Opinion
No. 54.
Submitted November 4, 1904. Decided December 12, 1904.
Where it does not appear that one claiming to have entered land prior to its withdrawal under a land grant act had done all that was possible to perfect his entry, and had either taken possession or otherwise not acquiesced in the decision, the attempted entry is not sufficient to take the land from jurisdiction of the Secretary of the Interior so as to prevent him from certifying it under the grant as unappropriated lands of the United States. Under the acts of 1887, 24 Stat. 556, and 1896, 29 Stat. 42, the title of one who holds under the railway company as a bona fide purchaser and is in actual ignorance of any defect in the company's title, will not be affected by any constructive notice of such defect with which a purchaser might be chargeable. Where an entry had been abandoned prior to certification of indemnity lands by the Secretary of the Interior to a State for the benefit of a railroad company under a land grant, the land is unappropriated land of the United States and can be certified under the grant, and the certification will not be set aside in favor of one who attempts to enter the land as a homesteader after the lands have been selected by the railroad company to make up a deficiency in place lands.
Mr. Assistant Attorney General Purdy for the United States, appellant:
When the Government is a mere formal complainant in a suit, not for the purpose of asserting any legal right or protecting any public interest, title or property, but merely to form a conduit through which one private person can conduct litigation against another private person, a court of equity will not be restrained from administering the equities existing between the real parties by any exemption of the Government designed for the protection of the United States alone. United States v. Beebe, 127 U.S. 338.
The court below failed to give the proper effect to the act of March 3, 1887, 24 Stat. 556. As to this statute, see United States v. Winona c. R.R. Co., 67 F. 969; Ore. Cal. R.R. Co. v. United States, 189 U.S. 103. If there were any laches they were laches of officers of the United States and not of Donovan. Kelly v. Boettcher, 85 F. 55, 62.
The lands in the indemnity limits of the grant were not withdrawn from market on September 10, 1866, and the cancelation of Barkley's entry on January 14, 1868, restored the 80-acre tract in controversy to market, and subject to entry by the first legal applicant. Where a tract of land in the place or granted limits is subject to a homestead or preemption claim at the date of the grant, it is thereby forever excepted from the grant. Bardon v. Northern Pacific Railroad Co., 145 U.S. 535. Where land along the indemnity limits of a railroad grant is subject to a homestead or preemption claim at the time of the grant, which claim is afterward canceled, the land then becomes subject to selection by the railroad company or any other legal applicant. Ryan v. Railroad Co., 99 U.S. 382; Wisconsin Central R.R. Co. v. Price County, 133 U.S. 496, 511; Hewitt v. Schultz, 180 U.S. 139.
Where Congress provides for the withdrawal of lands from market, any withdrawal contrary to such provisions is absolutely void. Northern Pacific v. Davis, 19 Land Decisions, 87; Atl. Pac. R.R. Co., 6 Land Decisions, 84, 87; St. P., Minn. Man. Ry. Co. v. Iverson, 14 Land Decisions, 79.
Where a homestead or preemption claim has attached to land, such land is thereby segregated from the public domain, and for the time being is withdrawn from the jurisdiction of the Secretary of the Interior and the Land Department, and so continues until the entry is canceled. So. Pac. Railway Co. v. Bell, 183 U.S. 675; Ore. Cal. R.R. Co. v. United States, 189 U.S. 103.
Donovan's application to the local land office to enter the land was, under the facts in the case, equivalent to a legal entry.
Where a party applies to enter, under the homestead or preemption laws of the United States, a tract of land which is subject to be so taken, and he is qualified to thus acquire the same, and his application is erroneously rejected by the Government officials, his right thereto attaches just the same as though his application had been allowed; and if he continues in possession and complies with the law so as to be entitled to a patent, he acquires a vested interest of which he cannot be deprived even by an act of Congress. Shepley v. Cowan, 91 U.S. 330; Ard v. Brandon, 156 U.S. 537, and cases cited; Weeks v. Bridgman, 159 U.S. 541; Tarpey v. Madsen, 178 U.S. 215; Goodale v. Olney, 12 Land Dec. 324; Coder v. Lotridge, 12 Land Dec. 643.
As Donovan had complied with all the requirements of the law, including payment for the land, to entitle him to a certificate and patent for the same, he thereby acquired a vested interest in the land of which he could not be deprived by any act of Congress. Gonzales v. French, 164 U.S. 338, 346.
