Document: 385 U.S. 458 87 S.Ct. 584 17 L.Ed.2d 515 Obed M. LASSEN, Commissioner, State Land Department, Petitioner,v.ARIZONA ex rel. ARIZONA HIGHWAY DEPARTMENT. No. 84. Argued Nov. 16, 1966. Decided Jan. 10, 1967. John P. Frank, Phoenix, Ariz., for petitioner. Edwin L. Weisl, Jr., New York City, United States, as amicus curiae, by special leave of Court. Rex E. Lee, respondent. Mr. Justice HARLAN delivered the opinion 1 This action was brought an original proceeding in Supreme Court Arizona on relation its Highway Department. The Department seeks to prohibit application Commissioner rules governing acquisition rights way and material sites federally donated lands held trust State.1 Commissioner's provide pertinent part that 'Rights Way Material Sites may be granted * indefinite period after full payment appraised value has been made shall determined accordance with principles established A.R.S. 12—1122.' Rule 12. it conclusively presumed highways constructed across always enhance remaining amounts at least equal areas taken. It therefore ordered grant without actual compensation upon lands. 99 Ariz. 161, 407 P.2d 747. 2 issue here are among some 10,790,000 acres States use benefit designated public activities within State.2 Federal Government since Northwest Ordinance 1787 such grants newly admitted Union.3 Although terms these differ, most recent commonly make clear a continuing interest administration both funds which derive from them. involved thus expressly requires Attorney General maintain whatever proceedings necessary enforce terms.4 We this case because importance issues presented have received lands.5 384 926, 86 1446, 16 530. 3 stem chiefly ambiguities itself. under provided were included Mexico-Arizona Enabling Act. 36 Stat. 557. Act describes particularity disposition derived them, but does not directly refer conditions or consequences itself purposes grant. Of arise Act's silence, we need now reach only two: first, whether is permitted obtain uses first satisfying restrictions land; second, what standard must employ recompense land uses. Both require consideration language history. I. 4 turn question method constraints imposed methods transferred few simple. Section 28, reproduced Appendix opinion, requires, exceptions inapplicable here, sold leased 'the highest best bidder auction county seat wherein lie *.' section prescribes terms, form frequency notice given auction. no price less than their value. imposes two sanctions transactions fail satisfy requirements. First, § 28 provides broadly 'disposed whole manner herein adds 'Disposition any said contrary provisions Act, deemed breach trust.' Finally, 'Every sale, lease, conveyance, contract concerning hereby confirmed substantial conformity null void 5 parties urge, state court assumed, follow procedures when lands.6 do other sale. view taken courts contruing similar grants. Ross v. Trustees University Wyoming, 30 Wyo. 433, 222 3; Commission Walker, 61 N.M. 374, 301 317. concluded, reasons follow, acquisitions highway program. 6 silence obliges us examine purposes, evidenced legislative history, determine should here. plainly expected produce fund, accumulated sale lands, could support institutions supposed would retain all beneficiaries; obviously too extensive often inappropriate selected purposes. Congress scarcely expected, example, many 8,000,000 'for common schools,' chosen regard topography school needs, employed building sites.7 intended instead general powers lease accumulate schools. 7 central problem confronted draftsmen devise assure fair transfer transferee so far sought obtained appropriate compensation. history All including those inserted Senate Committee Territories.8 Senator Beveridge, committee's chairman, floor determination sprang fear exploited private advantage. He emphasized committee influenced repeated violations Mexico 1898.9 had there allegedly consisted sales unreasonably low prices, evidently hoped prevent depredations requiring sale.10 guarantee, preventing particular abuses through prohibition specific practices, see read impose transfers they likely occur, another more effective fashion assured 8 Further, recognize that, precisely procedures, sanction empty formality. There others bid might seek. More important, even if bidders appeared proved successful, nothing thereafter condemning failed purchase; anticipation condemnation real significance. cannot materially circuity. 9 conclude consonant essential exclude will protected, entirely satisfied, required hold, therefore, offer conduct rules, reasonably calculated integrity misapplication funds. II. 10 second acquires. simply pay value, measured State's statute, right site. urges, held, ever actually paid suggests obliged land's reduce sum amount enhancement shown rule urged differs adopted permit presume enhancement, each instance reasonable certainty precision. Under rule, individually computed small tracts checkered over entire State. 11 validity law stated Court, defer broader diminish payable trust. emphasizes statute incorporated benefits condemned market value.11 unable take narrow view. clearly stemmed from, depended upon, premise balanced against If severed conclusion premise, halt short adjudication unnecessarily prolong litigation important question. reached issue, concluded compensation, meaning thereby monetary 12 unequivocally demands receive given. before products offered 'appraised true value,' 'no disposal ascertained *.'12 originally addition statutory minimum.13 Second, series careful As noted, contains 'a enumeration necessarily exclusive purpose.' Ervien 251 41, 47, 40 75, 76, 64 L.Ed. 128. specifically forbids 'money thing indirectly derived'14 parcel granted. creation separate accounts beneficiaries, prohibits accounts, directs great precision administration. 