United States v. Saint John's Gas Co.
United States v. Saint John's Gas Co.
Opinion of the Court
delivered the following opinion:
This is a plain suit in ejectment. It has been on the docket a little over four and a half years, having been filed on April 26, 1905. It was tried before the court and a jury in February, 1906, when, at the end of the cause, on motion of the plaintiff, the court, by a former incumbent of this bench, instructed the jury to find for the plaintiff, because, as alleged, the proofs of the defendant at best showed only an equitable title, which could not prevail against the alleged legal title of the plaintiff.
After opposition thereto, the defendant then amended its pleadings in several respects at different times up to the date of the second trial. The parties, by a proper stipulation, entered in open court, waived a jury, and submitted the whole matter to the court for decision on the merits and on all points of law and fact. After considerable delay, a trial was had in the forepart of January, 1909, when a large amount of oral evidence was taken and a large number of exhibits were introduced in evidence. The exhibits consisted mostly of letters, expedientes, records, and papers from the insular archives, and from the archives of the city of San Juan. The evidence alone, when transcribed, made about 113 typewritten pages. At the end of the trial, counsel for the respective sides, in addition to having, during the trial, each at the proper time moved for a verdict and, judgment in favor of their respective clients, argued the case orally at length, and thereafter, within the next few months, each filed elaborate and painstakingly written arguments and briefs. These hriefs are unusual in that they consist almost entirely of references to Spanish royal decrees and edicts, and the citation of Spanish and American decisions and
The suit is-for a small tract of land consisting of seven distinct lots and containing a total area of 5,860 square meters. It is situated adjoining the present United States Naval Station in the center of what is known as the “marina,” on the land projection that juts south into the bay of San Juan, Porto Pico, opposite the main portion of the city.
Defendant’s rights, if any, as to the easterly tiér of lots numbered 33, 34, and 45 began at a “remate” or sale thereof, under direction of the then Spanish authorities, which took place on May 22, 1854; and its rights, if any, as to the westerly tier of lots numbered 30, 32, 35, and 46 began at a similar sale, which took place about two years later, on January 18, 1856. The defendant, by itself and its predecessors in interest, claims to have been in exclusive, open, notorious, and uninterrupted possession of all the lots and tract of land mentioned from that time forward for fifty-one and fifty-three years, respectively, up to the time of the filing of this suit, in 1905, and claims that it still is so in possession thereof. That during all of such time and up to the time of the filing of the suit, it had paid an annual canon or censo of five per cent of the appraised value thereof to the Spanish authorities, which it claims now easily amounts, with interest added, to more than $50,000, gold; and that it did, shortly after the commencement of this suit, pay an additional censo or canon into the registry of this court for the use of plaintiff, and is now ready and willing to pay those that have accrued since.
The defendant’s claim is that it is rightfully in possession of this land, holding the same by an indefeasible censo redimible, or what we would call a “free-farm” or ground-rent title
On the other hand, the United States claims that the property in question stood registered in the name of the Spanish g-overnment at the time of the cession of Porto Rico to the United States, and had been for twelve or -thirteen years previously, and that under the treaty of Paris the title thereto passed to the United States, and that therefore the defendant is a mere tenant at will or a licensee, who can be ejected whenever the government needs the property for any purpose.
It was proved at the trial that the government, before filing this suit, through the naval authorities here at San Juan, notified the defendant that it wanted the land for the purpose off storing coal thereon, and that hence it is entitled to the possession.
It would not be profitable to quote and describe in detail all of the numerous and ingenious contentions made by counsel for the respective parties. To even set forth any considerable portion thereof would require much more time and space than we think is necessary, but the following statement of facts may suffice as to the situation.
