Pigeon River Improvement, Slide & Boom Co. v. Charles W. Cox, Ltd.Pigeon River Improvement, Slide & Boom Co. v. Charles W. Cox, Ltd.
delivered the opinion of the Court.
Pigeon River Improvement, Slide & Boom. Company, a Minnesota corporation, brought this action against Charles W. Cox, Limited, a Canadian corporation, to recover tolls for the use of improvements which the Minnesota corporation had made in the Pigeon River. These improvements embraced sluiceways, booms and dams, which were used by the defendant in driving, sluicing and floating timber products. The case was removed to the federal court, a demurrer to the amended complaint was sustained without leave further to amend, and the judgment of dismissal was affirmed by the Circuit Court of Appeals. 63 F. (2d) 567. The case comеs here on appeal.
Pigeon River is a boundary stream between the State of Minnesota and the Province of Ontario, Dominion of Canada, at the northeast corner of Minnesota. The river is a small stream which has its source in lakes on, the international boundary and flows in a southeasterly direction along that boundary for about forty miles, discharging at Pigeon Bay into Lake Superior. The boundary is approximately midstream. The defense against the charge of tolls is based upon Article II of the Treaty of
“ It being understod that all the water communications and all the usual portages along the line from Lake Superior to the Lake of the Woods, and also Grand "Portage, from the shore of Lake Superior to the Pigeon River, as now actually used, shall be free and open to the use of the citizens and subjects of both countries.”
When this treaty was concluded, the lower portion of the Pigeon River was impassable because of falls and rapids. On July 25, 1842, Mr. Ferguson, who had been surveyor to the commissioners under the seventh article of the Treaty of Ghent,
2
thus described this part of the rivеr in response to an inquiry by Mr. Webster:
3
“At the mouth of the Pigeon River, there is probably about three hundred yards in length of alluvial formation; but the river above that, as far as to near Fort Charlotte, runs between steep cut rocks of basaltic or primitive formation, and is a succession of'fails and rapids for nearly its whole length — the last cataract, which is within about a mile of its mouth, being almost one hundred feet in height.” Below Fort Charlotte, on the Pigepn River, communication with Lake Superior ¿was by means of a trail about nine miles long running south of the river, and some distance from it, which was known as the Grand Portagе and was so.described in the treaty.
4
In Mr. Webster’s com
, At the same time, the complaint alleges, the Arrow River & Tributaries, Boom & Slide Company, was organized under the laws of the Dominion of Canada and Province of Ontario, with powers and purposes similar to those of the Pigeon River Company, but limited to the portion of the Pigeon River and its tributaries within the Dominion of Canаda. This Canadian corporation, under an agreement with the Pigeon River Company, similarly improved the portion of the Pigeon River on the Dominion side of the boundary, so that the improvements madé by each company “ constituted complements the one of the other, and the whole of said improvements
Adjacent to the lower part of the Pigeon River on the Minnesota side, lies the Grand Portage Indian Reservation, extending for a considerable distance along the stream. 8 *By the Act of Congress of March 3, 1901, 9 the Pigeon River Company was authorized, under such regulations and conditions as the Secretary of the Interior might prescribe, to. “ improve the Pigeon River at what is known as the cascades, of said river, for the purpose of making said river at said point navigable for floating logs.” For that purpose the Company was empowered to enter upon unallotted lands and, with the consent оf the allottees, upon allotted lands, adjacent to the cascades, of the Grand Portage Indian Reservation and to construct, such dams, bulkheads and other works as should be necessary. It was'further provided that the river “ after being so improved shall be open at all times to the free passage of all timber cut from said Grand Portage Indian Reservation, and to the passage of all other timber for a reasonable charge therefor.” 10 It does not appear that the Secretary of the Interior prescribed any regulations or conditions in relation to the imрrovements made by the Pigeon River Company.
Recovery is now sought for the use by the defendant, a Canadian corporation, of these improvements in the years 1928, 1929, and 1930, in driving, sluicing and floating upon the Pigeon River its pulp wood and railway ties.
The Circuit Court of Appeals in the instant case followed, its earlier decision in
Clark
v.
