Lake Superior Ship Canal, Railway & Iron Co. v. Cunningham
Opinion of the Court
From a careful examination of the record in this case, in the light of the able briefs submitted by counsel on both sides, the circuit judge has reached the following conclusions, viz.:
The act of congress approved June 3, 1856, by its express terms, contemplated and provided for the construction of several distinct and independent lines of railway. The grant was made to the state of Michigan, “to aid in the construction of railroads.” The lines of said railroads were designated, and among them wa.s that from Ontonagon to the Wisconsin state lino. The grant embraced “ every alternate section of land designated by odd numbers for six sections in width on each side of each of said roads.” It was further provided “that the lands so to be located shall in no case be further than fifteen miles from the lines of said roads, and selected for and on account of each ol' said roads,” and the lands 1 lius granted for the benefit of each of said roads were to “be exclusively applied in the construction of that road for and on account of which such lands are hereby granted, and shall be disposed of only as the work ] u-ogresses, and the same shall be applied to no other purpose whatsoever.” It is further provided by the third section of the act that the lands thus granted to said state should be subject to the disposal of the legislature thereof, for tlie purpose aforesaid, and no other. The manner of such disposition for each of said roads is prescribed by the fourth section of the act, and “if any of said roads is not completed within 10 years no further sales shall be made, and the lands unsold shall revert to the United Slates.” The legislature of Michigan, in accepting said grant, by the act approved February 14, 1857, clearly recognized the purpose and intent of congress to aid in the construction of separate and distinct lines of railroad. The benefits of the grant intended to aid in the construction of the railroad from Ontonagon to the Wisconsin state line wore vested in or conferred upon the “Ontonagon & State Line Railroad Co.,” organized under laws of the state, in 1856. In like manner the lands to be located along the other lines of road designated in the granting act were conferred upon other companies having a separate corporate existence from that of the “Ontonagon & State Line Railroad Co.,” and by the third section of the act “the lands, franchises, rights,” etc., thus conferred upon and vested in said railroad companies, or either of them, were to be exclusively applied in the construction of their respective line's of railroad as designated, and -were not to be applied to any other purpose whatsoever. Both by the granting act and the act of acceptance, each of said railroads were to be public highways. For each of said lines separate surveys and locations were made, separate maps therefor were filed in the interior department, separate selections of lands within the limits of the grant were made for each of the lines, separate approvals of such selections were made by the secretary of the interior, for each of said railroads, and were separately certified by the department to the state for the benefit of each, respectively. The trusts thus created by the United States as grantor, and accepted by the state as trustee, for specific and defined purposes, and for designated objects, were subject to the single condition subsequent, that if any or either of
It is claimed for plaintiff that by the joint resolution of congress,
The Marquette & State Tine Railroad Company first consolidated with the Chicago, St. Paul & Pond du Lac Railroad Company. This consolidated company subsequently, on March 27,1857, consolidated with the Ontonagon & State Line Railroad, under the name of the Chicago, St. Paul & Pond du Lac Railroad Company, and, so far as such rights could be transferred or assigned, succeeded to all property, franchises, rights, and privileges which the Ontonagon & State Line Railroad Company had acquired, or could acquire, under all or any acts of congress. The Chicago, St. Paul & Pond du Lac Company was sold under mortgage, in 1859, and its property, rights, franchises, etc., were purchased by the Chicago & North-Western Railway Company. Having, by this purchase, succeeded to all the rights and interests of both the Marquette & State Line Railroad and of the Ontonagon & State Line Railroad, in and to the granted trust lands, (assuming that they were the subject of transfer and assignment by said two companies,) the Chicago & NorthWestern Railway Company, in February, 1862, requested the Michigan hom'd of control of railroad grants to confer upon the Peninsula Railroad Company all the benefits of the grant oft 856, which had been vested in the Marquette & Stale Line Railroad. Said board of control, in compliance with said request, and upon the application of said Peninsula Railroad Company, under the authority of an act of the Michigan legislature approved March 4, .1861, ordered that all the lands, franchises, rights, powers, and privileges, which were or might bo granted in pursuance of said act of congress approved June 3, 1856, to aid in the construction of a railroad from Marquette to the Wisconsin state line, “be, and the same are hereby, conferred upon the said Peninsula Railroad Company, under the regulations and restrictions of an act approved Feb
