The herald., 1896-07-28
BACON, THE PASADENA HOG
A Genmeu OF Color llIumines the Pre-.
cincts Of the Township court
Capt ". T. Splmaa Straighteus Out One OF
Ills Several Difficulties
A Suit to Recover $500 Damsges-A Batch
Of Insolvency Proceedings - Heavy
Charges for Beating-The O'Briens
Rally - Court Notes

In the case Of the United States of
America vs. the Southern Pacific Rail-
road company ct ais, in the circuit court
of the United States, Judge Erskine NJ.
Ross yesterday handed down an opinion
wherein the patent of the defendant cor
poration to a portion fthe lands in dis
pute is annulled
The United States issued its patent
to the railroad company for the east
half of the northeast quarter, the east
half of the southeast quarter and the
southwest quarter of the southeast
quarter of section 21. township south,
range west of the San Bernardino base
and meridian, and for the south half of
section II, township 8 south, range 3
west of the same base and meridian, is
part of the lands granted to the COM
pany by act of congress March 8. 1871.
This suit was instituted pursuant to the
provisions of the railroad adjustment
act, approved March g. 1887. to vacate
and annul the patent so issued.
Among the defendants to the bill so
amended is C. M. Wright, who alleges
title to those portions of section u, not
only by virtue of deed from the South
ern Pacific company, but through con-
veyance from the state of California. TO
which he alleges the lands were granted
and listed by the United States as
part of its school lands. All the lands
involved lie within the primary limits
of the grant to the defendant company
OF March 8, 1871, but the evidence also
shows that at the time of making the
grant and at the time of the definite
location of the road, the company was
authorized to construct. all OF these
lands had been applied for by the state
of California to make good alleged losses
of portions of a certain seth section
embraced in the grant to the state for
school purposes by the act of congress
approved March g. 1858, which losses the
state alleged were sustained by reason
of said portions Of the Seth sections be-
ing included within the limits of Mex
lean grant.
The evidence shows that these lands
were never listed by the United States
to the state of California. The remedial
act of congress of March l, 1877, entitled
AN act to indemnify school selections
in the state of California" confirms only
such of the state selections as were GER
titled by the United States to the state,
The lands in controversy not having been
so certified, were not embraced by that
act.
IN very lengthy opinion Judge Ross
eXhaustively reviews the case and con-
cludes by saying: There is no evidence
In the case as to the value of the lands
in controversy, for which reason-apart
from any other consideration-no judg-
ment can now be given in favor of the
United States against the defendant rail-
road company for such value. The case
shows that after the issuance of the pat
ent to the defendant railroad company,
and prior to the institution by the gov
ernment of the suit to annul it, the rail-
road company executed to the defend
ant Central Trust Company of New
York a mortgage, in terms purporting
to cover all of the lands granted to the
railroad company by the acts of congress
1911 and 1856, with certain exceptions.
TO secure the payment of certain bonds
which were issued and sold to various
purchasers for value prior to the COM
mencement Of this suit and the claim Is
made that all such lien holders are as
much protected by the principles of
equity as are bona fide purchasers At
the time of the execution of the mort
gage, however. there was in existence
the adjustment act of March. 1887, of
which the mortgages had notice, pro-
viding for suits to vacate patents erron-
eously Issued by the officers of the land
department under the grants made to
the railroad company. in terms affording
protection to purchasers in good faith
of lands so enormously patented. bur
especially declaring that mortgage or
pledge of said lands by the company
shall not be considered as asale' for
that purpose
For rhe reasons stated above. as we'll
as otheis more or less minutely gone into
a decree has been ordered for the COM
plalnant annulling the patent in so far
as 1t concerns the south half of section II.
township south. range west, and es-
tablishing its validity in favor of the
defendant Wright in respect to those
lands falling within section 21 township
2 south, range west This decree is
ordered, however, without prejudice to
the right of the United States to sue
for the value of the land thus confirmed
to Wright"