: 206 154 F (4 754 SPECIAL PRIVILEGE PUBLIC LANDS IN THE THE ORIGINAL GRANT OF 43,159,428.04 ACRES TO THE ПС 1062 L39 NORTHERN PACIFIC RAILWAY COMPANY AND THE SUBSEQUENT AND ADDITIONAL GRANTS TO THAT COMPANY UNDER 'SPECIAL AND ADVANTAGEOUS" SCRIP LAWS R&C PUBLIC LAND, MINING AND INDIAN LAND CASES LAND SCRIP PATRICK H. LOUGHRAN ATTORNEY AT LAW BARRISTER BUILDING WASHINGTON, D. C. FORMERLY EXAMINER IN MINERAL, FORESTRY AND FIELD SERVICE DIVISIONS OF THE GENERAL LAND OFFICE, AND SPECIAL AGENT. FOURTEEN YEARS' EXPERIENCE, SEVEN IN PRACTICE The two acts of Congress discussed in this pamphlet have been referred to in decisions of the Department of the Interior as legislation giving to the Northern Pacific Railway Company a “special and advantageous" relation to the public lands. As achievements of Congress these two acts reflect credit- ably only upon the capable and brilliant lobby that so adroitly, noiselessly and expeditiously procured their enactment. It is hoped that if Congress ever again professes a desire to protect settlers against the claims of the Northern Pacific Railway Company that the method to effectuate the ex- pressed desire will be somewhat different from one that en- ables that corporation, at its option, either to waive in favor of the settler and obtain, in consideration for such waiver, a right to scrip the most valuable of the public lands situate anywhere in any of the Northern Pacific Railway States, or to enforce its claim against the settler if the land he occupies. is more valuable to the company than any tract of land it could acquire with the scrip right that would arise out of a waiver. The present method gives no assurance to the settler, is ad- vantageous only to the company, is against the public interests and if duly investigated would be abolished. It is further hoped that if Congress ever again deems it promotive of the public interests to establish more national forests and national parks that the lands needed will be ob- tained without giving the owners thereof a fancy and ridicul- ously extragavant price therefor in the way of a right to scrip any of the public lands of the United States. Unquestionably it would be far more economical to procure the lands by pay- ing twice, or many times, their real value than to obtain them in the way that the United States procured the holdings of the Northern Pacific Railway Company in the Mt. Ranier Na- tional Park in the State of Washington. MV.P B + 3-16. CONTENTS. (a) "A NEW, INDEPENDENT GRANT TO THE NORTHERN PACIFIC RAIL- WAY COMPANY" HIDDEN IN THE PROVISIONS OF THE SUNDRY CIVIL AP- PROPRIATION ACT OF JULY 1, 1898, (30 STAT., 587-620). A bill for the appropriation of public moneys for public purposes becomes, while in the Senate Committee on Appropriations, also a bill for the appropriation of public lands for private purposes of the Northern Pacific Railway Company. Constructions of the act in favor of the Company and attempts by it to obtain even more favorable constructions. (b) ENLARGING NATIONAL FORESTS WITH THE CONSENT AND TO THE Profit of the NORTHERN PACIFIC RAILWAY COMPANY. Swapping com- pany lands in a forest reserve for coal lands of the United States under sanction of a decision of the Department of the Interior rendered Febru- ary 28, 1903, (32 L. D., 28), and since declared unsound by the courts. The Company's enormous supply of floating land scrip. (c) A "MORE FANCIFUL THAN REAL" CLAIM BY THE NORTHERN PA- CIFIC RAILWAY COMPANY TO MORE THAN 100,000 ACRES OF THE PUBLIC DOMAIN. The Company's apparent contemptuous disregard of decisions. of the Department of the Interior. What the company accomplished un- der an inadvertently issued land patent which it refused to surrender. Withdrawing lands from entry and suspending operation of laws of Congress with respect thereto simply because "the attorneys for the Railroad Company have requested" and without notice to bona fide settlers and applicants claiming adversely to the company. (d) THE EXPERIENCE OF AN IDAHO HOMESTEADER WITH THE NORTH- ERN PACIFIC RAILWAY COMPANY AND its TransfeREE. A settler's claim twelve years old in litigation with the company for eight years. Dur- ing pendency of the proceedings the company obtains an inadvertently issued patent for the land and withholds notice of the fact both from land department and the homesteader. PUBLIC LAND, MINING AND INDIAN LAND CASES LAND SCRIP PATRICK H. LOUGHRAN ATTORNEY AT LAW BARRISTER BUILDING WASHINGTON, D. C. — Formerly examiner in the Mineral, Forestry and Field Service Divisions of the Gen. eral Land Office, and Special Agent. Fourteen years' experience, seven in practice. ΗΞ W 1062 .489 RAILROAD LAND GRANT LEGISLATION IN DISGUISE. APPROPRIATING PUBLIC LANDS FOR PRIVATE PURPOSES UNDER COVER OF AN ACT APPROPRIATING PUBLIC MONEYS FOR PUBLIC PURPOSES. (Sundry Civil Appropriation Act of July 1, 1898, 30 Stat., 597-620.) ¦ THE PRETENSE-Protection of public land settlers. THE PURPOSE-A new land grant to a railroad. THE EFFECT-Enrichment of a railroad corporation out of the public lands without any resultant benefit whatsoever either to the people or to the government. Corporate acquisition by scrip of the most valuable of the surveyed and unsurveyed pub- lic lands situate anywhere in the Northern Pacific Railway States. THE BENEFICIARY-The Northern Pacific Railway Company. THE VICTIM-The People of the United States, as usual. THE REMEDY-Immediate repeal. THE MORAL-Make impossible the masquerading of private acts and legislative agreements in the guise of public acts of Con- gress. The public eye should be on the public lands and upon the "insidious lobby." THE WARNING-Defeat any attempt to extend the field of use of Northern Pacific Railway scrip to all the public land States. In consideration for the construction of a railroad the United States gave to a corporation, to whose rights and property the Northern Pacific Railway Company has succeeded, 43,159,428.04 acres of the public domain. See private act of Congress of July 2, 1864, (13 Stat., 365) and the joint resolution of May 31, 1870 (16 Stat., 378). See also "Statement showing Land Grants made by Congress to aid in the Construction of Railroad," et cet., approved by the Department of the Interior on November 27th, 1907. The lands granted to the predecessor in interest of the Northern Pacific Railway Company were afterwards authoratively declared to be located within certain specified boundaries within each of the States in which the road was constructed, and not elsewhere. The primary (or place) and the indemnity limits of the grant were care- fully described by the government and the description made public. Thus did the government confine the operation of the grant to cer- tain well defined, ascertained and limited areas beyond which the 5 .M. railway company was actually forbidden to go for selection of lands in satisfaction of the grant. Thus also did the government adopt measures to inform the prospective settler of the particular places. where he might find himself opposed, in his efforts to acquire a free home upon the public lands, by a powerful adversary claiming under a "legislative contract" with the United States. (The Company always refers to the congressional land grant as its "legislative con- tract" with the government.) For the purpose of showing that the provisions of the granting act of 1864 and of the resolution of 1870 were, probably, ample to enable the government to wholly satisfy the grant to the company without the aid of additional legislation we will state in the succeeding para- graph the views of former Attorneys General of the United States on the provisions of the granting act as to indemnity for lands in the primary limits to which other claims had attached. In the opinion of the Attorney General given January 17th, 1888, (19 Op., 88), it was said that for agricultural land losses within the primary limits in one State, indemnity might be taken by the selec- tion