A fter the Peninsula Railroad Company consolidated with the Chicago & North-Western Railway Company, in 1864, under the name of the latter, said Chicago & North-Western Railway Company, under date of January 31, 1868, released to the state of Michigan the clear lands on the Marquette & Wisconsin State Line, and the governor of said state, on the 1st of May, 1868, under and in pursuance of the state resolution of 1867, and in compliance with the congressional resolution of 1862, released and surrendered the said' lands to the United States. This release by the governor was a full compliance with the requirements of both of said resolutions, and exhausted the governor’s authority to deal with the subject of the granted lands. The commissioner of the general land-ofliee subsequently, on July 13, 1868, requested the Chicago & North-Western Railway Company to execute a similar release as to the 142,480 23-100 acres of clear lauds previously selected and certified to the state in December, 1861, for and on account of the lino from On-tonagon to the Wisconsin state line.1 This request was unauthorized by any fair construction of the congressional resolution of 1862, and the governor of the state, in attempting to make the surrender of said lands in August, 1870, exceeded his authority, and his act was a nullity, and did not divest the state of its title thereto as trustee, nor in any way defeat or annul the trust created by the act of 1856 in respect to said lands, which were exclusively appropriated by congress to aid in the construction of the line of railroad from Ontonagon to the Michigan state line.
Again, it is disclosed in the record that, notwithstanding said release by the governor in 1870, the state, through its executive, in 1872 or 1873, disputed the validity of said release, and still assorted title to said lands, not as the beneficial owner thereof, but as trustee under the act of 1856. This claim was not only made by the state, but her board of control of railroad grants acted upon the assumption of its validity in conferring said lands upon another railroad company, which action the legislature of Michigan confirmed. Until congress passed the act of March 2, 1889, reasserting the United States’ ownership of these lands, the claim asserted thereto by the state as trustee remained unsettled or undetermined by any competent authority. The United States did not by any authoritative act or declaration dispute the state’s claim to the lands made after said release had been executed by its governor, nor did congress pass any “act directing the possession and appropriation of the property, or that it be offered for sale or settlement.” Under such cir
It is not deemed necessary to notice all the consolidations that were, from time to time, effected between the several railroad companies, or the mortgage executed by the Chicago, St. Paul & Fond'du Lac Railroad Company, or the sale thereunder, and the purchase by the Chicago & North-Western Railway Company. These matters are not material, because it is manifest that the dealings and transactions inter sese of companies designated as the beneficiaries of said grant of 1856 could in no way change or impair the trust created by the United States, and acce}5ted by the state, nor authorize any diversion of the lands appropriated to construction of the several lines of railroad to any other purpose or use. It is claimed on behalf of plaintiff, and was so ruled by the trial judge, that the effect of the state’s act of February 14, 1857, was to vest the legal title to the lands granted to aid in the construction of the line of road from Ontonagon to the Wisconsin state line in the Ontonagon & State Line Railroad Company; that such legal title by consolidation passed to the Chicago, St. Paul & Fond du Lac Railroad Company; thence to the Chicago & North-Western Railway Company, by whom it was surrendered to the state under the release of June 17, 1870, and from the state to the United States by the governor’s certificate and surrender, executed August 14, 1870. We have already seen that said release of the governor did not operate to revest the title to the lands in question in the United States; nor is the position correct that under the operation of the act of February 14, 1857, the legal title to the lands granted for the benefit of the Ontonagon line of railroad was vested in said Ontonagon ■& State Line Railroad Company. The legal- title -was essential to the trust which the state accepted, and the granting act never authorized the legislature of the state to convey or pass the legal title to said lands to said company. The scheme of the trust created by congress clearly contemplated that the state, as trustee, should hold and retain the legal title -to the lands, and the fourth section of the granting act-prescribed the time and manner in which said lands should be disposed of by the state as trustee. The object and purpose of the state act of February 14, 1857, was tó accept the trust and to designate the companies which might, by completing the several railroads, become the beneficiaries of the trust-estate. Said act only conferred upon the respective companies therein named the right to earn the-lands, or the proceeds thereof, appropriated to them, respectively. When the lands were selected for the respective lines, the secretary of the interior, after having approved
