In suits in equity brought by the United States under the Act of
Congress passed March 2, 1889, 25 stat. 850, against corporations
and persons claiming to own lands granted to the State of Oregon by
the Acts of
Page 140 U. S. 600
Congress of July 2, 1864, 13 Stat. 355, July 5, 1866, 14 Stat.
89, and February 25, 1867, 14 Stat. 409, to declare the lands to be
forfeited to the United States and to set aside, for fraud, patents
granted therefor, the defendants pleaded the issuing of
certificates by the governor without fraud committed upon or by
him; that they were
bona fide purchasers, for a valuable
consideration, without notice, and that they had expended moneys in
respect of the lands in good faith. The pleas having been set down
for hearing, the circuit court sustained them and dismissed the
bills, without permitting the plaintiffs to reply to the pleas.
Held that they ought to have been allowed to take issue on
the pleas.
The act of 1889 intended a full legal investigation of the
facts, and did not intend that the interests involved should be
determined on the untested allegations of the defendants.
The claims of the United States cannot be treated as stale
claims, nor can the defenses of stale claim and laches be set up
against them.
Other bills were dismissed on general demurrers, after the bills
were dismissed on the hearing on the pleas, and, as it appeared
that the disposition of the pleas was regarded as determining all
the suits, the decrees in all of them were reversed.
The facts which make the case in each of these cases are stated
in the opinion, in connection with that particular case, so
completely that it is not necessary, nor would it be proper, to
repeat them. Different counsel represented different parties at the
argument, and their arguments necessarily traveled over somewhat
the same ground. In the case in which argument is reported, the
facts will be found in the opinion upon the
Willamette Valley
Case, post, 140 U. S.
622.
Page 140 U. S. 606
MR. JUSTICE BLATCHFORD delivered the opinion of the Court.
No. 1,218 is a bill in equity filed by the Attorney General of
the United States on their behalf against the Dalles Military Road
Company, James K. Kelly, C. N. Thornbury, the Eastern Oregon Land
Company, and twelve other individual defendants. The bill sets
forth that on the 25th of February, 1867, the Congress of the
United States passed, and, the President duly approved, an act, 14
St. 409, c. 77, granting to the State of Oregon, to aid in the
construction of a military wagon road from Dalles City, on the
Columbia River, by way of Camp Watson, Canyon City, and Mormon or
Humboldt Basin, to a point on Snake River opposite Fort Boise, in
Idaho Territory, alternate sections of public lands, designated by
odd numbers, to the extent of three sections in width on each side
of said road; that said act provided that the lands granted should
be exclusively applied to the construction of said road and to no
other purpose, and should be disposed of only as the work
progressed, and that any and all lands theretofore reserved to the
United States or otherwise appropriated by act of Congress or other
competent authority should be, and the same were thereby, reserved
from the operation of said act except so far as it might be
necessary to locate the route of said road through the same, in
which case the right of way to the width
Page 140 U. S. 607
of one hundred feet was granted; that it was further provided
that the grant should not embrace any mineral lands of the United
States; that the lands thereby granted to said state should be
disposed of by the legislature thereof for the purpose aforesaid,
and for no other; that the said road should be and remain a public
highway for the use of the government of the United States, free
from tolls or other charges upon the transportation of any
property, troops, or mails of the United States, and that the said
road should be constructed with such width, gradation, and bridges
as to permit of its regular use as a wagon road, and in such other
special manner as the State of Oregon might prescribe; that the
said act also authorized the state to locate and use, in the
construction of said road, an additional amount of public lands,
not previously reserved to the United States or otherwise disposed
of, and not exceeding ten miles in distance from it, equal to the
amount reserved from the operation of the act, to be selected in
alternate odd sections, as provided therein; that the lands thereby
granted to said state should be disposed of only in the following
manner -- that is to say, when the governor of the state should
certify to the Secretary of the Interior that ten continuous miles
of said road were completed, then a quantity of the land granted by
the act, not exceeding thirty sections, might be sold, and so on
from time to time until said road should be completed, and, if it
was not completed within five years, no further sales should be
made, and the lands remaining unsold should revert to the United
States, and that the United States Surveyor General for the
District of Oregon should cause the lands so granted to be surveyed
at the earliest practicable period after the state should have
enacted the necessary legislation to carry said act of Congress
into effect.
The bill further sets forth that on the 20th of October, 1868,
the Legislative Assembly of the State of Oregon passed, and the
governor approved, an act, Laws of Oregon of a868, p. 3, entitled
"An act donating certain lands to Dalles Military Road Company,"
which act, after setting forth the passage of the Act of Congress
of February 25, 1867, granted to Dalles Military Road Company,
incorporated March 30, 1868,
Page 140 U. S. 608
all lands, right of way, rights, privileges, and immunities
theretofore granted or pledged to the state by said act of Congress
for the purpose of aiding said company in constructing the road
mentioned and described in said act of Congress, upon the
conditions and limitations therein prescribed; that said act of the
state also granted and pledged to said company all moneys, lands,
rights, privileges, and immunities which might be thereafter
granted to the state to aid in the construction of such road, for
the purposes and upon the conditions mentioned in said act of
Congress, or which might be mentioned in any further grants of
money or lands to aid in constructing said road, and that said act
of the state authorized the company to locate, subject to the
approval of the governor of the state, the lands mentioned in said
act of Congress within the ten-miles limit prescribed by the latter
act, in lieu of lands reserved.
The bill further sets forth that the State of Oregon never
passed any law for the special purpose of carrying into effect the
act of Congress of February 25, 1867, but had passed, on the 13th
of October, 1862, an act, General Laws of Oregon of 1862, reported
by Code Commission, p. 3, entitled "All act providing for private
incorporations, and the appropriation of private property
therefor," which provided among other things that any road, other
than a railroad, constructed by a corporation formed under the said
act, should be cleared of standing timber for thirty feet in width,
and should have a track in the center not less than sixteen feet
wide, finished and kept in good traveling condition, except when
the cutting on said road was six feet or more deep on either side,
in which case such track need not be more than tem feet wide, with
turnouts of sixteen feet in width for every quarter of a mile of
such narrow track; that all streams or other waters upon the line
of such roads should be safely and securely bridged, except where
the county court of the county wherein the line of such road might
cross such streams or other water, or if such stream or other water
formed the boundary between two counties, then the county court of
either of said counties, might authorize the corporation to place a
ferry boat upon such stream or other water, to be kept and run for
such toll as
Page 140 U. S. 609
the county court might prescribe, and in the manner required of
ferries established under the general statutes in relation to
ferries, or except where such county court might authorize such
corporation to connect their road with a ferry then or thereafter
established over such stream or other water under the general
statute in relation to ferries, and that those provisions of said
Act of October 13, 1862, had been at all times thereafter and still
remained in force.
