Under the Lanham Act of 1940, as amended, the Government filed a
petition in the Federal District Court for the condemnation of
certain easements in land and title to sewer mains which together
comprised the sewerage system of a Virginia community. The 1943
amendment of the Act provided that
"none of the funds authorized herein shall be used to acquire
public works already operated by public or private agencies, except
where funds are allotted for substantial additions or improvements
to such public works and with the consent of the owners thereof. .
. ."
Held:
1. The 1943 amendment authorized the condemnation of such
property, subject to the conditions stated. Pp.
345 U. S.
345-348.
2. Under the 1943 amendment, householders having easements or
rights of user in the sewer system were not "owners" whose consent
to the acquisition was required. Pp.
345 U. S.
349-350.
196 F.2d 657, reversed.
A petition by the Government for condemnation under the Lanham
Act, as amended, was dismissed by the District Court. 101 F. Supp.
172. The Court of Appeals affirmed. 196 F.2d 657. This Court
granted certiorari. 344 U.S. 812.
Reversed, p.
345 U. S.
350.
Page 345 U. S. 345
MR. JUSTICE CLARK delivered the opinion of the Court.
This nine-year-old proceeding is for the condemnation of certain
easements in land and title to sewer mains which together comprise
the sewerage system of Belle Haven, a residential subdivision in
Fairfax County, Virginia. It was brought under the authority of
Title II, § 202 of the Act of June 28, 1941, 55 Stat. 361,
[
Footnote 1] and a rider on the
Appropriation Act of July 15, 1943, 57 Stat. 565, [
Footnote 2] both amendments to the Lanham Act
of October 14, 1940, 54 Stat. 1125, 42 U.S.C. § 1521
et
seq. Questions important in the administration of the Act
moved us to grant certiorari, 344 U.S. 812, to review the dismissal
of the government petition. 196 F.2d 657,
aff'g 101 F.
Supp. 172.
During World War II defense housing needs in the Washington area
led the government to construct a large sewer project to serve
defense housing properties in Fairfax
Page 345 U. S. 346
County. It sought to utilize, as a part of its trunkline sewer,
existing easements containing sewer pipes in the system originally
constructed by respondent Belle Haven Realty Corporation.
Negotiations produced an agreement under which the corporation,
still holder of the fee, was to accept nominal compensation for its
sewer properties on the condition that the government take the
entire system and that the final order protect the Belle Haven
householders against any future charges for its use. The government
then filed a condemnation petition together with a declaration of
taking, and deposited estimated just compensation of $2. Possession
was taken under court order, Belle Haven's outfalls into the
Potomac River blocked off, and its sewage diverted into the
government's trunkline system. In 1948, a group of Belle Haven
householders intervened as defendants, alleging that the government
had leased the integrated system to the Fairfax County Board of
Supervisors, and that the latter had undertaken to assess a use
charge of $2 per month against each householder in Belle Haven
subdivision. The intervenors claimed that they were the equitable
owners in fee of the Belle Haven system, since the developing
corporation had included its construction cost in the purchase
price of their lots, that they had been granted easements of user
in that system, and that the use charges assessed exceeded
reasonable maintenance and operation costs. The prayer was that the
court, in lieu of direct compensation for their interest, protect
them against having to contribute to the amortization of the
integrated system. The court decided that the householders had
acquired implied easements in the Belle Haven system for which they
were entitled to claim compensation, and intervention was granted.
89 F. Supp. 571. But the district judge held that he could not make
an award in the form of a limitation on future use charges, and he
denied a temporary injunction against
Page 345 U. S. 347
the collection of current bills. 89 F. Supp. 567. The
intervenors then amended their answer to attack the taking as
unauthorized under the Lanham Act. The Belle Haven Realty
Corporation, which had not previously answered the government's
petition, did so in 1950, claiming it was the legal owner of the
system and entitled to its present reproduction cost, less
depreciation, as just compensation.
The District Court dismissed the petition on the ground that the
Lanham Act, as amended, required the consent of the intervenors as
well as the realty corporation, that the corporation had only
conditionally consented to the taking and that the householders had
not consented at all. While the Court of Appeals approved the trial
court's reading of the statutory consent requirement, it declined
to base its affirmance on that ground because
"It is perfectly clear . . . that the power of condemnation
given by the Lanham Act extends only to lands or interests in
lands; . . . there is nothing in the act which authorizes the
condemnation of a public works system such as this."
196 F.2d 657, 662, relying on
Puerto Rico Ry. Light &
Power Co. v. United States, 131 F.2d 491.
