113 P. 447 | Idaho | 1911
This is an original application filed in this court for a writ of prohibition against the state board of land commissioners, whereby the plaintiff seeks to restrain and prohibit the board from selling a large body of state lands situated in Latah and Nez Perce counties, comprising an aggregate area of 23,938.18 acres. These lands are a part of the several land grants made by the general government to this state on its admission into the -Union. The specific grants, parts of which go to make up the total area of the tracts to be sold, are as follows: Scientific schools, state penitentiary, state normal school, charitable institutions, agricultural college, and insane asylum.
“Whereas the Potlatch Lumber Company is the owner of the timber on several thousand acres of land, the fee to which still remains in the state of Idaho; and,
“Whereas all of said timber was heretofore sold to said Potlatch Lumber Company or its predecessors in interest, on condition that said timber should be removed within certain specified terms of years, and that all timber remaining on the land after the expiration of said term should revert to and become the property of the State of Idaho; and,
“Whereas said Potlatch Lumber Company has, in due form, applied to purchase the fee to 23,938.18 acres of State land on which it now owns the timber as aforesaid, to the end that they be not compelled to cut the timber from said premises in the limited time at its disposal under its timber deeds; and,
“Whereas said Potlatch Lumber Company has appeared before this board by its land agent, W. D. Humiston, and has made argument in favor of said application whereby it was shown to the satisfaction of this board that by granting said application, the forests of the state would be conserved and the water sheds better protected, the income of our wage earners augmented, the transportation facilities of the*273 state increased, the revenue from taxation maintained and the largest returns to the institutions of the state assured.
“Now, therefore, be it resolved, that the lands as specifically referred to in the application of the said Potlatch Lumber Company be forthwith appraised, and if the applicant shall thereupon execute a contract of purchase which shall recite its intent to bid on all of said land not less than its appraised value, and that in the event of being the successful bidder it shall and will carry through all payments of principal and interest to final payment or cause such payment to be made; said land shall be advertised and sold to the highest bidder in accordance with law, and that if the said Potlatch Lumber Company is the highest bidder when said lands are sold, the deeds of the State to said lands shall specifically set forth the intent of the state to release all its right, title and claim in and to any and all timber standing, lying and being on said lands at the expiration of the term given under the original timber deeds to the said Potlatch Lumber Company or its predecessors in interest or for the removal of the timber from lands covered by the application above referred to.”
Pursuant to the foregoing resolution, the land board sent out its appraiser who appraised this entire body of land at an average valuation of $10.58 per acre. After the appraisement was made, the board required the company, or its agent, to enter into a contract whereby it agreed to bid on this tract of land the full amount of the appraised valuation thereof, as a condition precedent to advertising the same for sale at public auction, and also required the company to make certain concessions with reference to relinquishing the company’s right of possession to all lands from which it might remove the timber prior to the expiration of the twenty-year period. The company, through its agent, accordingly entered into the following agreement, which was filed with the board:
“Memorandum of Agreement, Made and entered into this 22d day of December, 1910, by W. D. Humiston, first party, with the State of Idaho, second party, Witnesseth: That,
*274 “Whereas, the Potlatch Lumber Company did apply to the State of Idaho to purchase the fee of 24,096.16 acres of the State lands including the timber standing, lying or being thereon at the expiration of 20 years from the dates of the deeds respectively made for the timber thereon, which said application was made in due form, and,
“Whereas, the State Board of Land Commissioners ordered that the said property be appraised and sold at Moscow, and Lewiston, Idaho, respectively, and that if the Potlatch Lumber Company should thereupon execute a contract of purchase, which would recite its intent to bid on all of said property not less than its value as shown by such appraisal and that in the event of being the successful bidder it should and would carry through all payments of principal and interest to final payment, or cause such payments to be made, said lands should be advertised and sold to the highest bidder in accordance with law, and further ordered that if the Potlatch Lumber Company was the highest bidder when-said lands were sold, the deeds of the State to said lands should specifically set forth the intent of the State to relinquish all of its right, title and claim in and to any and all timber standing, lying and being on said lands at the expiration of the term given under the original timber deeds to the Potlatch Lumber Company or its predecessors in interest for the removal of the timber from the lands covered by the application above referred to; and,
“Whereas, the sale of such thereof as is situated in the County of Latah, State of Idaho, has been fixed for the 28th day of December, 1910, and such thereof as is within the County of Nez Perce, State of Idaho, has been fixed for the 29th day of December, 1910: i
