GtNorthRR_case_dh.doc

(Cite as: 315 U.S. 262, 62 S.Ct. 529)

86 L.Ed. 836
GREAT NORTHERN RY. CO.
v.
UNITED STATES.
Supreme Court of the United States.
No. 149.
Argued Jan. 13, 14, 1942.
Decided Feb. 2, 1942.

Mr. Justice MURPHY, delivered the opinion of the Court.
We are asked to decide whether petitioner has any right to the oil and minerals underlying its right of way
acquired under the general right of way statute, Act of March 3, 1875, c. 152, 18 Stat. 482, 43 U.S.C.A. ss 934--939.

[1][2] The Act of March 3, 1875, from which petitioner's rights stem, clearly grants only an easement, and not a fee. Section 1 indicates that the right is one of passage since it grants 'the', not a, 'right of way through the public lands of the United States'. Section 2 adds to the conclusion that the right granted is one of use and occupancy only, rather than the land itself, (Cite as: 315 U.S. 262, *271, 62 S.Ct. 529, **532) for it declares that any railroad whose right of way passes through a canyon, pass or defile 'shall not prevent any other railroad company from the use and occupancy of said cayon, pass, or defile, for the purposes of its road, in common with the road first located'. [FN1]

FN1 Emphasis added.

[3][4][5] Section 4 is especially persuasive. It requires the location of each right of way to be noted on the plats in the local land office, and 'thereafter all such lands over which such right of way shall pass shall be disposed of subject to such right of way'. [FN2] This reserved right to dispose of the lands subject to the right of way is wholly inconsistent with the grant of a fee. As the court below pointed out, 'Apter words to indicate the intent to convey an easement would be difficult to find' (119 F.2d 825). That this was the precise intent of Section 4 is clear from its legislative history. [FN3] While Section 4 provides *272 (Cite as: 315 U.S. 262, *272 , 62 S.Ct. 529, **532) a method for securing the benefits of the **533 (Cite as: 315 U.S. 262, *272 , 62 S.Ct. 529, **533)

Act in advance of construction, [FN4] no adequate reason is advanced for believing that it does not illumine the nature of the right granted. The Act is to be interpreted as a harmonious whole.

FN2 Emphasis added. (Cite as: 315 U.S. 262, *272, 62 S.Ct. 529, **533)

FN3 This clause first appeared in a special right of way statute, Portland, Dalles, and Salt Lake Act of April 12, 1872, 17 Stat. 52. Congressman Slater reported that bill for the Public Lands Committee, and, in discussing the reason for the clause, said:
Mr. Slater: The point (of this clause) is simply this: the land over which this right of way passes is to be
sold subject to the right of way. It simply provides that this right of way shall be an incumbrance upon
the land for one hundred feet upon each side of the line of the road; that those who may afterward make
locations for settlement shall not interfere with this right of way.

Mr. Speer of Pennsylvania: It grants no land to any railroad company?

Mr. Slater: No, sir. (Cong. Globe, 42d Cong., 2d Sess., 2137 (1872).)

FN4 The right of way may be located by construction. Dakota C.R. CO. v. Downey, 8 L.D. 115;
Jamestown and Northern R. Co. v. Jones, 177 U.S. 125, 20 S.Ct. 568, 44 L.Ed. 698; Stalker v. Oregon Short
Line R. Co., 225 U.S. 142, 32 S.Ct. 636, 56 L.Ed. 1027.

* * *

Plainly there is nothing in the Act which may be characterized as a 'clear and explicit' conveyance of the underlying oil and minerals. The Act was designed to permit the construction of railroads through the public lands and thus enhance their value and hasten their settlement. The achievement of that purpose does not compel a construction of the right of way grant as conveying a fee title to the land and the underlying minerals; a railroad may be operated though its right of way be but an easement. [FN5]

