1. By the Fifth and Fourteenth Amendments of the Federal
Constitution, as also under Art. I, § 13 of the Constitution
of Minnesota, appropriation of private property for a public use is
forbidden unless a full and exact equivalent be returned to the
owner. P.
292 U. S.
254.
2. That equivalent is the market value of the property at the
time of the taking contemporaneously paid in money. P.
292 U. S.
255.
3. The sum required to be paid the owner of land does not depend
upon the uses to which he has devoted it, but is to be ascertained
upon just consideration of all the uses for which it is suitable.
P.
292 U. S.
255.
4. The fact that the most profitable use of a parcel can be made
only in combination with other lands does not necessarily exclude
that use from consideration if the possibility of combination is
reasonably sufficient to affect market value. Nor does the fact
that it may be or is being acquired by eminent domain negative
consideration of availability for use in the public service. P.
292 U.S. 256.
5. But the value to be ascertained does not include, and the
owner is not entitled to compensation for, any element resulting
subsequently to or because of the taking. Considerations that may
not reasonably be held to affect market value are excluded. P.
292 U.S. 256.
6. Elements affecting value that depend upon events or
combinations of occurrences which, while within the realm of
possibility, are not fairly shown to be reasonably probable should
be excluded from consideration. P.
292 U. S.
257.
7. Dams constructed for power and other purposes at the outlet
of the Lake of the Woods in Canada had raised the water level on
the shore lands, situate in Canada and Minnesota. Arrangement was
made by treaty for maintaining the level, under control of both
Governments, to a designated contour in the interests of
navigation, as well as power production and other uses. For the
costs of acquiring the easement of flowage within its territory,
the United
Page 292 U. S. 247
States assumed all liability to private landowners. In a suit to
condemn such rights in Minnesota, brought under the Act of May 22,
1926, as amended, to carry out the treaty,
held:
(1) That the use of Minnesota shorelands for reservoir purposes,
as the result of the trespass committed by means of the dams,
showed merely their physical adaptability to such purposes, but did
not affect their market value. P.
292 U.S. 256.
(2) Having regard to the fact that the lands bordering the Lake
and its islands, upon which flowage easements must be acquired to
make lawful the raising of the level, are situate in two countries,
and are held by very numerous private owners, by Indian Tribes, and
by sovereign proprietors, there is no legal and practical
possibility that any person -- other than the expropriating
authority -- could acquire those easements. Therefore, there was no
element of value belonging to the landowners that could
legitimately be attributed to use and adaptability of their lands
for reservoir purposes, and evidence of competition between power
companies for purchase of flowage rights from private owners, and
of prices paid, and of estimates or opinions based, upon the
assumption that value to owners includes elements arising from the
prospect of the Government's acquiring the flowage rights was
properly rejected.
Boom Co. v. Patterson, 98 U. S.
403, distinguished. Pp.
292 U. S. 557,
292 U. S.
560.
8. A point not made in the specification of errors or in the
reasons given in the petition for certiorari is not properly before
the Court. P.
292 U. S.
262.
9. Under the Act of May 22, 1926, providing for acquisition of
flowage easements on lands in Minnesota bordering upon the Lake of
the Woods in Minnesota, claims for damages caused by unlawful
floodings prior to the taking are not included in the condemnation
proceedings, but are to be dealt with by the Secretary of War under
§ 3 of the statute. P.
292 U. S.
262.
67 F.2d 24 affirmed.
Certiorari, 290 U.S. 623, to review the affirmance of judgments
in three condemnation cases which were tried together before a
jury.
Page 292 U. S. 248
MR. JUSTICE BUTLER delivered the opinion of the Court.
These cases arise in a condemnation proceeding instituted by the
United States in the federal District Court for Minnesota to
acquire easements of flowage upon lands bordering upon the Lake of
the Woods in that state. The only substantial question is whether,
on the facts disclosed by the record and others of which judicial
notice may be taken, the actual use and special adaptability of
petitioners' shorelands for the flowage and storage of water, that,
inter alia, will be available for the generation of power,
may be taken into consideration in ascertaining the just
compensation to which petitioners are entitled.