The original Lanham Act of October 14, 1940, 54 Stat. 1125, was
designed to provide relief for defense areas found by the President
to be suffering from an existing or impending housing shortage. In
such cases, the Federal Works Administrator was empowered to
acquire "improved or unimproved lands or interests in lands" for
construction sites by purchase, donation, exchange, lease or
condemnation. The quoted language describing the kind of property
which the Administrator could condemn was carried over into Title
II of the Act added in 1941 which extended the statute to public
works shortages in defense areas. "Public work," as defined,
included sewers and sewage facilities. § 201. While the
general language
Page 345 U. S. 348
"improved or unimproved lands or interests in lands" included
within § 202 of Title II of the Lanham Act appears to
authorize the taking here,
United States v. Carmack,
329 U. S. 230,
329 U. S.
242-243, n. 13 (1946), it is not necessary to depend on
that section alone. In 1943, the Act was amended to provide
that
"none of the funds authorized herein shall be used to acquire
public works already operated by public or private agencies, except
where funds are allotted for substantial additions or improvements
to such public works and with the consent of the owners thereof. .
. ."
57 Stat. 565, 42 U.S.C. § 1534, note. The 1943 amendment
was in effect when the present petition was filed, and its
applicability here is common ground among the parties. It
explicitly authorized the condemnation of such property subject to
the conditions stated.
In this connection, we do not believe that the consent
requirement bars acquisitions by condemnation. This interpretation
would strip it of significance, since the other means of acquiring
property described in the statute necessarily rest on consensual
transactions. Although condemnation is sometimes regarded as a
taking without the owner's consent, 1 Lewis, Eminent Domain (3d
ed.), § 1, it is not anomalous to provide for such consent
which can, in effect, represent an election to have value
determined by a court, rather than by the parties. In addition,
"friendly" condemnation proceedings are often used to obtain clear
title where price is already settled.
Cf. Danforth v. United
States, 308 U. S. 271
(1939). Thus, construed, all of the statutory terms are given
effect.
Here, the consent of Belle Haven Realty Corporation was implicit
in its promise to accept nominal damages. That consent cannot be
characterized as conditional. Indeed, the corporation's answer,
filed six years later, recognized this; rather than resisting the
taking, it merely asserted a claim for more than nominal
compensation.
Page 345 U. S. 349
Whether the intervening householders were "owners" whose consent
was required is a different matter. Their interests were regarded
by both courts below as implied easements or rights of user in the
sewer system. It is true that easement holders have been held to be
"owners" as that term is used in condemnation statutes.
Swanson
v. United States, 156 F.2d 442, 445;
United States v.
Welch, 217 U. S. 333
(1910);
cf. United States v. General Motors Corp.,
323 U. S. 373,
323 U. S. 378.
But the relevant question in those cases is whether the holders of
such interests are entitled to compensation under the Constitution.
The compensability of these interests is not in issue here; it
follows that the cases on which intervenors rely are not
controlling. [
Footnote 3] In
deciding who are "owners" here, we look to the scheme of the Act
itself. We think it unlikely that, in providing for the
condemnation of public works, Congress at the same time intended to
make preliminary negotiations so cumbersome as to virtually nullify
the power granted. Yet the interpretation pressed by respondents
would have that effect. It would compel the government, before
taking public works, to deal with the holder of every servitude to
which the property might be subject. We hold that intervenors were
not "owners" under the 1943 amendment, and that the government was
not required, before condemning, to engage in a round robin to
secure from each of them a self-serving "Barkis is willin'."
Page 345 U. S. 350
We do not pass on other issues raised by respondents, some of
which if decided adversely to the government might be cured by
amendment, and others we deem not ripe for adjudication because of
factual questions not yet resolved.
Reversed.
MR. JUSTICE JACKSON took no part in the consideration or
decision of this case.
[
Footnote 1]
"SEC. 202. Whenever the President finds that, in any area or
locality an acute shortage of public works or equipment for public
works necessary to the health, safety, or welfare of persons
engaged in national defense activities exists or impends which
would impede national defense activities, and that such public
works or equipment cannot otherwise be provided when needed, or
could not be provided without the imposition of an increased
excessive tax burden or an unusual or excessive increase in the
debt limit of the taxing or borrowing authority in which such
shortage exists, the Federal Works Administrator is authorized,
with the approval of the President, in order to relieve such
shortage --"
"(a) To acquire, . . . improved or unimproved lands or interests
in lands by purchase, donation, exchange, lease . . . or
condemnation . . . for such public works."
