in that court tried and a decree was
entered dismissing the bill. The circuit court of appeals, whose
action is now under review, reversed the decree of the circuit
court and remanded the cause with directions to enter a decree for
the complainant granting the relief prayed. 161 F. 324.
The decision of the court was based upon the conclusion that the
application to purchase, made by Jones, although subsequent in date
to the filing by the railroad company of its list of indemnity
selections, was paramount to such selections, even although they
had been subsequently approved by the Secretary of the Interior.
This was not, however, the result of an interpretation originally
considered of the granting act, but was exclusively caused, as
shown by the opinion of the court, by what was held to be the
authoritative and controlling operation of a decision of this Court
--
Sjoli v. Dreschel, 199 U. S. 564. The
soundness of this view lies at the threshold of the case; since, if
it be that the rights of the parties are authoritatively concluded
by the ruling in the
Sjoli case, it will not be necessary
to further consider the subject. Coming at once to analyze the
ruling in the
Sjoli case in order to fix its true import,
we think it is apparent that the court below was mistaken in
holding that the decision was here authoritatively
Page 219 U. S. 385
decisive. This is said because we see no escape from that
conclusion when the issues in the
Sjoli case are
accurately ascertained and are compared with those here
presented.
The
Sjoli controversy, succinctly stated, thus arose: a
homestead settler went in 1884 upon land within the indemnity
limits of the grant to the Northern Pacific Railroad Company. He
erected a dwelling house and moved into it with his family and
cultivated a portion of the land, all prior to the filing in 1885
of a list of selections by the railroad company, embracing the
tract settled upon by Sjoli. Although the settler had thus, prior
to the filing of the list of selections, entered upon and improved
the land with the intention of perfecting title under the homestead
laws, his application to enter, for reasons which need not be here
adverted to, was not made until subsequent to the filing by the
railroad company of its list of selections. Relying upon this fact,
the railroad company opposed the application of Sjoli, and the
proceedings which took place in the Land Department simply required
the Department to determine whether the railroad company, by the
filing of its list of selections, could deprive the settler Sjoli
of his rights, despite the fact that his settlement and improvement
of the land had occurred prior to the filing by the company of its
list of selections. The Land Department decided in favor of the
settler, and a patent was issued to him.
The matter decided by this Court in the
Sjoli case
arose from the bringing of a suit by Dreschel, as assignee of the
rights of the railroad company, asserting that Sjoli held the land
in trust for him as the grantee of the railway company, because the
Land Department had, as a matter of law, erred in deciding that the
rights of the settler Sjoli were paramount to the subsequent
selection by the railroad company, since, at the time of the filing
of such list of selections, no record evidence existed in the
Land
Page 219 U. S. 386
Department of the asserted settlement by Sjoli, or of his
intention to avail of the benefit of the homestead laws. The action
of the Land Department in maintaining the paramount right of the
settler was sustained. As it is manifest from the statement we have
made that the controversy in this case involves no question
whatever concerning the rights of a settler initiated prior to the
filing by the railroad company of its list of selections, but
simply calls upon us to determine whether the Land Department erred
in deciding that a filed list of selections was, after approval,
paramount to a subsequent application to purchase, it is at once
demonstrated that the question here involved is wholly different
from that which was decided in the
Sjoli case. This
difference is as wide as that which would exist between a ruling
that one who was prior in time was prior in right and a directly
antagonistic decision that one who was subsequent in time was yet
prior in right. And the broad distinction which obtains between the
matter which was involved and decided in the
Sjoli case
and the question presented on this record is made, if need be, more
apparent when it is considered that, in the
Sjoli case,
the action of the Land Department in issuing the patent to the
settler because he was prior in time was sustained, while to hold
that decision applicable here would reverse the action of the Land
Department in issuing a patent to the railway company because it
was prior in time. While, in view of this difference between the
issues involved in the
Sjoli case and those here arising,
we are constrained to the conclusion that the former case cannot be
held to be here authoritatively decisive, of course, the due
persuasive force of the reasoning of the opinion in the
Sjoli case, if here applicable, remains and must be
considered when we come, as we now do, to pass upon the controversy
here arising, enlightened by the true interpretation of the
granting act, as elucidated by the applicable decisions of this
Court.
Page 219 U. S. 387
It is beyond dispute on the face of the granting act of July 2,
1864, 13 Stat. 365, 367, c. 217, and of the joint resolution of May
31, 1870, 16 Stat. 378, extending the indemnity limits, that it was
the purpose of Congress in making the grant to confer a substantial
right to land within the indemnity limits in lieu of lands lost
within the place limits. It is also beyond dispute that, as the
only method provided by the granting act for executing the grant in
this respect was a selection of the lieu lands by the railroad
company, subject to the approval of the Secretary of the Interior,
that a construction which would deprive the railroad company of its
substantial right to select, and would render nugatory the exertion
of power of the Secretary of the Interior to approve lawful
selections when made, would destroy the right which it was the
purpose of Congress to confer. That the effect of holding that
lands lawfully embraced in a list of selections duly filed and
awaiting the approval of the Secretary of the Interior could, in
the interim, be appropriated at will by others would be destructive
of the right of selection is not only theoretically apparent from
the mere statement of the proposition, but has, moreover, in actual
experience, been found to be the practical result of carrying that
doctrine into effect.
See 25 Opin.Atty.Gen. 632.
Considering the language of the granting act from a narrower point
of view, a like conclusion is in reason rendered necessary. The
right to select within indemnity limits was conferred to replace
lands granted in place which were lost to the railroad company
because removed from the operation of the grant of lands in place
by reason of the existence of the rights of others originating
before the definite location of the road. The right to select
within indemnity limits excluded lands to which rights of others
had attached before the selection, and hence simply required that
the selection, when made, should not include lands which at that
time, were subject to the rights of others. The requirement
Page 219 U. S. 388
of approval by the secretary consequently imposed on that
official the duty of determining whether selections were lawful at
the time they were made, which is inconsistent with the theory that
anyone could appropriate the selected land pending action of the
Secretary. The scope of the power to approve lists of selections,
conferred on the Secretary, was clearly pointed out in
Wisconsin Central Railroad v. Price, 133 U.
S. 496,
133 U. S. 511,
where it was said that the power to approve was judicial in its
nature. Possessing that attribute, the authority therefore involved
not only the power, but implied the duty, to determine the
lawfulness of the selections as of the time when the exertion of
the authority was invoked by the lawful filing of the list of
selections. This view, while it demonstrates the unsoundness of the
interpretation of the granting act which the contrary proposition
involves, serves also at once to establish that the obvious purpose
of Congress in imposing the duty of selecting and submitting the
selections when made to the final action of the Secretary of the
Interior was to bring into play the elementary principle of
relation, repeatedly sanctioned by this Court and uniformly applied
by the Land Department from the beginning up to this time, under
similar circumstances, in the practical execution of the land laws
of the United States. Without attempting to cite the many cases in
this Court illustrating and applying the doctrine, a few only which
are aptly pertinent and here decisive are referred to.
Gibson v.
Chouteau, 13 Wall. 92,
80 U. S. 1006;
Shepley v. Cowan, 91 U. S. 330;
St. Paul Railroad v. Winona Railroad, 112 U.
S. 720,
112 U. S. 733;
Oregon & C. R. Co. v. United States, 189 U.
S. 103,
189 U. S. 112;
United States v. Detroit Lumber Co., 200 U.
S. 321,
200 U. S. 334,
and cases cited.
In
Shepley v. Cowan, there was conflict between a
preemption claim and a selection on behalf of the State of Missouri
under an act of Congress conveying to the state a large quantity of
land to be selected by the governor,
Page 219 U. S. 389
the act providing that, if the selection should be approved by
the Secretary of the Interior, patents were to issue. The Court
said (p.
91 U. S.
337):
"The party who takes the initiatory step in such cases, if
followed up to patent, is deemed to have acquired the better right,
as against others, to the premises. The patent which is afterwards
issued relates back to the date of the initiatory act, and cuts off
all intervening claimants. Thus, the patent upon a state selection
takes effect as of the time when the selection is made and reported
to the land office, and the patent upon a preemption settlement
takes effect from the time of the settlement, as disclosed in the
declaratory statement or proofs of the settler to the register of
the local land office."
On page
91 U. S. 338,
after distinguishing
Frisbie v.