The superficial area of the Lake of the Woods is between
fourteen and fifteen hundred square miles; it lies in Minnesota,
Ontario, and Manitoba. Many streams flow into it. The Rainy River
and Warroad River are the largest of those touching Minnesota. The
former, coming from the east along the international boundary,
drains a very large territory lying on both sides of the line. The
latter, not so large, coming from the south, drains a considerable
area within Minnesota and empties into the southwesterly part of
the lake. The outlets of the lake are in Canada; they combine to
make the Winnipeg, a great river, flowing northwesterly to Lake
Winnipeg. In 1898, a Canadian corporation, by agreement with
the
Page 292 U. S. 249
Crown, put in operation the Norman dam for the control of
outflow down the Winnipeg. Since the construction of this dam, and
in consequence of it and other dams in the outlets, shorelands, in
disregard of the rights of owners, have been intermittently flooded
for the impounding of water used in Canada for the generation of
power and other purposes.
In 1909, the United States and Great Britain made a treaty which
(Art. VIII) created an international joint commission and conferred
upon it jurisdiction in terms broad enough to include cases
involving the elevation of the Lake of the Woods as the result of
these dams. 36 Stat. 2451. In 1912, questions arising out of the
raising of the lake were referred to the commission, and, after
hearings and extensive studies, it made its final report in 1917.
The United States and Great Britain then consummated the treaty of
1925, which provides (Article VIII):
"A flowage easement shall be permitted up to elevation 1064 sea
level datum upon all lands bordering on Lake of the Woods in the
United States, and the United States assumes all liability to the
owners of such lands for the costs of such easement. [
Footnote 1] "
Page 292 U. S. 250
By an act to carry into effect the provisions of the
last-mentioned treaty (Act of May 22, 1926, 44 Stat. 617, as
amended April 18, 1928, 45 Stat. 431), Congress directed the
Secretary of War to acquire by purchase or condemnation flowage
easements up to the specified elevation upon all lands in Minnesota
bordering upon the Lake of the Woods, the Warroad River, and the
Rainy River, and that compensation should be made in accordance
with the Constitution of Minnesota, which declares (Article I,
§ 13): "Private property shall not be taken, destroyed, or
damaged for public use, without just compensation therefor first
paid or secured." Commissioners appointed to ascertain the damages
sustained by the several owners by reason of such taking made their
awards. The United States and these petitioners appealed. The cases
were tried together, the jury returned verdicts for the amounts to
which petitioners were found severally entitled, and judgments were
entered accordingly. [
Footnote
2] Petitioners appealed.
Page 292 U. S. 251
The Circuit Court of Appeals affirmed. 67 F.2d 24.
At the trial, petitioners sought to have just compensation
ascertained on the theory that the flooding of their lands (for
brevity, called "use for reservoir purposes"), the circumstances
which make them specially adaptable for that use, and the fact
that, prior to condemnation, such adaptability had increased their
market value should be considered by the jury in determining just
compensation. And, in order to establish a basis on which to rest
that submission, petitioners offered to prove the following
facts:
There are valuable power sites at the outlets and in the
Winnipeg River which cannot be fully developed without flooding the
shorelands. The industries using these waters to produce power are
well established and financially responsible. Demand for
electricity there produced will increase. The raising of the lake
level creates a storage reservoir, of which petitioners' lands form
a part, that serves to increase potential capacity by about 200,000
continuous horsepower, which is worth more than $1,000,000
annually. Competition exists for the right to develop and control
that capacity, the value of which is so great that one or another
of the competitors would have acquired the flowage rights if the
United States had not done so. It is entirely practicable for
private enterprises to acquire flowage easements. Publicity, long
given to the great value of the lake as a storage reservoir,
created a demand and affected the market value of shorelands needed
for that purpose. And, in connection with the facts above stated,
petitioners offered to prove the fair market values of their lands
before and after the imposition of the flowage easement, taking
into consideration all the facts and circumstances affecting market
prices.
Page 292 U. S. 252
Respondent, having obtained leave to establish foundation for
objection to petitioners' offers to prove, introduced evidence of
the following facts:
The main shoreline of the Lake of the Woods, including the
affected reaches of the Rainy river, exceeds 1,035 miles, of which
more than 110 are in Minnesota. There are in the lake a number of
islands of a mile or over in length, and approximately 10,000
smaller ones. The shorelines of the islands exceed 1,180 miles, of
which about 20 miles are it Minnesota. Below sea level datum 1064,
established by the treaty, there are about 850 parcels owned by
more than 775 individuals. If mortgagees and other claimants are
counted, the number to be dealt with is not less than 1,225
persons. Of these, only 496 live on or near the land, 186 live
elsewhere in Minnesota, and 123 in other parts of the United States
and Canada. The addresses of 401 are unknown. The United States
owns a considerable part -- about one-fifth -- of the shoreline in
Minnesota. Small areas are held under homestead entries. The State
of Minnesota owns a small piece subject to contracts of sale.