Was that legal title ever acquired by the plaintiff, or those under or through whom it claims? I am clearly of the opinion that it was not. The acts of March 3, 1865, and July 3, 1866, under which plaintiff derives its rights, whether considered and construed in pari materia or not, did not and could not confer upon it a legal title to the land in controversy. The act of 1866, treated as an independent grant, not controlled by* the act of 1865, as to the location of the lands granted to aid in the construction of the Harbor & Ship Canal at Portage Lake, was the one under which plaintiff asserts its claim to the land in litigation, the same being a part of the 142,430 28-100 acres granted the state in 1856, for the benefit of the Ontonagon & Wisconsin Stale Line Railroad, and certified to the state by the land department, in December, 1861. The act of July 3, 1866, was a grant in prsesenti to the state. It covered and embraced 150,000 acres of land to be selected from alternate odd-num
“In satisfying tlie claim under said act of 1866, we are restricted to the region of country contemplated by the act of 1865 and embraced by the withdrawal above mentioned. Consequently the selections from odd sections to make up the 150,000 acres, and from even sections to cover tlie 50,000 acres, are necessarily restricted to that portion of your district.”
Withdrawals of public lands in the Upper Peninsula were made to satisfy said grant of 1866. The president of the canal company, acting also as the agent of the state in selecting the lands under said grant, in May, 1871, selected about 15,000 acres out of said grant of 1856 for the On-tonagon & Wisconsin State Line road, and the same were by the land department or commissioner approved to the state of Michigan on May 22, 1871, for the benefit of said canal company. Conceding to this certification the force and effect ol' a patent, it was void, because the lands had been previously granted and appropriated, and were thereby removed or withdrawn from the jurisdiction of the land department, and not subject to its authority or control. No right or title was thereby conferred upon or vested in the canal company to said lands. This is settled by numerous authorities. Stoddard v. Chambers, 2 How. 285; Bissel v. Penrose, 8 How. 317; Muter v. Crommelin, 18 How. 87-89; Easton v. Salisbury, 21 How. 426-432; Reichart v. Felps, 6 Wall. 160; Morton v. Nebraska, 21 Wall. 660; Shepley v. Cowan, 91 U. S. 330; Sherman v. Buick, 93 U. S. 209; Smelting Co. v. Kemp, 104 U. S. 636; Steel v. Refining Co., 106 U. S. 447, 1 Sup. Ct. Rep. 389. These cases, with others that might be cited, establish tlie general principle that a patent issued by the executive department of the government for lands previously granted or disjiosed of, or otherwise appropriated, or reserved from sale by congress, is inoperative to pass any title for want of jurisdiction over the subject and authority of law to execute the conveyance. The rule is especially applicable where the United States have by previous act of congress granted the lands which thereafter, and while such grant is in force, cease to bo public lands of the government, subject to the control or disposing power of the land department. The lands selected and appropriated to the Ontonagon line in 1861, under the grant of 1856, not having been restored to the public domain, as already shown, were not subject to selection and certification for the canal company in 1871, and the act of the department in permitting sucb selection, and in approving the same, was wholly without authority of law, and void, and communicated no title, legal or equitable, to the canal company. But it is urged on behalf of plaintiff that said certification by the department, to
It is not deemed necessary to enter upon any review of the authorities upon the question of when or under what circumstances the doctrine of estoppel may be invoked against the sovereign. The government is not ordinarily bound by an estoppel. Johnson v. U. S., 5 Mason, 425; Carr v. U. S., 98 U. S. 433. Individuals may be estopped by unauthorized acts of their agents apparently within the scope of their agency, but the government is rarely, if ever, estopped by the unauthorized acts or declarations of its agents. But if the state can ever be estopped by the unauthorized acts or declarations of its agents or officers, the facts of the present case do not call for or warrant the application of the doctrine. The canal company was not misled to its injury by any act of the state or its officials. Its own officer acted in violation of his instructions from the governor in selecting said lands. The company knew the lands had been previously granted, was affected with full notice of the public acts of congress, of the land department, and of the state in relation thereto, and assumed to act for itself in selecting what it could not legally appropriate. The state was guilty of no deception or fraud in leading the company to select said lands. To make the