Whitney, 9 Wall. 187, and
Yosemite
Valley Case, 15 Wall. 77, the Court said:
"But whilst, according to these decisions, no vested right as
against the United States is acquired until all the prerequisites
for the acquisition of the title have been complied with, parties
may, as against each other, acquire a right to be preferred in the
purchase or other acquisition of the land when the United States
have determined to sell or donate the property. In all such cases,
the first in time in the commencement of proceedings for the
acquisition of the title, when the same are regularly followed up,
is deemed to be the first in right."
In
St. Paul Railroad v. Winona Railroad, 112 U.
S. 720, one of the questions arising for decision was
which of two railroad companies was entitled to certain tracts of
lieu lands situated within overlapping indemnity limits of certain
grants made by an act of Congress to the Territory of Minnesota to
aid in the construction of the roads of the contesting companies.
The selections were to be made by the governor, and required the
approval of the Secretary of the Interior. The Winona Company filed
a list of selections.
Page 219 U. S. 390
The St. Paul Company made no selections, but nevertheless, on
grounds which need not be stated, the Secretary of the Interior
certified the lands to the state for the use of that company. The
Winona Company brought suit in the state court to have a
declaration of its rights in the land, and to restrain the St. Paul
Company and others from receiving a patent or other evidence of
title to the lands from the governor of the state. The state court
decreed in favor of the Winona Company, and this Court affirmed its
action. In the course of the opinion, it was said (page
112 U. S.
731):
"The time when the right to lands becomes vested, which are to
be selected within given limits under these land grants, whether
the selection is in lieu of lands deficient within the primary
limits of the grant or of lands which, for other reasons, are to be
selected within certain secondary limits, is different in regard to
those that are ascertained within the primary limits by the
location of the line of the road."
After referring to prior decisions, the conclusion was reached
that, as to the lands to be selected, "priority of selection
secures priority of right," and that, as the Winona Company alone
had made selection of the lands, and that selection was lawful, the
right to the land as against third parties vested in the Winona
Company as of the date of the filing of its lists of selections. In
concluding the opinion, it was said (p.
112 U. S.
733):
"It is no answer to this to say that the Secretary of the
Interior certified these lands to the state for the use of the
appellant. It is manifest that he did so under a mistake of the law
-- namely, that appellant, having made the earlier location of its
road through these lands, became entitled to satisfy all its
demands, either for lieu lands or for the extended grant of 1864,
out of any odd sections within twenty miles of that location,
without regard to its proximity to the line of the other road. We
have already shown that such is not the law, and this erroneous
decision
Page 219 U. S. 391
of his cannot deprive the Winona Company of rights which became
vested by its selection of those lands.
Johnson v.
Towsley, 13 Wall. 72,
80 U. S.
80;
Gibson v. Chouteau, 13 Wall.
92,
80 U. S. 102;
Shepley v.
Cowan, 91 U. S. 330,
91 U. S.
340;
Moore v. Robbins, 96 U. S.
530,
96 U. S. 536."
So also, in
Oregon & C. R. Co. v. United States,
189 U. S. 103, the
Court said (p.
189 U. S.
112):
"Now it has long been settled that, while a railroad company,
after its definite location, acquires an interest in the
odd-numbered sections within its place or granted limits, which
interest relates back to the date of the granting act, the rule is
otherwise as to lands within indemnity limits. As to lands of the
latter class, the company acquires no interest in any specific
sections until a selection is made with the approval of the Land
Department, and then its right relates to the date of the
selection. And nothing stands in the way of a disposition of
indemnity lands, prior to selection, as Congress may choose to
make."
The doctrine thus affirmatively established by this Court, as we
have said, has been the rule applied by the Land Department in the
practical execution of land grants from the beginning. Porter v.
Landrum, 31 L.D. 352; Southern Pacific Railroad Co., 32 L.D. 51;
Santa Fe Railroad Co. 33 L.D. 161; Eaton v. Northern Pacific
Railway Co., 33 L.D. 426; Santa Fe Pacific Railroad Co. v. Northern
Pacific Railway Co., 37 L.D. 669. The well settled rule of the Land
Department on the subject was thus stated by the then assistant
attorney general in the department, now MR. JUSTICE VAN DEVANTER,
as follows:
"Under this legislation, the company was, by the direction or
regulations of the Secretary of the Interior, required to present
at the local land office selections of indemnity lands, and these
selections, when presented conformably to such direction or
regulations, were to be entertained and noted or recognized on the
records of the local office. When this was done, the selections
became lawful filings,
Page 219 U. S. 392
and while, until approved and patented, they would remain
subject to examination and to rejection or cancellation where found
for any reason to be unauthorized, they, like all other filings,
were entitled to recognition and protection so long as they
remained undisturbed upon the records."
"There is no question in this case as to the sufficiency of the
loss assigned, or as to the formality and regularity of the
selection."
"What effect has been given to a pending railroad indemnity
selection?"
"Prior to 1887, the rights of a railroad company within the
indemnity belt of its grant were protected by executive withdrawal;
but on August 15, that year, these withdrawals were revoked, and
the land restored to settlement and entry; but such orders,
although silent upon the subject, were held not to restore lands
embraced in pending selections. Dinwiddie v. Florida Railway &
Navigation. Co., 9 L.D. 74. In the circular of September 6, 1887 (6
L.D. 131), issued immediately after the general revocation of
indemnity withdrawals, it was provided that any application
thereafter presented for lands embraced in a pending railroad
indemnity selection, and not accompanied by a sufficient showing
that the land was for some cause not subject to the selection, was
not to be accepted, but was to be held subject to the claim of the
company under such selection. In fact, a railroad indemnity
selection, presented in accordance with departmental regulations
and accepted or recognized by the local officers, has been
uniformly recognized by the Land Department as having the same
segregative effect as a homestead or other entry made under the
general land laws."
Despite the doctrine of this Court, as expounded in the cases
previously referred to, the unbroken practice of the Land
Department from the beginning in the execution of land grants,
impliedly sanctioned by Congress during the
Page 219 U. S. 393
many years that administrative construction has prevailed, and
the destructive effect upon rights conferred by land grant acts
which would result from applying the contrary view, it is yet urged
that this must be done because of decisions of this Court which it
is insisted constrain to that conclusion. One of the decisions thus
referred to is
Sjoli v. Dreschel, 199 U.
S. 564, to which we have previously referred, and others
are cited in the margin.
*
What we have already said as to the
Sjoli case would
suffice to dispose of the suggestion concerning that case, but we
shall recur to it. As to the other cases, it would be adequate to
say that not one of them involved the question here under
consideration, nor even by way of
obiter was an opinion
expressed on such question. Indeed, all the cases relied upon may
be placed in one of three classes: (a) those involving the nature
and character of the right, if any, to indemnity lands prior to
selection; (b) whether such lands, after the filing of a list of
selections, and before action by the Secretary of the Interior
thereon, could be taxed by a state to the railroad company as the
owner thereof, and (c) those which were concerned with the nature
and character of acts which were adequate to initiate a right to
public land which would be paramount to a list of selections when
the acts were done before the filing of the list of selections. In
none of the cases, moreover, was the well settled doctrine of this
Court as to relation, even by remote implication, questioned.
Indeed, in most of the cases relied upon, the previous decisions to
which we have referred, expounding the doctrine of relation, were
approvingly cited or expressly reaffirmed.
Page 219 U. S. 394
The
Sjoli case, from the facts we have already stated,
is clearly here inapplicable, because it falls in the third of the
above classes. If it be conceded that general language was used in
the opinion in that case which, when separated from its context and
disassociated from the issues which the case involves, might be
considered as here controlling, that result could not be
accomplished without a violation of the fundamental rule announced
in
Cohen v.
Virginia, 6 Wheat. 399, so often since reiterated
and expounded by this Court, to the effect that
"general expressions in every opinion are to be taken in
connection with the case in which those expressions are used. If
they go beyond the case, they may be respected, but ought not to
control the judgment in a subsequent suit when the very point is
presented for decision."