And it was made to appear:
None of the 35 miles of shorelands in Manitoba, of which about
14,427 acres lie below contour 1064, is privately owned. In 1915,
they were reserved by the Dominion in anticipation of action by the
International Joint Commission to regulate lake levels, and, in
1930, they were transferred to the Province. In Ontario, more than
700 persons own shorelands. In 1920, that Province, in accordance
with the recommendations of the Commission, withdrew its lands
below the established level -- about 13,043 acres -- from private
entry. On the Canadian side, about 40 Indian reservations include
8,600 acres below the established level along about 250 miles of
shoreline. These lands may be disposed of only with the assent of a
majority of the male members of the band of the full age
Page 292 U. S. 253
of 21 years at a meeting summoned for that purpose according to
the rules of the band, and subject to the approval of governmental
authority.
The Lake of the Woods is one of the water communications which,
by the Webster-Ashburton Treaty, is required to be free and open to
the use of the citizens and subjects of both countries. Its
usefulness for navigation is a matter of great concern. The United
States is interested in navigation and in the protection of owners
of shorelands on the American side, rather than in the development
of power in Canada. The levels controlled by dams in the outlets
were regulated by Canadian authority until the creation of an
international regime in pursuance of the Treaty of 1925. Regulation
has not been exclusively for the Production of power, but, so far
as practicable, for the protection of all interests, including
navigation, logging, domestic use of water, irrigation, and
power.
The trial court, being of opinion that, under the circumstances,
neither the use nor the special adaptability of petitioners' lands
for reservoir purposes could be considered in determining their
market value, excluded the evidence offered by the petitioners. He
instructed the jury first to determine as to each piece of land its
fair market value on May 4, 1929 -- before the easement was imposed
-- taking into consideration the fact that, prior to the taking,
the government had the right to maintain the level of the lake up
to 1059 sea level datum (that may be taken as the natural level);
next, to find the fair market value after the taking, and that the
difference is the amount for which the government is liable. To
guide the jury in the ascertainment of such values, the court
charged:
"You will take into consideration all of the uses for which the
property was available on May 4, 1929, and May 5th, 1929, and
determine what use it was most valuable for, and base your award
thereon; but you will not
Page 292 U. S. 254
make an award based on any claim for reservoir value. I have
held that, under the law, the value of these lands could not be
based upon the use of the lake and its shores for reservoir
purposes. It is, as I understand it, conceded that the only other
use for which these lands are suited, with the exception perhaps of
Mr. Olson's tract, is for agricultural purposes, or purposes
relating to agriculture, so that it is for those purposes that you
are to value these lands."
The court suggested that petitioner Olson's lands might be used
for fishing purposes, and instructed the jury, if it so found,
to
"add to the value which it might have for agricultural purposes
any added value which might accrue to it, because of its usefulness
as a fishing station."
Under these instructions, the government was not entitled to,
and it has not claimed, lesser awards because of diminution of
value caused by the unauthorized flooding of petitioners' lands.
The owners were severally entitled to the compensation then due as
if no such trespass had been committed.
The rule prescribed by the Minnesota Constitution is not, at
least so far as concerns these cases, to be distinguished from that
expressed by the just compensation clause of the Fifth Amendment
and implied in the due process clause of the Fourteenth Amendment
to the Federal Constitution. The judicial ascertainment of the
amount that shall be paid to the owner of private property taken
for public use through exertion of the sovereign power of eminent
domain is always a matter of importance, for, as said in
Monongahela Navigation Co. v. United States, 148 U.
S. 312,
148 U. S.
324:
"In any society, the fullness and sufficiency of the securities
which surround the individual in the use and enjoyment of his
property constitute one of the most certain tests of the character
and value of the government."
The statement in that opinion (p.