of lands in odd numbered sections in any other of the Northern Pacific States, provided such indemnity was taken from the original ten-mile indemnity limit fixed by the granting act of 1864. For a loss from primary limits in the State of Montana, for instance, in- demnity could be obtained by the selection of land in Oregon. In the same opinion, however, it was stated that selections within the second indemnity belt (i. e., that created by the joint resolution of May 31st, 1870, 16 Stat., 378), were restricted to the limits of the particular State in which the granted lands were lost. An opinion of the Attorney General of the United States, given July 24th, 1912, (29 Op., 498 and 41 L. D., 571), is to the effect that for lands within the primary or place limits of the grant lost to the company by reason of their mineral character, indemnity therefor can be taken from any public lands in odd numbered sections situate any- where within fifty miles of the line of the road in any Northern Pacific Railway State. This opinion was given because of a ques- tion as to whether the terms of the act of July 2, 1864, supra, limited the company in its selections of indemnity for lost mineral lands to other lands within the same State where the loss occurred. A pro- viso to Section 3 of the said act, as published in the Statutes at Large, confines the indemnity selection for mineral losses to "odd numbered sections nearest to the line of said road," but the same proviso as it appears in the enrolled and recorded statute in the State Depart- ment (a difference existing between the statute as published in the print of the laws of Congress and as officially enrolled) confines the indemnity selection for such mineral losses to- "Odd numbered sections, nearest to the line of said road, and within fifty miles thereof." Hence, apparently, the opinion to the effect that at any place within fifty miles of the road is also "nearest to the line of said road," and that for mineral losses in Montana indemnity can be had by the selection of lands anywhere within fifty miles of the road in Wiscon- sin, the fact that there is an abundance of public land in Wisconsin within one mile, for instance, being immaterial notwithstanding the words "nearest to the line of said road." 6 This opinion of July 24th, 1912, is also to the effect- "That the Company may select, as indemnity, lands within the primary limits, which at the time the grant attached were 'reserved, sold, granted, or otherwise appropriated,' but which have since been relieved of that impediment and at the time of the selection are un- occupied or unappropriated public lands." If the provisions of the original acts as to indemnity were not such as to render possible full satisfaction of the grant without additional legislation, could not Congress have provided for a third indemnity belt or have taken some other action looking to an adjustment of the grant by selection of indemnity within specified limits and within a reasonable time after the loss within primary limits was ascertained? Should there not be enacted, even at this late date, a statute per- emptorily requiring the taking of indemnity immediately upon ascer- tainment of the loss upon penalty of forfeiture of right to indemnity? We need not here offer the proof that good and bad land, rich land and poor land were within the immense territory, extending through several States, which had been granted to the company. There were some lands within the grant of great value and there were others of practically no value. Manifestly, therefore, it was to the interest of the company to retain the valuable lands and, obviously, it was to its interest to trade the worthless or nearly worthless lands for valuable lands, if any means for so doing could be devised. In short, it was desirable from the view point of the company's interests to have the original grant so modified as to permit the acquisition of title there- under to any lands wheresoever situate in any of the Northern Pacific Railway States, regardless of both the primary and indemnity limits of the grant as originally fixed and determined by the govern- ment. The company found a way of doing this. For thirty-four years--from 1864 to 1898-the Company was busy perfecting title to the best of the lands within the grant and in doing so it displayed little or no interest in the claims of settlers but after the best land in the grant had been secured by the company it suddenly manifested - a great paternal interest in the poor settler. Theretofore the poor settler could shift for himself, but in 1898 the poor settler became an object of the company's tenderest solicitude. The company then discovered that under the pretext of protecting the poor settler it was possible for the company to "swap" much of its inferior lands for an equal quantity of the best of the remaining public lands. Would the company have desired the act of 1898 and have promptly and formally accepted all of its provisions if the company doubted that the act would operate to its advantage and profit? A NEW, INDEPENDENT GRANT THE LEGISLATIVE HISTORY OF THE RAILROAD SCRIP ACT OF JULY 1, 1898 The act of July 1, 1898, (30 Stat., 597,620), is entitled “An act making appropriations for sundry civil expenses of the government for the fiscal year ending June 30th, 1899." One would not infer from the title of the act that it was also an act appropriating the public lands for private purposes or that it was an act enabling the Northern Pacific Railway Company to disregard the primary and indemnity limits fixed by the granting act of 1864, to pick the most 7 / valuable public lands wheresoever situate in all the Northern Pacific Railway States, and to enable that company to create an enormous supply of public land scrip. Appropriation acts have often carried legislative "riders," and have often been the media of enactment of measures which would probably have failed of enactment if not covered up in such acts, but a railroad land grant "rider" is so extraordinary a feat of legislative legerdemain that its history ought to be interesting. The said act originated in House bill 8428, 55th Congress, 2d Ses- sion. That bill, as it passed the House of Representatives, con- tained no provision whatever concerning lands within the primary and indemnity limits of the grant to the Northern Pacific Railway Com- pany. It was while the bill was in the Senate Committee on Ap- propriations that there was inserted therein, by way of committee. amendment, the provision affecting the land grant to that company. The Senate Committee's report on the bill to the Senate contains absolutely nothing whatever tending to disclose what that committee had done in the way of making an appropriation bill a bill also to further enrich a railway company out of the public lands. (See Senate Report 813, 55th Congress, 2nd session, which relates ex- clusively to the financial items of the bill.) The great Webster in one of his many eloquent addresses, asked, "What governmental arm held its egis over our fathers' heads as they pioneered their way in the wilderness?" We ask what influence, governmental or otherwise, pioneered the way of this public lands and railroad measure between the Charybdis of the Committee on Public Lands and the Scylla of the Committee on Railroads safe into the welcoming, accommodating haven of the Senate Committee on Appropriations? When said appropriation bill was under consideration in the Senate, Senator Stewart, of Nevada, in referring to the committee's railroad land amendment, said: "Mr. President, I think this is rather a dangerous provision. * * * There might be several million acres of land which would be re- linquished to the settlers, and the railroad or the grantees of the rail- road would receive floating scrip. *** We have seen the Valentine and other kinds of floating scrip, to be located on surveyed or un- surveyed lands, used for very unworthy purposes. That has been the bane of the public land laws. *** That is a pretty large scheme of floating scrip. *** It makes a large area over which the floating scrip will be a great evil," et cetera. (See page 3555 of the Congressional Record, 55th Congress, 2nd Session.) *** Senator Carter, of Montana, a Northern Pacific Railway State, in answer to Senator Stewart, said that— "This amendment might properly be denominated a bill of repose or a bill for the relief of settlers." (See page 3555 of said record.) Senator Wilson, of Washington, a Northern Pacific Railroad State, expressed himself concerning the amendment, as follows: "It is not possible-and I think any man who knows anything about the situation knows this is true-for the railway company to secure in any way or in any manner as valuable lands as they are relinquishing." (See page 3556 of the said record.) 