The wisdom of the rule finds apt illustration here when it is
considered that not even an intimation was conveyed in the
Sjoli case of any intention to overrule the repeated prior
decisions of this Court concerning the operation and effect of the
doctrine of relation upon the approval, by the Secretary of the
Interior, of a lawful list of selections. That the general
expressions in the
Sjoli case are not persuasive here
clearly results from the demonstration which we have previously
made that to apply them would be in effect to destroy the indemnity
provisions of the granting act. Moreover, that serious general
injurious consequences would arise from treating the expressions
relied upon in the
Sjoli case as persuasive is clear (a)
because to do so would result in the overthrow of the uniform rule
by which the Land Department has administered land grants from the
beginning -- a rule continued in force after the decision in the
Sjoli case, because of the administrative conclusion that
that case should be confined to a like state of facts, and not be
extended to other and different conditions (25 Opin.Atty.Gen. 632);
(b) because of the destructive effect upon rights of property and
the infinite confusion which would now arise from
Page 219 U. S. 395
extending, under the circumstances stated, the observations in
the
Sjoli case to the wholly different state of facts
presented upon this record.
While the foregoing disposes of the main propositions which the
case presents, there are additional contentions which it is
necessary to pass upon. Irrespective of any question as to the
paramount nature of a list of selections, it is contended on behalf
of appellee, contrary to the ruling of the Secretary of the
Interior: (a) that the selection by the railroad company of the
tract in controversy was void and it could not lawfully be
approved; (b) in any event, that he was entitled to the land by
virtue of the provisions of an act approved July 1, 1898, 30 Stat.
620, c. 546, and (c) the Northern Pacific Railway Company did not
succeed to the rights of the Northern Pacific Railroad Company in
the land, if any right thereto became vested in the latter
company.
a. This contention is predicated upon the claim that
the selecting company had not sustained a legal loss of the tract
in lieu of which the land in controversy was selected and that, if
it had sustained the loss, the selection was not lawful, because
the tract selected was not on the same side of the railroad as the
tract lost, and was not the nearest unappropriated land to it.
These contentions were considered at much length by the Secretary
of the Interior in the opinion, copied in the record, affirming the
cancellation of the entry of Jones (34 L.D. 105), and were found
not to be meritorious. The reasons advanced by the Secretary in
support of his rulings upon the legal propositions involved seem to
us convincing, and we therefore hold the contentions untenable.
Cognate to the contentions just disposed of is a claim made in
argument that the filed list of selections was void for the reason
that the joint resolution of May 31, 1870, establishing the second
indemnity limits, required certain facts to appear in order to
entitle the railway company to the land, and that in selecting
the
Page 219 U. S. 396
land those requisites were not complied with. The claim
substantially embodies merely criticisms directed to the form or
regularity of the selection list, and is not, in any view, of such
a character as to render void the filed list. The matter being
within the jurisdiction of the Secretary of the Interior, we must
assume that the facts necessary to establish the right to approve
the selections were shown to his satisfaction.
b. This contention asserts that complainant is entitled
to the land by virtue of certain provisions relating to the
Northern Pacific land grant contained in the subdivision entitled,
"Surveying the Public Lands," embodied in the sundry civil
appropriation Act of July 1, 1898. The provisions are copied in the
opinion in
Humbird v. Avery, 195 U.S. beginning at
195 U. S. 485,
and need not be here repeated. As there said, they
"disclose a scheme or plan for the settlement of the disputes
arising out of the conflicting rulings in the Land Department in
reference to the eastern terminus of the railroad, and its action
in reference to the public lands between Duluth and Ashland."
It is argued that the Secretary of the Interior erroneously
decided that the land could not be claimed under the Act of 1898 by
Jones or his grantee, because, prior to January 1, 1898, Jones had
done nothing more than to file his application for the land, and
was consequently not a purchaser entitled to the benefits of the
statute. In our opinion, no error was committed by the Secretary in
so deciding. Because we reach this conclusion, we must not be
considered as intimating any opinion whatever regarding the
soundness of the contention made on behalf of the appellants, to
the effect that, in any event, the act of 1898 can have no
application to one who purchased land under the Timber and Stone
Act.
c. It is contended that the Northern Pacific Railway
Company, under its charter, had no power to purchase the tract of
land here in controversy, and that for various reasons the legal
proceedings under which the railway company
Page 219 U. S. 397
asserted it had acquired the rights of the Northern Pacific
Railroad Company in the land were ineffective to produce any such
result. On this record, however, it is not necessary to pass upon
these contentions. As the object of the bill is to seek to charge
the defendants as trustees of the land for complainant, plainly, if
a valid selection was made, proof that their grantor never acquired
title to the land would not establish a right to it in the
complainant.
It follows that the decree of the court of appeals must be
reversed, and that of the Circuit Court affirmed.
And it is so ordered.
*
Ryan v. Central Pacific R. Co., 99 U. S.
382;
Kansas Pacific R. Co. v. Atchison &c. R.
Co., 112 U. S. 414;
Kansas P. R. Co. v. Dunmeyer, 113 U.
S. 629,
113 U. S. 639,
113 U. S. 644;
Wisconsin C. R. Co. v. Price, 133 U.
S. 496;
United States v. Missouri &c. Ry.,
141 U. S. 359,
141 U. S.
374-375;
New Orleans Pacific Ry. Co. v. Parker,
143 U. S. 42,
143 U. S. 57;
Hewitt v. Schultz, 180 U. S. 139.
MR. JUSTICE HARLAN, with whom concurred MR. JUSTICE DAY,
dissenting:
This case is of sufficient importance to justify a full
statement of the facts, as well as the grounds upon which we feel
constrained to dissent from the opinion and judgment of the
court.
By the final decree under review, the Circuit Court of Appeals
for the Eighth Circuit unanimously reversed the judgment of the
circuit court, with directions to give the plaintiff Hoyt, now
appellee, the relief asked in his bill.
The general object of the suit was to have it adjudged that the
present defendants, Weyerhaeuser and Humbird, now appellants,
should hold the legal title to certain lands in Minnesota in trust
for the plaintiff, and be enjoined, during the pendency of the
cause, from selling, disposing of, or removing, or from attempting
to create any charge upon the timber standing or lying upon the
premises in question.
Many questions have been discussed by counsel. But there is one
which seems to require special examination. The facts out of which
that question arises may be thus stated:
The land in question is the southwest quarter of the southeast
quarter of section seven, township fifty-four, of
Page 219 U. S. 398
range fourteen west, principal meridian. It contains forty
acres, and is situated in St. Louis County, Minnesota. It is unfit
for cultivation, is valuable chiefly for its timber, has no
valuable deposit of gold, silver, cinnabar, copper, or coal upon
it, was at the time mentioned in the record uninhabited, and
contained no mining or other improvements.
For the purpose of availing himself of the Act of Congress
relating to the sale of timber land in California, Oregon, Nevada,
and Washington Territory, approved June 3, 1878, 20 Stat. 89, c.
151, which act was amended August 4, 1892, and its benefits
extended to all the states, 27 Stat. 348, c. 375, one Richard B.
Jones, a citizen of the United States, and admittedly, in all
respects qualified under the laws of the United States to enter
land, filed, December 17th, 1897, with the register and receiver in
the land office at Duluth, a verified written duplicate statement,
in due from, indicating his desire to purchase the land in dispute
under the homestead laws of the United States. One of these
statements was promptly transmitted by the receiver to the General
Land Office at Washington.
The receiver, in conformity with law at once posted in his
office, for the required time, the fact of such application,
describing the lands by legal subdivision, and furnishing Jones a
copy of such notice. That notice was duly published in the
newspaper nearest to the land. On the 27th day of March, 1898, no
adverse claim to the land having been filed in the land office, the
applicant, Jones, after furnishing to the local register
satisfactory proofs of the preliminary facts required by law,
paid to the receiver the full purchase price of the land,
together with all fees legally due to those officers. Thereupon he
was permitted, December 10th, 1898, to enter, and
did
enter the land, the receiver executing and delivering to him at the
time an
official receipt and certificate of purchase. In
December, 1898, all the papers and testimony in the matter
Page 219 U. S. 399
of Jones' application, including his certificate of purchase,
were transmitted by the register and receiver to the General Land
Office at Washington,
and by that office were received and
filed. On December 19th, 1898, Jones and wife sold and
conveyed the land to Minnie Stewart, by deed properly recorded on
October 3d 1902. Stewart and wife conveyed to Hoyt, the present
plaintiff, now appellee, and that deed was also duly recorded
October 3, 1902.