The bill further sets forth that the Dalles Military Road
Company is a private corporation, purporting to have been
incorporated on the 30th of March, 1868, under the general laws of
the State of Oregon; that the business in which it proposed to
engage was the location and construction of a day road from Dalles
City, in the County of Wasco, Oregon, by way of Camp Watson and
Canyon City, to a point on Snake River opposite Fort Boise, in
Idaho Territory, about two miles below the mouth of Owyhee River;
that James K. Kelly and two other persons were the incorporators
thereof; that on the 11th of January, 1871, the company, by its
then directors, five in number, in pursuance of the unanimous vote
of the stockholders, made and filed supplementary articles of
incorporation which provided that the additional business in which
the corporation proposed to engage was to accept and receive any
and all grants of land and other things of value from the United
States to the State of Oregon, and to purchase and hold land and
other property which its directors might deem necessary and
convenient for its interests, and to engage in any business
incident to and connected with receiving any such grant, and in
selling, conveying, purchasing, and holding any land or property
that might come into the possession of the company, and also to
establish and keep a toll road on any part of the road belonging to
it, and that the corporation was still in being, and the officers
thereof were James K. Kelly, president, and C. N. Thornbury,
secretary. The bill further sets forth that on the 1st of January,
1869, and on divers other days between that day and the 23d of
June, 1869, the officers, stockholders, and agents of the company,
and other persons acting in their and its interests, falsely
Page 140 U. S. 610
and fraudulently represented to George L. Woods, then the
Governor of Oregon, that said road had been constructed as by law
required, they then knowing that said representations were false,
and that said road had not been constructed; that they made such
representations for the sole purpose of fraudulently procuring from
the said governor a certificate declaring that the road had been
constructed in accordance with the Act of Congress of February 25,
1867, and of the Act of the state of October 20, 1868; that the
said governor, in consequence of such representations, made and
issued a certificate, dated June 23, 1869, under his hand and the
great seal of the state, and attested by the Secretary of State,
which set forth as follows:
"I, George L. Woods, Governor of the State of Oregon, do hereby
certify that this plat or map of the Dalles Military Road has been
duly filed in my office by the Dalles Military Road Company, and
shows, in connection with the public surveys, as far as said public
surveys are completed, the location of the line of route as
actually surveyed, and upon which their road is constructed in
accordance with the requirements of an Act of Congress approved
February 25, 1867, entitled"
"An act granting lands to the State of Oregon to aid in the
construction of a military wagon road from Dalles City, on the
Columbia River, to Fort Boise, on Snake River,"
"and with the Act of the Legislative Assembly of the State of
Oregon approved October 20, 1868, entitled 'An act donating certain
lands to Dalles Military Road Company.' I further certify that I
have made a careful examination of said road since its completion,
and that the same is built in all respects as required by the said
above-recited acts, and that said road is accepted."
The bill further alleges that the company had not constructed at
any time a road upon any line of route located or surveyed anywhere
within the limits of the grant of land provided for in said act of
Congress, or at all; that the said governor knew this, and had not
made any examination of any road constructed or owned by the
company; that said certificate was procured by the company, through
such false representations, in order to enable it fraudulently to
obtain possession of the lands lying within the limits of the
grant
Page 140 U. S. 611
provided for in said act of Congress; that the acceptance of
said pretended road by said governor was a fraud upon the United
States; that the road never was built, graded, bridged, cleared, or
constructed, either in whole or in part, so as to be a public
highway, or so as to permit the transportation of any property,
troops, or mails of the United States over the same, and was not
and never has been maintained as a public highway by any of the
defendants, or any person or persons claiming any interest in the
lands embraced within the limits provided for by said act of
Congress; that neither the said lands nor the proceeds thereof had
ever been exclusively or at all applied to the construction of the
road or any part thereof, or of any bridges thereon, or to the
establishment of ferries on any streams along the line of the road,
and that the lands granted by said act of Congress had not been
disposed of by the State of Oregon for the purposes expressed in
said act.
The bill further alleges that on the 18th of June, 1874,
Congress passed an act (18 St. 80, c. 305) entitled "An act to
authorize the issuance of patents for lands granted to the State of
Oregon in certain cases," which, after reciting that certain lands
had theretofore by acts of Congress been granted to said state to
aid in the construction of certain military wagon roads in that
state, and that there existed no law providing for the issuing of
formal patents for said lands, provided as follows:
"That in all cases when the roads in aid of the construction of
which said lands were granted are shown by the certificate of the
Governor of the State of Oregon, as in said acts provided, to have
been constructed and completed, patents for said lands shall issue
in due form to the State of Oregon as fast as the same shall, under
said grants, be selected and certified, unless the State of Oregon
shall by public act have transferred its interests in said lands to
any corporation or corporations, in which case the patents shall
issue from the General Land Office to such corporations or
corporations, upon their payment of the necessary expenses thereof,
provided that this shall not be construed to revive any
land grant already expired, nor to create any new rights of any
kind, except to provide for issuing patents for lands to
Page 140 U. S. 612
which the state is already entitled,"
and that on the 19th of June, 1876, the President of the United
States, imposed upon by said fraudulent certificate, issued to the
company a patent for 126,910.23 acres of land, included in the
grants made, or intended to be made, by said acts of Congress.
The bill then sets forth that, by certain conveyances, the title
of the company became vested in the defendant, the Eastern Oregon
Land Company, a private corporation; that the deeds conveyed the
lands in bulk, and purported to grant to the respective grantees
all the lands lying and being in Oregon, granted or intended to be
granted to that state by the Act of Congress of February 25, 1867,
and granted or intended to be granted by the state to the road
company by the Act of October 20, 1868, the substantive parts of
both of said acts being recited in all of the deeds, and expressly
made parts of each of them, and that the Eastern Oregon Land
Company is a private corporation created under the laws of
California, on September 26, 1884, its business being, among other
things, to buy and sell lands in Oregon, and it being an existing
corporation.
The bill further avers that the maps or plats referred to in the
certificate of the governor showed the line of the pretended road
to be 357 miles, which would make the grant of lands covered by the
act of Congress of February 25, 1867, embrace in the aggregate
685,440 acres, of which 558,529.77 acres were not yet patented to
the Dalles Military Road Company, and it claimed the right to have
a patent therefor.
The bill further alleges that each of the defendants, and the
intermediate grantors and grantees, had full knowledge at the time
of the execution and delivery of the deeds that the road provided
for by said act of Congress had not been constructed and maintained
as required thereby and by the laws of Oregon, so as to be a public
highway, or so that it could be used by the United States or by any
of the citizens or residents thereof as a public highway, or so
that the United States could transport its property, troops, or
mails over the same, and also had full knowledge that no grades had
been established or constructed upon any part of said road, no
Page 140 U. S. 613
ferries established or maintained, or clearing done, no cuts
made, and no turnouts constructed, anywhere on said line of road,
no bridges built or maintained over any streams on said line, and
had full knowledge that said road was not begun, or completed
within five years from the date of the passage of said act of
Congress, that the statements made in said certificate were false,
that the governor did not at any time examine the road, that said
certificate had been procured by such false and fraudulent
representations, and that said patent was procured to be issued
upon said false and fraudulently procured certificate.