'Words designed create definite trusts them respects independent hardly chosen.' Ervien, Cir., 246 F. 277, 279. combination indicate Congress' concern possible beneficiaries profit 13 background placed became steadily rigid 50 years prior prudent management preserve usefulness purposes.15 Territories, assistance Justice,16 satisfactory contained earlier Its 'be carefully safeguarded purpose appropriated.'17 Beveridge described 'quite item' his believed 'we giving thrown about being used purposes.'18 14 Nothing explicitly addressed activities; is, silent questions. nevertheless 'derive benefit'19 conclusive presumption found our adequately fulfillment purpose, particularly context variegated far-flung comprised And think particularized showing advocated resting largely forecasts experts nature subject imponderables hazards future, also falls assuring accomplishment basic intendment Congress. Acceptance either courses reimbursing circumstances well result diminishing conferred effect deflecting portion program.20 15 hold compensate money21 obtains lands.22 nearly reproduces results prescribed consistently reflects judgment accordingly reversed remanded further inconsistent opinion. ordered. 18 Judgment cause remanded. APPENDIX TO OPINION OF THE COURT. 19 SECTION NEW MEXICO-ARIZONA ENABLING ACT, AS AMENDED. 20 Sec. 28. That declared granted, which, having heretofore Territory, State, trust, disposed several objects specified respective granting confirmatory provisions, natural money proceeds same producing same. 21 Disposition therefrom, object derived, confirmed, 22 No mortgage encumbrance thereof, valid favor person whatsoever. Said leased, part, except affected, major lie, duly advertisement, set forth nature, time, place transaction had, description offered, published once week ten successive weeks newspaper circulation regularly capital, like then nearest location offered; nor timber product made, save place, manner, publication leases themselves. prevent: (1) leasing referred section, Legislature prescribe, grazing, agricultural, commercial, homesite term less; (2) grazing agricultural mineral exploration, development, production oil, gas, hydrocarbon substances, twenty (3) gas substances on, in, initial long substance procured therefrom paying quantities, bidding, appraisement, include reservation royalty 1/2 per centum production; (4) providing proper laws protection lessees whereby protected improvements (including water rights) former lessee succeeding purchaser thereon lessee. 23 leaseholds, timber, land, thereof ascertained, credit unless accompanied ample security, legal title passed until paid. 24 susceptible irrigation projects hereafter completed legislation reclamation project twenty-five dollars acre: Provided, request Secretary Interior, time relinquish needed works connection government project. lieu character named twenty-four 25 authorized exchange owned private, regulations legislature prescribe: exchanges involving Acts thereunder. 26 reserved excepted operation proposed prospectively valuable development power hydro-electric transmission Interior five proclamation President declaring admission State; whatsoever conveyance officer absolutely above named; be, hereby, quantity 27 A fund whenever moneys deposited treasurer corresponding conveyed confirmed. one deposit other, keep invested safe, interest-bearing securities, securities approved governor secretary times good sufficient bond bonds conditioned faithful performance duties thereto, defined conflict herewith. Every void, provision constitution notwithstanding. 29 duty Attorney-General prosecute, name courts, equity hereof relative therefrom. limitation citizen controversy between agencies Arizona, formally represented General. nonetheless properly deal. apparently substantially officer, appointed removable cause. essentially trustee custody In addition, counsel advocate divergent positions parties. four sections township schools, plus acreages mechanical colleges, mines, military institutes, bonds, miners' hospitals, penitentiaries, uses, 9,180,000 earmaked various educational Between 1803 1962, total 330,000,000 these, 78,000,000 Public Lands, Insular Affairs, 88th Cong., 1st Sess., 60 (Comm. Print 1963). 575. Nine amici curiae review below. One nine, Mexico, very closely suggested fee interest. contention foreclosed lands' according checkerboard pattern federal survey. Four number ordinarily grants, unappropriated little Orfield, Grants 45. S.Rep. 454, 61st 2d 18. Remarks 45 Cong.Rec. 8227. Ibid. These culminated lawsuits privy pending study episode indicated report. 20. Ariz.Rev.Stat.Ann. 12—1122. permits damages caused severance uncondemned portions condemned. 574. fixed minimum $3 acre Arizona. requirement removed June 5, 1936. 49 1477. still 'susceptible irrigation' $25 acre. 48—52. Letter Garfield House Territories. H.R.Rep. 152, 3. Despite widespread computing awards, created confusion difficulties. See Haar & Hering, Determination Benefits Acquisition, 51 Calif.L.Rev. 833. problems aggravated situation, scattered mean suggest deferred arrangements appropriate. Cf. (see Appendix): paid.' Nor exchanges, situations 'The thereunder.' informed large bases accorded wish plain obligations any, respect thereto.

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