Where a party has paid for the land and has complied with the law for the acquisition of the same he thereby becomes the absolute owner, and may deal with the same as his own, and the same is subject to taxation, although he may not have received his patent therefor. In such case the Government merely holds the legal title in trust for him. Carroll v. Safford, 3 How. 441; Astrom v. Hammond, 3 McLean, 108; Carroll v. Perry, 4 McLean, 26; Ross v. Supervisors c., 12 Wis. 38; People v. Shearer, 30 Cal. 645; Newkirk v. Marshall, 10 Pac. Rep. (Kan.) 571; Hawley v. Diller, 178 U.S. 476.
Donovan's entry and occupation of the lands in controversy and cultivation of the same up to 1871, with the purpose of entering the same as his homestead, had the legal effect of so withdrawing such lands that the officers of the Land Department had no authority to issue a certification to the State of Minnesota, and their acts in so doing with respect to this tract of land were void. Doolan v. Carr, 125 U.S. 618, 624, and cases cited.
A patent is but evidence of a grant, and the officer who issues the same acts ministerially and not judicially. United States v. Stone, 69 U.S. 525; Hawley v. Diller, 178 U.S. 476; Newkirk v. Marshall, 10 P. 571; Burr v. Greeley, 52 F. 926; Weeks v. Bridgman, 159 U.S. 541; Gertgens v. O'Connor, 191 U.S. 237.
As to who is a bona fide purchaser under the acts of 1887 and 1896, see United States v. Winona c. R.R. Co., 165 U.S. 463, 478; Colo. Coal I. Co. v. United States, 123 U.S. 307, 313; Murray v. Ballou, 1 Johns. 565, and cases supra. Mr. Burton Hanson and Mr. W.H. Norris for railway company, appellee:
Mr. Andrew C. Dunn for Woodwick and others, appellees:
The railway company has no proper relation to this suit; and no relation to the relief sought; it has no relation to the suit, except as having been mistakenly made defendant, and as having been as mistakenly joined in answer, as if properly impleaded.
The bill relates soley to one parcel of indemnity land and the cases cited as to the withdrawal of the Secretary being unauthorized are inapplicable. See Military Reservation, 6 Land. Dec. 18; Woolsey v. Chapman, 101 U.S. 768; Wood v. Beach, 156 U.S. 548; Dunmeyer Case, 113 U.S. 629; Winona St. Peters' Case, 165 U.S. 463, 473.
Donovan's attempted entry was illegal. Bullard v. Des Moines c., 122 U.S. 167; St. P. P. v. Nor. Pac., 139 U.S. 1, 18; United States v. Holmes, 105 F. 41.
Even where the entryman goes on the public land in good faith this fact would not justify ignoring the clear rights of the railroad company under the land grant act. Nor. Pac. v. Amacker, 175 U.S. 564; The Whitney Case, 132 U.S. 364; Norton v. Evans, 82 F. 804; Wagstaff v. Collins, 97 F. 3.
The cancellation of the Barkley entry immediately made this tract selectable by the railroad company. Ryan v. Railway Co., 99 U.S. 382, 388; United States v. Burlington c. R.R. Co., 98 U.S. 341; Hahn v. United States, 107 U.S. 402; Brown v. United States, 113 U.S. 568; United States v. Philbrick, 120 U.S. 62; Burr v. Greeley, 52 F. 926; United States v. Railroad Co., 67 F. 948, 954.
As to Woodwick's good faith, see Union Trust Co. v. So. Nav. Co., 130 U.S. 565; Jorgenson v. M. St. L. Ry. Co., 25 Minn. 206; United States v. So. Pac. R. Co., 184 U.S. 49.
Where the United States is a mere formal complainant as a conduit for litigation for a private person it cannot extend its immunity as a sovereign government to protect such individual. Curtner v. United States, 149 U.S. 662, 674; United States v. Beebe, 127 U.S. 338, 347; United States v. San Jacinto Tin Co., 125 U.S. 273, 284; United States v. Des Moines c. Co., 142 U.S. 510, 538; United States v. Bell Telephone Co., 167 U.S. 240, 265; Moran v. Horsky, 178 U.S. 205.