[
Footnote 2]
". . . none of the funds authorized herein shall be used to
acquire public works already operated by public or private
agencies, except where finds are allotted for substantial additions
or improvements to such public works and with the consent of the
owners thereof. . . ."
[
Footnote 3]
Since the district judge deemed himself unable to order the
government to restore the Belle Haven system to its original
condition, the householders were remitted by dismissal of the
condemnation petition to a separate action for any compensable
damage they suffered because of the taking. Under this ruling, the
property taken would remain part of the integrated system whether
title is in the government or the realty corporation. In each case,
the rights of the householders, if any, to an award remain to be
determined. One effect of upholding the condemnation is to have
that question tried on remand in this proceeding.
MR. CHIEF JUSTICE VINSON, with whom MR. JUSTICE REED joins,
dissenting.
Respondent intervenors, the Belle Haven property owners, have
paid for the property under condemnation. They are held to be
"owners
pro tanto," of the sewerage system under Virginia
law, [
Footnote 2/1] and their
interest in the system is characterized as constituting ". . . the
only real value that it had." [
Footnote
2/2] Yet, this Court holds that they are not "owners" for the
purposes of a federal law, in which Congress reluctantly authorized
acquisition of privately owned utilities on the condition that
consent of the owners first be obtained.
One basic error underlies the decision -- the assumption that
Congress intended to facilitate national acquisition of going
private utilities by the amended provisions of the Lanham Act.
[
Footnote 2/3] 54 Stat. 1125, 55
Stat. 361, 57 Stat.
Page 345 U. S. 351
565, 42 U.S.C. § 1521
et seq. This error is
signaled in the proposition that the 1941 Amendment to the Lanham
Act, 55 Stat. 361, 42 U.S.C. § 1532, was broad enough to
authorize the condemnation of utilities. The proposition is
immediately glossed over with the assertion that it is unnecessary
to depend on it, since the 1943 Amendment, 57 Stat. 565, 42 U.S.C.
§ 1534 not, which is admittedly applicable, authorizes the
condemnation of such property in any event. But it makes a great
deal of difference in interpreting the consent provision of the
1943 Amendment, depending on whether it is approached as a narrow
restriction on an otherwise broad program for the acquisition of
public utilities, or as a conditional grant of a power, theretofore
withheld because of a hostility which could be avoided only by
strict adherence to the condition imposed.
The purpose of the original Lanham Act of 1940, 54 Stat. 1125,
42 U.S.C. §§ 1521-1524, was to relieve housing shortages
in defense areas. The 1941 Amendment added Title II to meet public
utility shortages in the defense housing areas. Eminent domain
powers were authorized for the accomplishment of that purpose, but
only as an integrated part of a careful statutory scheme. Section
202(a) of Title II authorized acquisition of
". . . improved or unimproved lands or interests in lands by
purchase, donation, exchange, lease . . . or condemnation . . . for
such public works."
And Subsection (b) authorized the Federal Works
Administrator
". . . to plan, design, construct, . . . or lease public works .
. . on lands or interests in lands acquired under the provisions of
subsection (a). . . ."
Subsection (c) authorized the Administrator "To make loans or
grants, or both, to public and private agencies for public works
and equipment therefor. . . ."
Simply stated, Title II authorized the Government to meet the
public utilities shortage by giving aid to going
Page 345 U. S. 352
utilities, by leasing going utilities, and by constructing new
utilities on land or interests in land acquired for that purpose
under the Act. Nowhere is there any express or implied power to
acquire going utilities.
The administrators of the law understood the statutory scheme to
be as outlined above, as evidenced by their communications to
Congress in pressing for enactment of the Amendment [
Footnote 2/4] and in reporting on its
operation after enactment. [
Footnote
2/5] Indeed, any open request for authority to acquire going
utilities undoubtedly would have precipitated a debate on the
sensitive issue of public versus privately owned utilities.
Immediate post-enactment events shown that, had the issue been
raised, the power to condemn going utilities might have been
rejected out of hand.
In 1942, the Federal Works Agency attempted to condemn an entire
electric system in Puerto Rico under the
Page 345 U. S. 353
authority of Title II of the Lanham Act. The Court of Appeals
for the First Circuit held that the Lanham Act did not authorize
the taking of going public utilities.
Puerto Rico Ry. Light
& Power Co. v. United States, 131 F.2d 491 (1942). When
Congress learned of this attempt to condemn the Puerto Rican power
system, there was an immediate reaction. In 1943, when a bill was
introduced to increase the appropriation authority under Title II,
Senator Taft offered an amendment providing in part that
"none of the funds authorized herein shall be used to acquire
public works already operated by public or private agencies."
