United States v. Southern Pac. R. Co.

157 F. 96, 1907 U.S. App. LEXIS 5388
CourtU.S. Circuit Court for the District of Northern California
DecidedOctober 28, 1907
DocketNo. 13,350
StatusPublished
Cited by1 cases

This text of 157 F. 96 (United States v. Southern Pac. R. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Northern 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. Co., 157 F. 96, 1907 U.S. App. LEXIS 5388 (circtndca 1907).

Opinion

MORROW, Circuit Judge.

This is a bill in equity brought by the United States against the Southern Pacific Railroad Company to establish and to enforce a trust in and for moneys received by said defendant for sales of land made by the defendant to numerous bona fide purchasers within the overlapping primary limits of the land grant made to the Atlantic & Pacific Railroad Company by the act of Congress approved July 27, 1866 (14 Stat. 292, C.-278), and the subsequent land grant made to the Southern Pacific Railroad Company by the act of Congress approved March 3, 1871 (16 Stat. 579, c. 122)'. The lands described in the bill of complaint are in the state of California, and were by mistake and error patented by the. United States to the defendant under the erroneous supposition that such lands were a part of the lands granted to said company by the act of Congress approved March 3, 1871. The bill also seeks an accounting for the moneys received by the defendant from the sales of such lands and a discovery under oath as to what sales of such lands have been made, the name of each purchaser of each tract, the date of each sale and the terms thereof, the agreed purchase price and the amount received thereon, and the date and amount of each payment of principal or interest upon each purchase. To this bill the defendant filed a general demurrer, on the ground that the bill did not state a cause entitling the plaintiff to the relief sought and prayed for in the bill against the defendant. The defendant also filed a special answer, making discovery under oath as to all matters and things concerning which discovery was specifically sought by the bill. The bill of complaint and demurrer, together with the special answer, having been set down for a hearing, the defendant contended, upon argument, that there was no jurisdiction in equity in the cause, and that the facts set forth in the bill did not entitle the plaintiff to any relief. Upon consideration, the court overruled the demurrer, and gave the defendant time in which to file a further answer. Defendant thereupon filed its further answer, and thereafter plaintiff and defendant entered into a stipulation as to the evidence of the case. The case is now before the court upon the facts stated in the bill of complaint, and in the special answer making discovery under oath, and the stipulations as to the evidence in the case.

It is stipulated, among other things, that all lands described in Exhibits A and B, attached to plaintiff’s complaint, are within the primary limits of the land grant made to the defendant, the Southern Pacific Railroad Company by the act of Congress approved March 3, 1871. and within the primary or indemnity limits of the land grant made to the Atlantic & Pacific Railroad Company by the act of Congress approved July 27, 1866, and that it has been finally and conclusively adjudged and determined in numerous suits in the United States Circuit Court for the Southern District of California and in the Supreme Court of the United States, in which the United States was plaintiff and the [98]*98Southern Pacific Railroad Company and others were defendants, among other matters and things, that all lands common to the primary limits of the said land grant of March 3, 1871, to the Southern Pacific Railroad Company and primary or indemnity limits of said land grant of July 27, 1866, to the Atlantic & Pacific Railroad Company, became, upon passage of the forfeiture act of July 6, 1886 (24 Stat. 123, c. 637), the property of the United States, and by force of that act restored to the public domain, without the Southern Pacific Railroad Company having acquired any interest in said lands by or in virtue of said act of March 3, 1871, as affected the power of the United States to restore them to the public domain; that prior to March 3, 1887, the proper officers of the United States issued patents purporting to grant to the Southern Pacific Railroad- Company, as lands granted to it by the act of March 3, 1871, all lands described in Exhibit A and Exhibit B to plaintiff’s bill of complaint, except the S. E. % of N. W. J4 and lot 3 of N._W. % of section 19, township 1 N., nnge 18 W., which tract is within the Rancho el Conejo, and was never patented to said company; that Exhibits A and B attached to defendant’s answer contain full, true, and correct statements of all sales made by defendant of lands described in plaintiff’s bill of complaint, and of all material particulars thereof; that each and all of such purchases were made for full value of the lands at times of sale, without notice or knowledge of any claims or rights of the United States in or to the land purchased, by persons who, in good faith, believed they were purchasing from said company a good and sufficient title, except in so far as the purchasers had constructive notice that the lands purchased were granted by the act of July 27, 1866, to the Atlantic & Pacific Railroad Company, and were not granted to and did not belong to said Southern Pacific Railroad Company; that the title of each of the purchasers to the land purchased was confirmed by the act of Congress approved March 2, 1896 (29 Stat. 42, c. 39 [U. S. Comp. St. 1901, p. 1603]), that Exhibit A attached to plaintiff’s bill of complaint contains a true statement of entries made by persons whom the Secretary of the Interior adjudged and determined to be bona fide purchasers from the Southern Pacific Railroad Company of the lands described, according to the intent and meaning of 'the act of March 3, 1887 (24 Stat. 556, c. 376 [U. S. Comp. St. 1901, p. 1595]), and entitled to make such entries under the provisions of that act, except in so far as the lands, and entries are therein duplicated or repeated; that Exhibit B attached to plaintiff’s bill of complaint contains a true statement of lands which the United States Circuit Court at Los Angeles, Cal., in case No 184, referred to in plaintiff’s bill of complaint, adjudged and determined to be held by the persons in said exhibit named, who were bona fide purchasers thereof from said Southern Pacific Company, according to the intent and meaning of the act of March 2, 1896, and whose title stood confirmed by the provisions of that act, except in so far as the lands therein described are duplicated or repeated; and, as each said claim was confirmed by the Secretary of the Interior he wrote to that company, requesting payment unto the United States of the amount received by that company for the sale of such lands, not exceeding $1.25 per acre; that certain lands described in the stipulation [99]*99were the subject of the suit between the parties to the present action, final action in which in the Supreme Court of the United States was reported in United States v. Southern Pacific Railroad Company, 146 U. S. 570-614, 13 Sup. Ct. 152, 36 L. Ed. 1091; that in that case the United States did not pray for judgment or decree for the value of said lands or for any money judgment other than costs of suit; that all lands described in Exhibit A attached to plaintiff’s bill of complaint, other than the lands just mentioned, and all lands in Exhibit B attached to said complaint, were the subject of the suit between the parties to the present action, final decision of which in the Supreme Court of the United States was reported in Southern Pacific Railroad Company v. United States, 168 U. S. 1-66, 18 Sup. Ct. 18, 42 L. Ed. 355, and United States v. Southern Pacific Railroad Company, 184 U. S. 49-61, 22 Sup. Ct.

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Bluebook (online)
157 F. 96, 1907 U.S. App. LEXIS 5388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-southern-pac-r-co-circtndca-1907.