On the second day of December, 1901, nearly
three years
after Jones got his certificate of purchase, and after he had sold
the land, the Commissioner of the General Land Office made a
decision, holding for cancellation the entry made by Jones, as
above stated, declaring it to be void on the ground that this land
(using the words of the Commissioner)
"was selected by the Northern Pacific Railroad (now Railway
Company) October 17th, 1883, for the second indemnity, per list,
rearranged list 15 B, in lieu of land in Section 11, T. 46 R. 16
W., in the primary limits disposed of between date of grant and
definite location of the road, which selection has not since been
abandoned or the basis otherwise used. The selection was cancelled,
however, by letter of March 22, 1897, because the land is east of
Duluth, the then [supposed] eastern terminal of the grant under
departmental ruling; but said cancellation was rescinded and the
selection restored by letter of May 26, 1900, under the decision of
the U.S. Supreme Court,
United States v. Northern Pacific R.
Co., that the grant extends to Ashland, Wisconsin. December
17, 1897, Richard B. Jones applied to purchase said tract under the
Timber and Stone Law, and, after due publication and proof, made
entry thereof December 10, 1898. Cash certificate No. 14,812. Under
the decision of the Court, the selection of the company is a valid
selection, and the claim of Jones not having been perfected prior
to January 1, 1898, his claim is not within the Act of July 1,
1898, Departmental decision of May 22, 1900, Salter v.
Page 219 U. S. 400
Company. Said entry is therefore hereby held for cancellation
for conflict with the prior valid selection of the company subject
to appeal. Notify him hereof; the company will be informed by this
office."
It does not appear that Jones, or anyone claiming under him, had
any previous notice of this order, or that there was any trial or
regular hearing of the matter in the General Land Office.
Upon appeal to the Secretary of the Interior, the above order of
December 2, 1901, was affirmed, and subsequently, but not until
October, 1905, a patent was issued to the Northern Pacific Railway
Company. 35 L.D. 105.
When Jones entered and purchased the land, paying the government
price for it, and receiving a certificate of his purchase,
which purchase was made and which certificate was given nearly
seven years before a patent was issued to the railroad
company, there was in the Land Office a list of selections
alleged to have been filed by the railroad company on October 17,
1883. But the list did not assign each selection to specific land
in the granted limits, which it was asserted had been lost by the
company. That list was received at the local land office, and
transmitted to the General Land Office. But, on the eleventh of
April, 1893, the railroad company, acting under the direction or
suggestion of the Secretary of the Interior, "rearranged" its list
so as to specify the particular tract lost in the primary limits.
In such list, the lands in dispute here were set opposite to
particular lands lost in those limits. The lands mentioned in the
company's list, whether we take the original or rearranged list,
were, it must be remembered, within the
indemnity limits
of the grant made by Congress in 1864, in aid of the construction
of the Northern Pacific Railroad. That is not disputed.
The principal assignment of error is that the entry and purchase
by Jones, under whom Hoyt claims, of the lands in question were
subordinate to the rights acquired
Page 219 U. S. 401
by the mere
filing of the
list of selections
by the railroad company, followed as that was by the approval of
the Secretary of the Interior and by a patent, although
such
approval was not given, nor, as we have seen,
the patent
issued to the railroad company, until many years after Jones
received his certificate of purchase from the government.
Upon final hearing in the circuit court, the bill was dismissed.
But, upon appeal to the circuit court of appeals, all the judges
concurring, that judgment was reversed, and the case sent back with
directions to enter a decree for the relief asked in the bill. Rec.
214,
Hoyt v. Weyerhaeuser, 161 F. 324. The principles in
the latter case were accepted and applied by the Supreme Court of
Minnesota in
Northern Pacific Ry. Co. v. Wass, 104 Minn.
411.
Section 3 of the charter of the Northern Pacific Railroad
Company of July 2, 1864, provided:
"And be it further enacted that there be, and hereby is, granted
to the 'Northern Pacific Railroad Company,' its successors and
assigns, for the purpose of aiding in the construction of said
railroad and telegraph line to the Pacific coast, and to secure the
safe and speedy transportation of the mails, troops, munitions of
war, and public stores, over the route of said line of railway,
every alternate section of public land, not mineral, designated by
odd numbers, to the amount of twenty alternate sections per mile,
on each side of said railroad line, as said company may adopt,
through the territories of the United States, and ten alternate
sections of land per mile on each side of said railroad whenever it
passes through any state, and whenever, on the line thereof, the
United States have full title, not reserved, sold, granted, or
otherwise appropriated and free from preemption or other claims or
rights at the time the line of said road is definitely fixed, and a
plat thereof filed in the office of the Commissioner of the General
Land Office, and whenever, prior to said time, any of said sections
or
Page 219 U. S. 402
parts of sections shall have been granted, sold, reserved,
occupied by homestead settlers, or preempted, or otherwise
disposed of,
other lands shall be selected by said company
in lieu thereof, under the direction of the Secretary of the
Interior, in alternate sections, and designated by odd
numbers, not more than ten miles beyond the limits of said
alternate sections. . . ."
But Congress afterwards broadened or extended the limits into
which the railroad company, under the direction of the Secretary,
might go in order to supply deficiencies in the granted limits. By
the joint resolution of May 31, 1870, 16 Stat. 378, amending the
above Act of 1864, "second indemnity limits" were created. The
resolution provided:
"And in the event of there not being in any state or territory
in which said main line or branch may be located at the time of the
final location thereof, the amount of lands per mile granted by
Congress to said company, within the limits prescribed by its
charter, then said company shall be entitled, under the directions
of the Secretary of the Interior, to receive so many sections of
land belonging to the United States, and designated by odd numbers,
in such state or territory, within ten miles on each side of said
road beyond the limits prescribed in said charter, as will make up
such deficiency on said main line or branch, except mineral and
other lands, as excepted in the charter of said company of 1864, to
the amount of the lands that have been granted, sold, reserved,
occupied by homestead settlers, preempted, or otherwise disposed of
subsequent to the passage of the Act of July two, eighteen hundred
and sixty-four. . . ."
The fundamental inquiry in the case is whether Jones' entry,
occupancy, and purchase of the lands were subject or subordinate to
the
previous filing of the list of selections by the
railroad company, the Secretary of the Interior not having approved
such list until after such entry, occupancy, and purchase by Jones.
The judgment below
Page 219 U. S. 403
proceeded upon two principal grounds: 1. that the railroad
company did not acquire
any right or interest in the lands
selected within indemnity limits by the
mere filing of its
list of selections; 2. that
after such list was
filed, and while it was
unapproved by the Secretary, the
lands remained fully
open to entry and purchase by
homesteaders and preemptors under the laws of the United States;
that, in the absence of the approval of the Secretary of the
Interior, the
mere filing of the lists put
no obstacle
whatever in the way of homesteaders or preemptioners seeking
to acquire public lands not already appropriated or sold under the
laws of the United States, and that, by an entry or purchase in
conformity with the homestead or preemption laws a right
attached to those lands in favor of the entryman which
could not be destroyed or overridden by any
subsequent
approval by the Secretary of the Interior of the original or
rearranged list of selections made by the railroad company.
There grounds were sustained by a well reasoned opinion
delivered by Judge Sanborn on behalf of the circuit court of
appeals. In view of the elaborate discussion by counsel and by the
majority of my brethren, it will be instructive to make a liberal
extract from that opinion. After observing that lands within
indemnity limits did not cease to be public lands open to
settlement under the homestead laws, simply because of their having
been embraced in a list of selections filed by the railroad company
to supply losses within place limits, the circuit court of appeals
(the italics being ours) said:
"The company's unapproved selections did not, therefore, stand
in the way of the lands' being occupied and entered under the
homestead laws. The mere filing of its lists of selections of
indemnity lands
did not have the effect to exclude them from
occupancy under the preemption or homestead laws. . . . The
question here is not the jurisdiction but the legality of the
decision of the Land Department,
Page 219 U. S. 404
and especially of the Secretary, its head, whereby he awarded
this land to the railway company. The facts and the law warranted
and required its award and sale to Jones. When he presented his
application to purchase it under the Timber and Stone Act, the
railway company's selection of it was
unapproved by the
Secretary, and that company was without equitable right to it. The
Land Department had jurisdiction to accept the application of Jones
and to sell the land to him, or to approve the selection of the
company and to award the land to it. It exercised this
jurisdiction, accepted the application of Jones, permitted him to
enter the land, to prove up his claim to it, sold it to him, took
his $100 in payment for it, and issued to him his receiver's
receipt,
and it did all this before the selection of the
company was approved, and before the company could acquire any
right to the land. Jones' equitable title to the tract had
then vested, and while the jurisdiction of the Land Department
continued until the patent issued, its power was neither arbitrary,
unlimited, nor discretionary, and its action was subject to
judicial correction for error of law, fraud, or clear mistake. The
jurisdiction and power of disposition which the Land Department has
of the lands of the United States, like the power of every other
department of the government is subject to the laws of the land,
and the Land Department's violation or disregard of them is
remediable in the courts. Its power"
"cannot be exercised so as to deprive any person of land
lawfully entered and paid for.