The court will administer the equities between Donovan and Woodwick and not permit the United States to protect Donovan and it will look back of the nominal and find the real parties. New York v. Louisiana, 108 U.S. 76.
Donovan, apart from the United States, has been guilty of laches himself. St.P. c. Ry. Co. v. Sage, 44 F. 315. See Minnesota Statutes, §§ 5134, 5136, 5817, of 1894; ch. 68, March 9, 1874; § 1, ch. 75, Gen. Stat., 1866.
A party by mere settlement upon public lands with intention to obtain title to same under the preemption laws, does not thereby acquire such vested interest in the premises as to deprive Congress of the power to dispose of the property, and notwithstanding the settlement Congress can reserve the lands from sale. Frisbie v. Whitney, 9 Wall. 187; Yosemite Valley Case, 15 Wall. 77, 82.
The Attorney General contends that before the passage of the act of Congress granting the land (July 4, 1866) Barclay had made legal entry upon the books of the local land office of the land in question, under the homestead laws of Congress, and that such legal entry was in existence at the time of the passage of the act of Congress of July 4, 1866; that by reason of such entry the land was excepted from the grant under that act, and that when Barclay abandoned his homestead claim upon the land it immediately became public land of the United States, and did not then pass under the grant to the State pursuant to the act of July 4, 1866, and it was therefore not legally withdrawn from market by any act of the Land Department, nor could it be certified to the State, and that the attempt to do so was not only erroneous, but absolutely void; that at the time when Donovan made application to enter the land, in June, 1868, it was part of the public lands of the United States, open to entry, and his application, although he had done all that he could, was wrongfully denied by the local land office; that thereafter the filing of the map of definite location by the railway company, and its selection of the land in question, and the certification of the land by the Secretary of the Interior to the State, and the conveyance by the State to the railway company, and the contract and conveyances following thereon, conveyed no interest in or title to the premises in question, but that they rightfully belonged to Donovan, and therefore the certification by the Land Department, etc., should be set aside, to the end that the land may be transferred to Donovan as demanded in the bill.
On the other hand, it is insisted on the part of the defendant Woodwick that the action of the Land Department officials in withdrawing the land in question from market was valid and within the jurisdiction of that department; that the selection of the land by the railway company was proper, as being within the indemnity limits of the grant by Congress, and that its certification by the Secretary of the Interior to the State was within the power of that officer, and the act was not, therefore, beyond his jurisdiction, and that his certification and the action of the State conveyed a good title, or, at any rate, that the defendant Woodwick was a bona fide purchaser of the land, and as such his rights were preserved under the act of March 3, 1887. 24 Stat. 556.
If Woodwick is protected under that act, as a purchaser in good faith, even against Donovan, it is unnecessary to pursue an inquiry as to the existence of any other defense. We are of opinion that Woodwick is protected under the fourth section of the act. The plain intent of that section is, as stated by Mr. Justice Brewer in delivering the opinion of the court in United States v. Winona c. Railroad, 165 U.S. 463, to secure one who in good faith and as an honest transaction purchases the land, and to leave to the Government a simple claim for money against the railroad. The justice said (pp. 480, 481):
"It will be observed that the technical term ` bona fide purchaser' is not found in this section, and while it is provided that a mortgage or pledge shall not be considered a sale so as to entitle the mortgagee or pledgee to the benefit of the act, it does secure to every one who in good faith has made an absolute purchase from a railroad company protection to his title irrespective of any errors or mistakes in the certification or patent.
". . . These being the provisions of the act of 1887, the act of 1896, 29 Stat. 42, confirming the right and title of a bona fide purchaser, and providing that the patent to his lands should not be vacated or annulled, must be held to include one who, if not in the fullest sense a ` bona fide purchaser,' has nevertheless purchased in good faith from the railroad company."