“Now, therefore, in consideration of the premises and in the event the said first party shall become the purchaser of such property upon such sale and that second party shall cause to be made and executed unto the first party, his successors ór assigns, a deed conveying said property in fee simple, together with all the right, title and claim of the State of Idaho, in and to any and all timber standing, lying*275 or being on said described lands at the expiration of the term given under the original timber deeds for said lands for the removal of the timber from the land so appraised;
“The said first party hereby agrees that he will bid at the sale of said property so appraised and to be advertised for sale, not less than $10.00 per acre, and not less than the appraised value of the property to be sold, and in the event of becoming the purchaser of any or all of said property that he will cause to be made all payments of both principal and interest covered by such bid or bids and as set forth in the certificate of sale to be issued therefor to first party, and will cause Potlatch Lumber Company to release to the second party within one year after the completion of logging operations on and over any lands the timber on which is now owned by Potlatch Lumber Company, and the fee to which is still in said State and which is not embraced in such application or any legal subdivision thereof, all the right, title and interest of Potlatch Lumber Company in and to any and all timber of every kind and variety remaining on said land, together with the right of occupancy thereof by said Lumber Company, reserving only to said company, its successors and assigns, the right to build, maintain and operate logging roads and spurs over and across the same for transporting timber and supplies together with the land on which logging camps are now situate and necessary for the convenient use thereof as well as the right to locate and operate other camps at other necessary or convenient places thereon from time to time.”
The complaint alleges that a large part of this land is worth a great deal more.than the appraised value, and that much of it is worth from $25 to $75 per acre. Paragraph 12 of the complaint alleges that the petitioner is informed and believes, and therefore alleges, that the board and the members thereof have secretly agreed with the Potlatch Lumber Company to sell, grant and convey to the company, to the exclusion of all other persons, “under the guise of said pretended auction, the said lands hereinbefore described, and to include in the deeds of said lands to said company a clause
At the hearing of this matter, the attorney general produced copies of the records of the proceedings of the lana board, and subsequently the attorneys for the petitioner filed a statement to the effect that at the time of the commencement of this action the record had not been extended, and that they consequently had no sufficient knowledge or information as to what the real facts were, and hence the' foregoing allegation. “That it is not now the intention of the petitioner to offer any evidence in this matter in proof of paragraph 12 of his said petition, or any part thereof, other than the records, files and agreements in regard to said matter, appearing in the office of the said defendant board, which will tend to show that the defendant board, or any of its members, had agreed with the Potlatch Lumber Company, or any other person, to reject any bid which might be made, which was higher than the bid of said Potlatch Lumber Company, or to do anything to prevent any person from bidding at said proposed sale, or to sell the lands therein described to the said Potlatch Lumber Company, in case there should be a higher bidder at such sale for the same.” The foregoing statement is followed by the statement that the petitioner will rely on the record and files of the land board to show that the proposed sale was not in accordance with the requirements of the law.
It is further alleged by the petitioner that by reason of the possession of the lands by the Potlatch Lumber Company under their leases, and on account of the fact that the lands
The questions raised are: (1) Does the prohibition contained in sec. 8, art. 9 of the constitution against selling more than “twenty-five sections of school land” in any one year apply only to sections 16 and 36, granted for the use of the public common schools, or does it include all lands-granted to the state by the general government for “educational purposes” of all kinds? (2) Are the lands involved in this case “timber lands” within the meaning of secs. 1580 and 1599, Rev. Codes, and was the notice of sale sufficient under the requirements of those sections? (3) Is the proposed sale contrary to the public policy of the state?' (4) Can the state land board constitutionally sell state lands during the term of a lease of the same lands and during a period for which the right of occupation and possession is in a lessee or grantee of the state?
We will consider these questions in the order in which they are presented.
1. Article 9 of the constitution deals with the subject of “Education and School Lands.” At the time of the adoption of the constitution there had been granted to the territory seventy-two sections of land for university purposes.. By sec. 1946 of the Revised Statutes of the United States, Congress had also provided that secs. 16 and 36 in each township within the territories of New Mexico, Utah, Colorado,. Dakota, Arizona, Idaho, Montana and Wyoming should be-“reserved for the purpose of being applied to schools in the.