The prayer of the bill is that all the lands granted to the
State of Oregon by the Act of Congress of February 25, 1867, be
decreed to be forfeited to the United States and restored to the
public domain, that the said certificate, patent, and deeds be
declared fraudulent and void, and for further relief. Copies of the
patent and of the deeds are annexed to the bill.
The Dalles Military Road Company, Kelly, and Thornbury excepted
to the bill for impertinence. These exceptions were sustained. 40
F. 114.
By leave of the court, the defendants D. v. B. Henarie, Eleanor
Martin, P. J. Martin, and the Eastern Oregon Land Company, on the
17th of October, 1889, filed two pleas to so much of the bill as
prayed that the land granted to the State of Oregon by the Act of
Congress of February 25, 1867, and owned by those defendants, be
decreed to be forfeited to the United States. The first plea sets
up that Woods, the then governor, without any false representations
having been made to him and without any fraud on his part,
certified, on June 23, 1869, that the plat or map of the road had
been filed in his office by the company, and showed the location of
the line of route as actually surveyed, and upon which its road had
been constructed in accordance with the requirements of said act of
Congress and the act of the State of October 20, 1868, and that he
had made a careful examination of said road since its completion,
and that the same was built in all respects as required by said
acts, and the said road was then accepted; that on the 31st of May,
1876, the company,
Page 140 U. S. 614
for a valuable consideration, to-wit, $125,000, paid to it by
Edward Martin, sold and conveyed all the said lands belonging to it
to the said Martin, his heirs and assigns, and that, by sundry
mesne conveyances from Martin to the Eastern Oregon Land Company,
the title to said lands became and now was vested in that
company.
The second plea, after setting forth the contents of the
governor's certificate of June 23, 1869, averred that on December
18, 1869, the Commissioner of the General Land Office withdrew from
sale the odd-numbered sections within three miles from each side of
said road in favor of the Dalles Military Road Company; that
Congress passed the Act of June 18, 1874; that Edward Martin,
placing confidence in the truth of said governor's certificate of
June 23, 1869, and in the order of withdrawal of the Commissioner
of the General Land Office of December 18, 1869, and believing that
the Act of Congress of June 18, 1874, would be carried into effect,
purchased from said company, on the 31st of May, 1876, in good
faith, for the consideration of $125,000, then paid by him to the
company, all the lands embraced in the grant to it except such
portions as had been previously sold by it; that, prior to the time
he paid said purchase money and received his deed, he had no notice
of any failure on the part of the company to construct and complete
the road, and had no reason to believe that it was not constructed
in accordance with the act of Congress, but was informed and
believed that it had been constructed with such width, gradation,
and bridges as to permit of its regular use as a wagon road, and
that he thus became a
bona fide purchaser, for a valuable
consideration, of all the lands then owned by the company, which it
then conveyed to him. The plea then avers the execution by him on
January 31, 1877, of a deed of trust acknowledging that said Martin
held an undivided one-fourth of said lands in trust for said D. V.
B. Henarie, and that when Martin purchased the lands, Henarie had
paid one-fourth of the $125,000, in good faith, relying upon the
certificate of the governor and on the Act of Congress of June 18,
1874, and had no notice that the road had not been constructed and
completed by the company as required
Page 140 U. S. 615
by the act of Congress. The plea then sets forth proceedings and
deeds by which the title of Martin, who had died, and the title of
all other persons became vested in the Eastern Oregon Land Company,
and avers that the latter company then held the legal title to all
the lands granted to the Dalles Military Road Company, except such
as had theretofore been sold and conveyed by the latter company and
its grantees and the Eastern Oregon Land Company.
On the same date, the defendants who filed those two pleas filed
an answer in support of them. On the 25th of October, 1889, the
Dalles Military Road Company and Kelly and Thornbury, who were,
respectively, president and secretary of the company, filed an
answer to the bill. No replication appears to have been filed to
this answer.
The case was heard upon the pleas above mentioned, and the
court, on the 18th of February, 1890, entered a decree sustaining
the pleas and dismissing the bill. The opinion of the court,
delivered by Judge Sawyer, the circuit judge, is reported in 41 F.
493. In the opinion it was held that both of the pleas were good.
As to the first plea, the view taken was that the authority to
determine whether the road was completed was vested solely in the
Governor of Oregon, who was the agent of the United States in the
premises; that his decision was, in the absence of fraud, final and
conclusive, and that the government was estopped from denying its
finality. As to the second plea, it was held to be good because it
alleged that the defendants were
bona fide purchasers from
the Dalles Military Road Company, without notice of any fraud or
defect in the title, and that the defendants were entitled to rely
upon the acts of Congress of 1867 and 1874, the act of the State of
Oregon, the certificate of the governor of that state, the
withdrawal of the lands from sale, and the issue of the patent.
After deciding that the two pleas were valid and sufficient, the
opinion proceeds:
"The remaining question to be considered, and the only one
presented upon which there is any room for doubt, is whether
complainants should be permitted to reply to the pleas or whether
the bill should be dismissed. Upon the whole, after careful
consideration, I think
Page 140 U. S. 616
the bill should be dismissed. I think it in the highest degree
probable that such would be the final result whichever course is
pursued. If so, the expense and annoyance of a long litigation
would be fruitless."
The opinion then holds that the bill must be dismissed on the
ground that subsequent purchasers were entitled to rely upon the
certificate of the governor; that the Act of Congress of June 18,
1874, affirmed the truth of the certificate and authorized the
issuing of the patent, and that the claim of the United States was
stale.
We are of opinion that the circuit court erred in not permitting
the plaintiffs to reply to the pleas and in dismissing the bill
absolutely. It is provided by Rule 33 of the rules of practice in
equity that the plaintiff may set down a plea to be argued or may
take issue upon it. This does not mean that the plaintiff is to
make thereby such a conclusive election that if he sets down the
plea to be argued and it is sustained on the argument, he cannot
afterwards take issue on it. By Rule 34, on the overruling of a
plea on hearing, the defendant has a right to answer the bill. The
object of having a plea set down for hearing is to induce the
presentation to the court, as a question of law, of the matters set
up in the plea, so that, assuming those matters to be true in point
of fact, the whole controversy may perhaps be determined as a
question of law. But this practice would be discouraged, if the
plaintiff were not to be allowed, in case the plea be sustained in
matter of law, to take issue upon it as matter of fact. Rule 35
provides that in case upon a hearing a plea is allowed, the court
may, in its discretion, upon motion of the plaintiff, allow him to
amend his bill. But there is no restriction put upon the right of
the plaintiff to take issue upon a plea after it is allowed on a
hearing, and such is the view which has been adopted by this
Court.
