Farmers' Loan & Trust Co. v. Chicago, P. &. S. Ry. Co.

39 F. 143, 1889 U.S. App. LEXIS 2261
CourtU.S. Circuit Court for the District of Western Wisconsin
DecidedJuly 10, 1889
StatusPublished
Cited by4 cases

This text of 39 F. 143 (Farmers' Loan & Trust Co. v. Chicago, P. &. S. Ry. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Loan & Trust Co. v. Chicago, P. &. S. Ry. Co., 39 F. 143, 1889 U.S. App. LEXIS 2261 (circtwdwi 1889).

Opinion

Mr. Justice Harlan,

after stating the facts in the foregoing language, delivered the opinion of the court.

It will he seen from the above statement that the grant in the eighth section of the act of the Wisconsin legislature of March 4, 1874, embraced so much of the lands granted by the acts of congress of June 3, 1856, and May 5, 1864, as were applicable to the construction of the part of the road of the Portgage Company “lying between the point of intersection of thb branches of said grants, as fixed by the surveys and maps on file in the land-office at Washington, and the west end of Lake Superior,” a distance of about 65 miles. That is the road to which this suit relates. According to the most liberal construction of the act of March 4, 1874, and that of March 16, 1878, the time limited for the completion of that road expired, at least, in May, 1882, eight years after the railway company filed its bond, as required by the ninth section of the act of 1874. It is conceded that the Portage Company never completed its land-grant division; nor did it ever construct any part of the road from Genoa northerly, as required by the act of 1874. The bill alleges that the Portage Company broke down in the monetary panic of 1873-74, under a large load of debts and embarrassments, and lay dormant until late in the year 1880, when its stockholders employed one Gaylord to find parties able and disposed to revive it and put it on the way of success; that the work of its rehabilitation had so far progressed that in the fall of 1881, and early"in 1882, the company borrowed large sums of money, and expended them in pushing the construction of the land-grant division in which it was interested; that, on the 19th of January, 1882, more than one-half of the substructure of that division had been completed; that at the time last named more than. 1,600 men were at work upon it, and its construction, in ample time to lay the rails and complete the division before May-5, 1882, was assured. It is further alleged that the Portage Company would have completed its land-graht road but for the following causes: (1) The passage by the state legislature of the act of February 16, 1882, revoking and annulling the grant contained in the act of March 4, 1874, which destroyed the credit of the company while actively engaged, under many disadvantages, in the construction of its road. (2).That the Omaha Company, its agents and emissaries, interfered with and defeated the efforts of the Portage Company to complete its road within the required time.

Although the act of June 3, 1856, provided that if the.roads therein named were not completed within 10 years no further sales should [149]*149be made, and the lands unsold should revert to the United States, and although the only extension of the period lor such completion ever made by congress was for five years from and after the passage of the act of May 5, 1864, no question is made in the present suit as to the title of these lands being in the state, at the date of the passage of the act of March 4, 1874, for all the purposes indicated in the acts of congress. This, perhaps, is because of the decision in Schulenbeng v. Harriman, 21 Wall. 44, in which the court had occasion to interpret the acts of June 8, 1856, and May 5, 1864, holding that the requirement that the lands remaining unsold after a specified time shall revert to the United States, if the road he not then completed, to be nothing more than a provision that the grant shall be void if a condition subsequent be not performed; that, when a grant upon condition subsequent proceeds from the government, no individual can assail the title upon the ground that the grantee has failed to perforin such condition; and that the United States having taken no action to enforce the forfeiture of the estate granted, “the title remained in the state as completely as it existed on the day when the title by location of the route of the railroad acquired precision, and became attached to the adjoining alternate sections.” See, also, McMicken v. U. S., 97 U. S. 204, 217; Grinnell v. Railroad Co., 103 U. S. 739, 744; Van Wyck v. Knevals, 106 U. S. 360, 368, 1 Sup. Ct. Rep. 336.; Railroad Co. v. McGee, 115 U. S. 469, 473, 6 Sup. Ct. Rep. 123. These authorities also indicate the mode in which the right to take advaniage of the non-performance of a condition subsequent, annexed to a public grant, may be exercised, namely, “by judicial proceedings authorized by law, the equivalent of an inquest of office at common law, finding the fact of forfeiture, or adjudging the restoration of the estate on that ground,” or by “legislative assertion of ownership of the property for breach of the condition, such as an act directing the possession and appropriation of the property, or that it be offered for sale or settlement.”

The questions to which the attention of the court has been principally directed relate, more or loss, to the act of February 10, 1882, revoking and annulling the grant to the Portgago Company. The main contention of that company is that the grant of 1874, the acceptance thereof, and the bond given for the performance of the condition as to the construction of the land-grant division, constituted a contract, entitling it to earn the lands by completing the 65 miles of railway, to the west end of Lake Superior, by May 5, 1882, without opposition or hindrance on the part of the state; consequently, it is argued, the forfeiture declared by the act of 1882 impaired the obligation of that contract, and was unconstitutional and void.

On the part of the Omaha Company it is contended that one of the conditions of the grant to the Portage Company was that it would construct and put in operation its road from Genoa northerly at the rate of 20 miles each year; that no part of that road had been constructed when the act of 1882 was passed; and that by reason of such default the state had the right to withdraw the grant from the latter company without regard to what had or had not been done towards the construe[150]*150tion of its land-grant division. To this the plaintiff replies that the obligation which the Portage Company assumed with reference to its road from Genoa northerly was not made, nor intended to be made, a condition of its right to earn the lands applicable to that part of the road between the point of intersection of the Bayfield branch with the branch extending to the west end of Lake Superior, and that, consistently with the acts of congress, the state could not make the right to earn these lands depend upon the construction of any part of its line except that which congress intended to aid by the grant.

It is also contended by the Omaha Company that the grant to the Portage Company was beyond the power of the state to make; that the mode in which the state disposed of the lands to the latter company was inconsistent with that prescribed in the act of congress,—that is, that the state had no authority, in advance of the completion of the road, to dispose of the land, by sale, conveyance, or otherwise, beyond 120 sections, or to make any additional contract in respect to their disposition.

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Bluebook (online)
39 F. 143, 1889 U.S. App. LEXIS 2261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-loan-trust-co-v-chicago-p-s-ry-co-circtwdwi-1889.