Pigeon River Improvement, Slide & Boom Co.,
52 F. (2d) 550, where the court reached the conclusion that the. charge of tolls was forbidden by the treaty.. The court disagreed with the view advanced by the Pigeon River Company that the words of the treaty “ as now actually used ” limited the provision as to
“
free and open ” use, expressing the opinion that these qualifying words referred only to the Grand Portage.
Id.,
pp. 555, 556. In support of its conclusion, the Circuit Court of Appeals cited the decision of the Appellate Division of the Supreme Court of Ontario in the case of
Arrow River & Tributaries, Slide & Boom Co.,
66 Ont.L.R. 577; where the court held that the Canadian Company did not have “ the right to build upon the bed of the Pigeon River anything which may interfere with the enjoyment of free and open use of it by the citizens of the United States.” After the Circuit Court of Ap
The litigation in Canada presented the question whether thé statutes of the Province of Ontario authorized the Canadian Company to construct and maintain works upon the Pigeon River on the Ontario side of the international boundary and to charge tolls upon timber passing through those works, it appeared that the Arrow River & Tributaries, Slide .& Boom Company, Ltd., had been incorporated in 1922 under the Ontario Companies Act,
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for the purpose of acquiring or constructing dams, booms and other works to facilitate the transmission of. timber down the Arrow River, and its tributaries, and that part of .the Pigeon River which is within the Province of Ontario; and that the Company had acquired title to, and had extended, works which had been erected by a former corporation formed in 1899 with the same shareholders and directors аnd with similar objects. The Company applied to the District Judge for approval of tolls to be charged for the use of these works, and the respondent in that casé, the Pigeon River Timber Company, Ltd., sought an injunction restraining, the District Judge from acting upon the application. The Webster-Ashburton Treaty was invoked and.it was-contended that the provision of the Ontario stattit’e, so far as it purported to authorize the Company to charge tolls for. the use of its improvements on that river, was
" ultra vires
of the Ontario Legislature.” The District Judge
In the Supreme Court of Canada three opinions were delivered. Three of the five judges held that the legislation was not in conflict with the terms of the treaty. Of this majority, Judges Rinfret and Smith,, in an opinion delivered by the latter, took the view that the right preserved by the provision of the treaty “ was the right to continue to use the water communication and portages then in usé.” They expressly disagreed with the opinion of the Circuit Court of Appeals in the
Clark
case,
supra,
that the words “as now actually used” applied only to Grand Portage. These judges could not see any reason “ for preserving a right to use Grand Portage that would not apply to other portages,” and they thought that the language of the provision appeared." to apply-to all, and to the water communications, and should'be so construed.” They added: “ What was being dealt with, and
Chief Justice Anglin wrote a separate opinion agreeing in the result “ largely for the reasons ” stated by Judges Rinfret and Smith. He said, however, that he should have “ preferred it had the majority of the court seen its way clear to base its decision upon a holding ” that the stipulation of the treaty “ was merely meant to ensure to the citizens of both countries equality of rights in regard to the water communications, portages, etc., and that it never was intended thereby to provide that in no event should either party to the treaty be at liberty, as regards citizens of its own nationality, to impose tolls for the use of improvements lawfully to be made thereon”; that “ where either party to the treaty saw fit to impose tolls upon its own citizens, in regard to such improvements, it should be at liberty to impose like tolls (but none greater) on citizеns of the other country for the use of the improvements so made.”
. Two judges — Judges Lamont and Cannon — delivered an opinion to the effect that “ although at the date of the treaty the chief purpose for which these water communications were being used was the transportation by boat or canoe of persons and goods, the clause in question places no limit on the purposes for which they might be used ”; that “ they are tó be ‘ free and open ’ to the people of both countries for whatever purpose they may desire to use them as a water communicаtion,” and therefore if “they could be used for any purpose which did not necessitate the making of a portage to get past a point of danger,".there was “ nothing in the clause, or in any other
Under this decision in Canada and that of- the Circuit Court of Appeals, wé have the extraordinary situation that as to these improvements at the same, place on the
In deciding the instant case', we think that there are controlling considerations which make it unnecessary to pass broadly upon the significance of the words “ free and open ” in provisions in treaties relating to the use of navigable streams, — a phrase which with different contexts -has been, repeatedly used in international engagements.