FN5 In Denver & R.G. Railway Co. v. Alling, 99 U.S. 463, 25 L.Ed. 438, and Smith v. Townsend, 148 U.S. 490, 13 S.Ct. 634, 37 L.Ed. 533, statutory rights of way were held to be but easements. And, it has been held that railroads do not have a fee in those portions of their rights of way acquired by eminent domain proceedings. See East Alabama Railway Company v. Doe, 114 U.S. 340, 5 S.Ct. 869, 29 L.Ed. 136; Quick v. (Cite as: 315 U.S. 262, *272, 62 S.Ct. 529, **533)
Taylor, 113 Ind. 540, 16 N.E. 588; Railroad Co. v. Schmuck, 69 Kan. 272, 76 P. 836; Keown v. Brandon, 206 Ky. 93, 266 S.W. 889; Hall v. Boston & Maine Railroad, 211 Mass. 174, 97 N.E. 914; Roberts v. Sioux City & P.R. Co., 73 Neb. 8, 102 N.W. 60, 2 L.R.A.,N.S., 272, 10 Ann.Cas. 992; Washington Cemetery v. Prospect Park & C.I.R. Co., 68 N.Y. 591. *273
(Cite as: 315 U.S. 262, *273, 62 S.Ct. 529, **533)

[9] But were are not limited to the lifeless words of the statute and formalistic canons of construction in our
search for the intent of Congress. The Act was the product of a period, and, 'courts, in construing a statute,
may with propriety recur to the history of the times when it was passed'. United States v. Union Pacific R. Co., 91 U.S. 72, 79, 23 L.Ed. 224. And see Winona & St. Peter R. Co. v. Barney, 113 U.S. 618, 625, 5 S.Ct. 606, 609, 29 L.Ed. 1109; Smith v. Townsend, 148 U.S. 490, 494, 13 S.Ct. 634, 635, 37 L.Ed. 533; United States v. Denver, etc., Railway Co., 150 U.S. 1, 14, 14 S.Ct. 11, 15, 37 L.Ed. 975.
Beginning in 1850 Congress embarked on a policy of subsidizing railroad construction by lavish grants from the public domain. [FN6] This policy incurred great public disfavor [FN7] which was crystallized in the following resolution adopted by the House of Representatives on March 11, 1872:
FN6 Typical were the Illinois Central Grant, Act of September 20, 1850, c. (Cite as: 315 U.S. 262, *273, 62 S.Ct. 529, **533)61, 9 Stat. 466; Union Pacific Grant of July 1, 1862, c. 120, 12 Stat. 489; Amended Union Pacific Grant, Act of July 2, 1864, c. 216, 13 Stat. 356; and Northern Pacific Grant, Act of July 2, 1864, c. 217, 13 Stat. 365. This last grant was the largest, involving an estimated 40,000,000 acres. In view of this lavish policy of grants from the public domain it is not surprising that the rights of way conveyed in such land-grant acts have been held to be limited fees. Northern Pacific R. Co. v. Townsend, 190 U.S. 267, 23 S.Ct. 671, 47 L.Ed. 1044. Cf. Missouri, Kansas & Texas R. Co. v. Roberts, 152 U.S. 114, 14 S.Ct. 496, 38 L.Ed. 377.

FN7 See 'Land Grants', 9 Encyclopedia of the Social Sciences (1933), p. 35; 'Land Grants to Railways', 3 Dictionary of American History (1940), p. 237.*534(Cite as: 315 U.S. 262, *273, 62 S.Ct. 529, **534) Resolved, that in the judgment of this House the policy of granting subsidies in public lands to railroads and 274 (Cite as: 315 U.S. 262, *274, 62 S.Ct. 529, **534)other corporations ought to be discontinued, and that every consideration of public policy and equal justice to
the whole people requires that the public lands should be held for the purpose of securing homesteads to
actual settlers, and for educational purposes, as may be provided by law.' Cong.Globe, 42d Cong., 2d Sess.,
1585 (1872). (Cite as: 315 U.S. 262, *274, 62 S.Ct. 529, **534)