In
Rhode Island v.
Massachusetts, 14 Pet. 210,
39 U. S. 257,
it is laid down by the Court, speaking by Chief Justice Taney, that
if a plea, upon argument, is ruled to be sufficient in law to bar
the recovery of the plaintiff, the court would, according to its
uniform practice, allow him to put in issue, by a proper
replication, the truth of the facts stated in the plea.
In 1 Daniell's Chancery Pleading & Practice, 4th ed., c.
15,
Page 140 U. S. 617
sec. 5, p. 696 it is said that if a plea is allowed upon
argument, the plaintiff may take issue upon it and proceed to
disprove the facts upon which it is endeavored to be supported, and
that he does this by filing a replication in the same manner as if
the defendant had answered the bill in the usual way. To the same
effect,
see Cooper's Eq.Pl. 232; Beames on Pleas in
Equity, 316 to 318; Rule of Lord Chancellor King, 12 Geo. I,
Gilbert's Reports in Equity, 2d ed. folio 1742; Story's Eq.Pl.
§ 697, and Mitf.Ch.Pl. by Jeremy 301.
Various matters of fact are alleged in the pleas which the
plaintiffs have a right to controvert, such as that there were no
fraudulent representations made to the governor, that he made the
certificate without any fraud on his part, that Martin was a
bona fide purchaser for a valuable consideration without
notice, that Henarie was likewise, and that the subsequent grantees
were such
bona fide purchasers.
The decree must be reversed insofar as it dismisses the bill,
and the case be remanded to the circuit court with a direction to
allow the plaintiffs to reply to and join issue on the pleas.
Case No. 1,219 is a similar bill in equity, filed by the
Attorney General of the United States on their behalf against the
Oregon Central Military Road Company, the California & Oregon
Land Company, and nineteen individual defendants. It alleges that
on the second of July, 1864, Congress passed an act (13 Stat. 355)
entitled
"An act granting lands to the State of Oregon to aid in the
construction of a military road from Eugene City to the eastern
boundary of said state,"
which granted to the State of Oregon, to aid in the construction
of such wagon road, alternate sections of public lands, designated
by old numbers, for three sections in width on each side of said
road, to be exclusively applied in the construction of the road,
and to no other purpose, and to be disposed of only as the work
should progress. The provisions of the Act of Congress of July 2,
1864, were substantially the same as those of the Act of Congress
of February 25, 1867, considered in No. 1,218.
The bill sets forth an Act of the State of Oregon of October 24,
1864 (Laws of Oregon of 1864, p. 36), entitled "An act
Page 140 U. S. 618
donating certain lands to the Oregon Central Military Road
Company," granting to that company all the lands and rights granted
to the state by the Act of Congress of July 2, 1864, for the
purpose of aiding the company in constructing the road mentioned in
the act of Congress and all lands and rights which might be
thereafter granted to the state to aid in the construction of such
road, and also that, on the 26th of December, 1866, Congress passed
an act (14 Stat. 374) granting to the state for such purpose such
old sections or parts of odd sections not reserved or otherwise
legally appropriated, within six miles of each side of the road, to
be selected by the surveyor general of the state, as should be
sufficient to supply any deficiency in the quantity of the grant
occasioned by any lands sold or reserved or to which the rights of
preemption or homestead had attached, or which for any reason were
not subject to such grant, within the designated limits.
The bill also contains like allegations with the bill in No.
1,218 in regard to the passage of the Act of the State of Oregon of
October 13, 1862, and avers that the Oregon Central Military Road
Company is a private corporation purporting to have been
incorporated on the 15th of April, 1864, under the general laws of
the State of Oregon, to construct a wagon road from Eugene City, in
a southeasterly direction to the southeastern corner of the state,
by way of the middle fork of the Willamette River; that on the 27th
of July, 1866, the officers, stockholders, and agents of the
company and other persons acting in their and in its interest,
fraudulently represented to Addison C. Gibbs, then the Governor of
Oregon, that the road had been constructed for fifty miles from
Eugene City eastward, they well knowing that such representations
were false, and that the road had not been constructed at all; that
such representations were made for the purpose of fraudulently
procuring from said governor a certificate that the road had been
constructed in accordance with the Act of Congress of July 2, 1864,
and of the act of the State of Oregon of October 24, 1864; that in
that certificate the governor certified that in accordance with
said two acts, he had passed over and carefully examined the first
50 miles of the road of the company,
Page 140 U. S. 619
beginning at Eugene City and extending eastward toward the
southern or eastern boundary of the state, and that the first
continuous 50 miles of said road beginning at Eugene City were
completed in accordance with the requirements of said act of
Congress and the laws of Oregon; that it was not true that the 50
miles of road referred to had been constructed; that in order to
procure the certificate and to use the same to secure the control
of the land within the limits of the grant provided for in the act
of Congress, the company, by its officers, agents, and
representatives, fraudulently pointed out to the governor a county
road to which the company never had any legal right, and led the
governor to believe that the road had been constructed by the
company under the said acts; that on the 26th of November, 1867,
like fraudulent representations were made to George L. Woods, then
Governor of Oregon, in regard to 42 1/2 additional miles of the
road; that on that date the said governor made a certificate that
such 42 1/2 miles, more or less, had been carefully inspected and
found to be well and faithfully built in accordance with the
requirements of the law, and therefore the same was approved and
received; that the 42 1/2 mile had not been constructed, and the
governor well knew that, and no inspection of any road constructed
or owned by the company had been made by the authority of the
governor; that on the 12th of January, 1870, like fraudulent
representations were made to the same governor by the officers,
stockholders, and agents of the company and other persons acting in
their and its interest that the road had been constructed as by law
required, and they presented a map falsely showing the same and its
route; that the certificate made by the governor on that day stated
that the plat or map of the road had been duly filed in his office
by the company, and showed that portion of the road commencing at
Eugene City and ending at the eastern boundary of the state, which
had been completed as required by the act of Congress and the act
of the state; that it was not true that the company had constructed
a road upon any line of route located or surveyed any where within
the limits of the grant of land provided for in the act of Congress
or at all; that said
Page 140 U. S. 620
governor then and there well knew this, and that it was not true
that he made, or caused to be made, any examination of any road
constructed or owned by the company.
