Omaha daily bee., 1907-02-02
CHECK TO HANNAN'S PLANS
federal Court Rules gsinst Him on b.
Claim to Cutoff Land
LOSES OUT ON EVERY POINT RElstE
No COhtrnct with state and Land Not
Within Meaning of Law Under
which He Sought 90
Secure Title.

Judge Smith Mcpherson handed down an
important ruling yesterday while in the
city in three Of the actions in federal court
arising out Of the attempt of Charles R
Hannah. formerly president OF the First
National bank Of this city, now OF Boston,
to purchase loo or more acres in Cut-On
from the state OF Iowa under the law EN-
powering the state to dispose Of all aban-
| doned river beds. lakes and islands in the
waters OF the state.
Hannah claimed that the property which
he sought to purchase from the state under
this law formerly was the bed of the Mis-
sour river and Rccretions to an island in
the river, prior to the changing OF its
course in 1872. and not an aocretion to either
bank The law under which Hannah
| sought to purchase was passed in 1904, but
| two years later a new law was passed re-
pealng the act Of 1904 and providing that
any person or corporation having posses
sion Of the lands for fve years. paying
taxes upon them and making improvements
upon them, should have the first privilege
OF buying from the state at an appraised
value
Judge MoPherson's ruling yesterday was
on the demurrer Of Hannah in the three
suits brought by John A Creighton, the
Omaha Bridge and Terminal company and
Carr and others to enjoin Hannah and
Secretary Of State Martin from further
proceedings in the matter OF surveying the
land in controversy or attempting the pur-
chase and sale OF 1t.
! Hannah on his part set up the contention
that the act of 1906 was unconstitutional in
that it impaired the obligation of contract
while on the other hand the plaintiffs in
1 fha haf had boo
no contract
In his opinion Judge Mcpherson dwelt al
length on what constituted a contract and
wherein It had been shown that Hannah
had fallen short of the acceptance neces-
sary to complete a contract. The court
further held that the land sought by Han
nan was not within the act granting the
state the right to sell and again that the
act was repealed by the act of 1906.
Judge Mcpherson held further that nc
deed or grant could be valid without g
grantee and that in this case there had
been no acceptance Of the contract and
would not and could not be until the pr4c,
had been ascertained. AS there had beer
no apprsisement consequently there had
been no price agreed upon.
The overriding of the demurrer on tn,
part of Hannah to the suits in question
will, it is said, practically end the litiga
ton and act as an estoppel TO any further
attempt on the part OF Hannah to acquir,
title TO the land in question.
Judge Mcpherson also took up while il
the city the matter OF the bankruptcy pro
oeedings against the Union Transfer com
pany. Attorneys for some OF the creditor
who were opposed to the appointment o
f. f. Everest as trustee were given
hearing and the court also listened to pro
tests against certain of the claims. H
declined to pass on any Of the matters sub
nitted TO him until he had gone over al
the papers in the proceedings. an' these h
| ordered sent TO MIN at Red Oak