Again, in course of the debates on the amendment to sec. 8, art. 9, Governor McConnell said: “Now, this refers to school lands, — this entire section. We have other lands, and will have large quantities of school lands provided for educational purposes, and I think in this section we should not lose sight of them. There should be as well a similar limitation placed upon university lands, and there will be doubtless some lands donated to this state for agricultural purposes, and there is no provision as to their protection or how they shall be sold, no limitation as to condition or quantity or time at which they shall be sold, and I don’t think we should lose sight of those.”
In answer to a question propounded by Mr. Mayhew, if his amendment would refer to university lands or any other lands, Mr. McConnell said: “It limits it to school lands.”
In considering the question as to whether the words “school lands” as embodied in the last sentence of see. 8 refers only to sections 16 and 36 or to all lands granted to the state for educational purposes, it is well to briefly notice some of the preceding provisions of the same article. By sec. 1, of art. 9, the constitution guarantees a “system of public, free common schools.” There can be no doubt but that the “public, free common schools” here mentioned means the free school system which has been generally adopted in this country, and has specific reference to the district schools throughout the state established for the training and instruction of the youth of the state in the primary and elementary branches of learning.
Passing to see. 2 of the same article, it is provided that “the general supervision of the public schools of the state shall be vested in a board of education,” etc. “The public schools” referred to in this section were evidently the same as were provided for in see. 1, and meant the “public, free common schools.” Sec. 3 provides that, “the public school fund of the state shall forever remain inviolate and intact,” etc. The words “public school” as used in this section was
By see. 6 the framers of the constitution became somewhat more general and there provided that “no religious test or qualification shall ever be required of any person as a condition of admission into any public educational institution of the state, either as a teacher or a student,” etc. By the next sentence of the same section, it is provided that “no sectarian or religious tenets or doctrines shall ever be taught in the public schools, nor shall any distinction or classification of pupils be made on account of race or color.” By this section they evidently intended to cover not only “the public schools” but also all “public educational institutions of the state.”
It will be seen that the first five sections of this article are dealing with the “public, free common schools,” while
Section 7 takes up an entirely different subject. It provides for a state board of land commissioners, and designates the officers who shall constitute this board. This brings us to sec. 8, which reads as follows:
“It shall be the duty of the state board of land commissioners to provide for the location, protection, sale or rental of all the lands heretofore, or which may hereafter be, granted to the state by the general government, under such regulations as may be prescribed by law, and in such manner as will secure the maximum possible amount therefor: Provided, that no school lands shall be sold for less than ten (10) dollars per acre. No law shall ever be passed by the legislature granting any privileges to persons who may have settled upon any such public lands, subsequent to the survey thereof by the general government, by which the. amount to be derived by the sale, or other disposition of such lands, shall be diminished, directly or indirectly. The legislature shall, at the earliest practicable, period, provide by law that the general grants of land made by Congress to the state shall be judiciously located and carefully preserved and held in trust, subject to disposal at public auction for the use and benefit of the respective objects for which said grants of lands were made, and the legislature shall provide for the sale of said lands from time to time and for the sale of timber on all state lands and for the faithful application of the proceeds thereof in accordance with the terms of said grants: Provided, that not to exceed twenty-five sections of school lands shall be sold in any one year, and to be sold in subdivisions of not to exceed one hundred and sixty (160) acres to any one individual, company or corporation.”
It will be observed that see. 8 is general in its provisions, and has reference to “all the lands heretofore or which may hereafter be granted to the state by the general government.” The power of location, protection, sale, and rental of these lands is vested in the state board of land commissioners. It will be noticed that the closing proviso of see.
This view, is reinforced by the provisions of see. 10 of the same article, wherein they were dealing specifically with the university, and it will be there noted that they did not consider that university lands were included within the term “school lands,” and that while they intended to limit the number of acres of university lands that might be sold to any one person, company or corporation, they did not desire to limit the number of acres that might be sold in any one year, and so they left out the limitation as to the amount of land that might be sold in any one year, in writing section 10, but repeated the limitation as to the number of acres that might be sold to any one person.