The bill contains like allegation with the bill in No. 1,218, in
regard to noncompliance with the act of Congress granting the
lands, and in regard to the Act of Congress of June 18, 1874, and
avers that in 1867, 1871, and 1873, the Secretary of the Interior
and the Commissioner of the General Land Office, deceived by such
fraudulent certificates, executed and delivered to the State of
Oregon, for the benefit of the road, seven certified lists of
lands, covering 361,327.43 acres, as intended to be granted by the
acts of Congress, which lists were claimed to have the force and
effect of patents; that thereafter the President of the United
States, deceived by said fraudulent certificates, issued to the
company two patents for 40,913.24 acres of land included in the
grants; that afterwards, by various deeds, the lands were conveyed
in bulk to the California and Oregon Land Company as lands covered
by the Act of Congress of July 2, 1864, and by the Act of the State
of Oregon of October 24, 1864; that the California and Oregon Land
Company is a private corporation, incorporated January 9, 1877,
under the general laws of the State of California; that the maps or
plats referred to in said certificates showed the line of the
pretended road to be 420 miles, which would make the grant of lands
covered by the act of Congress of July 2, 1864, embrace in the
aggregate about 720,000 acres, of which 402,240.67 acres had been
in effect patented to the road company, and for the remaining
317,759.33 acres that company inequitably claimed the right to have
a patent issued.
The bill also avers that the two companies and the nineteen
individual defendants, at the time of the accruing of their
interests in the lands, had full knowledge that the road had not
been constructed and maintained as required by the act of Congress
and the laws of Oregon, so as to be in any sense a public highway,
or so that it could be used by the United States, or by any of its
citizens or residents, as a public highway, or so that the United
States could transport its property, troops, or mails over the
same, and also had full knowledge
Page 140 U. S. 621
that no grades had been established or constructed upon any part
of the road, or any clearing done, or any bridges built, over any
streams on its line, or any cuts made, or any turnouts constructed,
or any ferries established or maintained over any streams, and that
the road was not begun or completed within five years from the date
of the passage of the Act of Congress of July 2, 1864, and that the
statements made in the said certificates of the governors were
false, and that they did not at any time examine the road, and that
the certificates had been procured by such false and fraudulent
representations, and that said patents were procured to be issued
upon such false certificates.
The prayer of the bill is that the lands granted to the state by
the Act of Congress of July 2, 1864, be decreed to be forfeited to
the United States and restored to the public domain; that the
certificates, lists, patents, and deeds described in the bill be
decreed fraudulent and void, and for general relief.
Exceptions were filed to the bill for impertinence by the
California and Oregon Land Company and nine of the individual
defendants, which exceptions were sustained. 40 F. 120.
On the 24th of October, 1889, the California and Oregon Land
Company, by leave of the court, filed two pleas to the bill. It
also filed an answer sustaining the pleas. The case was heard upon
the bill and the pleas, and a decree was entered on the 18th of
February, 1890, sustaining the pleas and dismissing the bill. The
opinion of Judge Sawyer, the circuit judge (41 F. 501), states that
the pleas were held sufficient and the bill dismissed for the
reasons stated in the opinion in No. 1,218.
The first plea relies on the three certificates of the governors
as having been made in good faith, and without any fraudulent
intent or false representation. The second plea relies on the three
certificates and the delivery of the certified lists embracing the
361,327.43 acres of land, and avers that fifteen of the individual
defendants, on the faith of said certificates and certified lists,
purchased from two of the individual defendants, in good faith and
for a valuable consideration, all the lands granted by the act of
Congress which the Oregon
Page 140 U. S. 622
Central Military Road Company had conveyed, without notice of
the fraudulent representations set forth in the bill and without
any reason to believe that there had been any fraudulent
misrepresentations in examining or certifying the completion of any
part of the road or that it had not been completed in accordance
with the requirements of the statutes; that those individual
purchasers conveyed to the California and Oregon Land Company their
interests in the grant; that at that time, neither said land
company nor any of its officers, agents, or stockholders had any
notice or reason to believe that there had been any fraud or
misrepresentation or failure of duty in such examination or
certifying; that there had paid
bona fide by the land
company and its promoters, as expense attending the lands and in
taxes, large sums of money, and sales and transfers of the stock of
the land company had been made to others than its original
stockholders, who had purchased such stock relying on the truth of
said certificates, and on said listing of the lands, and on the act
of Congress of June 18, 1874, and without any notice of or reason
to suspect any of the fraudulent representations charged in the
bill, the capital stock of the company being held by twenty-five
stockholders, of whom only eight were original stockholders or are
defendants in this suit.
For the reasons set forth in regard to case No. 1,218, the
decree of the circuit court, so far as it dismisses the bill, must
be reversed, and the case be remanded to that court with a
direction to allow the plaintiffs to reply to and join issue on the
pleas.
In No. 1,248, the bill is filed by the Attorney General of the
United States on their behalf against the Willamette Valley and
Cascade Mountain Wagon Road Company, the Willamette Valley and
Coast Railroad Company, the Oregon Pacific Railroad Company, the
Farmers' Loan and Trust Company, two individual defendants named
David Cahn and Alexander Weill, and five other individual
defendants.
The bill alleges that on the 5th of July, 1866, Congress passed
an act (14 Stat. 89) entitled "An act granting lands to the State
of Oregon to aid in the construction of a military road from
Albany, Oregon, to the eastern boundary of said
Page 140 U. S. 623
state," granting to the state alternate sections of public
lands, designated by odd numbers, three sections per mile, to be
selected within six miles of said road, and to be exclusively
applied in the construction of the road and to no other purpose,
and to be disposed of only as the work should progress, and
containing substantially similar provisions with the grants made in
the acts of Congress in cases Nos. 1,218 and 1,219.
The bill sets forth that the State of Oregon, by an Act passed
October 24, 1866 (Laws of Oregon, 1866, p. 58), granted to the
Willamette Valley and Cascade Mountain Wagon Road Company all lands
and rights granted to the state by said act of Congress for the
purpose of aiding the company in constructing the road mentioned in
the act and also all lands and rights which might thereafter be
granted to the state to aid in constructing the road, and that by
an Act of Congress passed July 15, 1870, (16 Stat. 363), a change
was made in the route of the road.