By such entry and payment,
the purchaser secures a
vested interest in the property and a
right to a patent therefor, and can no more be deprived of it
by order of the Commissioner than he can be deprived by such order
of any other lawfully acquired property. Any attempted deprivation
in that way will be corrected whenever the matter is presented so
that the judiciary can act upon it."
"
Cornelius v. Kessel, 128 U. S. 456,
128 U. S.
461;
Germania Iron Co. v. James, 89
Page 219 U. S. 405
F. 811, 818;
James v. Germania Iron Co., 107 F. 597,
602;
Black v. Jackson, 177 U. S. 349,
177 U. S.
357;
Orchard v. Alexander, 157 U. S.
372,
157 U. S. 383;
Brown v.
Hitchcock, 173 U. S. 473,
173 U. S.
478. . . . Finally counsel involved the familiar rule
that the decisions of officers of other departments of the
government upon questions within their jurisdiction are cogent and
persuasive and should be followed by the courts unless they are
clearly erroneous, and he reminds us that the Secretary of the
Interior and the Commissioner of the General Land Office have
carefully considered the questions in this case, and have decided
that Jones was without legal or equitable claim to this land, and
that the right of the railway company to it was superior. But Jones
was a qualified entryman. The attempted withdrawals and
selections of the land by the Secretary prior to his approval of
the company's selection
were unauthorized by law and without
legal effect. The land was open to entry and purchase
until he approved the selection. Jones entered, bought, and
paid for it before any such approval was made. And the
decisions of the Supreme Court which have been cited leave no doubt
that the Secretary and the Commissioner fell into a plain error of
law when they took the land which Jones had lawfully purchased from
him or from his grantees and gave it to the railway company.
Erroneous decisions of questions of law by the officers of the Land
Department cannot be permitted to deprive the equitable owner of
his vested right to lands which he has lawfully purchased from the
United States.
Johnson v. Towsley, 13 Wall.
72,
80 U. S. 80;
Gibson v.
Chouteau, 13 Wall. 92,
80 U. S.
102;
Shepley v. Cowan, 91 U. S.
330,
91 U. S. 340;
Moore v.
Robbins, 96 U. S. 530,
96 U. S.
536;
St. Paul R. Co. v. Winona Railroad,
112 U. S.
720,
112 U. S. 733. The conclusion is
that, by his entry and purchase, Jones acquired the entire
beneficial ownership and the equitable right to the land in
controversy, and that the railway
Page 219 U. S. 406
company and its successors in interest obtained nothing under
the patent but the naked legal title, which they held in trust for
him and for his successors in interest. This conclusion renders the
other questions presented in this case immaterial. The decree must
accordingly be reversed, and the case must be remanded to the court
below, with directions to enter a decree for the complainant for
the relief prayed in the bill, and it is so ordered."
Many cases, among which was the recent case of
Sjoli v.
Dreschel, 199 U. S. 564,
were cited by the circuit court of appeals to sustain its
conclusion. Attention is specially directed to that case because it
was only recently decided, after full consideration. The facts in
it differ, in some respects, from those in the case now before us,
but the principles announced in the
Sjoli case were
clearly the result of previous cases. They directly bear upon the
question now under consideration.
It appears from the report of the
Sjoli case that he
settled on the land there in dispute in 1884, and his
original application was in 1889; whereas, the railroad company
filed its list of selections of lands within indemnity limits to
supply deficiencies in place limits in 1885,
Sjoli then
being in the actual occupancy of the land, and having the
intention, by a formal application, to perfect his claim under the
homestead laws. Dreschel claimed under the railroad company.
Sjoli got a patent in 1901, based primarily on his prior
occupancy. That was after the company filed its selections. The
essential question in the case was as to the rights of the
homestead settler as against the railroad company, which had filed
its list of selections of the lands after the homesteader settled
on the lands with the intention to acquire them, but before he made
his formal application for them. Summing up the doctrines
previously established, this Court declared in the
Sjoli
case that, from its previous cases, the following propositions were
to be deduced:
"That the railroad company
Page 219 U. S. 407
will not acquire a vested interest in particular lands, within
or without place limits, merely by filing a map of general route
and having the same approved by the Secretary of the Interior,
although, upon the
definite location of its line of road,
and the filing and acceptance of a map thereof in the office of the
Commissioner of the General Land Office, the lands within
primary or place limits, not theretofore reserved, sold,
granted, or otherwise disposed of, and free from preemption or
other claims or rights, become segregated from the public domain,
and no rights in such
place lands will attach in favor of
a settler or occupant who becomes such after definite location;
that no rights to lands within
indemnity limits will
attach in favor of the railroad company until after selections made
by it
with the approval of the Secretary of the Interior; that,
up to the time such approval is given, lands within
indemnity limits,
although embraced by the company's
list of selections, are subject to be disposed of by the
United States, or to be
settled upon and occupied under the
preemption and homestead laws of the United States, and that
the Secretary of the Interior has no authority to withdraw from
sale or settlement lands that are within indemnity limits which
have not been previously selected
with his approval, to
supply deficiencies within the place limits of the company's
road."
The words in the
Sjoli case,
"that up to the time such approval [by the Secretary] is given,
lands within indemnity limits,
although embraced by the
company's list of selections, are subject to be disposed of by
the United States,
or to be settled upon and occupied under the
preemption and homestead laws of the United States"
were cited with approval in the very recent case of
Osborn
v. Froyseth, 216 U. S. 571, and
were really
the basis of the decision in that case.
But the defendants insist that as Jones' occupancy of an
application for the land were made while there was pending in the
Land Office an unapproved list of selections
Page 219 U. S. 408
of lands (including the land in question), which the railroad
company desired to appropriate in order to supply deficiencies in
its primary limits, the subsequent approval by the Secretary of the
company's list -- although such approval did not in fact occur
until 1905 -- overrode and annulled any right previously acquired
by the homesteader Jones, although he applied, paid for, and got
his certificate of purchase
more than six years prior to
the
actual approval by the Secretary of the Interior of
the original or rearranged selection of these lands. We do not
concur in this view. This view cannot be sustained without entirely
disregarding the doctrines announced upon full consideration in
many other cases, prior to the
Sjoli case.
As counsel have made an earnest and extended argument in support
of the contrary view, it may be well to recall a few leading cases
on the subject, and see just what has been adjudged.
In
Ryan v. Central Pacific R. Co., 99 U. S.
382, the Court construed the second section of the Act
of July 25th, 1866 (14 Stat. 239), granting to a company, for the
purpose of aiding in the construction of a railroad and telegraph
line, alternate odd sections of public land, for ten miles on each
side, subject, however, to the conditions that the railroad company
might,
under the direction of the Secretary, select
alternate odd sections within ten miles on each side nearest the
place limits, to supply deficiencies in lands found to have been
granted sold, reserved, occupied by homestead settlers, preempted
or otherwise disposed of. As to lands in the
place limits,
the Court said that the right of the company to the odd sections
became fixed and absolute when the road was located and the maps of
such location were filed. But, said the Court, speaking by Mr.
Justice Swayne,
"with respect to the 'lieu lands,' as they are called, the right
was only a float, and attached to no specific tracts
until the
selection was actually
Page 219 U. S. 409
made in the manner prescribed."
In that case, the selection made by the company was approved by
local land officers and confirmed by the Secretary of the Interior
when there was no claim upon it. The court further said,
in reference to the land actually selected under the direction of
the Secretary, that
"the railroad company had not and
could not have any
claim to it until
specially selected, as it was for
that purpose. It was taken to help satisfy the grant to the extent
that the odd sections originally given failed to meet its
requirements. When so selected, there was no Mexican
or other
claim over it."
In the same case, referring to the deficiency alleged to exist
in the place limits, the Court said:
"It was within the secondary or indemnity territory where that
deficiency was to be supplied. The railroad company had not and
could not have any claim to it until specially selected, as it was
for that purpose."
