Taylor v. Tayrien

51 F.2d 884, 1931 U.S. App. LEXIS 2977
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 3, 1931
Docket414
StatusPublished
Cited by42 cases

This text of 51 F.2d 884 (Taylor v. Tayrien) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Tayrien, 51 F.2d 884, 1931 U.S. App. LEXIS 2977 (10th Cir. 1931).

Opinion

McDERMOTT, Circuit Judge.

A single but important question is presented: Does the “headright” of an Osage Indian of less than half-blood, with a certifieate of competency, pass to his trustee in bankruptcy? Judge Kennamer, in this ease, held it did not; Judge Vaught, of the We s tern District of Oklahoma, held it did not. In re Denison, 38 F.(2d) 662.

By sections 1 and 2 of the underlying Osage Act (Act of June 28, 1906, 34 Stat. 539) the roll of the tribe was established, and each member was declared to be entitled to an equal share of “the tribal lands and tribal funds”; provision was made for the allotment to each member of a “homestead” of 160 acres, and a “surplus” allotment of about 500 acres. Section 2 (7) provides that the Secretary of the Interior, may, upon request, issue to any adult member of the tribe “a certificate of competency, authorizing him to sell and convey any of the lands deeded him by reason of this Act, except his homestead, * * and provided further, that nothing herein shall authorize the sale of the oil, gas, coal, or other minerals covered by said lands, said minerals being reserved to the use of the tribe for a period of twenty-five years, *886 and the royalty to be paid to said tribe as hereinafter provided; and provided further, that the oil, gas, coal, and other minerals upon said allotted lands shall become the property of the individual owner of said land at the expiration of said twenty-five years, unless otherwise provided for by Act of Congress.” (This 26-year period has now been extended until April 8, 1958. Act of March 2, 1929 45 Stat. 1478.

, . Section 3 provides that the minerals are “reserved to the Osage tribe for a period of twenty-five years”; that mineral leases shall be made by the tribe through its tnbal coun-eil and approved by the Secretary of the In-tenor, the royalties to be determined by the President of the United States. Section 4 of the act provides Oat the tnbal funds, then existing or thereafter accruing, shall be held m trust by the United States for twenty-five years; that such funds should be promptly segregated and placed to the credit of the m-dividual rumbera of the tribe, or to their hems, and that the interest on such tribal funds shall be paid quarterly to the members of the tribe. Mineral royalties were to be placed m the Treasury of the United States “to the credit of the members of the Osage tnbe of Indians as other moneys of said tribe are to be deposited under the provisions of this Act,” and after deducting sums fixed by the act for the support of certain schools and for agency purposes, were to be distributed in the same way as interest on other moneys held in trust. The right of Osage Indians m these funds and to participate m these dis-tnbutions is called a “headnght.”

Section 6 provides that “the lands, moneys, and mineral' interests” of any deceased member shall descend to his heirs, with the restriction that if he die without spouse or issue, his mother and father shall inherit equally. •

The Referee in Bankruptey made an order directing the bankrupt to turn over all moneys or checks or orders received from such headright both before and since the filing of the petition in bankruptey; and that he execute such instruments as might be necessary to enable the trastee to collect from the Secretary of the Interior any such sums that might be payable to the bankrupt at any time in the future. It is stipulated however that there were no quarterly annuity payments to the eredit of the bankrupt at the time of his adjudication, but that since the adjudication “there have accumulated and will accrue in the future from said Osage headrights quarterly annuity payments.”

The single question presented here, then, is whether the trustee may appropriate and sell, as an asset of the estate, the right of this bankrupt Osage Indian to receive such payments as may be passed to his credit from now until 1959, or until such date as Congress may by future legislation fix for termination of the trust period,

