Northern Pac. R. v. Cannon

46 F. 224, 1891 U.S. App. LEXIS 1247
CourtU.S. Circuit Court for the District of Montana
DecidedApril 6, 1891
StatusPublished
Cited by1 cases

This text of 46 F. 224 (Northern Pac. R. v. Cannon) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Pac. R. v. Cannon, 46 F. 224, 1891 U.S. App. LEXIS 1247 (circtdmt 1891).

Opinion

Knowles, J.

The plaintiff sets forth in its bill of complaint filed herein that it received a grant from the United States by virtue of an act dated July 2,1864, on the line of its railroad to certain lands. There is set forth therein all the acts required of plaintiff in order to designate and vest in plaintiff the title to the lands granted by said act; that the land hereinafter named was, at the date of said grant, and at the date it fixed the general route of its railroad, public land belonging to the United States, free from any claims or rights whatever, and agricultural land; that the land herein described was within the limits of plaintiff’s grant, upon an odd section, to-wit, the S. £ of the S. E. ⅛, and the S. E. i of the S. W. I, of section 29, in township 10 N., range 8 W., of the principal meridian of Montana; that about the 9th day of February, 1880, the said Catherine B. Cannon made application to patent said premises as mineral lands, and, with the view of defrauding plaintiff, the said defendants C. W. Cannon and Catherine B. Cannon falsely and fraudulently represented to the officers of the United States land-office that the same was mineral land, and introduced false testimony and affidavits to support said application in said office; that on or about the 18th day of October, 1881, the said United States land-office issued to the said Catherine B. Cannon a patent from the United States to said premises as mineral land; that the said patent is a cloud upon plaintiff’s title, and prevents it from receiving a patent to said premises to which it is entitled. The principal prayer in said bill .is:

“And your orator prays that your honors may decree that the said defendants have no estate or interest whatever in or to said lands or premises, and that the title of your orator is good and valid, and that the said defendants, and each of them, bo forever enjoined and restrained from asserting any claim whatsoever in and to said lands and premises adverse to your orator, and for such other and f urtiier relief as the equity of the ease may require, and to your honors may seem meet.”

The only allegation as to the possession of said premises is as follows:

“And your orator further shows on its information and belief that such premises have been vacant, unoccupied, unfenced, and unimproved, and not used for any purposes, until within less than live years prior to the commencement of this action. ”

To this bill of complaint all the defendants but Mrs. Walker demur. The first ground of demurrer is “ that it appears by the plaintiff’s own showing in the said bill that the said plaintiff is not entitled to the relief prayed bythe bill against these defendants.” There are many other grounds stated in the demurrer, but the only one which will be noticed is as to whether the bill states facts sufficient to show that the case is within the equity jurisdiction of this court, and in considering this the first question presented is, what is the nature of the title of the Northern Pacific Railroad Company to the lands embraced within its grant? Is [226]*226it a legal or an equitable one? It fully appears that it has no patent for the lands specified in this bill. In considering this question I am much perplexed, for it appears to me-there are two lines of decisions upon this point, one of which holds that its title is a legal one, the other that it is an equitable one. The grant of lands to the Union Pacific Railroad Company is similar to that to the Northern Pacific Railroad Company. It has been held by decisions of the supreme court that as to the granting of lands they are in substance the same. In the case of Railway Co. v. Prescott, 16 Wall. 608, the supreme court says:

“As the government retains the legal title until the company, or some one interested in the same grant or title, shall pay these expenses, the state cannot levy taxes on the land, and, under such levy, sell and make titles which might in any event defeat this right of the federal government, reserved in the act by which the inchoate grant was made.”

In the case of Railway Co. v. McShane, 22 Wall. 444, the same court uses this language:

“That the payment of these costs of surveying the land is a condition precedent to the right to receive the title from the government can admit of no doubt. Until this is done, the equitable title of the company is incomplete. There remains a payment to be made to perfect it.”

Again—

“The United States retains the legal title by withholding the patent, for the purpose of securing the payment of these expenses, and it cannot be permitted to the states to defeat or embarrass this right by a sale of the land for taxes.”

In the case of Railroad Co. v. Traill Co., 115 U. S. 600, 6 Sup. Ct. Rep. 201, the same court again, considers this same question in connection with the grant now under consideration, and held:

“The United States made a magnificent grant to this company of lands equal to forty or fifty thousand square miles, an area as large as an average state of the Union. It thought proper to require of the grantee the payment of the costs of making the surveys necessary to the location and ascertainment of these lands. To secure the payment of these expenses, it decided to retain the legal title in its own hands until they were paid. The government was as to these costs in the condition of a trustee in a conveyance to secure payment of money; but, if the land was liable to be sold for taxes due to state, territorial, or county organizations, this security would be easily lost.”

In this case the supreme court held that the statute passed in 1870 upon the subject of the Northern Pacific Railroad Company’s paying for the costs of surveying the lands within its grant placed it in the same condition as the Union Pacific Railroad Company and the Kansas Pacific Railroad Company, so far as its land grant was concerned. This statute of 1870 is as follows:

.“That before any land granted to said company by the United States shall be conveyed to any party entitled thereto under any of the acts incorporating or relating to said company, there shall first be paid into the treasury of the United States the cost of surveying, selecting, and conveying the same by the said company or party in interest. ” 16 U. S. St. at Large, 305.

[227]*227This statute the supreme court holds is in substance the same as section 21 of the act of 1864, concerning the grant of lands to the Union Pacific Company, which reads as. follows:

“That before any lands granted by this act shall be conveyed to any company or party entitled thereto * * * there shall first be paid into the treasury of the United States the cost of surveying, selecting, and conveying the same by the said company or party in interest, as the titles shall be required by said company. ” 18 U. S. St. 365.

In effect it would appear that these two statutes are the same; and the three decisions construing the grants to the Kansas Pacific, Union Pacific, and Northern Pacific Railroad Companies arrive at the same conclusion: That the title in these companies to their lands is an equitable one; that, until these costs of surveying and conveying the same are paid, the railroad companies have not a complete equitable title even to their land. Railroad Co. v. Traill Co., supra.

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Bluebook (online)
46 F. 224, 1891 U.S. App. LEXIS 1247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-pac-r-v-cannon-circtdmt-1891.