doctrine of estoppel apply to title to real estate the party invoking its aid must not only be misled to his hurt, but he must also be destitute of knowledge of the true state of title, and .also of the means of acquiring such knowledge. Brant v. Coal, etc., Co., 98 U. S. 326. The canal company does not bring itself within this rule. It was not misled, and it knew the state of the title. But for another and still stronger reason the doctrine of estoppel can have no application to this case. An estoppel can never exist where the party, whether an individual, a corporation, or a government, against whom it is invoked, has no power or legal capacity to lawfully and directly do the act, which is sought to be confirmed by precluding its denial. It is an essential element in the legal principle on which the doctrine of es-toppel rests that the party against whom it is asserted should have possessed the authority or power or legal capacity to have directly done the act in some lawful way. It was not within the power or legal capacity of the state, as trustee, to have appropriated the lands in question to the canal company, or to have vested it with the title thereto; and no act or declaration of the state officials can estop the state from denying what it had no authority to do, directly. Upon the whole case, the conclusions
Concurring Opinion
(concurring.) Having sat with my brother judges during the argument of this case, I am requested by them to express my views upon the questions involved. The limited time at my disposal, and the urgency of business in my own district, forbid my entering into a lengthy discussion of the various points,' or doing much more than to announce my general conclusion. Having had recent occasion in the case of Shepard v. Insurance Co., 40 Fed. Rep. 341, to examine the original railroad land grant act of June 3, 1856, I was of the opinion:
1. That the act was a present grant of lands, included in its terms, to the state, and that no further conveyance by the government was contemplated. Schulenberq v. Harriman, 21 Wall. 44; Johnson v. Ballou, 28 Mich. 379.
2. That, while the act passed the title to these lands to the state, such divestiture of title did not operate as to any particular lands until they had been selected and certified' to the state.
3. -That-the state-took the title to such lands as trustee for the railroads named in the first section of the act, and for no other purpose whatsoever.
4. That the provision in the act that all lands remaining Unsold for 10 years should revert to the United States, if the roads were not then completed, was a condition subsequent, and that upon breach of such condition such lands would not revert to the United States without judicial proceedings authorized by law, or a forfeiture asserted by legislative act.
5. If the question, how many railroads were contemplated by this act? depended for its solution solely upon the language of the act itself, there would be strong reason for holding that they were limited to three, viz., one in the Upper Peninsula, one from Amboy and Grand Rapids to Traverse bay, and one from Grand Haven and Pere Marquette to Port Huron, by the way of Flint. But in view of the act of acceptance by the legislature of February, 1857, whereby the lands in the Upper Peninsula were conferred upon four separate roads, and in view of the subsequent action of the federal government in connection therewith, I think
6. I think this release, not having been authorized by any act of congress or the state legislature, was a nullity, and the trust created by the original act-of 1856 remained unimpaired until the right of the state to these lands was forfeited by judicial or legislative act. I do not understand that the governor of the state has any general power, by virtue of his office, to convey lands held by the state, either in fee-simple or in trust for another. His only authority to release lands vested in the state by the original act of 1856 was limited to the lands originally selected for the construction of the line from Marquette to the Wisconsin state line. The letter of July 13, 1868, from the commissioner of the land-office, would seem to indicate that he considered the Ontonagan line as a mere branch of the line to Marquette, when in fact these lands had been allotted to a distinct corporation. Three years thereafter Gov. Bagley, who had succeeded Gov. Baldwin, in a communication to the secretary of the interior, called his attention to the action of his predecessor, and claimed that the surrender of these lands was without authority of congress or the legislature, and requested that they be withheld from sale. Upon receipt of such letter, the restoration of these lands to sale was suspended, an investigation was had, and the secretary of the interior came to the conclusion that his predecessor had erred in demanding a release of the lands granted for the Ontonagon line, and was of the opinion that the title was still in the state of Michigan. Thereupon, and in 1880, the Ontonagon & Brulé River Railroad Company was organized for the purpose of constructing a road from Ontonagon to the state, line’, and the board of control declared the lands forfeited to the state, and vested the same in the newly organized company.