This language was quoted with approval in
Osborn v.
Froyseth, 216 U. S. 578.
So, in the present case, when Jones entered and purchased, there
was no claim upon these lands that gave the railroad company any
right or
interest whatever in them which could be
asserted in opposition to the entryman, whose rights had
attached before any approval of the selections.
A similar question under another land grant act arose in
Kansas Pacific R. Co. v. Atchison &c. R. Co.,
112 U. S. 414. The
claim in that case was under an Act of Congress of July 1, 1862, 12
Stat. 489, c. 120, which made a grant of lands designated by odd
numbers on each side of the railroad
"which were not sold, reserved, or otherwise disposed of by the
United States, and to which a preemption or homestead claim had not
attached at the time the line was definitely fixed."
This Court, speaking by Mr. Justice Field, said:
"A right to select them [lands] within certain limits, in case
of deficiency within the ten-mile limit, was alone conferred,
not a right to any specific land or lands capable of
identification by any principles of law or
Page 219 U. S. 410
rules of measurement. Neither locality nor quantity is
given, from which such lands could be ascertained."
In
Kansas P. R. Co. v. Dunmeyer, 113 U.
S. 629,
113 U. S.
639-641,
113 U. S. 644,
which involved rights under the Act of July 2, 1864, granting lands
to a railroad company (13 Stat. 365, c. 217), the Court, speaking
by Mr. Justice Miller, said:
"The reasonable purpose of the government undoubtedly is that
which it expressed; namely, while we are giving liberally to the
railroad company, we do not give any lands we have already sold,
or to which, according to our laws, we have permitted
a preemption or homestead right to attach. No right to
such land passes by this grant. No interest in the railroad company
attaches to this land or
is to be founded on this
statute."
This case was followed in
Hastings & D. R. Co. v.
Whitney, 132 U. S. 357,
132 U. S. 366,
Whitney v. Taylor, 158 U. S. 85,
158 U. S. 92-93,
and
Northern Pacific R. Co. v. Sanders, 166 U.
S. 620.
In
Wisconsin C. R. Co. v. Price County, 133 U.
S. 496,
133 U. S. 512,
the Court, speaking by Justice Field, in determining the effect of
the mere filing of the list of selections, said:
"
Until the selections were approved, there were
no
selections in fact, only preliminary proceedings taken for
that purpose, and
the indemnity lands remained unaffected in
their title. Until then, the lands which might be
taken as indemnity were
incapable of identification; the
proposed selections remained the property of the United
States. The government was, indeed, under a promise to give
the company indemnity lands in lieu of what might be lost by the
causes mentioned. But such promise passed no title, and,
until
it was executed, created no legal interest which could be enforced
in the courts."
The
mere filing of lists of selections after the
acceptance of the map of definite location of the railroad line
between Duluth and Ashland
gave the company no such title as
could be enforced by the courts in a suit between private
parties. It is true, the government was under a promise to
give the railroad company lands
Page 219 U. S. 411
in the indemnity limits to supply losses in place limits. But,
as adjudged in the above cases, that promise
passed no
title. See Humbird v. Avery, 195 U.
S. 480,
195 U. S. 507,
in which it was said that
"no title to indemnity lands is vested until a selection be made
by which they are definitely ascertained and the selection made
approved by the Secretary of the Interior. This principle is firmly
established,"
citing
Wisconsin C. R. Co. v. Price and other
cases.
In
United States v. Missouri &c. Railway,
141 U. S. 359,
141 U. S.
374-375, which case related to a railroad land grant, it
was observed that certain
even-numbered sections within
the indemnity limits of the particular railroad concerned could,
under the statute there in question, have been legally selected as
indemnity lands if no rights had attached to them before their
selection, with the
approval of the Secretary of the
Interior. The Court then proceeds:
"We say prior to such selection and approval because, as to
lands which may legally be taken for purposes of indemnity, the
principle is firmly established that title to them does not vest in
the railroad company for the benefit of which they are contingently
granted, but, in the fullest legal sense, remains in the United
States
until they are
actually selected
and
set apart, under the direction of the Secretary of the Interior,
specifically for indemnity purposes,"
citing, among other cases,
Sioux City &c. Railroad Co.
v. Chicago, Milwaukee &c. Railroad, 117 U.
S. 406,
117 U. S. 408,
in which the Court, speaking by Mr. Justice Miller, said:
"No title to indemnity lands was vested until a selection was
made by which they were pointed out and ascertained,
and the
selection made approved by the Secretary of the Interior."
In
New Orleans Pacific Railway Co. v. Parker,
143 U. S. 42,
143 U. S. 57,
the language of the court was:
"As to lands within the indemnity limits, it has always been
held that no title is acquired until the specific parcels have been
selected by the grantee
and approved by the Secretary of the
Interior,"
citing numerous cases.
Page 219 U. S. 412
A full discussion of the rights of parties in respect of lands
in indemnity limits will be found in
Hewitt v. Schultz,
180 U. S. 139,
which was determined after great deliberation in 1901. In that
case, the question arose whether it was competent for the Secretary
of the Interior, after receiving from a railroad company its map of
the definite location, to at once withhold or withdraw from sale or
entry the odd-numbered sections within the
indemnity
limits to which the company, with the assent of the Secretary,
might be permitted to resort in order to supply deficiencies in
place limits. Referring to the opinions of Secretaries Lamar,
Vilas, and Smith, and approving their views, the Court held such
withdrawal to be unauthorized -- indeed,
forbidden -- by
the statute in respect to lands within the indemnity limits,
left open by Congress for homesteaders or preemptioners while
the title remained in the United States. The opinions of those
Secretaries proceeded upon the ground taken in previous decisions
of this Court that a right to select lands within indemnity limits
"was alone conferred, not a right to any specific land or lands
capable of identification by any principle of law or rules of
measurement," but that,
until selection was made,
"the right of selection became a barren right; for, until
selection was made, the title remained in the government, subject
to its disposal at its pleasure."
In the opinion of Secretary Vilas, approved by this Court in the
Hewitt case, it was said:
"It [the act of Congress] gave to any person entitled under the
preemption or homestead laws to take any such lands
the
absolute right to acquire any proper quantity thereof, in
accordance therewith, and this right on executive officer could not
deprive the settler of."
In
Oregon & C. R. Co. v. United States,
189 U. S. 103, the
Court said:
"Having regard to the adjudged cases, it is to be taken as
established that, unless otherwise expressly declared by Congress,
no right of the railroad company
attaches or
can attach to specific lands within indemnity
Page 219 U. S. 413
limits
until there is a selection under the direction, or
with the approval, of the Secretary."
Many other cases to the same effect might be cited.
It is, however, contended that the approval by the Secretary of
the Interior of the selection of these lands to supply deficiencies
in place limits had relation
back to the date when the
railroad
filed its original list of selections, and had
the effect to override any rights acquired by the homesteader
after that list was filed, and
before such
approval. This view, if sustained, would practically destroy
the rights given to homesteaders and preemptioners by the Acts of
Congress, as uniformly interpreted by this Court. Even after the
filing of a list of selection of lands by the beneficiary under the
Act of Congress, Jones was entitled, of right -- prior to the
actual approval by the Secretary of the proposed selections -- to
apply for the lands in dispute, pay for them, get a certificate of
his purchase, and in that way acquire them. That right
attached to the lands
when he entered upon and applied
for them under the homestead laws, and he could not be
arbitrarily prevented from paying the government price and
obtaining a certificate of purchase and perfecting his claim under
those laws.
Now, if it it be true, and all the cases so hold, that,
after the filing of a list of selections by the railroad
company of lands within indemnity limits, such lands nevertheless
remained fully open to entry, occupancy, and purchase by
homesteaders; if, as held in
Hewitt v. Schultz, above
cited, the Secretary of the Interior himself could not, immediately
upon the filing of a list by the railroad company of selections of
indemnity lands, withdraw such lands from entry of sale, and thus
prevent their being entered, occupied, and purchased by
homesteaders,
prior to the Secretary's
actual
approval of
such selections, and if the
mere
filing of the list did not, in itself, in advance of any
approval by the Secretary, give the land grant beneficiary any
right or claim whatever, legal or equitable, in or to any
Page 219 U. S. 414
particular lands specified in the list, then there is no basis
whatever for the contention that the Secretary's approval of the
selection of indemnity lands,
after the homesteader's
claim
attached to them, can be referred back
to the
day on which the railroad company filed its list of lands
within indemnity limits, sought to be taken by it -- an act on his
part which,
all the cases agree, did not give it any
enforceable interest in particular lands. That would be using
the doctrine of relation, which is a mere fiction of law, to defeat
the manifest will of Congress. To state the proposition in another
way: if the lands embraced by the company's list of selections
were, under the statute, fully open,
after the filing of
that list, to
entry, occupancy, and sale, for the benefit of
homesteaders, and that cannot be disputed, how is it possible
upon any sound principle, or consistently with the policy adopted
by the government to encourage settlements, that the right thus
given to the homesteader could be annulled by any action of the
Secretary occurring
after that right accrued and
became attached to the lands in behalf of the homesteader?
