Document: 350 U.S. 222 76 S.Ct. 259 100 L.Ed. 240 UNITED STATES of America, Petitioner,v.TWIN CITY POWER COMPANY and William P. Dauchy, Its Mortgagee. No. 21. Argued Oct. 18, 1955. Decided Jan. 23, 1956. Rehearing Denied April 2, See 1009, 648. Mr. Ralph S. Spritzer, Washington, D.C., for petitioner. David W. Robinson, respondent. Justice DOUGLAS delivered the opinion Court. 1 This is a suit condemnation land instituted by United States against respondent power company. A single question valuation presented. It whether just compensation which must pay force Fifth Amendment includes value as site hydroelectric operations. The Fourth Circuit Court ofAppeals held that it does. 215 F.2d 592. Appeals reached same result in litigation involving other lands project. v. Twin City Power Co., 5 Cir., 221 299. We granted petition certiorari former case because importance issue 348 910, 75 298. 2 proceedings are part procedure completion Clark Hill project on Savannah River, navigable stream southeastern States. first series steps recommended Chief Army Engineers improvement basin river. H.R.Doc. 657, 78th Cong., 2d Sess. That Report conceives serving multiple purposes—hydroelectric, flood control, navigation. states project,' 'if suitably constructed operated primarily hydroelectric-power development, would incidentally reduce downstream damages improve low-water flows navigation.' Id., p. 3 3. Congress approved this 'the comprehensive development River Basin control purposes.' Section 10 Flood Control Act 1944, 58 Stat. 887. And see ex rel. Chapman Federal Commission, 345 153, 170, 73 609, 618, 97 918. 4 concluded navigation was not purpose taking but designed to serve water-power development. at 597. courts, however, substitute their judgments congressional decisions what or necessary protection State Arizona California, 283 423, 455 457, 51 522, 526—527, 1154. role judiciary reviewing legislative judgment narrow one any case. Berman Parker, 26, 32, 98, 102; Tennessee Valley Authority Welch, 327 546, 552, 66 715, 717, 90 843. decision will interests involves engineering policy considerations alone evaluate. Courts should respect until unless shown 'to involve an impossibility', Holmes expressed Old Dominion Land Co. States, 269 55, 66, 46 39, 40, 70 162. If served, constitutionally irrelevant purposes may also be advanced. Appalachian Electric 311 377, 426, 61 291, 308, 85 243; Oklahoma Phillips Atkinson 313 508, 525, 533—534, 1050, 1059—1063, 1487. As we said case, 'Flood protection, watershed recovery cost improvements through utilization likewise parts commerce control.' U.S., page 308. interest flow originates Commerce Clause. Clause speaks terms power, property. But dominant can asserted exclusion competing conflicting one. privilege have called 'a servitude' Commodore Park, Inc., 324 386, 391, 65 803, 805, 89 1017; Commission Niagara Mohawk Corp., 347 239, 249, 74 487, 493, 98 686, superior easement.' Gerlach Live Stock 339 725, 736, 955, 961, 94 1231. history construction particular enactments lead conclusion exercised less than its constitutional fell short appropriating river public domain, provided private rights existing under state law compensable otherwise recognized. Such were supra, supra. different situation here, where displaces all appropriates entire declared purpose. 6 put aside such cases Kansas Life Ins. 799, 885, 1277, assertion servitude injured property beyond bed stream. Here dealing with itself, water respondents been interest. 7 argued, special water-rights awarded owners since lies nor below high above ordinary high-water mark. An effort made argument establish burdened Government's servitude. flaw reasoning landowner here seeks stream, inheres our Government grant withhold chooses. no answer say payment sought only location fast lands. due stream; if required below, compensating increment added taken into account. 8 illustrated Chandler-Dunbar 229 53, 33 667, 57 1063, controls In company installed St. Mary's permit from Government, revocable will. revoked, purposes. unanimously riparian owner had deprived. Lurton, speaking Court, said, 'Ownership wholly upon individual conceivable; running great capable ownership inconceivable.' 69, 674. accordingly reversed obtained viz., present money rapids falls Company shore appurtenant submerged land.' 74, 676. 'The government dominion over falls, cannot hypothetical additional who right appropriate current his own commercial use.'1 76, 677. Some owned some water. determinative. controlled decision. Both creates value, holding led us 424, 307, 'exclusion owners' benefits 'without entirely within discretion.' again, 'If now build dam, fair judicially determined, land; nothing power.' 427, 309. 9 certainly stronger position While latter deprived going never pre-emption these recognized law. deal federal area completely preempt, leaving vested claims constitute 'private property' meaning Amendment. Location might circumstances give them illustrated. attach enforce go contra teaching Chandler-Dunbar—'that 11 when asserts easement harmony another rule Miller, 317 369, 375, 63 276, 280, 87 336. 12 'Since receive more indemnity loss, award enhanced gain taker. Thus although market fixed consideration available uses, condemnor distinguished others possess condemn, excluded element value.' 