8 Senator Stewart, of Nevada, further said: "The floating scrip gets into the hands of a whole lot of speculators. and they run all over the country." (See page 3556 of said record.) Senator Turner, of Washington, a Northern Pacific Railway State, stated his views concerning the amendment, as follows: "Mr. President, I am very doubtful about the propriety of this legislation at all *** * *. It seems to me to be going a very long way indeed and to be paying a very high price indeed for quieting the rights of settlers on the land to give a new, independent grant to the Northern Pacific Railway Company of several million acres of land located anywhere within any of the States or territories through which the road runs." (See page 3556 of said record.) Senator Turner further said: "I do not think the State of Washington, which desires that its public lands shall be kept for actual settlers, ought to have those pub- lic lands subject to be depleted by selections by the Railroad Com- pany for lands surrendered in Montana or Idaho or Dakota." (See page 3558 of said record.) The Senate Committee's said amendment had the unqualified en- dorsement of the then Secretary of the Interior, Cornelius N. Bliss, of New York, who on March 17th, 1898, in a letter on the subject, expressed himself, as follows: "The provisions of the proposed amendment meet with my full approval, and I recommend that they be enacted into law." (See page 3558 of said record.) Under the provisions of the act of 1898 persons who had certain claims in existence on January 1, 1898, to parts of odd numbered sec- tions within the company's grant have a right to acquire title thereto under such claims, provided the company has not sold, contracted to sell, and does not use or need, the lands so claimed; or the persons having such claims may relinquish them by transfer thereof to lands. situate anywhere in any Northern Pacific Railway State except within the limits of the grant to the company. In Hanley vs. Northern Pacific Railway Company (39 L. D., 389, Vancouver serial 04023), Hanley elected to retain the land claimed by him. The Company was then called upon to relinquish and answered by alleging that it had contracted to sell the land to the Weyerhaueser Timber Company. Hanley demanded proof of the Company's allegation whereupon a hearing was had. At the hearing there was introduced in evidence a copy of a contract between the Weyerhaueser Company and the Railway Company which purports to show that the timber company had contracted to buy from the Railway Company "all your scripped lands in Western Washington, approximately 90,000 acres" 80,450 acres of other lands and the tim- ber upon a third area. Upon this showing the General Land Office on April 3, 1913, held that there was no obligation resting upon the Railway Company to relinquish and advised Hanley that he could either transfer his claim to other land or abandon it. The Railway Company successfully opposed Hanley for electing to retain the land claimed by him, while in Huston vs. Northern Pacific Railway Com- pany (38 L. D., 616), it successfully opposed Huston for electing to abandon his land. It seems that the company can get 'em both 'goin and comin'. 9 The Hanley case, supra, serves to show one of the effects of the act of 1898. It serves to advise the public of the ultimate chief benefici- aries of that legislation. It serves also to advise the public of how easy it is for interests so powerful as the Northern Pacific Railway Company supplemented, perhaps, by the powerful influence of the large timber companies, especially the Weyerhaueser Company (be- tween which latter timber company and the railway company there is supposed to exist an extraordinarily cordial business relation) to so thoroughly arouse a Senate Committee upon the pretext of doing something for public land settlers, as to have enacted, under the title of an act appropriating public money for a public purpose a measure appropriating public land for a private purpose. It serves also to show how by legislation, and by legislation alone, a railway company may be enriched out of the public lands for doing practically nothing whatever aside from formally accepting the provisions of an act of Congress so carefully drawn as to enable the company to prevent the loss to it thereunder of anything of value it "uses or needs for rail- road purposes." Millions of dollars have probably been made by the company, or will be made, because of said act which could not have been made by it otherwise. The act as construed by the Land Department in the case entitled Northern Pacific Railway Company against Violette (36 L. D., 182), makes it entirely optional with the company whether it will relinquish its right to any lands in an odd numbered section of unsurveyed land. within its grant upon which settlement shall be made after January 1, 1898. In other words, there is not even a semblance of obligation upon the company to relinquish land in an odd numbered section of unsurveyed land within its grant upon which settlement may be made. after that date, and it may be safely presumed that the company never does relinquish such lands unless the value thereof is less than the value of the scrip right that would accrue to the company by reason of its relinquishment. In its discussion of the Violette case, supra, the Department of the Interior said: "The contention of the company that to hold it bound to re- linquish in favor of such settlers would amount to an open invitation to settle upon its unsurveyed lands with a guarantee of protection, with a resulting cloud upon the company's title and, perhaps, a bar to the disposal of its lands, is not without force and after a most care- ful consideration of the entire act the Department is of opinion that the proviso above quoted merely extends a privilege to the com- pany to select other lands for such as it may relinquish, upon such favorable terms as should reasonably induce the relinquishment, and thus protect settlement made at a time when it could not be reason- ably told whether the settler would fall upon an odd numbered or even numbered section. In this respect the privilege is somewhat akin to that provided for in the act of June 22, 1874, (18 Stat., 194), only the inducement to relinquish is greater because the field of selec- tion is greatly enlarged.” The above quoted extract from the Department's said decision might give rise to a thought in the minds of those who are not friendly to the company that the Violette decision shows that it is possible for the company to have done for itself and on its own behalf, ! 