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The question here is simply as to the application of these words of the Webster-Ashburton Treaty to this particular boundary stream, thе Pigeon River, at points where the river was impassable and hence not used as a' means of communication at the time the treaty was made, the travel and transportation of that period, and of earlier times, ’necessarily seeking the portage by means of which alone it was practicable to secure the desired communication. The words of the clause in question “ as now actually used,” undoubtedly refer to the Grand Portage, but we think there is force in the reasoning of the opinion off Judges Rinfret and Smith in the Supreme Court of Canada that these words were not limited to thаt portage, and we are not convinced that it-was the intention either to
With respect to the portion of the stream within the territorial jurisdiction of the. State of Minnesota, the legislature of that State authorized the erection of these improvements and the charging of reasonable tolls. In contemplation of improvements of this sort in a stream forming part of the international boundary, the state legislation, expressly provided for the uniting of such an enterprise with a similar and complementary project appropriately authorized with respect to the Canadian portion of the stream. In the absence of a violation of treaty, or of conflict with an act of the Congress, there сan be no doubt as to the power of the State to establish' such an aid to commerce. An undertaking of this character by the State falls within the familiar category of cases in which a State may make reasonable provision for local improvements until its authority is superseded by dominant federal action.
13
The fact that the stream forms part of the international boundary does not make this principle inapplicable. Where, under § 9 of the
It' is not necessary to decide whether, in view of the impassable condition óf the portion of the Pigeon River under consideration, the improvements came under the provisions of either § 9 or § 10 of the Act of March 3, 1899,
15
as we are of the opinion that the improvements were made with the consent of Congress. By the Act of March 3, 1901
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(which apparently was not brought to the attention of the Circuit Court of Appeals), the Congress expressly authorized the Pigeon River Company to improve the river in order that it might be rendered navigable for floating logs, to erect dams and other works necessary for that purpose, and to impose a reasonable charge for the passage of all timber save that which was cut from the adjoining Grand Portage Indian Reservation. The fact that this authority directly applied to that part of the Pigeon River known as “the cascades” does not, in our judgment, detract from the significance of the Act as showing thе acquiescence of the Congress in the improvements here in question. The authority was given because of the governmental interest in the Indian Reservation adjacent to the Pigeon River, and
We fincj no reason for regarding this action as intеnded to abrogate or modify the provision of the Webster-Ashburton Treaty. So far as the Act of Congress specifically, authorized the charging of tolls for the use of-the improvements on the Minnesota side of the boundary, it would control in our courts as the later expression of our munici.pal law, even though it conflicted with the provision of the treaty and the international obligation remained unaffected.
The Cherokee Tobacco,
The same may be said of the action pf the Province of Ontario in providing for the complementary' works on the Canadian side of the boundary and authorizing tolls for their use. While this action was taken in the plenitude of the power of the provincial legislature as defined by the Supreme Court of Canada, we perceive no reason for ascribing to that legislature an intention to override the provision of the treaty, but rather see in that action an assumption on the part of the legislature .that its course was not repugnant to the treaty, an inference which finds abundant support in the conclusion of the majority of the judges of the Supreme Court of Canada. Nor does it appear that either of the Parties to the treaty has made to the other any representations as to a breach of obligation by reasоn of the maMng of the improvements'or the imposition of tolls. Wo find no ground for rejecting the practical construction which the treaty has thus received. <.
Further, in 1909, for the- purpose of settling all questions pending between the United States and the Dominion of Canada,
“
involving the rights, obligations or interests of either in relation tó the other or to the inhabitants of the other, along their common frontier,” the United States and Great Britain-entered into a treaty concerning the boundary waters.
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By Article’ I of this treaty the Parties formulated their agreement “ that the navigation of all navigable boundary waters shall forever continue free and open for the purposes of commerce to the inhabitants and to ships, vessels and boats of both countries
We conclude that it was error to sustain the demurrer to the amended complaint. The judgment of the Circuit Court of Appeals is reversed and the cause is remanded for further proceedings in conformity with this opinion.