89 Cong.Rec. 7286. Senator Taft explained this amendment by
reference to the Puerto Rican power case, concluding as
follows:
". . .
certainly there was nothing in the Lanham Act which
authorized any such proceeding. It was intended to provide new
facilities, it was not intended to provide for taking over old
facilities. I think it is perfectly clear that no such power should
be included in the Act."
(Emphasis supplied.)
Ibid.
Senator Maloney, who was in charge of the pending bill and had
been in charge of the Lanham Act, concurred in Senator Taft's
interpretation of the Lanham Act:
"Mr. President, I can see no objection to the amendments offered
by the Senator from Ohio. I agree with him that Lanham Act funds,
at least in my opinion -- and I was one of those who helped to
write the Act -- were not intended to be used for such a purpose as
the acquisition of a public utility in Puerto Rico. So I have no
objection to the language, and, as a matter of fact, I share the
feeling of the Senator from Ohio."
Id. at 7287.
Page 345 U. S. 354
The original amendment was an outright prohibition against using
the Lanham Act to acquire going utilities. The comments of the
legislators make it clear that the amendment was declaratory of
what Congress had understood to be the correct interpretation of
the Lanham Act. But Congress was not content to leave the
legislation in any form subject to doubt, lest some other Court of
Appeals or this Court should place a different interpretation on
the Act than did the Court of Appeals for the First Circuit.
It was not until the following day that the excepting clause was
added to the Amendment. It was introduced and explained by Senator
Taft. The Public Works Agency had called to the Senator's attention
a case where the Navy needed to expand a railroad by a project
which would require expenditure of about double the present value
of the railroad. The Agency asked that, in such a case they be
authorized to take over the existing utility. Senator Taft said
that, "Even in such cases, I do not think the authority should be
given except with the consent of those who own the existing public
works." 89 Cong.Rec. 7314. Thus, the 1943 Amendment came into its
present form. [
Footnote 2/6]
This legislative background shows that the excepting clause in
the 1943 Amendment constitutes the entire authority given to
acquire going utilities. That authority should be strictly
construed in keeping with the spirit of guarded caution under which
it was granted. Therefore, I would construe the class of "owners,"
whose consent must be had, to be at least as broad as the normal
usage of that term in the eminent domain context.
Page 345 U. S. 355
I can agree with the majority opinion that the consent
requirement does not necessarily bar acquisition by use of
condemnation proceedings, but, where consent of the owner is
interposed as a statutory limitation on the exercise of the right
of eminent domain, it makes obvious sense to interpret the consent
required as being the consent of those persons having compensable
interests affected by the exercise of eminent domain. The correct
rule of construction has been suggested in these terms:
". . . where the law seeks to divest all and every title to land
or estate, and substitute the price therefor, . . . the word
'owner' should receive a broad and liberal construction, so as to
embrace every right in and to the land. . . ."
Glover v. United States, 164 U.
S. 294,
164 U. S.
299-300 (1896). The proposition was recently restated in
Swanson v. United States, 156 F.2d 442, 445 (1946):
"The term 'owner' in statutes relating to the exercise of
eminent domain includes any person having a legal or equitable
interest in the property condemned. [
Footnote 2/7]"
The persuasion of common sense is to interpret the word "owners"
as the equivalent of persons having a compensable interest under
the Fifth Amendment, simply because, when Congress speaks of owners
in the eminent domain context, its most obvious source of reference
is the Fifth Amendment. That is not to say that some other meaning
might not be given by express definition, or by implication, where
clearly necessary to carry out some overriding policy of the
statute. [
Footnote 2/8] If there
were in
Page 345 U. S. 356
the Lanham Act what the majority opinion reads into it -- a
congressional policy to facilitate national acquisition of
privately owned utilities -- then there might be some justification
to interpret "owners" from a narrower source of reference, such as
administrative convenience.
The sewerage system under condemnation was built in 1925 by the
Belle Haven Realty Corp. as part of the development of a
residential subdivision. As lots were sold, a proportionate part of
the cost of the sewer system was included in the price paid by the
purchaser of each lot. The conveyance of each lot included a grant
of all "appurtenances to the same in any wise belonging." Belle
Haven Realty Corp. retained nominal title to the system and
responsibility for maintaining it, but no charge was made for its
use. On this state of facts, the District Court held that the
property owners had property rights by way of easements appurtenant
to the Belle Haven sewer system.