10 and to its great profit, what it seemed to fear would be done by set- tlers and others to its great disadvantage and loss. If there exists in the numerous cases involving the relations of the Northern Pacific Railway Company to the public lands anything to justify a suspicion that it would connive at fraud in order to get rid of inferior and worthless lands in its grant (lands in some instances not worth the amount of the taxes assessed), and to acquire in lieu thereof scrip enabling it to obtain the more valuable of the remaining public lands in any of the States entered by its road, then it might reasonably be suspected that the company would not hesitate to induce settlement upon all of the worthless lands in those portions of the grant yet unsurveyed in order to have a basis for obtaining valu- able scrip in lieu thereof. Assuming that there is nothing in the his- tory of that company's relations to the public lands, or in its connec- tion with or interest in legislation with respect thereto, to warrant such suspicion, certainly the said act of 1898 affords so strong a temptation and great inducement to wrong doing, with little prob- ability of detection therein, that Congress ought to take notice of the fact that no great pressing public necessity requires the satisfaction. of the grant to the Northern Pacific Railway Company in the manner provided by the said act of 1898, in a manner defeating the intent of the Congress that enacted the granting act of 1864. "It is not possible, *** for the railway company to secure in any way or in any manner as valuable lands as they are relinquish- ing. "" These are the words, as shown hereinbefore, which were spoken by Senator Wilson, of Washington, during the brief debate in the Senate. The Senator was badly advised and seriously in error. The measure has been tremendously advantageous to the company. So advantageous has it been that the company has repeatedly endeavored to have the Department of the Interior, by artificial and forced con- struction, extend its provisions beyond their legitimate scope. For instance, in Northern Pacific Railway Company vs. Peone, et al. (35 L. D., 359), the modest claim of the company for a scrip right under "the special and advantageous features" of the said act of 1898, in lieu of a right of indemnity selection, was based upon the absurd contention that lands within primary limits patented to a homesteader on May 26, 1888, were lands in controversy between said homesteader and the company on January 1, 1898, although the company had never questioned, or in any manner moved against, the patent to the home- steader. If the company really believed there was a possibility that this contention would be sustained, the company could not have en- tertained very great respect for the judgment of the Department. If that contention had prevailed, the company would have become en- titled to scrip for practically every acre of land within primary limits patented at any time prior to January 1, 1898, to anyone except the company. If that contention had prevailed then, indeed, would the indemnity limits as fixed in the original legislation on behalf of the company have been so enlarged as to be coterminous with the boundaries of every State entered by the road. The company will never lose anything for want of impudence, audacity and daring. The railroad scrip authorized by this act has a quality peculiar to itself which makes it totally unlike any other scrip of which we have il knowledge or of which we have ever heard. It may be used upon certain lands despite provisions of law apparently against its use. With respect to the former Gros Ventre Indian reservation lands Congress expressly directed that such lands should be open to appro- priation under the homestead, townsite, coal land, desert land and mining laws, “but not under any other laws regulating the sale or dis- posal of the public domain." In Northern Pacific Railway Company (37 L. D., 408), the Department of the Interior, in reversing the Gen- eral Land Office, held that such lands could be scripped by that com- pany under the said act of 1898. It may sound like the frenzied utterances of the much berated muck- raker, but assuming the risk of being characterized as a muck-raker, we ask when will Congress avoid mistakes? Never, because it is a human agency, but how long will it persist in a mistake, in a serious. mistake, after discovering it? When will the people of the nation awake to the fact that it has not been wholly by the fraudulent prac- tices of individuals that the government and the people have been plundered of their public domain but that ill-advised legislation, granting great and unwarranted privileges to a railway corporation, has been in a large measure responsible for the loss of a heritage which no people of any other nation ever received. Will the public awake only after there are no public lands to protect? The said act of 1898 is claimed by the company to be a legislative agreement between it and the government. Whatever its legal char- acter may be it was ill-advised and vicious legislation inimical to the public interests, operating to the advantage and for the benefit of the monster land corporations that have absorbed the greater part of the more valuable areas of the public domain, and should not be permitted to remain a statute of the United States any longer than may be necessary to effect its repeal. It has long heretofore accom- plished the rightful and justifiable purpose, if any, of its enactment. The repealing act should, however, protect whatever settlement claims. upon unsurveyed land within the grant were made in good faith prior to the repeal and should require that all the company's enormous holding of land scrip outstanding be located within a specified period. • : 12 ENLARGING NATIONAL FORESTS WITH THE CONSENT AND TO THE PROFIT OF THE NORTHERN PACIFIC RAILWAY COMPANY A Departmental Decision in favor of the Company is Condemned by the Courts. Section 3 of the act of March 2, 1899 (30 Stat., 994), provides that in consideration for the transfer to the United States of the holdings of the Northern Pacific Railway Company in the Mount Ranier Na- tional Park and the Pacific Forest Reserve, the said company shall be entitled to scrip an equal quantity of surveyed or unsurveyed lands in any State "through which the railroad of said Northern Pacific Railroad Company runs." This act has a close resemblance to the generally discredited and now repealed forest lieu lands provisions of the act of June 4, 1897, (30 Stat., 11-36), of unsavory memory. July 25, 1899, the company executed a deed of conveyance to the United States of such holdings and the conveyance was accepted by the Department of the Interior on July 26, 1899. Thus there was consummated a trade or "swap" of lands most favorable and profitable to the railway company. So favorable was it that the company made numerous attempts to stretch its provisions beyond their legitimate. scope. The company made a daring but unsuccessful effort to obtain from the Department of the Interior a decision to the effect that the said act was intended to enable the company to obtain scrip in lieu of lands within the secondary or indemnity limits as well as in lieu of lands within the primary or place limits. This was an attempt to secure, by an artificial construction of the act, a right which it never was the intention of Congress to confer. (See Northern Pacific Rail- way Company vs. Mann, 33 L. D., 621.) The characteristical modesty of the company in asserting claims under acts of Congress affecting its land grant is well illustrated in the case entitled Brown vs. Northern Pacific Railway Company (31 L. D., 29). In that case the field notes of the survey of certain lands scripped by the company under said act of 1899 described them as "one immense coal field and is valuable for that article as well as its timber, which is very fine and dense." The company insisted before the Department of the Interior that the field notes of the survey did not amount to a classification of the lands as mineral within the mean- ing of the said act, and that, therefore, its scrip was applicable to such lands. The Department did not look with favor upon this modest. contention by the company and dismissed it saying: "If the company's contention is sound it is authorized to search. throughout the States into or through which its railroad runs and select public iron and coal land only, if the same can be found in sufficient quantity to satisfy the requirements of the act. It is not believed that Congress intended to confer any such right upon the company." 