McKinney v. Big Horn Basin Development Co.

167 F. 770, 93 C.C.A. 258, 1909 U.S. App. LEXIS 4379
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 11, 1909
StatusPublished
Cited by4 cases

This text of 167 F. 770 (McKinney v. Big Horn Basin Development Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinney v. Big Horn Basin Development Co., 167 F. 770, 93 C.C.A. 258, 1909 U.S. App. LEXIS 4379 (8th Cir. 1909).

Opinion

PHILIPS, District Judge

(after staling the facts as above). We pass by the suggestion that it might be inferred from the face of tlie bill that practically all the things done by the appellant were under his written contract with Wiley and Rutan prior to the acceptance by the board of the proposed contract from the appellee; that no written contract, in fact, was ever entered into between the appellant and the appellee, so that tlie liability of the latter, if any, depends solely upon acts in pais, from which an adoption of the contract sued on is to be inferred; as, in our judgment, the case is disposable upon other grounds quite incontestable.

The underlying purpose of the acts of Congress in ceding the vast domain of desert lands within the territorial limits of the given state was, through the agency of the state government more immediately concerned, to speedily have them reclaimed from an unproductive waste by means of artificial irrigation, whereby they might become susceptible of human suslentaliou, bringing population and wealth to the state. But Congress did not make the grant to the state of such lands in mass to take effect in prasenti. The state was first to furnish satisfactory evidence to the Secretary of the Interior that the lands are irrigated, reclaimed, and occupied by actual settlers before any patent therefor should issue. It also imposed the condition that the state should not accord to any one person over 1(50 acres of said lands. It limited the price of the land to the settler at 50 cents per acre. And to interdict the pernicious, evil of speculation, even by the slate itself, it provided that any surplus derived from such sales, in excess of the cost of their reclamation, should be held as a trust fund for and be applied to the reclamation of oilier desert lands in such State.

The state statute intrusted the selection, management, and disposal of the lauds to a Board of Commissioners. While contemplating that persons, associations, and corporations might construct ditches and canals for irrigating the lauds, they were, on prescribed conditions, to obtain license from the board. As a condition precedent thereto, they should file with the board maps of the lauds to be reclaimed, and the [776]*776proposal should state the things prescribed by section 940 of the statute (Rev. St. 1899), among which is the estimated cost of the works, the price and terms per acre at which the perpetual water rights were to be sold to settlers on the lands to be reclaimed. As evidencing the stale’s policy and control over the whole matter, and the reservation of the right to protect the settlers induced to go upon the land, section 946 prescribed that it should be the duty of the board to enter into a contract with the party submitting the proposal, containing complete specifications of the location, dimensions, character, and estimated cost of the proposed ditch or irrigation work, and “the price and terms per acre at which such works and perpetual water rights shall be sold to settlers; the price and terms upon which the State will dispose of the lands to settlerswith the proviso that such price and terms for irrigation works, water rights, and lands to be disposed of by the state to settlers shall, in all cases, be reasonable and just.

From all of which it is manifest that the scheme and policy of the statute was and is that the person or company contracting to furnish the water supply should make contract with the settler subject to the supervision and control of the Board of Commissioners, charged with the enforcement of the proviso that the water rates to the settler shall be reasonable. Whereas, the contract in question, which the appellant by this suit seeks to have specifically enforced, in its scope and essence, is an attempted evasion of the obligation of the contracting company to the state.

Section 950 of the statute requires that immediately upon the withdrawal of the land for the use of the state, and the inauguration of work by the contractor, the State Board shall give notice by publication, in the manner prescribed, “that said land is open for settlement, the price for which said land will be sold to settlers by the state, and the contract price at which settlers can purchase perpetiral water rights.” Evidently the statute contemplates that the board would obtain. the necessary information of the contract price at which the settlers can purchase perpetual water rights from the contractor, and not otherwise. The bill of complaint alleges that immediately after the making of the contract between the appellant and Wiley and Rutan the appellee “adopted the same, * * * and directed the complainant to set to work at once to procure settlers.” As this was nearly two months' prior to the appellee entering into any contract with the board authorizing it to deal with the settlers, and as the bill alleges “that all of said things were done (i. e., the procuring of settlers and contracts) during the month of August, 1904,” it is manifest that the appellant made contracts with settlers before the required publication of notice could have been lawfully made. And unless the contract in question was not only adopted by the appellee, but the written agreement in its terms was presented to the board for its acceptance and approval, as that of the contractor, no notice of its special terms could have been given by the board in conformity to the statute. And the bill does not in terms aver that this contract was submitted or made known to or accepted by the board, or that notice thereof was ever published by it; thus, clearly enough, again showing that in making this contract and [777]*777acting thereunder the appellant was proceeding in utter disregard of the prescriptions of the statute. By the contract in question the settlers were to be placed at his will. The bill avers on its face that the complainant “by means of the premises was and is in equity entitled to the exclusive privilege and authority of making contraéis between the defendant and such settlers upon said lauds in regard to the furnishing of water for said lands.” He was to fix the price arbitrarily at which the settler could secure his complement of land with the water privileges, within the limit of $30 per acre. The contract arbitrarily fixed the cost to settlers at not Lss than $19 per acre, and complainant’s compensation should come out of the excess over the $19 per acre; whereby, in any event, the appellee should receive $19 per acre, leaving the complainant $11 per acre for his services, if he could wring it from the settler. So the bill asserts a claim against the appellee for $11 per acre for the lands claimed to have been put under contract by him, amounting to the sum of $550,000, and damages for the breach of the contract at the rate of $6 per acre for each acre of land so segregated over the 50.000 acres. Can it be entertained for a moment that, had the State Board been advised, at the time the application for the contract with it was made, the appellee had such an arrangement with the complainant as disclosed in the bill, the company’s application for a contract would have been accepted? The answer must be no, for the reason that the contract was in contravention of the declared legislative policy, in that it disregarded the obligation of the appellee to sell at not exceeding the reasonable cost, and also because it contemplated placing the settler at the will of the complainant as to the cost to be exacted from him.

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Bluebook (online)
167 F. 770, 93 C.C.A. 258, 1909 U.S. App. LEXIS 4379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckinney-v-big-horn-basin-development-co-ca8-1909.