The position of appellant is that these headrights are transferable by Indians of the clagg o£ bank t and therefore pass to tbe trustee in bankruptey under section 70a (5) of tbe Bankruptcy Act, 11 USCA § 110 (a) (5) tbat i£ tMg be not a is nCTer_ tMesg pr rt wHeb be levied ^ judieiaI as ided b the game seetion. We are cited to autborities bolding tbat equitable or beneficial interests o£ a bankr t to tbe trustee wbicb is a field we flnd unnee to explore. It is eontended tbat as to baif.bloods witb cei.tificateg o£ eompet tbe trust is a «d „ one ^ tbaj. tbe trugtee bag nQ aetive dllties o£ management or. eontrol. , TWs ig not true as to tbe «tribal trust» tbe act piatíes the trusty tbe imp0rtant and aetive duties o£ ^ tbe royaltieB for tbe ieaSes, and approvi o£ their t and o£ eoUect. f tho ro alties and distributing them, partly to tbe maintenaiiee of sebool partly £or agency and purposes, and partly tbe eredit o£ tbe members of tbe tribe. In tbe ^ brief, appellant states tbat «tHs eedi involves onl t]le gtatug o£ tbe £und a£ter it ig and plaeed to tbe oredit o£ tbe bankrupts ready for delivery to them, or after it bag been delivered to tbem „ But it is stipulated that at the time of the adjudication there was no money due the bankrupt; and if the bankrupt’s right attached after the adjudication, then it does not pass to the trustee under the Bankruptey Act. What the appellant is undertaking to reach “ the ^nkrupt’s inchoate right hereafter to sba;re 111 proceeds of oil now m the Sround> and whleh 18 now tbe Property of the tnbe' T° Put ñ concretely: -In 1945 the tnbal council executes a mineral lease, apProved ty the Secretary of the Interior, for a royalty determined by the President; in 4946 fif ^from P^eed m the United States Treasury; out of them are Pald,certam ^ed ebarfef '> the glance is dl‘ vided, and a share credited to the bankrupt or tus heirs. Must the United States in 1946, thls to aPPellant °r bis assignee?

The answer to the question must be found in the acts of Congress. If, in the process of emancipation, Congress has,not made these *887 headlights transferable, they do not pass to the trustee in bankruptcy, for it would thwart the purpose of Congress to permit them to be indirectly transferred by the expedient of a debt followed by judicial sale. Mr. Justice Brewer, in Goudy v. Meath, 203 U. S. 146, 149, 27 S, Ct. 48, 50, 51 L. Ed. 130, held that “the purpose of the restriction upon voluntary alienation is protection of the Indian from the cunning and rapacity of his white neighbors,” and that while Congress had the power to permit voluntary alienation and withhold the land from involuntary alienation, such a purpose must be clearly manifest. If, for the protection of the Indian, Congress has withheld the power of alienating his headright, then there is no power to alienate it by judicial process; for that would be to permit the “white neighbor” to accomplish indirectly what the law forbade him to do directly—to acquire the headright which Congress proposed to preserve for the care and support of its Indian wards. We proceed to the underlying question—Are Osage headrights transferable? -

In dealing with Indian questions, it must be remembered that the powers of Congress are plenary. Stephens v. Cherokee Nation, 174 U.

Related

Fletcher v. United States
153 F. Supp. 3d 1354 (N.D. Oklahoma, 2015)
Osage Tribe of Indians v. United States
93 Fed. Cl. 1 (Federal Claims, 2010)
Matter of Estate of Little Bear
1995 OK 134 (Supreme Court of Oklahoma, 1995)
Eckelt v. Herrell
1989 OK CIV APP 11 (Court of Civil Appeals of Oklahoma, 1989)
Matter of Estate of Tayrien
1980 OK 8 (Supreme Court of Oklahoma, 1980)
Weeks v. United States
406 F. Supp. 1309 (W.D. Oklahoma, 1975)
Estate of Shelton v. Oklahoma Tax Commission
1975 OK 166 (Supreme Court of Oklahoma, 1975)
Northern Cheyenne Tribe v. Hollowbreast
349 F. Supp. 1302 (D. Montana, 1972)
Seneca Constitutional Rights Organization v. George
348 F. Supp. 51 (W.D. New York, 1972)
Wolfe v. Phillips
172 F.2d 481 (Tenth Circuit, 1949)
West v. Oklahoma Tax Commission
334 U.S. 717 (Supreme Court, 1948)
McElroy v. Pegg
167 F.2d 668 (Tenth Circuit, 1948)
Ward v. United States
139 F.2d 79 (Tenth Circuit, 1943)
Drummond v. United States
131 F.2d 568 (Tenth Circuit, 1942)
McKnight v. Panther
1941 OK 386 (Supreme Court of Oklahoma, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
51 F.2d 884, 1931 U.S. App. LEXIS 2977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-tayrien-ca10-1931.