13 The Department's decision in Brown vs. Northern Pacific Railway Company, supra, which was adoptive of an opinion by Mr. Willis. Van Devanter, as Assistant Attorney General for the Department of the Interior, should be compared with the Department's decision of February 28, 1903, in Davenport vs. Northern Pacific Railway Com- pany (32 L. D., 28), which was also adoptive of an opinion by Mr. Van Devanter. Mr. Van Devanter's opinion in the Davenport case was concurred in by the present First Assistant Attorney in the Department of the Interior. In the Davenport case it was alleged, under oath, that the land scripped by the company "contains large and valuable deposits of coal." The company's contention was that "it is wholly immaterial what its present character may be, or whether or not the coal appli- cants have discovered valuable mines of coal thereon." The Com- missioner ruled against the company. On the company's appeal to the Secretary the Commissioner was reversed and Davenport's pro- test dismissed, Mr. Van Devanter, and the present First Assistant At- torney and the then Secretary of the Interior, saying that the North- ern Pacific Railway Company was entitled to a patent for coal lands under the said act of 1899 in all cases where "the field notes and sur- veyor's return make no notation whatever of minerals in the land." This decision imparted to the company's scrip a quality rendering it superior to any class of scrip that ever existed. On the date of the decision in the Davenport case, to wit, February 28, 1903, Mr. Van Devanter resigned the office of Assistant Attorney General for the Department of the Interior to accept an appointment as United States circuit judge, eighth circuit, made by President Roosevelt. He is now a Justice of the Supreme Court of the United States under an appointment made by President Taft. In pursuance of its decision in the Davenport case, supra, the land department issued a patent to the Northern Pacific Railway Company for a large area of known coal land. The Davenport case attracted the attention of some able attorneys who seriously doubted the sound- ness of the Department's decision. Due to the representations and the activities of these attorneys almost exclusively the Department of Justice sanctioned the institution of proceedings in the name of the - United States against the railway company to effect a cancellation of the patent. The patent was cancelled after judicial proceedings. M - The Circuit Court of Appeals, ninth circuit, in Northern Pacific Railway Company, et al., against the United States (176 Fed., 706), rendered an opinion declaring that- “As a matter of fact the lands so surveyed were mineral lands, which fact was known to the railway company at the time of its selection of them, and it was because of their known mineral value that they were so selected." That court expressed itself concerning the meaning of the act of 1899 by saying that— "The lands authorized by Congress to be taken by the railway company in lieu of lands conveyed by it to the United States must not only have been classified by the government surveyor as non- mineral, but must be non-mineral in fact." The Northern Pacific Railway Company appealed from the decree of the said Circuit Court of Appeals to the Supreme Court of the 14 United States. Notwithstanding the fact that there was on the bench of the Supreme Court of the United States one justice, at least, who had already expressed an opinion of the meaning of the act of March 2, 1899, favorable to the Northern Pacific Railway Com- pany, viz, Mr. Associate Justice Willis Van Devanter, the said Supreme Court, on motion of counsel for the Northern Pacific Rail- way Company, dismissed that company's appeal on February 23, 1912, (223 U. S., 746). We very much regret that the railroad com- pany thus obviated the possibility of having the Supreme Court of the United States express an opinion concerning the soundness of a decision of the Department of the Interior which expressed the judg- ment of one of the members of that court at a time when he was Assistant Attorney General for the Department of the Interior. The modesty of the claims of the company under this act of 1899 can be measured by the argument submitted on its behalf in the matter entitled Northern Pacific Railway Company (40 L. D., 441). Therein. it was contended that the said act contemplated the giving of a scrip right to the company in lieu of the glacial fields or streams within the limits of the company's grant, but not granted, situate in the Mt. Ranier National Park and the Pacific Forest Reserve. The com- pany actually insisted that it ought to be permitted to convey to the United States something the company never had, and to receive in consideration for the conveyance a right to timbered lands, prospective townsites, power sites, and other of the more valuable public lands. - The Northern Pacific Railway Company's scrip acts of July 1, 1898, and March 2, 1899, did not increase or enlarge the number of acres of land originally granted to the company. They simply en- abled the company to acquire in any State in which its road was con- structed more valuable lands than those relinquished by the company. to settlers or reconveyed by it to the United States. If the company did not know that the said acts would enable it to do this certainly the company would not have consented to the modification of its "legislative contract" by those acts. Those acts have greatly en- riched the Northern Pacific Railway Company. They have enabled it to get rid of lands of little, if any, value and to obtain in lieu thereof, for itself or its grantees, the most valuable of the remaining public lands in the Northern Pacific Railway States. Those acts have en- abled that company to become the sole owner of the largest quantity of land scrip ever in existence, with the possible exception of soldiers' additional homestead rights, nearly all of which rights have now been exercised. Because of the fact that the scrip created by the said acts may be located anywhere in the Northern Pacific Railway States it is not now possible, as it was before those acts, to know with certainty the location of the lands to which a claim by that railway company can be lawfully asserted. The company is now a possible claimant for any land, situate anywhere, in any of the States in which its railroad extends. This is a situation or condition which the Congress that made the grant to the company in 1864 intended never should arise. That Congress intended that the company should be enabled to do a transportation business. Later, Congress enabled it to go into the scrip business and to pick and select from the public domain the most valuable areas. 15 This scrip is the private property of the railway company acquired under private acts of Congress by virtue of its "legislative contract" with the government and there is no obligation resting upon the com- pany to sell it. The company has the right to sell when and to whom it desires. It has made sales frequently and in large quantities to the Weyerhaeuser Timber. Company and other aggregations of capi- tal with monopolistic tendencies. The Northwestern Improvement Company, which appears to be owned by the railway company, figures prominently in the railway company's scrip transactions. When the scrip is sold it is located upon the public lands by the company's land commissioner under a contract with the purchaser to convey title when the government patent under the scrip location has issued. (See 40 Land Decisions, 436, as to requirements governing scrip locations.) 