United States v. Certain
Parcels of Land in Fairfax County, 89 F. Supp. 571.
The District Court's finding on the nature of the property
interest under Virginia law is not questioned by this Court. It has
been decided that such a property interest would give the owners
thereof a compensable interest in a taking by power of eminent
domain.
United States v. Welch, 217 U.
S. 333 (1910). It should follow, from the principles of
statutory construction that I have urged above that the consent of
these easement owners was required.
Perhaps there may be some practical limitation on the consents
which Congress required. Thus, where there is a legal entity which
may speak with proper authority for all who have an interest in the
property, as in the case of a corporation or a trustee speaking for
the shareholders or beneficiaries, consent of each individual owner
might not be required. But the corporation cannot be
Page 345 U. S. 357
held to represent the interests of the intervenors in the
present case because it had a potentially adverse interest. The
corporation stood to gain relief from its burden of maintenance if
the system was taken, while the property owners stood to lose their
right of free use. The district judge noted in his opinion,
"It seems never to have occurred . . . to Belle Haven Realty
Corporation that the individual lot owners had any interest or
ownership in the sewer system."
101 F. Supp. 172, 174. It seems absurd to say that the consent
provision of the statute is satisfied by getting the consent of the
corporation under the circumstances. The legal inadequacy of the
corporation's consent is not changed because the corporation,
despite its potentially adverse interest, made a genuine effort to
do what it thought best for the property owners. Intervenors'
interests are not so inconsequential in the law of eminent domain
that they can be left to the beneficence of someone having a
potentially adverse interest. That much is admitted by the
inference that they are entitled to claim just compensation in
their own right. Why are they any less entitled to give or withhold
consent in their own right?
Even if consent of the corporation would satisfy the statute, I
cannot agree that its consent was ever obtained. In 1943, when the
Federal Works Agency was seeking only an easement of flowage
through the lower end of the Belle Haven trunk line, the
corporation consented to the taking if the Agency would take the
entire system and provide in the decree that no service charges
would be imposed against the Belle Haven property owners. [
Footnote 2/9] The original petition of
condemnation, filed in 1944, evidences
Page 345 U. S. 358
no intent to proceed under terms of this consent. The petition
did not plead consent. It did not seek to condemn the entire sewer
system, nor did it make any provision for the protection of the
property owners. Not until 1948, when the Government's lessee,
Fairfax County, ran into trouble in trying to levy a uniform
sewerage assessment, did the Government try to take the entire
system. Even then, its amended petition did not plead consent nor
make any provision for protection of the property owners. Indeed,
the only apparent purpose behind its amended petition was to
acquire clear title to the whole system so that its lessee could
assess charges against the Belle Haven property owners. [
Footnote 2/10] I can only conclude that
the attempt to find a consent in the 1943 agreement came as a happy
afterthought with the awakening realization that this taking could
not be justified except under the 1943 Amendment. [
Footnote 2/11]
Page 345 U. S. 359
In any event, it was found as a fact that the corporation's
consent " . . . was given upon a condition which the government is
unwilling to accept." [
Footnote
2/12] Unless there is something in the foregoing pattern of
facts which amounts to an absolute consent as a matter of law, that
finding of fact cannot be dismissed with rhetorical response that
the consent cannot be characterized as conditional. I would not
allow the Government to justify this taking by resort to an
agreement which it has refused to honor.
I do not think a consent can be salvaged out of the
corporation's answer seeking just compensation. That answer came in
1950, only after the decision of the District Court that the
property owners had a compensable interest in the system and a
right to intervene. 89 F. Supp. 567. The answer pleads a belief
that the conditional consent had been violated, and states its
primary purpose to serve the interest of the property owners. Thus,
though it does ask for just compensation, the only fair
construction that can be given to the answer in its entirety is
that it is an alternative plea, attacking the right to take on the
belief that the conditional consent had been dishonored, or
alternatively seeking just compensation for its interest in the
sewer if the Government's right to take should be upheld.
The condemnation of one small sewerage system may seem an
insignificant thing in view of the vast scope of federal eminent
domain powers, and much of the impact of the present decision may
be balmed over with the assurance that intervenors can claim just
compensation for their losses. But there is something at stake here
which transcends the immediate interests of the parties. That
Page 345 U. S. 360
is the duty of the courts and administrators to keep faith with
Congress in the interpretation and execution of a statute in which
Congress carefully limited the powers of eminent domain because of
sensitive policy considerations which were for Congress alone to
evaluate. Because I think the instant condemnation clearly exceeds
the scope of congressional authorization, I would affirm the
judgment of the courts below.
