Dubuque Southwestern R'y Co. v. Cedar Rapids & Missouri River R'y Co.

66 Iowa 366
CourtSupreme Court of Iowa
DecidedJune 6, 1885
StatusPublished

This text of 66 Iowa 366 (Dubuque Southwestern R'y Co. v. Cedar Rapids & Missouri River R'y Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dubuque Southwestern R'y Co. v. Cedar Rapids & Missouri River R'y Co., 66 Iowa 366 (iowa 1885).

Opinion

Reed, J.

By the act of congress approved May 15, 1856, there was granted to this state, in aid of the construction of [371]*371a railroad from Lyons City to a point of intersection with the Iowa Central Air Line Eailroad near Maquoketa, thence on said line, as near as practicable to the forty-second parallel, across the state to the Missouri river, every alternate section of land designated by odd numbers, for six sections in width, on each side of said road. The act also provided that in case it should appear, after the line of said road was definitely fixed, that the United States had sold any portion of the land so granted, an amount equal thereto might be selected by the state in lieu thereof in alternate sections within fifteen miles of the line of the road. By an act approved May 14, 1856, the state accepted the grant, and conferred the same on the Iowa Central Air Line Eailroad Company, a corporation having the power to build said line of railroad. In 1859 this company became insolvent before any portion of the road was completed. It transferred its franchise and rights to another company, the Dubuque, Marion & Western Eailroad Company, and that, company transferred the same to the plaintiff, the Dubuque Southwestern Eailroad Company.

The act of the legislature granting the lands to the Iowa Central Air Line Company reserved to the state the right to resume the rights thereby conferred, upon the failure of that company to complete and equip at least seventy-five miles of its road within three years from the date of the grant; and in 1860 the legislature passed an act resuming the grant, because of' the failure of the company to build and equip that amount of road within the time specified. It had then been ascertained that, owing to the amount of lands within the limits of the grant which had been disposed of by the United States before the grant was made, the state would not acquire, even within the fifteen-mile limit, the amount of lands intended to be conferred upon it by_ the grant, and the legislature in the same year granted to the defendant all the lands and rights acquired by it under the grant, on condition that it would build a road from some convenient point on the Cedar river, near the forty-second parallel, westward to the Missouri river. [372]*372The act contains a provision that defendant should not commence to build its road at any point further west from the Mississippi river than the town of Marion, in Linn county, and that the governor should not certify to defendant any of the lands transferred to it by the grant until that portion of the road between Marion and Cedar Rapids, together with so much more of said road as to make in the aggregate at least twenty miles, should be completed and equipped.

Defendant built its road from Cedar Rapids to the Missouri river, a distance of 271 miles, within the time prescribed in the grant, but has never built the portion of the road between Marion and Cedar Rapids; the last-named point being five and thirty-four one-hundredtlis miles further west than Marion. Anamosa is east of Marion; it is also some distance east of the Cedar river. Marion, Anamosa and Cedar Rapids are all on the line of the Iowa Central Air Line Railroad, as the same was located. The plaintiff, the Dubuque & Southwestern Company, built a road on this line from Anamosa through Marion to Cedar Rapids. The governor of the state, as the work of constructing defendant’s road progressed, certified the fact of the completion of the various sections of twenty miles thereof; and, when it was completed to the Missouri river, he gáve a certificate of the length of the road, and that it was constructed in accordance with the requirements of the grant. Certificates covering 100 miles of the road had been given at the time the contract, for the violation of which this suit is brought, was entered into. Defendant has received all the lands wliich were certified to the state under the grant. This amount is not in excess of what it would be entitled to for the number of miles of road constructed by it, estimated on the basis of six sections for each mile of road, which is the basis of the congressional grant. The Iowa Central Air Line Company, before it became insolvent, issued certain construction bonds; and, to secure the same, gave a trust deed covering its franchise and property, including its rights under the grant by the state to it. Platt [373]*373Smith, as attorney for the holders of these bonds, had obtained judgment foreclosing this trust deed. He was also attorney for the Dubuque & Southwestern Company. The claim which he was asserting, and which was intended to be settled by. the contract in suit, was that the plaintiffs in the foreclosure suit acquired an interest in the lands under the trust deed and judgment of foreclosure, and that the Dubuque & Southwestern Company acquired an interest in the lands by virtue of the assignment to it of the rights and franchise of the Air Line Company, and the fact that it had constructed a portion of the railroad in aid of which the grant was originally made.

In the case of Smith v. Cedar Rapids & M. R. R. Co., 43 Iowa, 239, which was an action between these same parties for the enforcement of the undertaking of defendant in the contract to convey the 46,000 acres of land, this court put a construction upon the contract; and it was held in that case that defendant’s undertaking was to convey the lands mentioned in the contract only in case the parties should be able to draw lands to the amount of 46,000 acres on account of the construction of the road betweeen Anamosa and Cedar Eapids, and, as this condition precedent had not occurred, plaintiffs were not entitled to judgment for the specific performance of the agreement to make the conveyance. In this action the plaintiffs seek to recover damages on account of the alleged refusal of defendant to unite -with them in an application to the legislature for the enactment of such legislation as would have enabled the parties to draw and hold the amount of land specified in the contract, on account of the construction of the road from Anamosa to Cedar Eapids; the claim being that the provision of the grant from the state to defendant, which required it to commence the construction of its road at Marion, and which forbade the governor to certify to it any portion of the land until it had constructed and equipped a section of twenty miles of road, which should include the road between Marion and Cedar Eapids, was a setting [374]*374apart of a specific amount of land for that particular section; and, as defendant never built the road between those points, it was not entitled to the lands so set apart for that section; and that these lands remained within the control of the state at the time they -requested defendant to unite with them in asking the legislature to enact such legislation, and that the legislature could then have granted them to the parties on account of the construction of the road from Anamosa to Cedar Rapids, and would have done so if defendant had united in requesting it to make that application of them.

This claim, we think, cannot be maintained. The request of plaintiff to defendant to unite with them in asking the legislature to enact the proposed legislation was made in March, 1878.

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Related

Smith v. C. R. & M. R. R.
43 Iowa 239 (Supreme Court of Iowa, 1876)

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Bluebook (online)
66 Iowa 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dubuque-southwestern-ry-co-v-cedar-rapids-missouri-river-ry-co-iowa-1885.