148 U. S. 326)
that "no private property shall be appropriated to public uses
unless a full and exact equivalent for it be returned
Page 292 U. S. 255
to the owner" aptly expresses the scope of the constitutional
safeguard against the uncompensated taking or use of private
property for public purposes.
Reagan v. Farmers' Loan &
Trust Co., 154 U. S. 362,
154 U. S.
399.
That equivalent is the market value of the property at the time
of the taking, contemporaneously paid in money.
Seaboard Air
Line Ry. v. United States, 261 U. S. 299,
261 U. S. 306;
Jacobs v. United States, 290 U. S. 13,
290 U. S. 17; 2
Lewis, Eminent Domain (3d Ed.) § 682, p. 1172. It may be more
or less than the owner's investment. He may have acquired the
property for less than its worth, or he may have paid a speculative
and exorbitant price. Its value may have changed substantially
while held by him. The return yielded may have been greater or less
than interest, taxes, and other carrying charges. The public may
not by any means confiscate the benefits, or be required to bear
the burden, of the owner's bargain.
Vogelstein & Co. v.
United States, 262 U. S. 337,
262 U. S. 340.
He is entitled to be put in as good a position pecuniarily as if
his property had not been taken. He must be made whole, but is not
entitled to more. It is the property, and not the cost of it, that
is safeguarded by state and federal constitutions.
The
Minnesota Rate cases, 230 U. S. 352,
230 U. S.
454.
Just compensation includes all elements of value that inhere in
the property, but it does not exceed market value fairly
determined. The sum required to be paid the owner does not depend
upon the uses to which he has devoted his land, but is to be
arrived at upon just consideration of all the uses for which it is
suitable. The highest and most profitable use for which the
property is adaptable and needed or likely to be needed in the
reasonably near future is to be considered not necessarily as the
measure of value, but to the full extent that the prospect of
demand for such use affects the market value while the property is
privately held.
Boom Co. v. Patterson, 98 U. S.
403,
98 U. S. 408;
Clark's Ferry Bridge Co.
v.
Page 292 U. S. 256
Public Service Comm'n, 291 U.
S. 227; 2 Lewis, Eminent Domain (3d Ed.) § 707, p.
1233; 1 Nichols, Eminent Domain (2d Ed.) § 220, p. 671. The
fact that the most profitable use of a parcel can be made only in
combination with other lands does not necessarily exclude that use
from consideration if the possibility of combination is reasonably
sufficient to affect market value. Nor does the fact that it may be
or is being acquired by eminent domain negative consideration of
availability for use in the public service.
New York v.
Sage, 239 U. S. 57,
239 U. S. 61. It
is common knowledge that public service corporations and others
having that power frequently are actual or potential competitors
not only for tracts held in single ownership, but also for rights
of way, locations, sites, and other areas requiring the union of
numerous parcels held by different owners. And, to the extent that
probable demand by prospective purchasers or condemnors affects
market value, it is to be taken into account.
Boom Co. v.
Patterson, ubi supra. But the value to be ascertained does not
include, and the owner is not entitled to compensation for, any
element resulting subsequently to or because of the taking.
Considerations that may not reasonably be held to affect market
value are excluded. Value to the taker of a piece of land combined
with other parcels for public use is not the measure of or a guide
to the compensation to which the owner is entitled.
New York v.
Sage, ubi supra; United States v. Chandler-Dunbar Co.,
229 U. S. 53,
229 U. S. 76,
229 U. S. 80;
Shoemaker v. United States, 147 U.
S. 282,
147 U. S. 305;
Kerr v. South Park Commissioners, 117 U.
S. 379,
117 U. S. 386;
Union Electric Light & Power Co. v. Snyder Estate Co.,
65 F.2d 297, 304. The use of shorelands for reservoir purposes
prior to the taking shows merely the physical possibility of so
controlling the level of the lake. But physical adaptability alone
cannot be deemed to affect market value . There must be a
reasonable possibility that the owner could
Page 292 U. S. 257
use his tract together with the other shorelands for reservoir
purposes, or that another could acquire all lands or easements
necessary for that use. The trespass committed by means of the dams
added nothing to the value of the shorelands.
Flowage easements upon these lands were not currently bought or
sold to such an extent as to establish prevailing prices at or as
of the time of the expropriation. As that measure (
United
States v. New River Collieries, 262 U.
