|
Cases citing this case: Supreme Court
Cases citing this case: Circuit Courts
U.S. Supreme Court
STATE OF INDIANA v. U S, 148 U.S. 148 (1893)
148 U.S. 148
STATE OF INDIANA
v.
UNITED STATES.
No. 1,162.
March 13, 1893
Statement by Mr. Justice GRAY:
This was a petition filed in the court of claims on October 23,
1889, by the state of Indiana, against the United States, to
recover the sum of $ 412,184.97, alleged to be due to the state of
Indiana out of moneys received by the United States from sales of
public lands in that state. The court of claims dismissed the
petition. 28 Ct. Cl. --. The petitioner appealed to this court.
The facts found by the court of claims, and the material
provisions of the statutes bearing upon the claim of the
petitioner, were as follows:
In the act of April 30, 1802, c. 40, for the admission of the
state of Ohio into the Union, one of the propositions offered by
congress, and accepted by the state, was that one twentieth part
of the net proceeds of lands within the state, afterwards sold by
congress, should 'be applied to the laying out and making public
roads leading from the navigable waters empting into the Atlantic,
to the Ohio, to the said state, and through the same, such roads
to be laid out under the authority of congress, with the consent
of the several states through which the road shall pass;' and it
was provided that the propositions so offered were on condition
that the state [148
U.S. 148, 149] should provide, by ordinance
irrevocable without the consent of congress, that all lands sold
by congress should be exempt from taxation under authority of the
state for five years after sale. 2 St. p. 175. By the act of March
3, 1803, c. 21, 2, it was enacted that 3 per cent. of these
proceeds should be paid from time to time, to the state, to be
applied to the laying out, opening, and making roads within it. 2
St. p. 226.
By the act of March 29, 1806, c. 19, for building a road from
Cumberland in Maryland to the state of Ohio, (since known as the
'Cumberland' or 'National' road,) and by subsequent acts passed
before the admission of the state of Indiana into the Union,
congress appropriated for the building of that road various sums
amounting to $710,000, to be reimbursed out of the 2 per cent.
fund. 2 St. pp. 357, 555, 661, 730, 829; 3 St. pp. 206, 282. The
expenses upon the road during that period largely exceeded the
moneys credited to that fund.
The act of April 19, 1816, c. 57, for the admission of the
state of Indiana into the Union, likewise provided that 5 per
cent. of the net proceeds of the sale by congress of lands in the
state should be reserved for the making of public roads and
canals, of which three fifths should be applied to those objects
by the state, and two fifths 'to the making of a road or roads
leading to the said state, under the direction of congress.' 3 St.
p. 290. And by the act of April 11, 1818, c. 49, the secretary of
the treasury was directed to pay the 3 per cent., from time to
time, to the state of Indiana. 3 St. p. 424.
Similar provisions were contained in the acts for the admission
into the Union of Mississippi, in 1817; of Illinois, in 1818; of
Alabama, in 1819, and of Missouri, in 1820. 3 St. pp. 348, 428,
489, 545.
By the act of May 15, 1820, c. 123, congress directed the road
to be continued from Cumberland to Wheeling, in the state of
Virginia: provided, however, 'that nothing in this act contained,
or that shall be done in pursuance thereof, shall be deemed or
construed to imply any obligation on the part of the United States
to make, or to defray the expense of
[148 U.S. 148, 150]
making, the road hereby authorized to be laid out, or
of any part thereof.' 3 St. p. 604.
In 1822 the road had been finished from Cumberland to Wheeling.
In the same year, an act ordering the erecting of tollgates and
the imposition of tolls on the road was passed by both houses of
congress, but was vetoed by President Monroe.
A continuance of the road was laid out, graded, bridged, and
made a highway from the Ohio river, opposite Wheeling, to the seat
of government of the state of Missouri, and upon it was
transported the government mail, and it was opened and used by the
public. But this was not accomplished until after tollgates had
been erected and tolls imposed upon it by the states of Ohio and
Virginia, as authorized by the acts of congress of March 2, 1831,
c. 97, and March 2, 1833, c. 79. 4 St. pp. 483, 655. By successive
acts, passed from 1829 to 1856 inclusive, and collected in the
opinion of the court of claims, congress surrendered the road, as
fast as completed, to the states through which it ran.
By the act of September 4, 1841, c. 16, 16, the 2 per cent. of
the net proceeds of lands sold by the United States in the state
of Mississippi, and reserved by former acts for the making of a
road or roads leading to that state, was relinquished to the state
of Mississippi, to be applied to the making of a railroad from
Brandon, in that state to the boundary line of Alabama; and by
section 17 the like fund was relinquished to the state of Alabama,
to be applied to the construction of certain lines of internal
improvements in that state. 2 St. pp. 457, 458.