After 1871 outright grants of public lands to private railroad companies seem to have been discontinued. [FN8] But, to encourage development of the Western vastnesses, Congress had to grant rights to lay track across the public domain, rights which could not be secured against the sovereign by eminent domain proceedings or adverse user. For a time special acts were passed granting to designated railroads simply 'the right of way' through the public lands of the United States. [FN9] That those acts were not intended to convey and land is inferable from remarks in Congress by those sponsoring the measures. For example, in reporting a bill granting a right of way to the Dakota Grand Trunk Railway (17 Stat. 202), the committee chairman said: 'This is merely a grant of the right of way'. [FN10] Likewise, in reporting a right of way bill for the New Mexico and Gulf Railway Company (17 Stat. 343), Mr. Townsend of Pennsylvania, the same Congressman who sponsored the Act of 1875, observed: 'It is nothing but a grant of the right of way.' [FN11]

FN8 Ibid. And see H.Rept. No. 10, 43d Cong., 2d Sess. (1874), p. 1 (Ser. No. 1656) recommending that a bill to grant lands to aid in the construction of a railroad not pass. See also the remarks of Mr. Dunnell in reporting a special right of way bill for the Public Lands Committee, Cong.Globe, 42d Cong., 2d Sess., 2543 (1872), and those of Mr. Townsend, who was in charge of the bill which became the Act of 1875, in reporting to (Cite as: 315 U.S. 262, *274, 62 S.Ct. 529, **534) the House the Senate bill and the House substitute. Cong.Rec., 43d Cong., 2d Sess., Vol. 3, pt. 1, 404 (1875).

FN9 The Forty-second and Forty-third Congresses (1871--1875) passed at least fifteen such acts.
FN10 Cong.Globe, 42d Cong., 2d Sess., 3913 (1872).

FN11 Cong.Globe, 42d Cong., 2d Sess., 4134 (1872). See also p. 2543.*275(Cite as: 315 U.S. 262, *275, 62 S.Ct. 529, **534)

[10] The burden of this special legislation moved Congress to adopt the general right of way statute now
before this Court. Since it was a product of the sharp change in Congressional policy with respect to railroad grants after 1871, it is improbable that Congress intended by it to grant more than a right of passage, let alone mineral riches. The presence in the Act of Section 4, which, as has been pointed out above, is so inconsistent with the grant of a fee, strongly indicates that Congress was carrying into effect its changed policy regarding railroad grants. [FN12]

FN12 See note 3, ante.

* * *

[14] The circular of February 11, 1904, 32 L.D. 481, described the right as a 'base or qualified fee'. This shift in interpretation was probably due to the description in Northern Pacific R. Co. v. Townsend, 190 U.S. 267, 23 S.Ct. 671, 672, 47 L.Ed. 1044, of a right of way conveyed in a land-grant act (13 Stat. 365) as a 'limited fee, made on an implied condition of reverter'. [FN14] But the earlier view was reasserted in the departmental regulations of May 21, 1909, 37 L.D. 787. [FN15] After 1915 administrative construction bowed to the case of Rio Grande Western R. Co. v. Stringham, 239 U.S. 44, 36 S.Ct. 5, 60 L.Ed. 136, which applied the language of the Townsend case to a right of way acquired under the Act of 1875. We do not regard this subsequent interpretation as binding on the Department of the Interior since it was impelled by what we regard as inaccurate statements in the Stringham case. Cf. Helvering v. Hallock, 309 U.S. 106, 121, 60 S.Ct. 444, 452, 84 L.Ed.

(Cite as: 315 U.S. 262, *276, 62 S.Ct. 529, **535)

604, 125 A.L.R. 1368.

FN14 See note 6, ante.

FN15 The decisions of the Lands Department construing the 1875 Act are in accord. Fremont, Elkhorn
and Missouri Valley Ry. Co., 19 L.D. 588; Mary G. Arnett, 20 L.D. 131; John W. Wehn, 32 L.D. 33; Grand
Canyon Ry. Co. v. Cameron, 35 L.D. 495.

