95 F. 864 | 8th Cir. | 1899
after stating the case as above, delivered the opinion of the court.
This is a suit to avoid a patent issued to the Northern Pacific Railroad Company, the appellee, by the land department of the United States. The land department is a quasi judicial tribunal, and a patent is the judgment of that tribunal upon the questions presented, and a conveyance in execution of the judgment. When it is attacked, two questions are presented. They are: Did the department have jurisdiction to issue the patent and to determine the questions which
The other question is: Was this patent void because the decision upon which it was based was induced by error, fraud, dr mistake of fact? A court of equity has the power to set aside such a patent in a case in which the action of the department has resulted from a clear error of law. Bogan v. Mortgage Co., 27 U. S. App. 346, 350, 11 C. C. A. 128, 130, and 63 Fed. 192, 195, and cases there cited. Its decision of a question of fact, however, is conclusive, even in a direct proceeding to set aside the patent, unless it is first made to appear clearly that its adjudication was caused by a plain mistake or was induced by fraud or perjury. There is no general appeal from the officers of the land department to the courts; and the latter cannot review the decisions of questions of fact rendered by those officers in the absence of convincing proof that they were induced by fraud or mistake. U. S. v. Mackintosh, 56 U. S. App. 483, 490, 29 C. C. A. 176, 179, and 85 Fed. 333, 336; U. S. v. Budd, 144 U. S. 154, 168, 12 Sup. Ct. 575; Diller v. Hawley, 48 U. S. App. 462 , 472, 26 C. C. A. 514, 518, and 81 Fed. 651, 655. The averment of the bill in this case is that the officers of the land department by mistake conveyed ’the land here in question to the Northern Pacific Railroad Company, under the erroneous belief that it was within the grant made to that company by its charter, the act of July 2, 1864 (13 Stat. 365). It is, however, conceded that if the eastern terminus of the railroad is in the city of Ashland, in the state of Wisconsin, this land was properly patented, and the real claim of the government is that the land department was mistaken in holding that Ashland was its eastern terminus, when it should have held that this terminus was at Duluth, or at Thomson, in the state of Minnesota, or at Superior, in the state of Wisconsin. In reaching the decision which- resulted in the issue of this patent, the land department must have decided two questions, one a question of law, — whether or not the railroad company had the right under its charter to select Ashland as its eastern terminus; and the other a question of fact, — whether or not it did so select it. We will first consider the question of law.
Let us now return to the question. Did the act of 1804 authorize the railroad company to select Ashland as its eastern terminus? Section 1 of that act empowered the corporation “to lay out, locate, construct, furnish, maintain, and enjoy a continuous railroad and telegraph line, with the appurtenances, namely, beginning at a point on Lake Superior, in the state of Minnesota or Wisconsin; thence westerly by the most eligible railroad route * * * to some point on Puget’s Sound.” The city of Ashland is in the state of Wisconsin. It ig on Lake Superior. It has a harbor fit for the terminus of a great railroad. The terms of the act are plain, and argument and exposition can add nothing to this statement. Since the eastern terminus of the road was not fixed by the act, and the charter gave the railroad company the unlimited'power to locate it at any point on Lake Superior in Minnesota or Wisconsin, the conclusion is irresistible that the power to locate it in either state, and at any suitable city on the lake in either of these states, and hence to locate it at the city of Ashland, which has a safe and capacious harbor, and is an eligible point, was conferred upon the company by this charter. It is doubtful whether this power would ever have
The second question is: Did the land department make a mistake of fact when it found that the Northern Pacific Company actually selected Ashland as its eastern terminus? It will be conceded in the discussion of this question that the corporation could make but one selection, and that when it once made its choice its power in that regard was exhausted. But there were three essentials to a valid selection. They were a deliberate intention on the part of the company to make the choice, the clear expression of that intention to the land department of the United States, and the acceptance and approval of that selection by that department. There was no time fixed by the charter for the making of this choice short of that named for the completion of the road, and until the selection was made, and accepted by the government, the company undoubtedly liad the same right to form and change its intention in this respect that it had relative to the definite location of the line of its railroad. In Land Co. v. Griffey, 143 U. S. 32, 39, 12 Sup. Ct. 304, Mr. Justice Brewer, in delivering the opinion of the supreme court, relative to the right of a company under a similar grant to change its intention as to the line of its railroad, said: “The fact 1hat the company has surveyed and staked a line on the ground does not conclude it. It may survey and stake many, and finally determine the line upon which it will build by a comparison of the cost and advantages of each; and only when, by filing its map, it has communicated to the government the knowledge of its selected line, is it concluded by its action.” And in the later case of Railroad Co. v. Smith, 171 U. S. 260, 264, 267, 18 Sup. Ct. 794, that court held that this company had the right to change the location of its right of way and the line of its railroad from that marked on its map of definite location at any time before the commissioners examined and approved the constructed railroad. No reason occurs to ns why the company had not a similar right in the matter of the se