[
Footnote 2/1]
United States v. Certain Parcels of Land in Fairfax
County, 101 F. Supp. 172, 175 (1951); 89 F. Supp. 567 (1950);
89 F. Supp. 571 (1948).
[
Footnote 2/2]
United States v. Certain Parcels of Land in Fairfax
County, 196 F.2d 657, 662.
[
Footnote 2/3]
As I read the opinion, this must be the assumption which compels
the majority to place a limiting construction on the word "owners,"
as used in the consent proviso of the 1943 Amendment, 57 Stat. 565,
lest the Government be forced "to deal with the holder of every
servitude to which the property might be subject," thereby making
national acquisition of public works "cumbersome."
[
Footnote 2/4]
At the hearings the General Counsel to the Federal Works Agency
testified with respect to H.R. 3213 (a preliminary draft, the
language of which is substantially the same as Title II, for
present purposes) as follows:
"And then authority is given to acquire land, improved or
unimproved, and upon the land so acquired to construct public
works, to maintain them and operate them, administer them, to sell
them, to transfer them, and also to make loans and grants for all
these purposes." (Emphasis supplied.) Hearings before Committee on
Public Buildings and Grounds on H.R. 3213 and H.R. 3570, 77th
Cong., 1st Sess. p. 59.
[
Footnote 2/5]
"
Authority of the Federal Works Administrator under Title
II: --"
"Under title II the Federal Works Administrator is authorized:
"
"(1) To construct community facilities as federal projects."
"(2) To make loans or grants, or both, for the non-Federal
construction of community facilities."
"(3) To make contributions for the maintenance and operation of
community facilities."
Memorandum of Federal Works Administrator attached to Report of
Senate Committee on Public Buildings and Grounds, S.Rep.No.376,
78th Cong., 1st Sess. 3.
[
Footnote 2/6]
". . . none of the funds authorized herein shall be used to
acquire public works already operated by public or private
agencies, except where funds are allotted for substantial additions
or improvements to such public works and with the consent of the
owners thereof. . . ."
57 Stat. 565.
[
Footnote 2/7]
Cf. 35 U. S.
Hepburn, 10 Pet. 1,
35 U. S. 23,
interpreting a statute which permitted the "owner" to redeem tax
delinquent land:
"Any right, which, in law or equity, amounts to an ownership in
the land; any right of entry upon it, to its possession or
enjoyment, or any part of it . . . , makes the person the owner. .
. ."
[
Footnote 2/8]
Thus, in
Glover v. United States, 164 U.
S. 294 (1896), a mortgage creditor was held not to be an
"owner" for purposes of a statute making a land tax refund, since
the obvious statutory scheme was to reimburse persons who had been
liable to pay the tax.
[
Footnote 2/9]
It is interesting to note that this agreement was apparently
reached in the "spring of 1943," which would place it prior to the
enactment of the 1943 Amendment, which was on July 15, 1943. Thus,
it is a little difficult to believe that the Corporation was giving
or the Government seeking a consent under the statute.
[
Footnote 2/10]
This is the conclusion reached by the Court of Appeals. 196 F.2d
657, 662-663. To some extent, the conclusion depends upon questions
of fact which have never been tried. But most of what there
presently is in the records supports the inference that the federal
power of eminent domain was exercised here to help a local county
solve a problem of sewerage assessments. If this be true, I think
the whole affair is completely unworthy of the high trust which
should attend use of the sovereign power of eminent domain.
However, that raises a question of fact going to whether or not the
taking was for a public purpose. That question, as well as the
factual questions of whether the President approved this specific
project as required by Title II,
Puerto Rico Ry. Light &
Power Co. v. United States, 131 F.2d 491, 495-496 (1942), and
whether funds were allotted "for substantial additions or
improvements" to the Belle Haven system, as required by the 1943
Amendment, will still be left open on remand.
[
Footnote 2/11]
In proceedings in the District Court, the Government referred to
Belle Haven Realty Corp. as the "
purported owner" of the
system, 101 F. Supp. 172, 175, a position quite inconsistent with
its later position that the corporation was
the "owner"
whose consent brings the taking within the 1943 Amendment.
[
Footnote 2/12]
196 F.2d 657, 662. There were no formal findings of fact. But as
the Court of Appeals pointed out,
"The [district] judge found it (the language quoted in text) as
a fact, . . . after hearing the parties in a number of pretrial
conferences."