S. 341,
262 U. S. 344)
is lacking, the market value must be estimated. In respect of each
item of property, that value may be deemed to be the sum which,
considering all the circumstances, could have been obtained for it
-- that is, the amount that in all probability would have been
arrived at by fair negotiations between an owner willing to sell
and a purchaser desiring to buy. In making that estimate, there
should be taken into account all considerations that fairly might
be brought forward and reasonably be given substantial weight in
such bargaining.
Brooks-Scanlon Corp. v. United States,
265 U. S. 106,
265 U. S. 124.
The determination is to be made in the light of all facts affecting
the market value that are shown by the evidence taken in connection
with those of such general notoriety as not to require proof.
Elements affecting value that depend upon events or combinations of
occurrences which, while within the realm of possibility, are not
fairly shown to be reasonably probable should be excluded from
consideration, for that would be to allow mere speculation and
conjecture to become a guide for the ascertainment of value -- a
thing to be condemned in business transactions as well as in
judicial ascertainment of truth.
Cf. The Minnesota Rate Cases,
supra, p.
230 U. S. 452;
Smith v. Illinois Bell Tel. Co., 282 U.
S. 133,
282 U. S. 152;
Los Angeles Gas Co. v. Railroad Comm'n, 289 U.
S. 287,
289 U. S.
319.
Petitioners rely on
Boom Co. v. Patterson, 98 U. S.
403. At the time of that condemnation, logs belonging to
many
Page 292 U. S. 258
owners were floated down the Mississippi to sawmills at and
below the Falls of St. Anthony. Patterson owned three islands,
about 34 acres, in the river a few miles above the falls, lying
near to each other and approximately parallel to the west bank. The
company, merely by closing the spaces between the islands and
connecting the downstream end to the bank so as to prevent the
passage of floating logs, created a boom about a mile long and a
quarter of a mile wide. The owner objected to that use of his
property, and the company condemned. There was evidence of value
other than for boom purposes, and also of value for all purposes.
The jury specially found that, aside from boom purposes, the value
of the land was $300, and that, in view of the adaptability for
boom purposes, it had an additional value of $9,058.33. There was a
general verdict for the sum of these amounts. The court ordered the
verdict set aside unless the owner consent to reduce it to $5,500.
He did consent, and judgment was entered for that amount.
Upon appeal, this Court affirmed, and, speaking through Mr.
Justice Field, said (pp.
98 U. S.
407-409):
"In determining the value of land appropriated for public
purposes, the same considerations are to be regarded as in a sale
of property between private parties. The inquiry in such cases must
be what is the property worth in the market, viewed not merely with
reference to the uses to which it is at the time applied, but with
reference to the uses to which it is plainly adapted. . . . The
position of the three islands . . . fitting them to form, in
connection with the west bank . . . a boom of immense dimensions .
. . added largely to the value of the lands. . . . Their
adaptability for boom purposes was a circumstance, therefore, which
the owner had a right to insist upon as an element in estimating
the value of his lands. We do not understand that all persons
except the plaintiff in error
Page 292 U. S. 259
were precluded from availing themselves of these lands for the
construction of a boom, either on their own account or for general
use. . . . The Mississippi is a navigable river above the Falls of
St. Anthony, and the state could not confer an exclusive use of its
waters, or exclusive control and management of logs floating on it,
against the consent of their owners."
The principle governing that case has been frequently applied
here [
Footnote 3] and in the
lower federal courts. [
Footnote
4] The decision is authoritative in state courts in all
condemnation cases in which the owner invokes protection of the due
process clause of the Fourteenth Amendment. [
Footnote 5] But clearly it does not support
petitioners' contention here.
Page 292 U. S. 260
The circumstances there disclosed required submission to the
jury of the question whether the use and special adaptation of the
islands for boom purposes affected market value at the time of the
taking. They were amply sufficient to warrant a finding that the
islands were well suited and presently needed for that purpose, and
that demand for them, actual or prospective, to form a part of a
boom greatly enhanced their market value. The boom company could
not exclude others from handling logs floated in the river. The
owner and others had the right to use the island lands to construct
a boom for their own purposes or for general use.