It is contended by the counsel for the government that by the acts and contracts recited in the statement which precedes this opinion the Northern Pacific Company exercised its power of selection, and thereby (1) fixed the eastern terminus of its railroad at Duluth, in the state of Minnesota; (2) fixed that terminus at Superior City, in the state of Wisconsin; and (3) that by its delay until 1884 it forfeited its right to locate that terminus at Ashland. The fact remains, however, that the company never expressed to the land department any intention to select either Duluth or Superior as its eastern terminus, and that every map, plat, and communication which it sent to the government indicated its purpose to fix that terminus at least as far east as the city of Ashland. The letter and map of Perham, the president of the company, in 1865, with the letter of the secretary which transmitted the map to the commissioner, notwithstanding the wavy mark over the original line of the route, constitute convincing evidence that the line on that map which Perham marked terminated at the mouth of the Montreal river, on the eastern boundary of the state of Wisconsin, 20 miles east of Ashland, and at least 80 miles east of Superior and Duluth. We say these letters constitute convincing evidence of this fact, because the letter of Perham declares that the line extends from a point in Wisconsin and the letter of the
It is earnestly contended by the counsel for (he government that by the agreements and deed recited in the statement preceding this opinion the Lake Superior & Mississippi Railroad Company “consolidated, confederated, and associated” in 1870 and 1872 with the Northern Pacific Railroad Company, under the second proviso of section 3 of the latter’s charter, and that by this act, and by operating its trains over the 26 miles of railroad of the Lake Superior & Mississippi Company from Thomson to Duluth during its construction period from 1872 to 1886, the Northern Pacific Company selected Duluth as its terminus, and thereby exhausted its power to choose. The 26 miles of railroad which extended from Thomson to Duluth was less than one-fifth of the railroad of the Lake Superior & Mississippi Coinjjauy, and it extended from Thomson, whence the Northern Pacific Company was constructing and operating its railroad westerly, in a northeasterly direction to Lake Superior at Duluth. The Northern Pacific Company had no railroad to the lake. It had undertaken a difficult, burdensome, and gigantic task, and a railroad down the broken and rocky hill from Thomson to Lake Superior was exceedingly difficult to construct, and expensive to maintain.
It is said that the agreements and deed between the two companies must have been a consolidation, confederation, and association, because the Northern Pacific Company had no power to make those agreements, or to accept that deed, except under the consolidation
Nor do these contracts, this deed of the undivided half of that railroad, and the operation of the railroad under them constitute an exercise of the power conferred by that proviso. It was only “on the terms named in the first section of the act” that this consolidation, confederation, and association could be made, and it could only be made by a consolidation of the Lake Superior & Mississippi Railroad Company into the Northern Pacific Railroad Company, not by a consolidation of the Northern Pacific Company into the Lake Superior & Mississippi Company. These restrictions upon this consolidation, confederation, and association mark one of the primary objects, and insure the accomplishment of one of the great purposes, of the charter, namely, that a single corporation, the corporation created by that charter, should, in the end, own and operate a continuous railroad from Lake Superior to Puget Sound, and be subject to the call of the government to transport its mails, its troops, and its munitions of war, and to discharge the other duties imposed by the act. The government did not make this land grant or propose to confirm or convey it to the lessee or part owner of the disjointed fragments of other railroads, but to the owner of an entire continuous railroad. It was to this end that congress studiously inserted in this proviso, not
In this connection the a ttention of the court has been challenged to the fact that by the agreement of July 9, 1870, the Northern Pacific ‘ Company contracted to make its first connection east from Thomson by way of the road of the Lake Superior & Mississippi Company, and agreed not to build any other road east of that railroad north of Wyoming before it completed its road to the Missouri river; to the fact that in the deed of January 1, 1872, there is a recital that the Northern Pacific Company is authorized to construct and operate a railroad which would run to Duluth, and terminate at a point adjoining the terminus of the Lake Superior & Mississippi Railroad, and that it had agreed to purchase'an undivided half of the railroad of that company from Thomson to Duluth, “to the end that, the necessity for the construction of the said Northern Pacific Railroad from the said point of connection to the city of Duluth may be obviated”; to the fact that the Northern Pacific Company operated its trains over this railroad for 14 years; and it is urged that these facts proved the intention of the company to make Duluth the eastern terminus of its railroad. It is at ieast doubtful whether or not these facts fairly indicate such an intention, for it will be noticed that the agreement not to construct a railroad east of the Lake Superior & Mississippi