A preference cannot be given in this way to the railroad company
over the homesteader if regard be had to the purpose of Congress to
keep the unappropriated public domain effectively, fully, and
completely open to settlers so long as the legal title remained in
the United States, or until some right of the company
actually
attached to the lands settled upon. A different view cannot be
sustained except upon the theory that the mere
application
of a railroad company to take particular lands to supply loses in
place limits had the effect to take those lands out of the public
domain and prevent their occupancy by homesteaders until it suited
the Land Department -- which might postpone its ruling for many
years -- to take up the application and pass upon it, and this,
notwithstanding indemnity lands were fully open to be settled upon
by homesteaders so long as the title remained in the United
States.
Page 219 U. S. 415
At a very early date in the administration of the public lands
this Court, speaking by Mr. Justice Campbell, in
Clements
v. Warner, 24 How. 394,
65 U. S. 397,
said:
"The policy of the federal government in favor of settlers upon
public lands has been liberal. It recognizes their superior equity
to become the purchasers of a limited extent of land comprehending
their improvements, over that of any other person. By the Act of
1841, 5 Stat. 453, c. 16, the preemption privilege in favor of
actual settlers was extended over all the public lands of the
United States that were fitted for agricultural purposes and
prepared for market. Later statutes enlarged the privilege, so as
to embrace lands not subject to sale or entry, and clearly evince
that the actual settler is the most favored of the entire class of
purchasers."
In the recent case of
Ard v. Brandon, 156 U.
S. 537,
156 U. S. 543,
the Court, speaking by Mr. Justice Brewer (after referring to
Shepley v. Cowan, 91 U. S. 330,
91 U. S. 338),
said that
"the law deals tenderly with one who, in good faith, goes upon
the public lands with a view of making a home thereon.
If he
does all that the statute prescribes as the condition of acquiring
rights, the law protects him in those rights, and does not
make their continued existence depend alone upon the question
whether or no he takes an appeal from an adverse decision of the
officers charged with the duty of acting upon his application."
The Court in that case then referred with approval to the
observations above cited from
Clements v. Warner, and
proceeded:
"There can be no question as to the good faith of the defendant.
He went upon the land with the view of making it his home. He has
occupied it ever since. He did all that was in his power in the
first instance to secure the land as his homestead. That he failed
was not his fault; it came through the wrongful action of one of
the officers of the government."
See also Northern Pacific R. Co. v. Amacker,
175 U. S.
567.
In support of the contrary view much reliance is placed
Page 219 U. S. 416
upon the general rule
"that where there are divers acts concurrent to make a
conveyance, estate, or other thing, the original act shall be
preferred, and to this the other acts shall have relation."
Viner's Abridg. tit. Relation, 290; or, as stated by Cruise (5
Real Prop. 510, 511), that
"all the several parts and ceremonies necessary to complete a
conveyance shall be taken together as one act, and operate from the
substantial part by relation."
This rule may well apply where the inquiry relates to rights
asserted in lands expressly granted in the
place limits of
a road; for such grants are
in praesenti. So, perhaps, it
might be applied where the contest under a railroad grant is
between
the government and its grantee, who was authorized
to make selections of lands within indemnity limits to supply loses
in place limits occurring before a specified time. As in
United
States v. Anderson, 194 U. S. 394,
194 U. S. 399,
where the Court said:
"But even though it be conceded,
arguendo, that the
doctrine in question would allow rights to be acquired by third
parties to the injury of the applicant after the making of the
selections, and pending approval thereof by the government, it does
not follow that it controls the controversy here presented. This
results because on this record
the rights of third parties are
not involved, since the controversy concerns only the right of
the United States to
retain, as against its grantees, the
proceeds recovered by it as the result of a trespass upon land
after an application for the selection of such land, and pending
action thereon by the proper officers of the government. Under
these circumstances, the case is one for the application of the
fiction of relation by which, in the interest of justice, a legal
title is held to relate back to the initiatory step for the
acquisition of the land."
But clearly the rule should not be applied in a land grant case
in which the mere filing by the railroad beneficiary at the outset
of a
list of selections of indemnity lands does not affect
the title of the United States, and has not, in and of itself, any
such efficacy as to
Page 219 U. S. 417
become the basis of a right or interest
in the particular
lands mentioned in such list, especially when, as here, those
lands, being within indemnity limits, remain open, according to all
the authorities, to entry, occupancy, and even purchase by
homesteaders to the same extent they would have been had no list of
selections ever been filed. In both a practical and legal sense,
the
filing of such list was nothing more
than the
expression of a desire or a request that the Secretary of the
Interior permit the company to have certain indemnity lands to
supply losses in the place limits. The Secretary might unduly
delay his decision, might never act on such request, and thereby,
for an unreasonable time, delay settlement on the public lands by
those who seek homes on them, and are always dealt tenderly with by
the United States. Before such request was acted on in this case,
rights of the homesteader intervened and became lawfully
attached to the lands. If the homesteader acquired a
right in these indemnity lands by entry, occupancy, and
purchase under the homestead laws, as he undoubtedly did, it is
inconceivable that such right could, under any proper application
of the doctrine of relation, be affected or overthrown by referring
to an antecedent act performed by a different person, but which,
at the time it was performed, did not give any right or
interest whatever in the lands, and interposed no legal
obstacle that would prevent homesteaders from entering, occupying,
or purchasing them. In support of the railroad company's position,
several cases are cited, to some of which we will refer.
The first of these cases, in point of time, is
Campbell
v. Doe, 13 How. 244. But that case has no bearing
on the precise point under consideration. That was the case of a
contest under an act of Congress giving school lands to townships,
the selection to be made by the Secretary of the Treasury. One
Hamilton made, as he supposed, a selection of certain lands under
that act, in conformity with regulations prescribed by the
Secretary. But his
Page 219 U. S. 418
selection was made while the lands were legally reserved from
sale, and he had prior notice of that fact. The land was
consequently
not then open to selection, except pursuant
to the act of Congress and the regulations of the Secretary. After
alluding to some minor views advanced in the case, this Court
said:
"But in whatever light this may be viewed, we are clear that the
Secretary of the Treasury had the power, under the act of Congress,
to make the selection, and his decision, declaring the entry of
Hamilton invalid, was, under the circumstances, conclusive."
Referring to the argument that what was done by Hamilton was
with approval of the Land Office, through whom the Secretary
executed the power conferred upon him, the Court said:
"Yet, where the Secretary has interposed and decided the matter,
as in the case under consideration, his decision must be considered
as the only one under the law."
The opinion in
Campbell v. Doe closes with the
suggestion that,
"under the circumstances, no right became vested in him
[Hamilton] by reason of his entry of the land, which could be
regarded or enforced by
a court of equity."
The court did not refer, although counsel did, to the rule about
the relation of time as between two acts, each of which is, in
itself, efficacious to give
some substantial right, and
was performed by different persons at different times. It was
adjudged in that case -- and it was the only point that need have
been determined -- that the court could not go behind the decision
of the Secretary of the Treasury, and that in no view of the case
presented could the relief asked be granted by
a court of
equity, whereas, in the case now before us, it must be
admitted, in view of the act of Congress and the cases determining
its scope and effect, that, when Jones occupied and entered, as
well as when he purchased the land in dispute, it
was part of
the public domain, subject to the control of the United
States, and
open to homesteaders and preemptioners under
the
Page 219 U. S. 419
laws of the United States, although there may have been at the
time, on file, a list of unapproved selections by the railroad
company.