The bill then makes the same allegations as in Nos. 1,218 and
1,219, as to the Act of Oregon of October 14, 1862. It alleges that
the road company was incorporated on the 12th of March, 1864, under
the general laws of the state, to construct a wagon road by a
specified route; that on the 8th of September, 1866, it filed
supplemental articles of incorporation changing the line of its
road so as to begin at Albany, and run over the Cascade Mountains
to the eastern boundary of the state; that on the 19th of August,
1871, by supplemental articles of incorporation, it changed the
route of its road so as to conform to the act of Congress of July
15, 1870; that on the 11th of May, 1868, the officers,
stockholders, and agents of the company, and other persons acting
in their and its interest, fraudulently represented to the acting
governor of Oregon that the road had been constructed as required
by law for a distance of 180 miles eastward from Albany, they
knowing that such representations were false and that the road had
not been constructed at all; that such representations were made
for the purpose of fraudulently procuring from the acting governor
a certificate that the road for that distance had been constructed
in accordance with the Act of Congress of July 5,
Page 140 U. S. 624
1866, and the Act of the state of October 24, 1866; that the
acting governor on that day certified that the plat or map of the
road had been duly filed in his office by the company, and showed
that the portion of the road commencing and ending as designated on
the map had been completed as required by those acts; that the
acting governor did not examine or cause to be examined any part of
the 180 miles; that the certificate was procured by the company to
enable it fraudulently to obtain control of lands lying within the
limits of the grant for the distance of 180 miles east of Albany,
that on the 8th of September, 1870, the officers, stockholders, and
agents of the company and other persons acting in their and its
interest fraudulently represented to the then governor of the state
that the road had been constructed as required by law from the 153d
milepost east from Albany to Camp Harney, they well knowing that
such representations were false and that the road had not been
constructed at all; that such representations were made for the
sole purpose of fraudulently procuring from the governor a
certificate declaring that the road for that distance had been
constructed in accordance with the said acts; that on the same day,
the governor made a certificate that the plat or map of the road
had been filed in his office by the company and showed, in
connection with the public surveys, the location of the route of
the extension of the road as actually surveyed from the 153d
milepost east from Albany, extending fourteen sections, to Camp
Harney, in the line of the road, as definitely fixed in compliance
with the act of Congress and the act of the state, and that said
extension of the road had, by his direction, been examined and
accepted from the 153d mile stake to Camp Harney, and embracing the
29th section, inclusive; that it was not true that the company had
constructed the road in question; that the governor well knew this;
that it was not true that he had directed any part of the road to
be examined; that such certificate was procured by the company in
order to enable it fraudulently to obtain control of the lands in
question; that, on the 9th of January, 1871, the officers,
stockholders, and agents of the company, and other persons acting
in their and its interest, fraudulently represented
Page 140 U. S. 625
to the then governor that the road had been constructed from the
29th section to the 36.8th section thereof, they well knowing that
such representations were false, and that the road had not been
constructed at all, and having made such representations of the
sole purpose of fraudulently procuring from the governor a
certificate declaring that the road for such distance had been
constructed in accordance with said acts; that on the same day, the
governor made a certificate that the plat or map of the road had
been filed in his office by the company and showed, in connection
with the public surveys, the location of the route of the road as
actually surveyed from Albany, extending from the 29th section to
the 36.8th section in the line of the road as definitely fixed, in
compliance with the said acts, and that the road had been, by his
direction, examined and accepted from the 29th section to the
36.8th section, inclusive, and had been completed in accordance
with the act of Congress; that it was not true that such road had
been constructed; that on the 24th of June, 1871, the then officers
stockholders, and agents of the company and other persons acting in
their and its interest fraudulently represented to the same
governor that the road had been constructed as required by law from
the 36.8th section thereof to the 44.87th section, inclusive,
terminating at the eastern boundary of the state, they well knowing
that such representations were false, and that the road had not
been constructed at all; that such fraudulent representations were
made for the sole purpose of fraudulently procuring from the
governor a certificate declaring that said road for that distance
had been constructed in accordance with said acts; that on the same
date, the governor, in consequence of such false representations,
made a certificate certifying that the plat or map of the road had
been filed in his office by the company, and showed the location of
route as actually surveyed (there being no public surveys in
connection with the route to his knowledge) of the road from Albany
to the eastern boundary of the state, the part therein being from
the 36.8th section to the 44.87th section, inclusive, in the line
of the road, terminating at the eastern boundary of the state, as
definitely fixed in compliance with said acts, that
Page 140 U. S. 626
said road has been, by his direction, examined and accepted from
the 36.8th section to the 44.87th section, inclusive, terminating
at the eastern boundary of the state, and that the same had been
completed according to the act of Congress.
The bill further alleges that the road never was constructed,
either in whole or in part, so as to be a public highway or so as
to permit of the transportation of any property, troops, or mails
of the United States over it, and had never been maintained as a
public highway, and never was examined as stated in said
certificate; that neither the lands nor their proceeds had ever
been applied to the construction of any part of the road, or of any
bridges thereof, or the establishment of any ferries on any streams
along the line of any part of the road.
The bill then sets forth the Act of Congress of June 18, 1874,
as in Nos. 1,218 and 1,219, and avers that on the 19th of June,
1876, the President of the United States, deceived by such
fraudulent certificates, issued to the State of Oregon, for the use
and benefit of the company, a patent for certain described lands,
aggregating 107,893.01 acres, and on the 30th of October, 1882, a
patent to the company for 440,856.52 acres. The bill then sets
forth conveyances of certain of the lands to the defendant Cahn in
trust for the defendants Hogg and Weill and one Clark, the vesting
of title to some of the lands in Weill individually, and to him in
trust for Cahn and the defendants Arnstein and Meyer, the deeds
covering all the lands granted or intended to be granted to the
state by the act of Congress or by the state to the company by its
act; that Hogg still claimed an interest in the lands; that the
Willamette Valley and Coast Railroad Company, an Oregon
corporation, and the Oregon Pacific Railroad Company, another
Oregon corporation, each of them claimed a legal interest in all
the lands; that the Farmers' Loan and Trust Company, a New York
corporation, claimed a legal and an equitable interest in the
lands; that the Willamette Valley and Cascade Mountain Road Company
and the Willamette Valley and Cascade Mountain Military Wagon Road
Company were one and the same; that the maps or plats referred to
in the certificates showed the line of the road to be 456 1/2
miles, which would
Page 140 U. S. 627
make the grant of land covered by the act of Congress 876,480
acres, of which 327,730.47 acres were not yet patented to the road
company, and that company claimed the right to have a patent issued
therefor; that the four corporation defendants and five of the
individual defendants at the time their interests accrued, had full
knowledge that the road had not been constructed and maintained as
required by the acts of Congress and the laws of the state, so as
to be in any sense whatsoever a public highway, or so that it could
be used by the United States, or by any citizens or residents
thereof, as a public highway, or so that the United States could
transport its property, troops, or mails over the same, and that no
grades had been constructed upon any part of the road, nor any
clearing done, nor any bridges built over any streams, nor any cuts
made, nor turnouts constructed, nor any ferries maintained over any
streams, and that the road was not begun or completed within five
years from the date of the passage of the act of Congress, and that
each of said defendants knew that the statements made in the
certificates of the governors and acting governor were false, and
that they did not at any time examine the road, and that the
certificates were procured by said fraudulent representations, and
that the said patents were procured to be issued upon said
fraudulently procured certificates.