The counsel for the Government, while strenuously denying that the legal title to this land passed to the State of Minnesota, by virtue of the certification, in 1871, admits in his brief that if Woodwick bought the land as a bona fide purchaser in 1899, and acquired the legal title to the same, then at that present time not only was the right of the United States to recover the land defeated, but Donovan was precluded from thereafter asserting his claim to the land as against such bona fide purchaser. His denial that the legal title passed is based upon the contention that Donovan, before the year 1871, when the Secretary of the Interior certified this land to the State had, as stated by counsel, initiated proceedings to obtain this land in section 35 as a homestead, and had done all he could to make entry thereof, and had been in possession for three years before this certification, and that prior to 1871 an initiatory title had passed from the United States to Donovan by reason of his possession and offer to enter the land, and his payment of the fees and expenses to the local land officers, so as to prevent the passage of the legal title to the State, by virtue of the certification referred to, which, by reason of the acts of Donovan, was rendered wholly void. It is also asserted that if the United States, in 1871, did retain title in itself, notwithstanding Donovan's occupation and cultivation of the land, yet such occupation and cultivation withdrew the land from the jurisdiction of the Land Department, so far as any right or power to issue a certification to the railroad company was concerned, just as effectually as though the land had been reserved or otherwise appropriated specifically by an act of Congress.
We think that in 1871, when the certification was made, jurisdiction over this land remained in the Land Department, to be exercised by the Secretary of the Interior, notwithstanding the acts of Donovan as shown by this record. It is shown by the testimony of Donovan himself and of his witness Bullis, putting it all together, that there never was, in fact, any entry of this land at the local land office, in the name of Donovan, before the certification in 1871. The facts as to what took place at that office in regard to the applications of Donovan in 1867 before the Barclay entry was canceled, and in June, 1868, when the entry was made for the lot in section 26, are set forth in the statement of facts herein, and need not be repeated. The statement shows no such facts as put Donovan in the place of one who, having done all he could to enter the land, had been refused such entry, but had nevertheless not acquiesced in such decision and had taken possession of it as a homestead. On the contrary, Donovan did acquiesce in that decision and amended his application.
There was no entry made on the books of the local land office for this land under the amended application, and the power of the Secretary of the Interior to make the certification, even if we assume that it was erroneously exercised, was not an act which was beyond the jurisdiction of the Secretary. The legal title was thus transferred by the Government to the State, and at the most it was an erroneous certification within the meaning of the act of 1887. Although under such circumstances, if the certification were erroneous and might have been avoided and the land recovered back by the Government while in the hands of the railroad company, yet Woodwick, if a purchaser in good faith of the lands, was entitled to them under the provisions of the act. He had no notice, actual or constructive, of the claim of the Government in regard to this land. The record title was plain. No suit had been commenced when Ericksrud took his title from the Government and went into possession thereunder. He died within a week thereafter, and his heirs thereupon took possession. They were in possession when the Government commenced this suit, in 1893, but were never served with process therein until 1901, which was two years after Woodwick had purchased the property from them and had in good faith paid them the sum of $2,000 in cash for the land.
Counsel for the Government admits that it is futile to maintain that Woodwick had constructive notice of the defects in his title by reason of the pendency of this suit, which had been commenced by the Government in 1893, but in which the railroad companies alone had been served with process.
Whatever equities Donovan may have had as against the Government by virtue of his so-called attempt to make entry for the eighty acres in section 35, they do not override the plain provisions of the statute of 1887, and also that of 1896, 29 Stat. 42, which save the rights of one who purchased from the railroad in good faith.
As was observed by Mr. Justice Brewer, in the case already referred to, United States v. Winona c. Railroad, 165 U.S. at 480, "It matters not what constructive notice may be chargeable to such a purchaser if, in actual ignorance of any defect in the railroad company's title and in reliance upon the action of the Government in the apparent transfer of title by certification or patent, he has made an honest purchase of the lands."
Donovan is not brought within the case of Winona c. Railroad v. United States, immediately following the above cited case, at page 483, because, among other facts, it appears herein that there was no record of any entry in Donovan's case for this land on the books of the local land office, and it is conceded that he had been out of any possession of the land since 1885. The above cited case is not, therefore, in point. The same may be said of Duluth c. Railroad v. Roy, 173 U.S. 587, and Oregon c. Railroad v. United States (Nos. 1 and 2), 189 U.S. 103, 116.
Donovan cannot be regarded as having by his action secured a vested interest in this land, so as to make the certification to the State a wholly void act, as an act beyond the jurisdiction of the Secretary. Assuming that it may have been erroneous and voidable, it was not void. We do not decide it was erroneous. In 1871 the legal title, still remaining in the Government, was transferred to the State by the certification of the Secretary, and, as we have said, Woodwick occupied the position of a purchaser in good faith under the acts of Congress.
The judgment is
Affirmed.