The situation in respect of lands bordering the Lake of the
Woods is essentially different. The fact that the raising of the
lake would take or damage shorelands could not affect their market
value. There could be no rational basis for any demand that would
affect value to the owner for reservoir purposes unless, as a legal
and practical possibility, he or some other person or persons --
other than the expropriating authority -- could have acquired the
right to flow the lands necessary for the lawful raising of the
lake. The lands upon which the flowage easement is condemned are
located in two countries. Neither could authorize expropriation in
the other. Petitioners did not cite or offer evidence of any
instance of acquisitions, without reliance upon the power of
eminent domain, that are at all comparable with those under
consideration. When regard is had to the number of parcels, private
owners, Indian tribes, and sovereign proprietors to be dealt with,
it is clear that there is no foundation for opinion evidence to the
effect that it was practicable for private parties to acquire the
flowage easements in question.
The policy of joint governmental control of the lake levels was
indicated years before the taking. The lands in Manitoba and
Ontario that, long prior to the condemnation,
Page 292 U. S. 261
were reserved in anticipation of measures to be taken for the
raising of the lake level were essential to the enterprise.
Additional reservoir capacity could not lawfully be created without
them, and they could not be purchased or condemned. There was no
justifiable basis for competition for the purchase of flowage
rights from private owners. Rivalry between power companies or
others to secure opportunity to develop capacity resulting
incidentally from lake levels established in the settlement of, or
to prevent, controversy between the parties to the treaty or
between either of them and nationals of the other is too remote to
warrant a finding that market value of petitioners' lands was
thereby enhanced. It had no direct, and could have no substantial
or legitimate, influence upon such value.
As just compensation includes no increment resulting from the
taking, petitioners were not entitled to elements of value arising
from the prospect that the government would acquire the flowage
easements. Under the circumstances, intention to acquire was the
equivalent of the formal designation of the property to be taken.
Prices actually paid, and estimates or opinions based, upon the
assumption that value to owners includes any such elements are not
entitled to weight, and should not be taken into account. On the
facts shown, it conclusively appears that there was no element of
value belonging to petitioners that legitimately could be
attributed to use and adaptability of their lands for reservoir
purposes. The evidence covered by petitioners' offers was
inadmissible. The court rightly excluded reservoir uses from
consideration.
In their brief, petitioners complain that the trial court
instructed the jury
"to consider only the value of the lands for agriculture,
although it was admitted that the lands were not suitable for
agriculture and had never been used for that purpose."
The parts of the charge
Page 292 U. S. 262
above quoted show that the statement is without foundation as to
Olson's land, and inaccurate as to all. The record definitely shows
that petitioners did not claim that, except for reservoir purposes,
their lands are worth more than their value for agriculture.
Moreover, the point is not made in the specification of errors or
in the reasons given in the petition for this writ. The contention
is not properly before us.
Gunning v. Cooley, 281 U. S.
90,
281 U. S. 98.
Petitioners maintain that the Circuit Court of Appeals erred in
holding that the Treaty of 1909 did not give redress, and that they
had no remedy, for the wrongful flooding of their lands. The
statements in the opinion assailed by specifications of error in
petitioners' brief were made
arguendo, and do not
constitute decision of any point on which petitioners there sought
reversal. The questions considered below concerned compensation for
flowage easements. The condemnation was under § 1 of the Act
of May 22, 1926, as amended,
supra. The property taken was
the right to use in the future. The commissioners were not
authorized to make any award on account of damages caused by
unlawful flooding of shorelands prior to the taking. That is clear
from § 1, as amended, and especially so when its provisions
are read in connection with the general condemnation Act of August
1, 1888, 25 Stat. 357, and the rule of just compensation prescribed
by the Constitution of Minnesota, both of which are expressly
adopted by that section. Moreover, § 3, as amended, directs
the Secretary of War to deal with all claims for damages caused,
prior to the acquisition of flowage easements under this act, to
the inhabitants of the United States by fluctuation of the water
levels of the Lake of the Woods due to artificial obstructions in
the outlets. No question of liability for, or the amount of, such
damages was before the lower courts.
Judgments affirmed.
* Together with No. 581,
Karlson v. United States, and
No. 582,
Brewter v. United States.
[
Footnote 1]
Article IX provides:
"The United States and the Dominion of Canada shall each, on its
own side of the boundary, assume responsibility for any damage or
injury which may have heretofore resulted to it or to its
inhabitants from the fluctuations of the level of Lake of the Woods
or of the outflow therefrom."