Another case much relied on in this connection by the appellants
is
Shepley v. Cowan, 91 U. S. 330,
91 U. S. 337.
That case arose under the Act of Congress of September 4, 1841,
granting lands to certain states, including Missouri, for purposes
of internal improvement, saving such as were or might be reserved
from sale by any act of Congress or the proclamation of the
President. The plaintiffs claimed title under a patent issued to
one McPherson by the state, and purporting to be for lands
selected by the state under the above Act of 1841. The
defendants claimed title under a patent issued by the United States
to the heirs of one Chartrand, based on an alleged preemption right
acquired by a settlement of their ancestor. McPherson paid for the
lands in dispute, and got a certificate showing such fact. The
selections authorized to be made were subject to the approval of
the Secretary of the Treasury. That officer gave such approval.
This Court, referring, however, to the facts and to certain acts of
Congress, held that the state
could not legally select the
lands in dispute as part of those granted by Act of 1841, because
they were "
legally reserved from sale," consequently
nothing could be claimed under the selection of McPherson. This
view was sufficient to dispose of that case. Nevertheless, the
Court proceeds to consider another view which was held to be fatal
to the claim made under the patent issued to McPherson. "If," the
Court said,
"the land outside of the survey as retraced by Brown in 1834
could be deemed public land, open to selection by the State of
Missouri from the time the survey was returned to the land office
in St. Louis, it was equally open from that date to settlement, and
consequent preemption by settlers. The same limitation which was
imposed by law upon settlement was imposed by law upon the
selection of the state. In either
Page 219 U. S. 420
case, the land must have been surveyed, and thus offered for
sale or settlement. The party who takes the initiatory step in such
cases, if followed up to patent, is deemed to have acquired the
better right as against others to the premises. The patent which is
afterwards issued relates back to the date of the initiatory act,
and cuts off all intervening claimants. Thus, the patent upon a
state selection takes effect as of the time when the selection is
made and reported to the Land Office, and the patent upon a
preemption settlement takes effect from the time of the settlement,
as disclosed in the declaratory statement or proofs of the settler
to the register of the local land office. The action of the state
and of the settler must, of course, in some way be brought
officially to the notice of the officers of the government having
in their custody the records and other evidences of title to the
property of the United States before their respective claims to
priority of right can be recognized. But it was not intended by the
eighth section of the Act of 1841, in authorizing the state to make
selections of land, to interfere with the operation of the other
provisions of that act, regulating the system of settlement and
preemption. The two modes of acquiring title to land from the
United States were not in conflict with each other.
Both were
to have full operation, that one controlling in a particular
case under which the first initiatory step was had. . . . But
whilst, according to these decisions, no vested right as against
the United States is acquired until all the prerequisites for the
acquisition of the title have been complied with, parties may,
as against each other, acquire a right to be preferred in
the purchase or other acquisition of the land, when the United
States have determined to sell or donate the property. In all such
cases, the first in time in the commencement of proceedings for the
acquisition of the title, when the same are regularly followed up,
is deemed to be the first in right. So in this case, Chartrand, the
ancestor, by his
Page 219 U. S. 421
previous settlement in 1835 upon the premises in controversy and
residence with his family, and application to prove his settlement
and enter the land, obtained a better right to the premises, under
the law then existing than that acquired by McPherson by his
subsequent state selection in 1849. His right, thus initiated,
could not be prejudiced by the refusal of the local officers to
receive his proofs upon the declaration that the land was then
reserved, if in point of fact the reservation had then ceased."
It thus appears that the general rule determining the rights of
parties under two different acts, performed at different times, was
referred to and applied in a case where
each act was of
such a
substantial character as,
in itself, to give a
right, enforceable by law. In the case referred to, the
selection by the state was wholly void, and could not be made the
basis of any right acquired in opposition to the rights of the
settler, although it was prior to the act performed by the settler.
The "initiatory step" referred to in
Shepley v. Cowan was
necessarily a step which,
in itself, gave
some
interest in the particular land involved. In the present case,
the subsequent act of the homesteader was confessedly in accordance
with law, gave him a substantial interest in the land, and was not
defeated by reason of the prior act of the railroad company in
merely filing its list of selections. We say this for the reason
that such filing, according to the adjudged cases,
could not be
made the basis of any right or interest in these particular
lands. Within the true meaning of the rule as to the relation
of time between two acts of a substantial character, performed at
different times, the initiatory step was that taken by Jones when
he entered and purchased; for there was no previous step which had,
in or of itself, any efficacy whatever to confer a right in the
lands or prevent him from acquiring them.
Substantially the same comments may be made about the case of
McCreery v. Haskell, 119 U. S. 327,
119 U. S. 330,
which
Page 219 U. S. 422
is also much relied on by the appellants. The dispute in that
case was about certain public lands which, from the date of the
grants, were
equally open to selection by the state and by
homesteaders and preemptioners under an act of Congress relating to
land titles in California. By its selection, the state could
acquire by the act of Congress a right or interest in the lands; by
settlement, the preemptioner could also acquire a right in them.
That being the case, this Court said:
"The land lying outside of this survey thus became, in the
language of the act, subject to the general land laws of the United
States. It was open to settlement with other public lands, and
consequent preemption by settlers, and to selection by the state in
lieu of the school sections within the confirmed Mexican grant. . .
. As between the settler and the state, the party which first
commenced the proceedings required to obtain the title, if followed
up to the final act of the government for its transfer, is
considered as being entitled to the property. In such cases, the
rule prevails that the first in time is the first in right."
In the present case, the railroad company, as we have seen,
acquired no interest whatever by merely requesting that it have
certain indemnity lands to supply losses in place limits, whereas,
in the California case, the prior act to which the subsequent act
was referred -- the selection by the state -- would have given to
the state a substantial interest in the lands, provided the lands
had been open to selection by it at all. Proceeding on the basis
that the selection was valid, the state court held that such
selection was a prior, substantial, effective act to which the
subsequent act may be referred under the rule stated in former
cases as to relation of time.
Further citation of authorities would seem to be unnecessary. In
our opinion, the filing by the railroad company of a list of lands
within indemnity limits, which it desired to obtain in order to
supply deficiencies in place
Page 219 U. S. 423
limits, gave the company no interest in any particular lands,
and Jones had the right, under the homestead laws of the United
States,
after that list was on file, and before it was
approved by the Secretary, to enter upon and occupy the
indemnity lands so specified, with the intention to acquire them
under the laws of the United States, and by such entry and
occupancy, with such intention, acquire a substantial interest or
right in them which could not be affected or impaired by the
subsequent approval of such list by the Secretary of the Interior;
that the mere filing of the list did not and could not, in itself,
be made the basis for any claim that would be inconsistent with
Jones' legal rights as resulting from his entry and occupancy with
the intention stated; consequently, the appellee, claiming under
Jones, had the better right. To make the approval by the Secretary
of the Interior relate back to a date when the railroad company
confessedly did not have and could not have acquired any, even an
inchoate, interest in these lands, and thus cut off and destroy the
intervening rights acquired by the homesteader before the
Secretary's approval, would be to make a new and dangerous
application of the doctrine of relation discussed at the bar. A
subsequent act cannot properly be used to give legal effect to a
prior act, as of a time when such prior act was performed, if the
prior act had no efficacy whatever to confer an interest in the
lands to which the two acts related. No adjudged case really holds
to the contrary. These views do no injury to the railroad company,
for if the homesteader is adjudged to have the better right, the
company can, under the direction of the Secretary, go into the
whole body of indemnity lands and pick out other lands to supply
any loss in place limits; whereas, if the homesteader loses the
land he has settled upon and occupied, he will lose the benefit of
his improvements, and must abandon the place he had fixed upon as
his home.
One other matter should be referred to. Across the
Page 219 U. S. 424
certificate of purchase issued to Jones these words were
written:
"This receipt is issued under the order of the Secretary of the
Interior, dated February 28th, 1898, subject to any claim the
Northern Pacific Railroad Company may have to the lands herein
described."
Of course, the Secretary had no authority to do this, and his
act had no legal efficacy. If the railroad company had rights
superior to those acquired by Jones, those rights could have been
protected despite the certificate issued to Jones. If it had none,
then the indorsement across the face of the certificate is to be
regarded simply as a warning to Jones that he might have in the
future a contest with the railroad company. The indorsement that
Jones' purchase was subject to any claim the company "may have"
neither added nor took away rights that belonged at the time to
either the company or to Jones.
In our opinion the judgment of the circuit court of appeals
should be affirmed.