[15] Congress itself in later legislation has interpreted the Act of 1875 as conveying but an easement. The Act of June 26, 1906, c. 3550, 34 Stat. 482, 43 U.S.C.A. s 940 declaring a forfeiture of unused rights of way, provides in part that: 'the United States hereby resumes the full title to the lands covered thereby (by the right of way) freed and discharged from such easement'. This language is repeated in the forfeiture act of February 25, 1909, c. 191, 35 Stat. 647, 43 U.S.C.A. s 940. Also on June 26, 1906, an act [FN16] was passed confirming the rights of way which certain railroads had acquired under *277
(Cite as: 315 U.S. 262, *277, 62 S.Ct. 529, **535)

the 1875 Act in the Territories of Oklahoma and Arizona. The House committee report on this bill said: 'The right as originally conferred and as proposed to be protected by this bill simply grants an easement or use for railroad purposes. Under the present law whenever the
(Cite as: 315 U.S. 262, *277, 62 S.Ct. 529, **535)

railroad passes through a tract of public land the entire tract is patented to the settler or entryman, subject only to this easement'. [FN17] It is settled that 'subsequent legislation may be considered to assist in the interpretation of prior legislation upon the same subject.' Tiger v. Western Investment Co., 221 U.S. 286, 309, 31 S.Ct. 578, 583, 584, 55 L.Ed. 738. See also Cope v. Cope, 137 U.S. 682, 11 S.Ct. 222, 34 L.Ed. 832; United States v. Freeman, 3 How. 556, 11 L.Ed. 724. These statutes were approximately contemporaneous with petitioner's acquisition of the rights of way of the St. Paul, Minneapolis and Manitoba Railway.
FN16 34 Stat. 481, 43 U.S.C.A. s 944.

FN17 H.Rept. No. 4777, 59th Cong., 1st Sess., p. 2 (Ser. No. 4908); cf. S.Rept. No. 1417, 59th Cong., 1st Sess., p. 2 (Ser. No. 4904).

[16] That petitioner has only an easement in its rights of way acquired under the Act of 1875 is therefore clear from the language of the Act, its legislative history, its early administrative interpretation and the construction placed upon it by Congress in subsequent enactments. [17] Petitioner, seeking to obviate this result, relies on several cases in this Court stating that railroads have a
'limited', 'base', or 'qualified' fee (Cite as: 315 U.S. 262, *277, 62 S.Ct. 529, **535) in their rights of way. [FN18] All of those cases, except **536 (Cite as: 315 U.S. 262, *277, 62 S.Ct. 529, **536)

Rio Grande Western R. Co. v. Stringham, 239 U.S. 44, 36 S.Ct. 5, 60 L.Ed. 136; Choctaw, O. & G.R.R. Co. v. Mackey, 256 U.S. 531, 41 S.Ct. 582, 65 L.Ed. 1076; and *278 (Cite as: 315 U.S. 262, *278, 62 S.Ct. 529, **536) Noble v. Oklahoma City, 297 U.S. 481, 56 S.Ct. 562, 80 L.Ed. 816, deal with rights of way conveyed by land-grant acts before the shift in Congressional policy occurred in 1871. For that reason they are not controlling here. [FN19] When Congress made outright grants to a railroad of alternate sections of public lands along the right of way, there is little reason to suppose that it intended to give only an easement in the right of
way granted in the same act. And, in none of those acts was there any provision comparable to that of Section 4 of the 1875 Act that 'lands over which such right of way shall pass shall be disposed of subject to such right of way'. None of the cases involved the problem of rights to subsurface oil and minerals.

FN18 Buttz v. Northern Pacific Railroad, 119 U.S. 55, 7 S.Ct. 100, 30 L.Ed. 330; Clairmont v. United States, 225 U.S. 551, 32 S.Ct. 787, 56 L.Ed. 1201; Missouri, Kansas & Texas R. Co. v. Roberts, 152 U.S. 114, 14 S.Ct. 496, 38 L.Ed. 377; Missouri, K. & T. Ry. v. Oklahoma, 271 U.S. 303, 46 S.Ct. 517, 70 L.Ed. 957; New Mexico v. United States Trust Co., 172 U.S. 171, 19 S.Ct. 128, 43 L.Ed. 407; Northern Pacific Ry. v. (Cite as: 315 U.S. 262, *278, 62 S.Ct. 529, **536)
Townsend, 190 U.S. 267, 23 S.Ct. 671, 47 L.Ed. 1044; United States v. Michigan, 190 U.S. 379, 23 S.Ct. 742, 47 L.Ed. 1103; Northern Pacific Railway Co. v. Ely, 197 U.S. 1, 25 S.Ct. 302, 49 L.Ed. 639; Rio Grande Western R. Co. v. Stringham, 239 U.S. 44, 36 S.Ct. 5, 60 L.Ed. 136; Choctaw, O. & G.R. Co. v. Mackey, 256 U.S. 531, 41 S.Ct. 582, 65 L.Ed. 1076; Noble v. Oklahoma City, 297 U.S. 481, 56 S.Ct. 562, 80 L.Ed. 816.