71 In March, 1889, no steps having been taken to build the road, congress passed an act forfeiting to the United States and resuming title to all lands granted'by the act of 1856 “opposite to and coterminous with the uncompleted portion of any railroad to aid in the construction of which said lands were granted,” and all such lands were declared to
8. I do not think that the act of forfeiture of 1889 inured to the benefit of the canal company; that the act was a complete forfeiture of the right of the state to hold the lands for any purpose. It cut off all right which the state then had to these lands, but it conferred no title upon 'the canal company, and left this company standing in the position of a
9. Can the defendant, who shows no title to these lands in himself, and who, for aught that appears, is a mere trespasser, set up this title in the state, when the state itself has conferred title upon the plaintiff? This is'the most difficult question in the case, and one which caused considerable embarrassment in the Shepard Case, although I finally held, in that case, that, as both parties claimed title under the act of 1856, the doctrine of common source applied, and neither could set up against the other a title antedating that act. The general rule in actions of ejectment is that the defendant may show an outstanding title in a third person; Does this rule apply in this case? The decisions of the supreme court upon this point are, to a certain extent, misleading, and while there may be no direct conflict between them, there are certain expressions in some of the opinions which indicate that the point had not received attentive consideration from the'justice who delivered the opinion. In discussing this question we are bound to assume that the grant to the canal company was void, for the reason that the state had no title to the thing granted, as stated in Polk’s Lessee v. Wendal, 9 Cranch, 87. It was said of this case, in Patterson v. Winn, 11 Wheat. 384, that it had settled the doctrine of this court “that if a patent is absolutely void upon its face, or the issuing thereof was without authority, or was prohibited by statute, or the state had no title, it may be impeached collaterally in a court of law in an action of ejectment.” It would be mere waste of time-,-however, to examine and distinguish all the cases upon this point, since all of them were subjected to a searching criticism in Doolan v. Carr, 125 U. S. 618, 8 Sup. Ct. Rep. 1228, and the conclusion reached that-if officers of the government act without authority —
“If the land which they purported to convey had never been within their control, or had been withdrawn from that control at the time they undertook to .exercise such authority, then their act was void for want of power in them to act upon the subject-matter of the patent, not merely voidable.”
In Reynolds v. Mining Co., 116 U. S. 687, 6 Sup. Ct. Rep. 601, the rule is stated somewhat differently, — that in all actions, to recover possession of-real estate, the plaintiff can only recover on the strength of his own title, and not on the(weakness of the defendant’s title. On the other hand, if the patent has been obtained by fraud, it can only be
“If a patent has been issued irregularly, the government may provide means for repealing it; but no individual has a right to annul it, to consider the land as still vacant, and to appropriate it to himself.”