Again reverting to see. 3, it appears that what is designated as the “public school fund of the state” is required to be “ distributed among the several counties and school districts of the state in such a manner as may be prescribed by law.” Now, school districts are established only for the
2. It appears that in this ease the notices of sale provide for a payment to be made at the date of sale and the balance to be paid in sixteen equal annual instalments. It is contended by the plaintiff that the notice of sale was not in conformity with the statute, for the reason that under the provisions of sec. 1580, Eev. Codes, “timber lands and lands chiefly valuable for timber” must be sold for “cash on the day of sale,” and that under this provision a notice of sale providing for sixteen annual instalments would be invalid, while under sec. 1599, Eev. Codes, it is provided that “timber and timber lands belonging to the state of Idaho may be sold by the state board of land commissioners, at their option, upon payment of instalments of the purchase-price thereof as follows: Twenty per cent of the purchase price thereof must be paid at the time of purchase, and the balance of such price in from ten to twenty equal annual instalments, with annual interest thereon at the rate of six per cent per annum payable in advance; the number of instalments to be fixed by the state board of land commissioners at the time of purchase.” It is insisted by the plaintiff that under this latter statute the notice would be invalid, and that consequently no legal notice was ever given. It is
There is no doubt in our minds but that the- lands proposed to be sold are timber lands within the meaning of both-, sections 1580 and 1599, Rev. Codes. Counsel seem to be in-doubt as to which of these sections is applicable.- at the pres- ■ ent time on the subject of sales for cash and’ instalments, on timber lands. There is a direct conflict between the two* sections, and in that view of the case we hold that the latter - section, 1599, prevails. Sec. 1580 was adopted in 1905 (1905 Sess. Laws, 131); sec. 1599 was enacted' two years; later (1907 Sess. Laws, 193). It is true that- both of these sections of the statute were again re-enacted and’ adopted at the same time in the Revised Codes at the 1909 session of" the legislature. Notwithstanding that fact, we take notice-of times and conditions under which the two. statutes, were.
It is next contended by counsel, who appear as amici curiae, that the defect in the notice of sale cannot avoid or invalidate the sale so far as the state is concerned. In view of the fact that sec. 1599 authorizes the land board to sell such lands for twenty per cent cash and the balance in instalments of from ten to twenty years, as may be fixed by the board, we fail to see how the notice given in this case would avoid or invalidate the sale in the event bidders appear and submit bids and are willing to comply with the terms of the statute. The state could not suffer. It is probable that if the notice does not clearly state the terms on which the sale will be made, that a purchaser would not be bound by a bid, but that is a question which does not confront us in this case. It is true that notices should in all cases conform to the statute and the order of the board, but we cannot see how the defect in this case would afford grounds for restraining the sale.
3. It is next contended that the proposed sale is contrary to the public policy of the state. It is said by counsel for plaintiff in their brief that ‘ ‘ On the grounds of public policy this sale should be held invalid unless it is such as is clearly authorized by the constitution and statutes of the state. The state lands have never been classified, and while it may be true that the lands involved in this sale are worthless for agricultural purposes and perhaps of small value for grazing purposes, they are useful for the purpose of protecting the watersheds of the state and conserving the water supply for the irrigation of the arid agricultural portions, and, further, as there is no classification of our state lands by legislation or otherwise, if the state board can dispose of several thousand acres of these lands, apparently worthless for agricul
4. It is contended that under the terms of sec. 8, art. 9, which provides that it shall be the duty of the state board of
Some reference has been made to the resolution which the board passed requiring certain concessions of the Potlatch Lumber Company in the event it should be the highest bidder, and also to the terms of the agreement the board required the agent of the company to enter into before it would order the property sold. This resolution would appear to be clearly
It has also been argued that no one else can bid against the lumber company for so large a tract of land, and that no one will bid against the company where i¿ is in possession of the land and has a right of possession for something like eleven years yet and has its timber standing on the land. This may or may not be true. We are not prepared to say. It may be that no one else would bid against the company or that no one would feel justified in doing so. It may be, on the other hand, that the company would pay a larger price for this land in order to own the fee and avoid the necessity of removing the timber within the next eleven years than'any
We find nothing in the action of the board that is repugnant to the constitution or statute of the state. The alternative writ will be quashed and the proceeding is dismissed, with costs in favor of the board.