It unquestionably appears from the evidence that about the time mentioned, 1854 to 1856, the Spanish authorities in Porto Rico caused the plot of land surrounding and including
About this time, 1853 — 4,—and this was probably what he desired to secure the land for, — he made a fifteen-year contract with the city of San Juan to build a gas plant on the ground in question, and supply gas therefrom to .the city. His contract with the city provided that the whole plant and its appurtenances should become the absolute property of the city after the fifteen years. In 1859, about five years after making this contract with the city of San Juan- Gustavo Steinacher died and left a will which was introduced in evidence, by which he made his only son, Julio E. Steinacher, then just of age, his sole and universal heir, who succeeded to all of his rights in and to the plant in question. In about the year 1814, the contract with the city expired, and Steinacher Junior turned the plant over to the city. The city conducted the plant for a couple of years itself, but failing to make a success of it, gave it back to Steinacher Junior, and the latter continued it for a number of years, until finally an Englishman by the name of Bower came on the scene, and bought out Steinacher’s rights, and then had all the latter’s rights in the plant conveyed to himself, with a view to organizing a company, which he shortly afterwards did in London, which he capitalized at £30,000, or, at least, it paid that much
We gather from all the testimony, which is undisputed, that no one ever objected to this arrangement; that all of the prede
There was a large number of exhibits introduced in the way of royal edicts on both sides of the controversy, which it is claimed show that this land, being within the military zone, could be taken away from the defendants at any time without compensation, etc.; but after a careful examination of them all we do not see that that point has been established. We have read the written briefs and arguments from beginning to end on both sides of the case with great care, and cannot see that the transaction between the parties was anything else than as claimed by the defendant; that is, that they have this land in perfect title á censo redimible, which, as we find the law to be, is a perfect title subject to this annual ground rent. It is strenuously argued on the part of the government that a censo redimible always originates in a written instrument. We think that the offer of Steinacher, which was in writing, to accept the offer of the government which was made to the public at the “remates” or sales, forms, in and of itself, a complete contract between the parties, and they acted on it for more than half a century thereafter. It is common knowledge, for which it is not necessary to cite authority, that a grant will be presumed from the government when a defendant has been in adverse possession of land for a long period of time. See United States v. Chaves, 159 U. S. 452, 40 L. ed. 215, 16 Sup. Ct. Rep. 7. This is a Eew Mex
It also developed that Congress, on July 1, 1902 (32 Stat. at L. 731, chap. 1383), passed an act wherein it was provided that the President of the United States should make certain reservations of property needed for the purposes of the national government in Porto Rico, and granting the balance of. such property in the island to the people of Porto Rico or the insular government. In June, 1903, the President issued two proclamations (33 Stat. at L. 2314, 2315) to carry out the intent of this act, and in and by said proclamations reserved lands for naval purposes, which included the land in controversy. This is also claimed to fix the rights of the government. It will not, of course, be contended that the intention was by this act to violate the treaty of Paris in any manner, or to deprive any person of
From what we can gather from the evidence, the holders of this property have spent upon it the sum of money paid for censos or rents aforesaid, and in addition, have, from time to time, put buildings thereon that have in all cost anywhere from fifty to eighty thousand dollars, and the buildings thereon at the present time, while in an extremely bad state of preservation, are still worth several thousands of dollars.
We of course admit, as stated in our opinion in La Compañía de los Ferrocarriles v. Rohrer, 4 Porto Rico Fed. Rep. 148, that any title which was good and which could be enforced against the government of Spain immediately before the date of the treaty of Paris is still good and will be enforced after American occupation by our government.
In the first trial of this case, it is our opinion that the then incumbent of the bench, as he himself afterwards confessed, was in error in his holding that an equitable title could never be set up against a legal title in an action of ejectment, because it is our opinion that he ought to have gone further, and held that legal title in ejectment is not always sufficient to enable a plaintiff to recover, because he must, in addition to having the legal title, also be entitled to the possession. This is a case where, in our opinion, our government is not entitled to the possession. It is entitled to collect the rents annually until the defendant desires to redeem the principal, which we figure, judging from the censo paid into court, but not determining that as the proper amount, would be about the sum of $13,256, gold. It also goes without saying that our government can expropriate this land the same as it can expropriate any other land in the island of Porto Rico by proper proceeding in' that behalf.
We regret that notwithstanding we have given very considerable study to-this ease, and have looked into the Spanish dictionaries and authorities, particularly Escriche, Alcubilla, and Sanchez Homan, regarding their definitions of censo, censo redimible, censo al quitar, and other sorts of censos, as well as making an examination of the Trevino v. Fernandez Case in 13 Tex. 630—668, besides examining several cases that went from the court of private land claims from Hew Mexico to the Supreme Court of the United States, still we have not the time to write an opinion such as the importance of the subject warrants. Our regret in this regard, however, is somewhat lessened by the fact that if the cause is appealed, counsel will no doubt repeat before the Supreme Court of the United States their elaborate written arguments, citations, and briefs, which have been so profitable to us in the investigation we have made of the subject.
We are constrained to pass over without comment or notice many points considerably enlarged upon by the respective coun
We therefore find as matter of fact that the defendant is in possession of the land in controversy under and by virtue of a censo redimible, as stated, from the Spanish government; and further, we find as matter of law that the United States is not entitled in this proceeding to the possession of the land in controversy, and therefore judgment must be entered for the defendant, and it is so ordered.
Reference
- Full Case Name
- UNITED STATES v. SAINT JOHN'S GAS COMPANY, LTD.
- Status
- Published