16 A "MORE FANCIFUL THAN REAL" CLAIM BY THE NORTHERN PACIFIC RAILWAY COMPANY TO MORE THAN 100,000 ACRES A Northern Pacific Railway Company second indemnity selections. case illustrating how the "more fanciful than real" claim of a railway corporation operated to prevent appropriation by homesteaders and others of a large area of the public domain for several years. One hundred thousand (100,000) acres selected by the said company in apparent contempt of two care- fully prepared decisions of the land department which charac- terized the company's claim to the lands as "more fanciful than real." The company's explanation of the apparent contempt was that the land department, notwithstanding two decisions rendered by it against the company, had licensed the company to continue, thereafter, the filing of claims twice and finally de- nounced by the department as "more fanciful than real." court decision worthy of studious notice. A In vs. Northern Pacific Railway Company, decided by the De- partment of the Interior on July 3, 1913, more than four years after the case was at issue, the undisputed facts presented in the case. were- FIRST That on January 23, 1909, the Department of the Interior by its decision in Bradley vs. Northern Pacific Railway Company (37 L. D., 410), adhered to its decision of July 10th, 1907, in the same case, to the effect that the Northern Pacific Railway Company's claim of right to take indemnity from the former Gros Ventre Indian Reserva- tion in Montana was "more fanciful than real." SECOND-That after the first decision in the said case and before rendition of the second decision therein and on June 29, 1908, the land department inadvertently issued a patent to the said company for 3,591.86 acres of the very same lands with respect to which the com- pany's claim had been dismissed because "more fanciful than real." THIRD-That on being requested by the Land Department to surrender such inadvertently issued patent for cancellation the rail- road company refused to make surrender and indicated that it would not restore the land to the United States unless compelled to do so as a result of judicial proceedings instituted by the United States to cancel such patent. The confessed purpose of the company in refusing to deliver the patent for cancellation was that it desired the United States to insti- tute a suit in equity under which it would be possible to have the courts consider the question raised by the company as to the sound- ness of the Department's two carefully prepared decisions in the Bradley case, supra. 17 FOURTH—That the company, with knowledge of the said two departmental decisions of July 10, 1907, and of January 23, 1909, in Bradley vs. Northern Pacific Railway Company, supra, and in ap- parent disregard thereof, and while in possession of the said in- advertently issued patent did, thereafter, and on May 3, 1909, file four separate indemnity selection lists covering over 100,000 acres of lands within the former Gros Ventre Indian reservation with re- spect to which lands the Department of the Interior had twice de- clared that the company's claim was "more fanciful than real.” FIFTH-That the United States did institute suit against said rail- way company with view to cancellation of said inadvertently issued patent and did, on the advice of the First Assistant Attorney, and because "the attorneys for the railroad company have requested," and without notice to settlers and applicants claiming adversely to the company, direct that no further action should be taken upon the selec- tions filed by the company on May 3, 1909, or upon filings in con- flict therewith, until such time as the government's suit against the company had been finally determined. SIXTH-That the suit by the United States against the said com- pany was finally determined when, on April 19, 1912, an assistant attorney general advised the Department of the Interior that no appeal would be taken from the decree against the United States. entered in such suit on August 28, 1911, by the United States Circuit Court, District of Montana. SEVENTH-That the said court's decision was to the effect that the act of March 3, 1911, (36 Stat., 1080), which provided with re- spect to said former Indian reservation lands "that no patent shall be denied to entries heretofore made in good faith under any of the laws regulating entry, sale, or disposal of public lands," et cetra, validated as of the date of the said act the patent which had been in- advertently issued to the railway company. This was, in effect, a ruling by the court that a patent is an entry. It was further said by - the court: "So that, if it were to be held that the amendment did not cure the alleged defects of defendants' title to the lands in question, the effect of such holding would simply be to require the defendant rail- way company to do over again what it did once before; that is, again file in the local land office its selection of the lands which were pat- ented to it upon the selections made in 1908. A construction which would deny to the amended statute any curative effect as regards selections made and approved prior to its enactment, when, at the same time, the right to acquire the lands thereafter by the very means of such identical selection is unmistakably conferred, thus imposing a burden which it does not seem reasonable to assume as having been intended by the law-making body, should obviously not be adopted, unless the words of the statute clearly demand it." EIGHTH-That it was contended by the company on the appeal to the Secretary that the said act of March 3, 1911, validated the un- approved indemnity selections which were filed by the company on May 3, 1909, in apparent contempt of the department's two decisions in the Bradley case, supra, and that such had been the announcement and ruling of the said Circuit Court for the district of Montana. This contention on behalf of the company was opposed by the contention 18 that if the court had made such an announcement it had only indulged in obiter dicta of the most offensive sort, and that unapproved rail- way indemnity selections are not entries and that even if they were entries they were not "entries heretofore made in good faith" for the reason that they were selections filed in contempt of two rulings of the land department against the company's claimed right to select. The court's ruling to the effect that a patent is an entry is at variance with the ruling of the Department of the Interior in Alice M. Reason. 36 L. D., 279, decided February 21, 1908, wherein it was said: "When the contract is consummated by a patent the entry no longer exists, for the contract, or entry, is satisfied or discharged. There is no longer a subsisting entry." It will be observed that this decision by the Department of the Interior antedates the court decision to which we are referring. Whether the Department's decision in the Reason case, supra, was brought to the court's attention in argument on behalf of the United States we do not know, but we do know that on April 21st, 1912, in the case entitled Sarah V. White, 40 L. D., 630, the Department of the Interior reiterated its ruling in the Reason case, supra, saying, quoting from the syllabus of the White case: "By the issue of patent for the land embraced in an entry the entry becomes merged in the patent and is thereafter non-existent. "" The objection that the court said it perceived to the entering of a decree cancelling the patent which was inadvertently issued to the Northern Pacific Railway Company was similar in character to the objections urged in argument on behalf of the Germania Iron Com- pany on that company's appeal to the Supreme Court of the United States from a decree cancelling a patent inadvertently issued to that company. See Germania Iron Company vs. United States, 165 U. S., 379. In the case just cited counsel for the Germania Iron Company are reported as having argued as follows: "That a vendor cannot ask the aid of a court of