Reversed.
Notes
8 Stat. 574; Malloy, Treaties, vol. 1, pp. 652, 653.
8 Stat. 221, 222; Malloy, Treaties, loc. cit., pp. 617, 624.
Sen. Doc., vol. 1, No. 1, 27th Cong., 3d sess., pp. 104,105. See also “ The Topography and Geology of the Grand Portage,” George M. Schwartz, Minnesota Historical Bulletin, vol. 9, p. 27.
“ The Pigeon River, which now forms the internаtional boundary at Lake Superior, was, in the days of water transportation, the best natural highway between the Great Lakes or the St. Lawrence system, and the great northwestern section of the continent, with its thou-sands of lakes and' streams draining into Hudson Bay or the Arctic
Sen. Doc., vol. 1, No. 1, 27th .Cong., 3rd sess., p. 61.
For a description of the traffic carried on by means of the Grand Portage, see “ The Story of the Grand Portage,” Minnesota History Bulletin, vol. 5, pp. 15-26; “Voyages from.Montreal through the Continent of North America,” Sir Alexander Maсkenzie, yol. -1, pp. Ixxi, lxxvii — lxxxii; Henry-Thompson Journals, Elliott Coues, vol. 1, pp. 6, 7; Wisconsin Historical Collections, vol. xi, pp. 123-125, note.
General Laws of Minnesota, 1878, Chap. 34; 1889, Chap. 221; 1905, Chap. 89; Masorfs Minnesota Statutes, 1927, §§ 7550-7552.
10 Stat. 1110; see, also, H.R. 51st Cong., 1st sess., Ex. Doe. No. 247, p. 59.
C. 878, 31 Stat. 1455.
See Cong. Rec., 56th Cong., 2d sess., vol. 34, pt. 4, p. 3462.
R.S.O. 1914, c. 178; RS.O. 192.7, c. 218; Lakes and Rivers Improvement Act, R.S.O. 1927, c. 43; §§ 32, 52.
See Treaty of September 3, 1783, between the United States and Great Britain, Art. VIII, Malloy, p. 589; Webster-Ashburton Treaty, 1842, Art. Ill, Malloy, p.' 653; Treaty of Washington, 1871, Arts. XXVI, XXVIII, compare Art. XXVII, Malloy, p. 711; Convention concerning the Boundary Waters between the-United States and Canada, 1909, Art. I, U.S. Treaties, vol. 3, p. 2608; Treaty оf Guadalupe Hidalgo, 1848, Arts. VI, VII„ Gadsden Treaty, 1853, Art. IV, Malloy, pp. 1111, 1123; Moore, International Law Digest, vol. 1, pp. 625,. et seq.; Hyde, International Law, vol. T, §§ 160, et seq.; Oppenheim, International Law, 4th ed., §§ .178, et seq.
Willson
v.
Blackbird Creek Marsh Co.,
30 Stat. 1151.
See
United States
v.
Rio Grande Irrigation Co.,
See Note 9.
36 Stat. 2448, U.S. Treaties, vol. 3, p. 2607.
Article I of the Treaty of 1909 is as follows:
“ The High Contracting Parties agree that the navigation of all navigable boundary waters shall forever continue free and open for the purposes of commerce to the inhabitants and to the ships, vessels, and boats of both countries equally, subject, however, to any laws and regulations of either country, within its own territory, not inconsistent with such privilege of free navigation and applying equally and without discrimination to the inhabitants, ships, vessels, and boats of both countries.
“ It is further agreed thаt so long -as this treaty shall remain in force, this same right of navigation shall extend to the waters of Lake Michigan and to all canals connecting boundary waters, and now existing or which may hereafter be constructed on either side of the line. Either of the High Contracting Parties may adopt rules and regulations governing the use of such canals within its own territory and may charge tolls for the use thereof, but all such rulés and regulations and all' tolls charged shall apply alike to the subjects or citizens of the High Contracting Parties and the ships, vessels, and boats of, both of the High Contracting Parties, and they shall be placed on terms of equality in the use thereof.’’