13 emphasized loss owner, taker, compensable. demand compensation, he gets exercise has empty dependent solely Government. What exploit benefit peculiar user enjoys. Cf. Val. Powelson, 319 266, 273 et seq., 1047, 1051, 1390. To require create domain. 14 Reversed. 15 BURTON, whom FRANKFURTER, MINTON, HARLAN join, dissenting. 16 determination which, Amendment, paid privately adjoining use. For reasons hereafter stated, I agree courts proper measure time taken, recognition character. 17 confronted ever proposed construct multipurpose dam across found acquire locate plant reservoir. Part needed lay South Carolina north bank remainder south Georgia. Of 70,000 acres thus required, about 4,700, heart project, ones before us. Those Company, corporation. Georgia Georgia, subsidiary two referred City. 18 1947, seven proceedings, program, took possession 4,700 acres. filed four actions District Western Carolina, three corresponding court Southern Each condemn title fix it. 19 Because necessity proceeding jurisdictions, passed Appeals, well Commissioners appointed jointly recommend paid. All opinions rendered include location, availability exceptional suitability use site, reservoir incidental By doing so, they expressly declined limit estimates merely agricultural supplying timber contended Government.1 20 50 years, subject frequent negotiation connection raise level 60 feet vicinity. organized began acquiring 1901. 1911, practically integrated 60-foot head Price's Island.2 Under six Acts Congress, between 1901 1919, authorized dams Island utilizing involved here. Secretary War those plans. included excellent narrowed 900 feet. At points, sound foundation rock much clay suitable earth exceeded most hydro developments North material times, there ample growing electrical energy produced. contained substantially requiring removal suited extending miles up 21 1925, preliminary 1926, Southeastern & Light negotiated purchase land. Shortly thereafter, intervened license 90-foot absorbed instituted, later abandoned, After World II, applied point almost identical site. proposal occupation negotiations renewed. then, plans 894. efforts came end unsuccessful license.3 year, calling 130-foot complete absorption 22 Included 4,707.65 evaluated 4,519.15 fee, 188.50 flowage rights.4 significant 23 There need discuss navigation, rather for, event, eminent whatever including rights. 24 traditional servitude, generally enjoys banks River. located mark conceded without limits claim river.5 25 'It broad regulate commerce, derived narrower scope, frees liability (United Chicago, M., P.R. 312 592, 772, 1064, Willow 499, 761, 1101). When exercises exercising paramount anyone. owner's long limited Gould Waters, c. IV, §§ 86—90 (1883); Farnham, Waters Water Rights, III, § 29 (1904). notice years crystallized relevance marks bed. Accordingly, consistent reason deny claimant's so burdened.' 808,6 890, 1277. 26 Similarly, controversy State, take stated. Unlike claimed does contest develop resources asks that, extent takes use, shall uses. 27 '* * statement (Monongahela Navigation 148 312, 326, 622, 626, 37 463) 'no appropriated uses full exact equivalent returned owner' aptly expresses scope safeguard uncompensated Reagan Farmers' Loan Trust 154 362, 399, 1047 (1055) 38 1014. 28 'That contemporaneously money. 'Just elements inhere property, exceed fairly determined. sum depend devoted arrived suitable. highest profitable adaptable likely reasonably near future considered, necessarily prospect affects while held. Mississippi R. Boom Patterson, 403, 408, 206; Clark's Ferry Bridge Public Service Comm., 291 227, 54 78 767; Lewis, Eminent Domain, 3d ed., 707, 1233. Nichols, 220, 671. fact parcel combination exclude possibility sufficient affect value.'7 Olson 292 246, 254 256, 704, 708—709, 1236. 30 instant Commissioners, rule. considered could ascertain reasonable accuracy, sufficiently assured reflected premises.8 confirming report said: 31 $1,257,033.20 represents after considering too remote speculative, amount 'just compensation' applicable statutes. probability willing seel purchaser desiring buy.' 3,928.09, etc., 114 F.Supp. 719, 725. 32 potential far speculative light accumulated very flooded steam-plant comparison computations uncontroverted. price inevitable primary locations relation realistically imagine land's minor uses.9 strategic 'hold-up' value. reflects inflation 'taking' deflation absence bidders announced condemned valued described 'in stream.' Only valued. near, apart from, land, below. always factor, often determining Every utility domain 34 Before passage Act, U.S.C.A. 791a paramount, unexercised, did control. imposed conditions licensing. Grand Dam Grand-Hydro, 335 359, 69 114, 93 64. But, even though then became necessary, substantial still existed, licensee. Up several prospective purchasers. 35 would, reservior basin. Although cut off further competitive bids obligation took. 36 classic comment comparable condemning lock tangible recognizing established franchise issued tolls canal lock. 