equity to avoid his deed on the mere ground of irregularity on the part of his agents unless he also shows that the grantee in such deed was not equitably entitled to the conveyance; that courts never attempt to do a useless thing, and that it would be idle to enter a decree cancelling a patent, when for aught that appears it would be the duty of the government, after some formal proceedings and compliance with certain regulations, to reissue to the patentee a patent for the same lands. In other words, their contention is that this whole litigation is merely a dispute about form and order of proceeding, and not about substantial rights." In the Germania Iron Company case, the court was not very favor- ably impressed by the argument on behalf of that company and had this to say concerning the statement by counsel for said company that if a decree of cancellation of the patent were entered it would be only a vain and useless thing, because upon compliance with certain regu- lations the Department of the Interior would probably be obliged to reissue a patent for the same land. The court said: "By inadvertence and mistake a patent in this case has been issued, and the effect of such issue is to transfer the legal title and remove from the jurisdiction of the land department the inquiry into and con- sideration of such disputed questions of fact. 19 "The contention of the appellants is substantially that the courts must consider and determine those disputed questions of fact and exercise a jurisdiction not committed to them, before they restore to the land department the jurisdiction of which it has been wrongfully deprived. But why should the courts be called upon to consider and determine questions of fact, and after a determination adversely to the patentee relegate the matter for re-examination and determina- tion in the land department? Is not the duty of the court fully per- formed when it ascertains that through such inadvertence and mis- take the department which has jurisdiction over such matters has been deprived thereof? It restores to such department its lost juris- diction and leaves to the tribunal designated by Congress the full power to discharge the duties conferred upon it. *** It and not a court of equity is the tribunal entrusted by the law with jurisdiction over such matters, and the latter may not inquire what ought to have been the determination of the former, but whether it has been wrong- fully deprived of the power to make such determination." In our judgment the opinion of the United States Circuit Court for the District of Montana in the suit instituted by the United States. to cancel the patent inadvertently issued to the Northern Pacific Rail- way Company was unsound in principle, and contrary to precedent. Why it was that the United States did not take an appeal therefrom is unknown to us. We believe that an appeal should have been taken and we further believe that a reversal could have been obtained upon the single ground that the decision of the Supreme Court of the United States in the Germania Iron Company case, supra, laid down the rule, a rule binding upon all inferior Federal courts, that in any case in- volving patents inadvertently issued by the United States the sole duty of the court is to decree cancellation when "it ascertains that through such inadvertence and mistake the department which has jurisdiction over such matters has been deprived thereof," without inquiry as to any other matter or thing presented in the case. The opinion of the Circuit Court for the District of Montana in the suit by the United States against the Northern Pacific Railway Com- pany was filed August 28, 1911, but was not reported and published in the Federal Reporter series until after the omission of the opinion from those reports was called to the attention of the publishers by the writer. Why it was not given out for publication theretofore is unknown to us. For the opinion see 204, Federal Reporter, 485, advance sheets thereof issued June 19, 1913. The judge who ren- dered the decision appears to have been appointed to the bench on or about May 27th, 1910. It was on February 2, 1910, that the Depart- ment of the Interior recommended to the Attorney General that suit be instituted against the railway company to cancel the inadvertently issued patent. This judge resigned from the bench on or about October 5, 1911, less than two months after he rendered the decision aforesaid. He is now, so the writer is informed, of counsel for the Northern Pacific Railway Company. Furthermore, he appears to have been the same person who, as an attorney at law, on October 30, 1908, appeared as counsel on behalf of Reuben Bradley (37 L. D., 410), before the land department and who submitted a masterly brief exposing the "more fanciful than real" claim of the railway company and concluding as follows, 20 "From this it is clear that the railway company is not entitled to select the land involved in this case, and its motion for review of the Honorable Secretary's decision heretofore rendered herein, should be denied." # In its decision of July 3, 1913, the Department of the Interior ruled that those selections by the company which were filed May 3, 1909, had no effect as against any conflicting filing by an individual made · prior to the said act of March 3, 1911. The said decision leaves un- determined the question whether the said act of March 3, 1911, either in express terms or by implication, validated as of that date, or at all, the selections which were filed by the company on May 3, 1909, in apparent contempt of the Departments' two decisions in the Bradley case, supra. The said decision is justly criticisable for the reason that it con- curred in the judgment of the United States Circuit Court for the District of Montana to the effect that a patented indemnity selection. is an entry. In thus concurring the Department virtually receded from the position it took in the Alice M. Reason and Sarah V. White cases, alluded to hereinbefore, wherein it was expressly held that an entry becomes non-existent after the issue of a patent thereunder. We await a decision by the Department of the Interior on the question whether bona fide conflicting filings made by individuals subsequent to March 3, 1911, are invalid (as against the claims of the company under its selections) because of the provisions of the act of Congress of that date. We will be deeply interested in knowing whether it is possible for any benefits whatever to ensue from an act committed by a railway company, or any public land claimant, in apparent contempt of law, adjudications and the Department of the Interior. As the company has never said or done anything looking to a purging of the apparent contempt committed by it we must assume that the company and its selections of May 3, 1909, are still in con- tempt unless there exists a valid reason for ruling that there was a purging of the contempt by the said act of Congress. We hardly think that the Department of the Interior will conclude that there is a reason for such a ruling. 