FN19 See note 6, ante.

In the Stringham case (239 U.S. 44, 36 S.Ct. 6, 60 L.Ed. 136) it was said that a right of way under the Act of 1875is 'neither a mere easement, nor a fee simple absolute, but a limited fee, made on an implied condition of reverter in the event that the company ceases to use or retain the land for the purposes for which it is granted, and carries with it the incidents and remedies usually attending the fee'. The railroad had brought suit to quiet title to a portion of its right of way. Stringham asserted title to that portion by virtue of a purported purchase of surface rights from a placer mine claimant. The Supreme Court of Utah reversed the judgment of the trial court
and remanded the case, directing the entry of 'a judgment awarding to the plaintiff title to a right of way over the lands in question'. 38 Utah 113, 110 P. 868, 872. The railroad again appealed, asserting that it should have
(Cite as: 315 U.S. 262, *278, 62 S.Ct. 529, **536)

been adjudged 'owner in fee simple of the right of way over the premises'. The Supreme Court of Utah affirmed the judgment of the trial court on the ground that the railroad's proper remedy was by petition for rehearing of the first appeal. 39 Utah 236, 115 P. 967. Both judgments were brought to this Court by writ of *279

(Cite as: 315 U.S. 262, *279, 62 S.Ct. 529, **536)

error. It was held that the second judgment presented nothing reviewable. The first judgment was affirmed
since it 'describes the right of way in the exact terms of the right-of-way act, and evidently uses those terms
with the same meaning they have in the act.'
[18][19] The conclusion that the railroad was the owner of a 'limited fee' was based on cases arising under the
land-grant acts passed prior to 1871 and it does not appear that Congress' change of policy after 1871 was
brought to the Court's attention. [FN20] That conclusion is inconsistent with the language of the Act, its
legislative history, its early administrative interpretation and the construction placed on it by Congress in
subsequent legislation. We therefore do not regard it as controlling. Statements in Choctaw, O. & G.R. Co. v. Mackey, 256 U.S. 531, 41 S.Ct. 582, 65 L.Ed. 1076, and Noble v. Oklahoma City, 297 U.S. 481, 56 S.Ct. 562, 80 L.Ed. 816, that the 1875 Act conveyed a limited fee are dicta based on the Stringham case and entitled to no more weight than the statements in that case . Far more persuasive are two cases involving special acts granting rights of way passed after 1871 and rather similar to the general act of 1875. [FN21] Denver & R.G. Railway Co.
(Cite as: 315 U.S. 262, *279, 62 S.Ct. 529, **536)

v. Alling, 99 U.S. 463, 475, 25 L.Ed. 438, characterized the right so granted as 'a present beneficial easement' and Smith v. Townsend, 148 U.S. 490, 13 S.Ct. 634, 636, 37 L.Ed. 533, referred to it as 'simply an easement, not a fee'. We think that the Act of 1875 is to be similarly construed.

FN20 No brief was filed by the defendant or the United States.

FN21 17 Stat. 339; 23 Stat. 73.

[20] Since petitioner's right of way is but an easement, it has no right to the underlying oil and minerals. This result does not freeze the oil and minerals in place. Petitioner is free to develop them under a lease executed pursuant to the Act of May 21, 1930, 46 Stat. 373, 30 U.S.C.A. ss 301-- 306.
**537
(Cite as: 315 U.S. 262, *279, 62 S.Ct. 529, **537)

* * *
Affirmed.

Mr. Justice ROBERTS and Mr. Justice JACKSON took no part in the consideration or decision of this case.
END OF DOCUMENT