United States v. Southern Pac. R.

45 F. 596, 1891 U.S. App. LEXIS 1803
CourtU.S. Circuit Court for the District of Southern California
DecidedMarch 6, 1891
DocketNos. 67, 68, 69, Consolidated; No. 88
StatusPublished
Cited by2 cases

This text of 45 F. 596 (United States v. Southern Pac. R.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Southern Pac. R., 45 F. 596, 1891 U.S. App. LEXIS 1803 (circtsdca 1891).

Opinion

Boss, J.

When these cases, which wore argued and submitted together, were before the court on demurrers to the amended bills, (39 [598]*598Fed. Rep. 182,) it was held that the grant to the Atlantic & Pacific Railroad Company of date July 27, 1866, conferred upon that company no right of any nature to any particular piece of land within the indemnity limits of that grant prior to its selection, and, as a consequence, that the fact that lands were within such indemnity limits did not exclude them from the subsequent grant to the Southern Pacific Railroad Company of date March 3, 1871, because of that provision of the act of July 27, 1866, (to which the act of March 3, 1871, referred for the terms of the grant to the Southern Pacific Company,) which reads: “Provided, however, that this section shall in no way affect or impair the rights, present or prospective, of the Atlantic and Pacific Railroad Company or any other railroad company.” But because the amended' bills showed on their face that the lands in controversy, which are within the indemnity limits of the grant to- the Atlantic & Pacific Company and within the primary limits of- that to the Southern Pacific Company, were at the time of the grant to the Southern Pacific Company claimed to be within the limits of the Mexican grant San José, which latter grant, it was alleged, was then sub judice, and because of that provision of the grant to the Southern Pacific Company to the effect that if the route it was authorized to designate should be found to be upon the line of any other railroad route to aid in the construction of which lands had been theretofore granted by the United States, as far as the routes are upon the same general line, the amount of land theretofore granted should be deducted from the amount granted to the Southern Pacific Company,1 coupled with the fact then alleged and by the demurrers admitted, that the routes of the two roads were upon the same general line, the amended bills were considered by the court to state, in each of those respects, good cause for annulling the patents issued to the Southern Pacific Railroad 'Company.

Since the ruling upon the demurrers the hills have been still further amended,-and the cases are now submitted for decision upon the proofs taken and the master’s report.

The bills as last amended omit the fact theretofore alleged 'that the routes of the two roads are upon the same general line, and the question decided upon the demurrers in respect to that point is therefore no longer involved. The allegation of the present bills in regard to that matter is that the two routes “cross each other in the state of California, as will more particulaiiy appear” from a certain annexed map. The fact that is made the basis of the exception in question is that the two routes shall be upon the same general line, not that they- cross each other. If the two routes are in fact upon the same general line and the government relied upon that fact for a recovery, it was of course essential that the fact be alleged. Rot being alleged it cannot avail the complainant even if the proof shows that it exists.

In respect to the “present and prospective” clause of the act of July 27, 1866, I adhere to the views expressed when-the cases were consid[599]*599ored on demurrer, in so far as concerns the lands then and now involved, namely, lands within the indemnity limits of the grant to the Atlantic & Pacific Company, and do not care to add anything to what was then said on that point in regard to such lands.

One question remains for decision in each of the cases, namely, Should the patents issued to the defendant company be annulled upon the ground that the defendant, though having the same name, is a different corporation from that to which the grant was made, and that the company to which the grant was made did not build the road and thereby earn the granted lands? And in the consolidated cases Nos. 67, 68, and 69 there remains for decision the further question, Does the case show that the lands in controversy were, at the time of the grant to the Southern Pacific Railroad Company, within the claimed limits of the Mexican grant San José, and was that grant then sub judies?

The affirmative of both of these questions is urged with much earnestness on Lho part of the government.

The Southern Pacific Railroad Company was originally incorporated December 2, 1865, under a general law of the state of California, approved May 20, 1861, (St. Cal. 1861, p. 607,) entitled “An act to provide for the incorporation of railroad companies and the management of the affairs thereof, and other matters relating thereto.” The act, among other things, authorized such corporations “to receive, hold, take and convey, by deed or otherwise, the same as a natural person might or could do, such voluntary grants and donations of real estate and other property of every description, as shall be made to it, to aid and encourage the construction, maintenance and operation of such railroad.” The act also provided that it should be lawful for two or more railroad companies to amalgamate and consolidate their capital stock, debts, property, assets and franchises in such manner as should be agreed upon by the board of directors of such companies so desiring to amalgamate and consolidate their interests. By the act of congress, approved July 27, 1866, (Id St. 292,) creating the Atlantic & Pacific Railroad Company and empowering it to construct and maintain a continuous railroad and telegraph line from Springfield, Mo., to the Pacific coast, congress recognized the Southern Pacific Railroad Company, organized as aforesaid, and authorized it to connect with the Atlantic & Pacific Railroad at such point, near the boundary line of California, as the Southern Pacific Company should deem most suitable for a railroad to San Francisco.

For the purpose of aiding the construction of the line authorized to be built, and thereby securing the safe and speedy transportation of mails, troops, munitions of war and public stores, congress, by the act of July 27, 1866, granted to the Atlantic & Pacific Railroad Company a right of way over the public domain and also made to it a grant of public lands along the route; and the railroad so to be constructed was declared to be a post route and military road, subject to the use of the United States for postal, military, naval and all other governmental service, and to such regulations as congress might impose for restricting the charges for government transportation. By section 18 of the same act, the Southern [600]*600Pacific Railroad Company was given similar grants of land, subject to the limitations and conditions provided in the act, and was required to construct its road under like regulations as to time and manner as provided in respect to the Atlantic & Pacific Company. The grant thus made to the Southern Pacific Railroad Company was accepted.by it on the 24th of November, 1866, and on January 3, 1867, it filed in the office of the commissioner of the general land-office a map showing its definite line of route from a point on the southerly edge of the bay of San Francisco, in a southeasterly direction, to a point on the east line of the state of California on the Colorado river, near the Needles. The Southern Pacific Railroad Company was not authorized by its original charter to extend its road to the Colorado river.

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Related

Southern Pac. R. v. Brown
68 F. 333 (U.S. Circuit Court for the District of Southern California, 1895)

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Bluebook (online)
45 F. 596, 1891 U.S. App. LEXIS 1803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-southern-pac-r-circtsdca-1891.