The prayer of the bill is that all the lands granted to the
state by the Act of Congress of July 5, 1866, be decreed to be
forfeited to the United States and restored to the public domain;
that the said certificates, patent, and deeds be declared
fraudulent and void, and for general relief.
The defendants Weill and Cahn, by leave of the court, filed
pleas to the bill and an answer in support of the pleas. The
defendants Hogg, the Willamette Valley and Coast Railroad Company,
the Willamette Valley and Cascade Mountain Wagon Road Company, and
the Oregon Pacific Railroad Company filed exceptions to the bill
for impertinence, which exceptions were sustained. The Farmers'
Loan and Trust Company filed pleas to the bill, with an
accompanying answer. The defendants Hogg, the Willamette Valley and
Coast Railroad Company, and the Oregon Pacific Railroad Company
filed pleas to the bill, with an answer supporting the pleas.
Page 140 U. S. 628
The cause was heard upon the pleas of the defendants Weill and
Cahn, by Judge Deady, and a decree entered sustaining them, and
dismissing the bill as to those defendants. The opinion of the
court is reported in 42 F. 351. Subsequently the cause was heard
upon the please and answers of the defendants Hogg, the Willamette
Valley and Coast Railroad Company, the Oregon Pacific Railroad
Company, and the Farmers' Loan and Trust Company, and a decree was
entered on the 12th of May, 1890, sustaining the pleas and
dismissing the bill as to those defendants.
Weill and Cahn filed two pleas. The first plea sets up that the
Secretary of the Interior, after duly investigating a complaint
that the road had not been constructed as required by the act of
Congress, directed the Commissioner of the General Land Office to
certify the lands for patent under the Act of Congress of July 18,
1874 that the patent for the 440,856.52 acres was thereafter duly
issued to the road company; that the defendants Weill and Cahn,
relying upon those facts, so altered their position in reference to
the lands as would render it inequitable for the United States to
assert any right to forfeit or reclaim the lands; that those
defendants had laid out, in securing the patents, in selecting
other lands which had not yet been patented, and in taxes,
expenses, and protecting their title, large sums of money, and had
sold portions of the land with warranty, and had expended a large
sum in rebuilding and improving the road through its entire length,
and in constructing bridges.
The second plea of Weill and Cahn avers that in 1871, the
attention of Weill was called to the existence of the road company
and its ownership of the land grant; that it was represented that
the road had been fully constructed and the grant earned, that the
company held title to the lands, and that they were for sale; that
Weill joined with Hogg and one Clarke to purchase the lands, which
was done, and they were deeded by the road company to Clarke in
August, 1871; that in September, 1871, Clarke conveyed the lands to
Cahn to hold them in trust for Weill, Hogg, and Clarke, according
to their respective interests; that the greater part of the lands
was then unsurveyed,
Page 140 U. S. 629
a few sections had been selected and none had been patented by
the United States to the road company or to the State of Oregon,
and for additional protection Weill and Clarke purchased the stock
of the road company; that at the time of the first conveyance by
the road company, Weill had paid, in the purchase of the lands,
over $140,000, and Clarke over $20,000; that at that time the
certificates of the Governors of Oregon had been made and duty
filed in the office of the secretary of state of the state and in
the department at Washington; that said defendants relied upon
those certificates, and that in 1879, Weill purchased the interests
of Clarke and Hogg in the lands for $21,400, all of them believing
that the road had been completed as required by the act of Congress
and as certified. The plea denies all fraud, or notice of any
fraud, or of any claim on the part of the United States at the time
the defendants acquired title to any part of the lands, and avers
that they are purchasers in good faith, without notice, for a
valuable consideration.
The answer which accompanies these please contains averments in
support of them and alleges that but for the existence of the
certificates, Weill would not have purchased the lands. To the
pleas and answer are annexed the reports of the special agent of
the United States and of committees of Congress and a letter of the
Secretary of the Interior.
The pleas and answer of the Farmers Loan and Trust Company set
forth the principal matters appearing in the pleas and answer of
Weill and Cahn, and the answer alleges that the trust company is
the trustee for certain holders of bonds secured by a mortgage made
to it, as trustee.
The pleas and supporting answer of Hogg, the Willamette Valley
and Coast Railroad Company, and the Oregon Pacific Railroad Company
set forth substantially the same matters contained in the pleas and
answer of Weill and Cahn and in those of the Farmers Loan and Trust
Company.
The first plea of Weill and Cahn was treated by the circuit
court as a plea of estoppel. On the facts stated in that plea, the
court held that the claim made in the bill was a stale claim, and
that the delay or lapse of time constituted a bar
Page 140 U. S. 630
to the relief sought, and ought to have the same effect as in a
suit between private parties. The court also held that the second
plea of Weill and Cahn was good, because it set up all the elements
of a
bona fide purchase for a valuable consideration; that
the certificates of the governors were conclusive as to the fact of
the completion of the road, and that the lands could not be
forfeited to the United States even if the certificates of the
governors should be proved to have been false and fraudulent. The
opinion of the court further says that the facts stated in the
pleas are manifestly true; that it is extremely improbable under
the circumstances that the defendants Weill and Cahn had notice of
the falsity of the certificates, and that, admitting that their
falsity might be shown, in conjunction with notice to the
defendants of that fact, it would be extremely difficult, in view
of the lapse of time and of the absence of any resident population
along the line of the road at the time, to make any satisfactory
proof on the subject. The opinion then refers, as an authority
applicable to the cases generally, to the opinion of Judge Sawyer
in No. 1,218,
United States v. Dalles Military Road Co.,
41 F. 493.
For the reasons hereinbefore set forth in regard to case No.
1,218, we are of opinion that the United States were entitled, on
the sustaining of the pleas in the present case, to take issue as
to the matters of fact alleged in them, and that the decrees in No.
1,248 must be reversed insofar as they dismiss the bill as to the
defendants who put in pleas, and the case be remanded with a
direction to allow the plaintiffs to reply to and join issue on the
pleas.
All of the eight suits here involved were commenced by the
Attorney General in the name of the United States under the
authority and direction of an Act of Congress passed March 2, 1889,
25 Stat. 850, which directed him to bring suits in the name of the
United States in the Circuit Court of the United States for the
District of Oregon against all persons, firms, and corporations
claiming to own or to have an interest in the lands granted to the
State of Oregon by the Acts of Congress of July 2, 1864, July 5,
1866, and February 25, 1867, giving their titles
"to determine the questions of the seasonable
Page 140 U. S. 631
and proper completion of said roads in accordance with the terms
of the granting acts, either in whole or in part, the legal effect
of the several certificates of the Governors of the State of Oregon
of the completion of said roads, and the right of resumption of
such granted lands by the United States, and to obtain judgments,
which the court is hereby authorized to render, declaring forfeited
to the United States all of such lands as are coterminous with the
part or parts of either of said wagon roads which were not
constructed in accordance with the requirements of the granting
acts, and setting aside patents which have issued for any such
lands, saving and preserving the rights of all
bona fide
purchasers of either of said grants, or of any portion of said
grants, for a valuable consideration, if any such there be. Said
suit or suits shall be tried and adjudicated in like manner and by
the same principles and rules of jurisprudence as other suits in
equity are therein tried, with right to writ of error or appeal by
either or any party as in other cases."
