Central Pacific Railway Co. v. Lane

46 App. D.C. 374, 1917 U.S. App. LEXIS 2559
Procedural entryThis page is a short order in Central Pacific Railway Co. v. Lane. Read the opinion of the Court — 46 App. D.C. 372
Court of Appeals for the D.C. Circuit·Decided April 23, 1917·No. No. 3012·Published

Opinion

Mr. Justice Van Orsdel

delivered the opinion'of the Court:

The right of selection conferred upon the railroad company is a contractual right created by the act of Congress between the United States and the company. Considering the nature of the statutory contract thus created, the court, in the case of Burke v. Southern P. R. Co. 234 U. S. 669, 680, 58 L. ed. 1527, 1544, 31 Sup. Ct. Rep. 907, speaking through Mr. Justice Van Devanter, said: “Instead of giving a gratuitous reward for something already done, the act made a proposal to the company to the effect that if the latter would locate, construct, and put into operation a designated line of railroad, patents would be issued to the company confirming in it the right and title to the public lands falling within the descriptive terms of the grant. The purpose was to bring about the construction of the road, with the resulting advantages to the government and the public, [383]*383and. to that end provision was made for compensating the company, if it should do the work, by patenting to it the lands indicated. The company was at liberty to accept or reject the proposal. It accepted in the mode contemplated by the act, and thereby the parties were brought into such contractual relations that the terms of the proposal became obligatory on both. Menotti v. Dillon, 167 U. S. 703, 721, 42 L. ed. 333, 339, 17 Sup. Ct. Rep. 945. And when, by constructing the road and putting it in operation, the company performed its part of the contract, it became entitled to performance by the government. In other words, it earned the right to the lands described.”

It will be observed that the act of Congress under which the land in question was withdrawn as a power site was enacted and withdrawal made after selection by plaintiff company but while the list was awaiting approval by the Secretary of the Interior. The principal question presented, therefore, is, When does a vested interest in the railroad company attach to indemnity lands,—at the date of selection or at the date of approval ? This question has been before the Supreme Court of the United States in many cases. Ryan v. Central P. R. Co. 99 U. S. 382, 25 L. ed. 305; Grinnell v. Chicago, R. I. & P. R. Co. 103 U. S. 739, 26 L. ed. 456; Kansas P. R. Co. v. Atchison, T. & S. F. R. Co. 112 U. S. 414, 28 L. ed. 794, 5 Sup. Ct Rep. 208; St. Paul & S. C. R. Co. v. Winona & St. P. R. Co. 112 U. S. 720, 28 L. ed. 872, 5 Sup. Ct. Rep. 334; Barney v. Winona & St. P. R. Co. 117 U. S. 228, 29 L. ed. 858, 6 Sup. Ct. Rep. 654; Sioux City & St. P. R. Co. v. Chicago, M. & St. P. R. Co. R. Co. 117 U. S. 406, 29 L. ed. 928, 6 Sup. Ct. Rep. 790; Wisconsin C. R. Co. v. Price County, 133 U. S. 496, 33 L. ed. 687, 10 Sup. Ct. Rep. 341; United States v. Missouri, K. & T. R. Co. 141 U. S. 358, 35 L. ed. 766, 12 Sup. Ct. Rep. 13 ; New Orleans P. R. Co. v. Parker, 143 U. S. 42, 36 L. ed. 66, 12 Sup. Ct. Rep. 364; Hewitt v. Schultz, 180 U. S. 139, 45 L. ed. 463, 21 Sup. Ct. Rep. 309; Clark v. Herington, 186 U. S. 206, 46 L. ed. 1128, 22 Sup. Ct. Rep. 872; Oregon & C. R. Co. v. United States, 189 U. S. 103, 47 L. ed. 726, 23 Sup. Ct. Rep. 615.

An examination of the above cases discloses considerable un[384]*384certainty as to the exact date when the right of a railroad company attaches under an indemnity selection. In referring to the date, the court, in some instances, uses the term “selection;” in others, “selection under direction of the Secretary of the Interior,” and in others, “selection with the approval of the Secretary of the Interior.” A careful analysis of these decisions, however, discloses an agreement of opinion that the controlling date from which the prior rights of contesting claimants attach is the date of selection. Of course, that these selections should be made “under the direction” or “with the approval” of the Secretary is important for the protection of the government. After a selection list has been filed, it remains for the Secretary, in his general supervisory capacity over the disposal of the public lands, to investigate and determine whether the lands are subject to selection under the act, and whether the company is entitled to make a selection. But this investigation and approval have nothing to do with fixing the date when the railroad company’s interest vests, any more than in the case of a homestead entryman whose interest vests from the date of making final proof and receiving his final certificate from the officials of the local land office. The duty still remains in the Secretary of examining into the question of whether or not the homesteader lias complied in good faith with the requirements of the law; but when it is found that he has, nothing remains for the Secretary but the ministerial act of issuing a patent, which evidence of title relates back to the date of the final certificate.

Indeed, this power of direction or approval by the Secretary of the Interior in the railroad land grants would have existed without any statement to that effect in the acts of Congress. “It may be laid down as a general rule that, in the absence of some specific provision to the contrary in respect to any particular grant of public land, its administration falls wholly and absolutely within the jurisdiction of the Commissioner of the General Land Office, under the supervision of the Secretary of the Interior. It is not necessary that with each grant there shall go a direction that its administration shall be under the authority of the Land Department. It falls there unless there°is express [385]*385direction to the contrary.” Catholic Bishop v. Gibbon, 158 U. S. 155, 167, 39 L. ed. 931, 936, 15 Sup. Ct. Rep. 779.

The learned justice below turned this case upon the decision in Sjoli v. Dreschelj 199 U. S. 564, 50 L. ed. 312, 26 Sup. Ct. Rep. 154. In that case the court, speaking through Mr.

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