By the act of March 2, 1855, c. 139, entitled 'An act to settle
certain accounts between the United States and the state of
Alabama,' it was enacted 'that the commissioner of the general
land office be, and he is hereby, required to state an account
between the United States and the state of Alabama, for the
purpose of ascertaining what sum or sums of money are due to said
state, heretofore unsettled, under the sixth section of the act of
March 2, 1819, for the admission of Alabama into the Unlon, and
that he be required to include in said account the several
reservations under the various
[148 U.S. 148, 151] treaties with the
Chickasaw, Choctaw, and Creek Indians within the limits of
Alabama, and allow and pay to the said state five per centum
thereon, as in case of other sales.' 10 St. p. 630.
The act of March 3, 1857, c. 104, entitled 'An act to settle
certain accounts between the United States and the state of
Mississippi and other states,' required the commissioner of the
general land office, by section 1, 'to state an account between
the United States and the state of Mississippi, for the purpose of
ascertaining what sum or sums of money are due to said state,
heretofore unsettled, on account of the public lands in said
state, and upon the same principles of allowance and settlement as
prescribed in the' act of March 2, 1855, c. 139, and to include in
like manner the reservations under Indian treaties, and further
provided, in section 2, that 'the said commissioner shall also
state an account between the United States and each of the other
states upon the same principles, and shall allow and pay to each
state such amount as shall thus be found due, estimating all lands
and permanent reservations at one dollar and twenty-five cents per
acre.' 11 St. p. 200.
On December 4, 1872, the commissioner of the general land
office stated an account between the United States and the state
of Indiana, in which he found that, by accounts referred to, there
appeared to be due to the state the following sums:
Balance due December 31, 1856, on account of 3 per cent. fund $
47 12 Amount of 2 per cent. on net proceeds of sales of public
lands from December 1, 1816, to December 31, 1856, (the expenses
incident to sales since that date being in excess of the gross
receipts) 413,568 61 Amount of 5 per cent. on the cash value, at
$1.25 per acre, of lands within permanent Indian reservations
6,333 73 ___ $419,949 46
[148 U.S. 148, 152] The commissioner
also referred to a table of the acts of congress making
appropriations for the construction of the Cumberland road, which
showed that the sums appropriated from 1818 to 1837, under acts
requiring them to be reimbursed out of the 2 per cent. reserved
for the laying out and making roads in the states of Ohio,
Indiana, and Illinois, amounted to $ 2,502,900.45, and that the
additional sums appropriated from 1825 to 1836, under acts
requiring them to be reimbursed out of the two per cent. reserved
for laying out and making roads in those three states and
Missouri, amounted to $1,555,000. The commissioner then stated
that it would thereby be seen that the proportion of the sums from
time to time appropriated for the construction of the Cumberland
road, which, by law, were to be replaced in the treasury out of
the 5 per cent. accruing in Ohio, Indiana, Illinois, and Missouri,
would more than absorb the entire amount of the 2 per cent. which
had accrued upon the sales of lands in Indiana, and that,
therefore, in the absence of special legislation upon the subject,
nothing would appear to be at present payable to the state of
Indiana, except the sums of $47.12 on the 3 per cent. account, and
$6,333. 73 for Indian reservations.
On January 25, 1873, the comptroller of the treasury certified
the balance, consisting of those two sums, and amounting to
$6,380.85, to be due to the state of Indiana. On February 10,
1873, the secretary of the treasury, under the authority given him
by the act of March 30, 1868, c. 36, (15 St. p. 54,) referred the
account to the comptroller for re- examination, and he thereupon
vacated the former certificate. On February 5, 1874, the
comptroller reaffirmed the former decision and certificate, as to
the sum of $6,380.85, but reserved for future consideration the
question as to the further claim made by the state. This amount of
$6,380. 85 was paid to the state, but was not accepted by it as a
final settlement of its demands.
It did not appear, either from that account or from the
evidence in the case, what part of the expenditures upon the
National road was properly chargeable to 'making a road
[148 U.S. 148, 153]
to the said state,' or what proportion of such
expenditures for making a road to the state of Indiana was
properly chargeable to the states of Ohio, Illinois, and Missouri.
On October 17, 1889, the state of Indiana made a formal demand
upon the commissioner of the general land office to state an
account between the United States and the state of Indiana in
accordance with the act of March 3, 1857. But no further account
than that above mentioned has been stated by the commissioner of
the general land office.
Wm. E. Earle, for the State of Indiana.
Asst. Atty. Gen. Parker, for the United States.
Mr. Justice GRAY, after stating the facts in the foregoing
language, delivered the opinion of the court.
By each of the acts of congress successively admitting the
states of Ohio, Indiana, Illinois and Missouri into the Union,
congress agreed that 5 per cent. of the net proceeds of public
lands within the state, sold by congress, should be applied to the
making of a road or roads leading to the State; and by those and
other acts it was provided that, of this 5 per cent. fund, 3 per
cent. should be disbursed by the states, and two per cent. by the
United States. The general purpose was to promote the construction
of a national highway connecting the new states in the interior
with the old states on the Atlantic seaboard.