By this act, suits are directed to be brought to determine (1)
"the questions of the seasonable and proper completion of said
roads in accordance with the terms of the granting acts, either in
whole or in part;" (2) "the legal effect of the several
certificates of the governors of the State of Oregon of the
completion of said roads;" (3) "the right of resumption of such
granted lands by the United States;" (4) to obtain judgments, which
the court is thereby authorized to render,
"declaring forfeited to the United States all of such lands as
are coterminous with the part or parts of either of said wagon
roads which were not constructed in accordance with requirements of
the granting acts;"
and (5) to set aside patents which have been issued for any such
lands,
"saving and preserving the rights of all
bona fide
purchasers of either of said grants, or of any portion of said
grants, for a valuable consideration, if any such there be."
It is manifest that although the act says that the suits are to
be tried and adjudicated in like manner and by the same principles
and rules of jurisprudence as other suits in equity, Congress
intended a full legal investigation of the facts, and
Page 140 U. S. 632
did not intend that the important interests involved should be
determined upon the untested allegations of the defendants. They
set up, to avoid an actual investigation, staleness of claim,
estoppel, laches, the certificates of the governors, and
allegations of
bona fide purchase. It must be held that in
passing the statute of 1889, Congress gave full effect to its three
granting acts, and to its Act of June 18, 1874, to the reports made
by its committees, and to the acts and proceedings of the Secretary
of the Interior, the Commissioner of the General Land Office, and
other executive officers. An assertion that the claim of the United
States is a stale claim is an assertion that Congress deliberately
directed suit to be brought upon a stale claim. If laches be a good
defense, it must be declared that Congress directed suits which
would be defeated by showing prior delays by Congress. Besides, the
defenses of stale claim and laches cannot be set up against the
government.
United States v.
Kirkpatrick, 9 Wheat. 720;
United
States v. Van Zandt, 11 Wheat. 184;
United States v.
Nicholl, 12 Wheat. 505;
Dox v.
Postmaster General, 1 Pet. 318;
Lindsey v.
Miller, 6 Pet. 666;
Gibson v.
Chouteau, 13 Wall. 92;
Gaussen v. United
States, 97 U. S. 584;
Steele v. United States, 113 U. S. 128;
United States v. Insley, 130 U. S. 263.
The government has had no opportunity to prove the charges of
fraud made in the bill, and there is no proof but the allegations
of the pleas as to the
bona fides the defendants and as to
the amounts expended by them in good faith in connection with the
roads or the lands. It cannot be properly held that under the act
of 1889 final adjudication can be made on such pleadings alone as
to the extensive interests involved in this litigation. The claims
of the United States cannot be treated as stale claims, in view of
the act of 1889, especially as to those portions of the lands which
remain unpatented, and as to those certificates of the governors
which were false and fraudulent to the knowledge of those who made
them, and to the knowledge of the several defendants or in view of
the alleged defects of the certificates in cases Nos. 1,219 and
1,248.
Cases Nos. 1,444, 1,445, 1,446, 1,447, and 1,448 arose out of
transactions under the acts involved in No. 1,218, namely the
Page 140 U. S. 633
Act of February 25, 1867, 14 Stat. 409, and the Act of the State
of Oregon of October 20, 1868, granting the lands covered by said
act of Congress to the Dalles Military Road Company. In No. 1,444,
the defendant Kelly is a grantee of the road company, and in the
four other cases, the defendants Cooper, Rogers' administratrix,
Grant, and Floyd, are grantees, respectively, of the Eastern Oregon
Land Company, which derives its title from the road company. In
each of the bills of complaint in Nos. 1,444, 1,445, 1,446, 1,447,
and 1,448, the allegations are in substance the same as those of
the bill in No. 1,218, with the further allegation that the
defendants respectively entered into possession of some of the
lands under deeds, and claim severally to own and hold them
adversely to the United States, and had the full knowledge charged
against the defendants in the bill in No. 1,218.
In each of the four cases, Nos. 1,444, 1,445, 1,447, and 1,448
(those against Kelly, Cooper, Grant, and Floyd), a stipulation was
entered into between the parties on November 5, 1889, that the
defendant need not further plead until the determination of the
pleas in the suit of the United States against the Eastern Oregon
Land Company (that is, No. 1,218) or until the further order of the
court. The decree in No. 1,218 dismissing the bill was made
February 18, 1890. In May 5, 1890, a general demurrer to the bill
for want of equity was interposed in each of the four cases, Nos.
1,444, 1,445, 1,447, and 1,448, and in No. 1,446, on the 30th of
April, 1890, a demurrer to the bill was filed for want of equity
and on the ground that the heirs of Alexander Rogers, deceased,
were necessary parties to the bill. On May 2, 1890, a decree
sustaining the demurrer, and dismissing the bill was entered in No.
1,446, and on May 7, 1890, a decree sustaining the demurrer and
dismissing the bill was entered in each of the other four
cases.
The prayers of these five bills are that the certificates,
patents, and deeds be declared fraudulent and void and the lands be
restored to the public domain, and for general relief.
It is apparent that the decision on the pleas in No. 1,218 was
regarded as determining these five suits, and that, as the decree
in No. 1,218 is reversed, the decrees in these five
Page 140 U. S. 634
suits must also be reversed and such further proceedings be had
in them as shall not be inconsistent with the opinion of this Court
in No. 1,218, so that these five suits may proceed
pari
passu with No. 1,218, and the United States be entitled to
have the full benefit of the act of 1889 in all the suits.
As to the ground of demurrer stated in No. 1,446, that the heirs
of Alexander Rogers, deceased, are shown by the bill to be proper
and necessary parties, the deed from the Eastern Oregon Land
Company is to the defendant Matilda C. Rogers, "administratrix, in
trust for the estate of Alex, Rogers, deceased," and the conveyance
is "to her, her heirs and assigns forever." The bill does not state
that Alexander Rogers left any heirs. It only misstates the
contents of the deed, a copy of which is annexed to the bill, by
stating that the conveyance was to "Matilda C. Rogers,
administratrix of the estate of Alexander Rogers, in trust for said
estate and the heirs of said deceased," which is an incorrect
statement of the deed.
To prevent any misapprehension, we state that
We do not intend to determine any question as to the
controversy between the United States and the claimants of the
lands, but reverse the cases that their merits may be investigated.
Decrees of this Court will be entered in accordance with the
foregoing directions.