'And noticed receiving. seem strange if, asserting strip largely destroying comes receipt tolls, having reduced valuation, immediately enjoy profits collection tolls. words, contention exists taking, disappears during moment process taking. Surely, leads vice, least vice injustice.' Monongahela 337—338, 630—631, 463. streams, good why, condemns condemnee condemnors. property,' same. 'highest held.' 255, 708. 39 No precedent advanced suggests taker Nor suggested why matter principle 40 excused paying measured destroy legislation regulation.' T.V.A. 278, 284, 1054, 1057. also, Cress, 243 316, 319, 326—327, 329—330, 380, 381, 384, 385—386, 746. 41 contends, predicated lands, connection, issues decided statements Lurton unanimous helpful. Chandler brought relating Falls Ship Canal Sault Sainte Marie, Michigan, international boundary north. 'took' highly waters. plenary everything highwater eliminated, hydro-electric latter's elimination longer principal questions related Court's awards river.10 42 1. allowed $550,000 Chandler, disallowed claim. 43 Unless determined 44 Ownership 45 questioned. 2. fixing eight 'use purposes, $25,000,' smaller consisting parcels 'its $10,000.' 75, These allowances explained follows: 47 constructing parallel region purely conjectural speculative. canals locks meet increasing demands lake traffic immediate probability. estimate necessities worth purpose, consider situated probably desired Em.Dom. 707. R.R. 206, 208; Shoemaker 147 282, 361, 170; Young Harrison, Ga. 30; Alloway Nashville, 88 Tenn. 510, S.W. 123, L.R.A. 123; Sargent Merrimac, 196 Mass. 171, 81 N.E. 970, L.R.A., N.S., 996.' (Emphasis supplied.) pages 76—77, 48 reviewed quoted length supra.11 49 Coupled quotations earlier cases, support lower They 'additional values' area. fact, type condemned. allowance supplies specific authority area, basic $20,000 'for general like residences, hotels, factory sites, disconnected etc.,' $10,000 'general wharfage, dock, warehouse upheld both, thereby demonstrating compensation.' 4. On hand, value' areas rejected. valuing acres, 6,500 horse either factories surplus used city.' 74—75, Likewise, $5,000 'connection along rapids, 4,500 (6,500) rejections conflict simultaneous approval values find opposition reflecting favorable 52 rejecting stated lend He 53 'additional' based erroneous hypothesis (Chandler-Dunbar) river, possibly excess capable, extension works already producing power. 'Having owners, inherent place essential practical justly upland.' 75—76, 55 rejected recognize sites conditioned being structures horsepower Not Chandler's disallowed. rejection nature thoroughly 56 accept effect, extend face uniformly limiting therefor. condemnation, repudiating taken. justice sustaining interpretation placed following 324, 325, 625, 463: presented conceded, how Obviously, question, run line constitution government, importance, society fullness sufficiency securities surround enjoyment certain tests character government. amendments constitution, adopted soon adoption bill rights, order quiet apprehension many declaration assume, possess, trespass persons Declaration Independence affirmed unalienable 59 natural equity commends every wise detracts uses; while, prevents loading share burdens says surrenders something exacted members public, him.' foregoing reasons, affirmed. canal, passing 'around rapids.' 67, 76—78, 673. influenced facts indeed aided Whatever phase affords respondent, ruled noncompensable Judge Wyche speaking, 1949, 1532.63 Acres Land, 86 467; 1953 (R. 14); confirming, 1953, Commissioner's confirmed Scarlett 3,928.00 719; Wyche, sitting Scarlett, overruling, motion amend findings enter new 55); 1954, joined Judges Soper Dobie, constituting Circuit, 592; Hutcheson, 1955, Dawkins, See, rendered, 164 Circuit. City's except 170 Island. 5-foot surcharge 400 instead 70-foot surcharge, 1,250 80-foot 2,800 vicinity 1390; valid enforceable, 745.58 'options' treated unenforceable. acquired deeds and, valuable fee. evidence useless answers condemnees action construed relying moved strike portions amended condemnees. denying motions, do understand 'water capacity' 'raw water' river; neither built, own, compensation. contrary, future." 467, 476. Following statement, illustrated, footnote, limitation showed Chicago permitted overflowing, denied application nearby outside remanded Near point, appears significance view competition prior States: common knowledge service corporations (of condemnation) frequently actual competitors tracts way, locations, union numerous owners. And, probable purchasers condemnors account.' 709. 275, 1052, v 64; 336; McCandless 298 342, 764, 80 1205; New York Sage, 239 57, 25, 143; 407 206. excerpts Commisioner's report: geographical *. witnesses, main, steam method bases arriving wish make clear figure so-called 'steam method' ($1,600,000), absolute guide, basis, bases, together factors expert witnesses *.' plus $5 per acre assembly ownership, $37 $31 total $150,841.85. contrasts $267.02 acre, $1,257,033.20, discussed order: (1) rights; (2) purposes; (3) (4) contingent developed electric text 676, last. erroneously referring instruction Lurton's quotation language lends it: put, adapted, condition time, owner; surroundings, advantages, artificial improvement, intrinsic character, peculiarly adapted use,—e.g., park,—all adaptability shown, adaptation estimating compensation." 78,

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