"Each shall likewise assume responsibility for any damage or
injury which may hereafter result to it or to its inhabitants from
the regulation of the level of Lake of the Woods in the manner
provided for in the present Convention."
Article X contains the following:
"In consideration, however, of the undertakings of the United
States as set forth in Article VIII, the Government of Canada shall
pay to the Government of the United States the sum of two hundred
and seventy-five thousand dollars ($275,000) in currency of the
United States. Should this sum prove insufficient to cover the cost
of such undertakings one-half of the excess of such cost over the
said sum shall, if the expenditure be incurred within five years of
the coming into force of the present Convention, be paid by the
Government of Canada."
Treaty of February 24, 1925, 44 Stat. 2108.
[
Footnote 2]
Petitioner Olson, as stated in the condemnation petition, owns,
as part of a homestead, 55.21 acres below contour 1064. He claimed
$300 per acre, making in all $16,563. The commissioners awarded
$1,296.50, including $40 for damage to dock and wharf. The jury's
verdict was $490.
Petitioner Karlson, as stated in the condemnation petition, owns
163.5 acres below contour 1064. It lies in two parcels, one of
which, 120 acres, he bought in 1921 for $175, or about $1.45 per
acre. He claimed $275 per acre, or a total of about $44,000. The
commissioners made but one award, $3,660. The jury's verdict was
$880.
Petitioner Brewster, as stated in the condemnation petition,
owns as part of his homestead 98.55 acres (exhibits indicate this
should be about 156 acres) below contour 1064. Though contiguous,
it is listed as three parcels. He claimed $300 per acre, making in
all $46,965. The commissioners awarded $640.70 for one parcel of
32.15 acres and $3,195.80 for the remainder, about 124 acres,
making in all $3,836.50. The jury's verdict for all three was
$900.
[
Footnote 3]
Chicago, B. & Q. R. Co. v. Chicago, 166 U.
S. 226,
166 U. S. 250;
Boston Chamber of Commerce v. Boston, 217 U.
S. 189,
217 U. S. 195;
United States v. Chandler-Dunbar Co., 229 U. S.
53,
229 U. S. 77;
McGovern v. New York, 229 U. S. 363,
229 U. S. 372;
The Minnesota Rate Cases, 230 U.
S. 352,
230 U. S. 451;
Vogelstein & Co. v. United States, 262 U.
S. 337,
262 U. S. 340;
United States v. New River Collieries, 262 U.
S. 341,
262 U. S. 344;
Mitchell v. United States, 267 U.
S. 341,
267 U. S.
345.
[
Footnote 4]
Murhard Estate Co. v. Portland & Seattle Ry. Co.,
163 F. 194, 199;
Weiser Valley Land & Water Co. v.
Ryan, 190 F. 417, 421-422;
Denver & R.G. R. Co. v.
Mills, 222 F. 481, 489;
Northern Pac. Ry. Co. v. North
American Tel. Co., 230 F. 347, 356;
North American
Telegraph Co. v. Northern Pac. Ry. Co., 254 F. 417, 419;
United States v. Boston, C.C. & N.Y. Canal Co., 271 F.
877, 893;
Ford Hydro-Electric Co. v. Neely, 13 F.2d 361,
362;
Guste v. United States, 55 F.2d 115, 116.
[
Footnote 5]
Illustrative cases are:
Fales v. Easthampton, 162 Mass.
422, 425, 38 N.E. 1129;
Smith v. Commonwealth, 210 Mass.
259, 261, 96 N.E. 666;
North Shore R. Co. v. Penna. Co.,
251 Pa. 445, 450, 96 A. 990;
Rock Island & Peoria Ry. Co.
v. Leisy Brewing Co., 174 Ill. 547, 555, 51 N.E. 572;
Currie v. Waverly & N.Y.B. R. Co., 52 N.J.Law, 381,
396, 20 A. 56;
Russell v. St. Paul, Minneapolis & Manitoba
Ry. Co., 33 Minn. 210, 214, 22 N.W. 379;
Conan v. City of
Ely, 91 Minn. 127, 131, 97 N.W. 737;
Santa Ana v.
Harlin, 99 Cal. 538, 542, 34 P. 224;
Alloway v.
Nashville, 88 Tenn. 510, 519, 13 S.W. 123.