In other words, the patent in that case was not void, but voidable, and it could only be avoided by a suit brought by the government for that purpose. In Cooper v. Roberts, 18 How. 173, the plaintiff claimed that his land had been allotted to the state of Michigan for the use of schools, while the defendant relied upon a license given by a mineral agent, and objected that the officers of the state violated the statutes of Michigan in selling these lands after they were known, or might have been known, to contain minerals. It was held that the defendant was not in condition to raise this issue, and the patent was held - conclusive of the fact of a valid and regular sale. This is not the case of a patent located upon lands previously reserved for another purpose. In Field v. Seabury, 19 How. 323, it was held that a third party cannot raise in ejectment the question of fraud as between the grantor and grantee, and thus look beyond the patent or grant. A similar ruling was made in Spencer v. Lapsley, 20 How. 264. In line with these cases is that of Ehrhardt v. Hogaboom, 115 U. S. 67, 5 Sup. Ct. Rep. 1157, in which it was held that oral evidence was inadmissible on the part of defendant to show that certain lands were not open to settlement under pre-emption laws, but were swamp and overflowed lands, which passed to the state under another act; the court holding it to be the duty of the land de
Dissenting Opinion
(dissenting.) A verdict and judgment having passed for the plaintiff upon the trial of this cause at the last May term of this court at Marquette, a motion for a new trial was entered, and was heard in the autumn by the circuit and district judges sitting together. Very full and elaborate arguments were made on both sides, and much assistance has been thereby afforded. I have given careful attention to these arguments and to the authorities referred to by counsel in their support, and after much reflection upon the case am of the opinion that the verdict and judgment are right. The court was in error in the proposition stated at the trial, that the act of the legislature of Michigan of February 14,1857, conferring the lands granted by the act of congress of 1856 upon the several corporations therein mentioned, operated to transfer the legal title. But I am of opinion that the precise nature of the rights conferred is not material to the proper determination of the present controversy, in the view which I think should be taken of the principal facts and their consequences. It is a question of grave doubt whether congress intended by the act of 1856 to provide for two distinct railroads from Marquette and Ontonagon to the Wisconsin state line, rather than one-having branches to each of the former termini. The words descriptive of that proposed railroad are grouped together. In the contemporary act, granting lands to the state of Wisconsin, upon which the case of Schulenberg v. Harriman, 21 Wall. 44, arose, the grant was declared to be for the purpose of aiding in the construction of a railroad from Madison or Columbus, by way of Portage City, to the St. Croix river or lake, and from thence to the west end of Lake Superior and to Bayfield. The latter place is upon Lake Superior, and some 60 miles east of Superior City, at the west end of Lake Superior. Marquette and Ontonagon, also on Lake Superior, are about 90 miles apart. A diagram of the line of this Wisconsin railroad is shown on page 46 of 21 Wallace. Obviously the line contemplated by that act was a unit, although branches would
I do not think there is anything inconsistent with this in what the su-prerhe court has held upon the subject of forfeiture. There was no fraud on the part of the canal company in selecting these lands. All was done publicly , and with the concurrence of the executive of th'é state and the secretary of the interior, and there is nothing to impeach the bona Jides of all concerned in that selection. There was nothing unusual or wrong-in'the canal company being active in selecting the lands. That was reasonable and proper. The lands which might otherwise have been selected, and were valuable, are now in great measure sold or appropriated. The defendant, who is a mere intruder, entirely without right or any possible way of obtaining any upon his own theory, asks the court to hold that all thar has been done is utterly void, and gives the plaintiff no title whatever. This he asks not to protect any interests of his own, but when the consequences of such holding is to overturn the foundations on which the titles of a large number of purchasers in good faith are supported. The theory of his defense is that the title of the land sued for remained in the state of Michigan, and at the date of the commencement of suit was still lodged there. But’he could not set up a title in the state, if the state itself could not in case it were litigating; and in "my opinion,'the state could not have asserted a title to these
In regard to the letter of Gov. Bagloy, repudiating the official action of Gov. Baldwin, it seems to me, little need be said. In the writing of that letter he iras not in the exercise of any duty conferred upon him by the constitution or laws of the state, or of the United States. His predecessor, in selecting these lands for the canal company, was. Gov, Bagiev himself, at a later date, executed the certificate of completion to the canal company in the exercise! of liis proper official function: 1 I think it can hardly be said that this was intended by the law and by the official to operate merely as denoting that the work was dono. The language of the fourth section of the act of the legislature of March 18, 1865, as well as the language of the certificate itself, seem to imply that it was intended to operate as the conveyance of the title of the state in the se
The order granting the motion for a new trial was therefore entered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.