21 EXPERIENCE OF AN IDAHO HOMESTEADER WITH A NORTHERN PACIFIC RAILWAY COMPANY SCRIP LOCATION A SETTLEMENT CLAIM TWELVE YEARS OLD Undetermined After Eight Years of Litigation in the Land Department with the Northern Pacific Railway Company. Patent inadvertently issued to company during progress of contest between it and homesteader accepted and held by company without notice to heirs of the homesteader who continue prose- cution of the contest in ignorance of abatement thereof by rea- son of issue of the patent. In the heirs of deceased homestead settler, against the Northern Pacific Railway Company, the decedent made settlement on June 15, 1901, when the land was unsurveyed. June 21, 1901, the lands still being unsurveyed, the company located it by filing scrip in the office of the register and receiver. The homesteader had no notice of this scrip filing until August 16, 1905, after the land was surveyed, when his homestead application was rejected because of alleged conflict with the company's scrip. The company gave no notice of the scrip location either by posting or establishing cor- ners on the land. On rejection of his homestead application the settler promptly appealed and on April 16, 1909, (three years and seven months after the appeal was filed) the General Land Office accorded him a right to be heard as against the scrip. Although the homesteader's application contained a sworn statement by him, cor- roborated by two witnesses, that he had settled upon the land prior to the filing of the company's scrip, which sworn statement never has been formally denied by the company, the homesteader was, never- theless, made party plaintiff in the proceeding and had imposed upon him the burden of proof. Thereafter the settler's heirs gave notice. of his death and on October 26, 1910, the register and receiver set the case for trial on March 8, 1911, about six years after rejection of the homesteader's application and about two years after the General Land Office had accorded the homesteader a right to be heard. > At the trial a lumber company filed petition to interevene alleging that it had acquired, by purchase, the railway company's alleged title under the scrip location. At the close of the taking of testimony the lumber company moved for a continuance of the hearing and the register and receiver granted a continuance to April 8, 1911. March 11, 1911, the settler's heirs appealed to the Commissioner from the order granting the continuance. On March 27, 1911, when the case was in the testimony taking stage of proceedings theretofore authorized by the General Land Office to determine the merits of the conflicting claims to the land, the General Land Office formally executed a patent (No. 186391, Clear List, 22 76) to the Northern Pacific Railway Company of the land then in con- troversy between the homesteader's heirs and that company and de- livered such patent on March 29, 1911, to resident counsel at Wash- ington for that company. After so doing the General Land Office proceeded to act on the heirs' said appeal apparently in ignorance of the fact that it had theretofore, by its own act, divested itself of juris- diction over the land for any purpose whatsoever. On October 9, 1911, the General Land Office, after it had issued a patent to the company, dismissed the said appeal and returned the papers in the case to the register and receiver, saying- "Said appeal is hereby dismissed, and the case remanded and you will permit the taking of the depositions in accordance with the Rules. of Practice." March 21, 1912, a year after the said patent had issued and five months after the General Land Office had dismissed plaintiff's appeal as aforesaid, the register and receiver issued an "order for hearing" which concludes as follows: "It is therefore hereby ordered that each of the above parties appear, and respond and offer evidence in support of their respective claims, at a hearing to be held at 10 o'clock A. M., on the 27th day of May, 1912, before the register and receiver in the United States Land Office at Coeur d'Alene, Idaho." On May 27, 1912, to which date the taking of testimony was con- tinued on the motion and at the urgent request of the intervening lum- ber company, counsel for the intervenor stated "that it has no testi- mony to offer at this time and for these reasons," viz., (a) that one of the three alleged witnesses is seriously ill and totally blind and is in Arkansas and is in an unfit condition "to either be brought here as a witness, or used by way of deposition;" (b) that another of the alleged witnesses "left no address and we have been absolutely unable to track him, cannot find him;" (c) that with respect to the third one of the alleged witnesses "his information on the subject is not of sufficient importance to warrant his being brought here or taking his. deposition. رر P July 6, 1912, the register and receiver formally rendered their joint decision, the concluding paragraph of which is as follows: "We therefore recommend that said homestead application be rejected as to the and that Northern Pacific Railway Co., List 61, be approved to that extent. "} The said list had long theretofore been not only approved "to that extent," but also patented "to that extent." Query: Were the register and receiver in ignorance of the issue of the patent when they rendered their decision and recommended that something be done in the future which they are charged with notice of wing had been done in the past? Were they not, in accordance he usual practice, formally and duly notified of the issue of the March 29, 1911? e the officers and attorneys of the lumber company of the patent? If so, did their knowledge of whatever to do with the fact that it e," to wit, May 27, 1912? Who 1011 at pore 472 of Book 41 of the records of the office of the Recorder of Deeds for Shoshone County, Idaho? April 8, 1913, the heirs of the homesteader retained the writer to represent them on the appeal to the Commissioner from the local officer's decision of July 6, 1912. Not until after the writer had made an examination of the records at Washington were the heirs informed of the issue of patent to the company on March 27, 1911. For more than two years they had been unknowingly engaged in mimic litiga- tion, in a mock trial, before a department of the government which was without jurisdiction of the land because of inadvertent issue of patent therefor to the railway company on March 27, 1911. The writer probably never would have heard of the inadvertently issued patent if he had not theretofore been informed of the inadvertent issue of patents to the Northern Pacific Railway Company in other cases, especially in connection with the case referred to elsewhere in this pamphlet wherein a patent for 3,591.86 acres had been inadvertently issued to that company. The writer has concluded that it is always advisable before briefing any case between the Northern Pacific Rail- way Company and a settler to learn the precise status of the land involved. Inadvertently issued land patents have been the subject of many decisions by the Supreme Court of the United States. In Hughes vs. United States, 4 Wall., 232, the court said: "Relief, when deeds or other instruments are executed by mistake or inadvertence of agents, as well as upon false suggestions, is a common head of equity jurisdiction." (See also Williams vs. United States, 138 U. S., 514; Germania Iron Co. vs. United States, 165, U. S., 379.) April 17, 1913, the writer filed in the General Land Office a formal suggestion that the Northern Pacific Railway Company and its trans- feree be requested by the General Land Office to voluntarily surrender the inadvertently issued patent, for cancellation. One of the stated reasons for this suggestion was that- "Neither the General Land Office nor the Secretary of the Interior has either jurisdiction over or power with respect to the land con- cerning which the above entitled proceeding was initiated while the legal title thereto is outstanding in the Northern Pacific Railway Com- pany or its transferees or grantees." September 19, 1913, the Commissioner of the General Land Office, in a letter to counsel for the Northern Pacific Railway Company, made a direct and emphatic "demand for reconveyance," saying: "The result of this mistake has been that this office is divested of its jurisdiction over the subject of the controversy and may not fur- ther proceed in the determination of that controversy with any assur- ance that it will be competent to enforce whatever judgment might hereafter be rendered. "The company's attention and response to this request at the earl date consistent with due consideration of the matter is res requested." Up to the time of going to press no action by the taken, of which we have any notice. !