In the act for the admission of Indiana, the original
obligation assumed by congress in this respect did not define the
termini of the road or roads to be built, or bind congress to
complete any road, or require the 2 per cent. of the proceeds of
the sales of lands in Indiana to be expended within the state; but
the only obligation was to apply this 2 per cent. fund 'to the
making of a road or roads leading to the said state, under the
direction of congress.' It was for congress to decide on what part
of the road leading to Indiana this fund should be expended; and
congress had the right to
[148 U.S. 148, 154] treat the road as a
whole, constructed for the benefit of all the states through which
it passed.
It is unnecessary to determine whether this obligation was in
the nature of a contract, only, or whether it can be considered as
in any sense constituting a trust; because, in either aspect, the
contract has been performed, or the trust executed, by applying
the fund in question to the making of a road 'leading to the said
state' of Indiana.
It appears by the statement of the account between the United
States and the state of Indiana by the commissioner of the general
land office ( which there is nothing in the case to control) that
the sums appropriated to the construction of the Cumberland road
leading to the state of Indiana greatly exceeded the whole amount
of the 2 per cent. fund from sales of lands in the state, and
that, therefore, in the absence of special legislation upon the
subject, nothing was payable to the state of Indiana on account of
this fund.
Congress having a general authority to apply this fund to any
part of the road leading to the state of Indiana, the presumption
is that this authority was honestly and fairly exercised, and
there is nothing whatever in the record which has any tendency to
rebut this presumption. Such being the case, the statement in the
findings of fact that it did not appear, from that account or
otherwise, what part of the expenditures upon the road was
properly chargeable to 'making a road to the said state,' or what
proportion of such expenditures for making a road to the state of
Indiana was properly chargeable to the states of Ohio, Illinois,
and Missouri, is wholly immaterial; and it was so treated by both
parties at the argument.
As appears by the definition of the petitioner's position at
the beginning of the brief of its counsel, the failure of the
United States to build the National road was not made the
foundation of the claim, but 'was only suggested in argument as a
motive, by way of incidental explanation' of the act of March 3,
1857, c. 104, 2, upon which he relied, and under which he
contended that 'it was immaterial what moneys had been expended by
the government toward the
[148 U.S. 148, 155] construction of the
National turnpike.' The decision of the case, therefore, turns
upon the interpretation and effect of this act.
The argument for the appellant is based upon the following
enactments: By the act of September 4, 1841, c. 16, 16, 17, the
United States relinquished to the states of Alabama and
Mississippi the 2 per cent, fund accruing from sales of lands in
those states. By the act of March 2, 1855, c. 139, the
commissioner of the general land office was required to state an
account between the United States and the state of Alabama, 'for
the purpose of ascertaining what sum or sums of money are due to
said state, heretofore unsettled,' under the act of 1819,
admitting that state into the Union, and to include in that
account the reservations under treaties with Indians within the
limits of Alabama, 'and allow and pay to the said state five per
centum thereon, as in case of other sales.' By the act of March 3,
1857, c. 104, 1, the commissioner was required to state an account
between the United States and the state of Mississippi 'upon the
same principles of allowance and settlement as prescribed in' the
act of 1855; and, by section 2 of the act of 1857, 'said
commissioner shall also state an account between the United States
and each of the other states upon the same principles, and shall
allow and pay to each state such amount as shall thus be found
due, estimating all lands and permanent reservations at one dollar
and twenty-five cents per acre.'
It is argued for the appellant that, as by the act of 1857 the
account between the United States and the other states is to be
settled 'upon the same principles' as prescribed in that act with
relation to Mississippi, and in the act of 1855 with relation to
Alabama, and as by the act of 1841 the 2 per cent. fund had been
relinquished to Alabama and to Mississippi, therefore the payment
to the state of the whole 2 per cent. is one of the principles on
which the account with each of the other states is to be settled.
But the premises relied on do not support the conclusion.
Neither the act of 1857 nor the act of 1855 refers to the act of
1841. The act of 1857 requires the account with each
[148 U.S. 148, 156]
state to be settled on 'the same principles of
allowance and settlement as prescribed' in the act of 1855. The
principles of allowance and settlement prescribed in the act of
1855 are that the account with Alabama be stated 'for the purpose
of ascertaining what sum or sums of money are due to said state,
heretofore unsettled,' under the act for its admission into the
Union, and including 5 per cent. on the Indian reservations within
the state, 'as in case of other sales.' The principles of
settlement are that the United States shall be charged with the
sums due, treating Indian reservations as sales. They may not be
limited to Indian reservations, and may well include any unpaid
balance of the 3 per cent. fund which congress had agreed should
be disbursed by the states, as well as any part of the 2 per cent.
fund which had not been applied by the United States to the making
of a road or roads according to their original obligation, But
there is nothing in any of the acts upon the subject which
warrants the inference that congress intended that, because the
United States held themselves to be liable to Alabama and to
Mississippi for the 2 per cent. fund which they had never applied
as they had agreed, they should therefore be liable to the other
states for the like 2 per cent. fund which had been fully
appropriated and expended in accordance with their obligations to
those states.
These views being conclusive against the right of the state of
Indiana to recover anything in this case, it is unnecessary to
consider the other questions discussed in the opinion of the court
of claims, and argued in this court.
Judgment affirmed.


Table of Cases
|