The next proposition of the United States is that the construction of the railroad from Thomson to the city of Superior in 1881 and 1882 fixed the eastern terminus of the road of the Northern Pacific Company at the latter city, and limited the land grant to that portion which pertains to the road west of that city. This position rests upon the theory, which in an earlier part of this opinion has been shown to be unsound, that the corporation was limited in its selection to the most westerly eligible point on Lake Superior, or to the point on that lake to which its railroad was first constructed. The charter contained no such limitation. It gave the company the unlimited right to choose any eligible point on .the Ialíe in the state of Minnesota or in the state of Wisconsin.
It is contended by counsel for the appellant that the Northern Pacific Company forfeited all its land grant pertaining to that portion of its. railroad east of Thomson because it did not build this portion of its road, or file any map of definite location of that part of its line, or select Ashland' as its eastern terminus, until after July 4, 1880. The argument here is based on section 8 of the charter, which provides that "each and every grant, right and privilege herein are so made and given to, and accepted by said Northern Pacific Railroad Company upon and subject to the following conditions,” one of which, as amended by the subsequent joint resolutions, is that the company shall construct, equip, furnish, and complete its-entire road by the 4th day of July, A. D. 1880. 14 Stat. 355; 15 Stat. 255. On July 4, 1880, that part of the railroad east of Thomson and that part of it west of Wallula, in the state of Washington, Avere not constructed. They have since been built, examined, and accepted. It is too well settled, however, to admit of discussion, that the fact that these portions of the railroad were not completed on July 4, 1880, did not ipso facto forfeit or impair any of the rights or privileges granted by this charter. The grant was in prtesenti, and the condition was a condition subsequent, which was ineffective until by act of congress, or by the decree of a court of competent jurisdiction in a direct proceeding for that purpose, a forfeiture was declared. St. Paul & P. R. Co. v. Northern Pac. R. Co., 139 U. S. 1,
It is said, however, that, if this condition was subsequent, still it was not complied with, and that this fact furnished good ground for the avoidance of this patent. Attention is called to the fact that, (he lime for the completion of the road had expired long be-fóle the map of definite location of the line east of Thomson was tiled on July 3, 1882, long before the eastern terminus of the road was located at Ashland by the resolution of December 3, 1884, and long before a mile of the railroad east of Thomson was constructed; and it is insisted that by the expiration of the time fixed for the coufiraction the company lost, its right to locate or construct that portion of the railroad east of Thomson, and its right to select its eastern terminus. There are two answers to this proposition which seem to us conclusive. In the first place, this is not a suit by the railroad company for the specific performance of the contract evidenced by its charter, and for a conveyance of this land. The United States is not defending such a suit on the ground that the railroad company lias not performed its part of the agreement in time. The railroad company is asking no relief. This is a suit in equity, brought by the government itself to set aside the solemn judgment and conveyance of the quasi judicial tribunal to which it intrusted
In the second place, when the corporation presented its map of definite location to the land department in 1882, and its selection of its eastern terminus in 1884, the only objection to their acceptance was that they were out of time. But the United States had the right to waive this objection, and to approve the location and selection notwithstanding this fact:, and when it did so, and the road was constructed in reliance upon it, that waiver was irrevocable. The government intrusted the power and imposed the duty to consider and determine whether or not this waiver should be made to the officers of the land department, and they waived the delay, and approved the location and selection. These adjudications'of this department stand unchallenged. No appeal was taken from them. They have not been set aside for fraud, error, or mistake. They therefore have all the force of judicial decisions, and conclude the question. Hartman v. Warren, 40 U. S. App. 245, 250, 22 C. C. A. 30, 33, and 76 Fed. 157, 159, 160; Bogan v. Mortgage Co.. 27, U. S App. 346, 350, 11 C. C. A. 128, 130, and 63 Fed. 192, 105; Railway Co. v. Sage, 36 U. S. App. 346, 350, 17 C. C. A. 558, 567, and 71 Fed. 40, 49.
Finally, the counsel for the government calls attention to the facts that the line of the railroad of the Portage, Winnebago & Superior Bailroad from Bayfield to Superior was on the same general route as that of the Northern Pacific Company, that the grant to the former company antedated the grant to the appellee (13 Stat. 67), that the Portage Company filed the map of definite location of its line from Bayfield to Superior on November 10, 1869, that the grant to the ap-pellee overlaps this earlier grant to some extent, and that the lands covered by the earlier grant were withdrawn from entry, and remained so withdrawn, until after the appellee filed its map of definite location of this part of its line on July 6, 1882; and he suggests that the legal effect of these facts is — First, that under section 3 of the charter of the Northern Pacific Company its grant was diminished by the amount of lands within the limits of the grant to the Portage Company; and. second, that, all the lands within the limits of the grant to the Portage Company were excepted from the grant: to the appellee. Upon examination of the record, however, we find that it is impossible to determine from the facts before us what: the effect of these contentions, if sustained, would be, or whether or not they would have any effect upon the right of the appellee to the particular tract of land here in question. The case has evidently not been tried with any reference to their consideration. We therefore dismiss them with the remark that our silence does not indicate in any way the inclination of our minds concerning their soundness.
Our conclusion upon the facts of this record is that the Northern Pacific Bailroad Company never selected any other place than Ash-
The questions presented in this case are of considerable moment although the quantity of land involved in this particular suit is. small. It is important to settlers and occupants of the lands within the limits of the grant to the Northern Pacific Company between Thomson and Ashland, to the United States, and to the railroad company that the title to these lands should be quieted, and that doubts and fears concerning it should be dispelled. For this reason we have been constrained to examine and.consider all the facts in the record before us, to decide the question of fact whether or not the company selected Ashland as its eastern terminus, on its merits, regardless of previous adjudications, and to briefly state the reasons which have led us to the conclusion we have announced. We are all of the opinion that the company duly selected Ashland. If, however, we had been led to give a different answer to this question of fact, the decree below could not have been reversed, or the patent in question set aside, in this case. The question what place the company actually selected as the eastern terminus of, its railroad was a question of fact, which was necessarily decided by the land department when it issued the patent; and while the question of law whether or not the company had the right to select that point under its charter may be reviewed by the courts, this question of fact is not open to their consideration, until it is first made to appear that the decision of this question by the land department was induced by fraud or mistake. There is no claim that it was caused by fraud. One who would* attack a patent for a mistake of fact in the decision of the questions which condition its issue must distinctly plead and clearly prove the evidence before the land department from which the mistake resulted, the particular mistake that was made, the way in which it occurred, and the fact that, if it had not been made, the decision would have been otherwise, and the patent would not have issued, before any court can enter upon the consideration of any issue of fact determined by the department. U. S. v. Atherton, 102 U. S. 372, 374; U. S. v. Budd, 144 U. S. 154, 167, 168, 12 Sup. Ct. 575; U. S. v. Mackintosh, 56 U. S. App. 483, 490, 29 C. C. A. 176, 179, and 85 Fed. 333, 336; U. S. v. Throckmorton, 98 U. S. 61, 66, 68; Marquez v. Frisbie, 101 U. S. 473, 476. There was no plea or proof of this character in this case. The only averment of mistake in the bill is that the ministerial officers of the United States, “through inadvertence and mistake, conveyed by patent the above-described land to the Northern Pacific Railroad Company under the erroneous impression and mistaken belief that the said tract was lying and being within the limits of the aforesaid grant to said-Northern Pacific Railroad Company,” and there is no evidence whatever upon this subject. It does not appear in the bill or in the