Petition — Southern Pacific Transportation Co. v. Secretary of the Interior

Supreme Court brief1983

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| VECO. Supreme Court, W

; ; ‘ ae FILED

JU 12

NO. , a

ALEXANDER L. STEVA

os shied oe cone CLERK

OF THE va

UNITED STATES

OCTOBER TERM 1983

SOUTHERN PACIFIC TRANSPORTATION COMPANY,

Petitioner

vs.

JAMES G. WATT, et al., and WALKER RIVER

PAIUTE TRIBE OF NEVADA,

Respondents

On Writ of Certiorari to the United States

Court of Appeals for the Ninth Circuit

PETITION FOR WRIT OF CERTIORARI

FOLEY, MC INTOSH & FOLEY

PROFESSIONAL CORPORATION

By ROBERT J. FOLEY

(counsel for service)

By WILLIAM R. FOLEY

1225 Solano Avenue

Albany, CA 94706

Telephone (415) 524-4123

ECHEVERRIA AND OSBORNE,

CHARTERED

By PETER ECHEVERRIA

By NATHAN M. JENKINS

555 South Center Street

Reno, Nevada 89501

Attorneys for Petitioner

QUESTIONS PRESENTED FOR REVIEW

[Rule 21.1(a)]

Can the Secretary of the

Interior lawfully require Indian

consent as a precondition to the

processing of an application for a

railroad right-of-way across Indian

land, created by a federal statute

characterized by the Eighth and Tenth

{put not by the Ninth) Circuits as an

eminent domain statute?

_ Can the Secretary of the

Interior lawfully refuse to process an

application (for a Congressionally

granted railroad or public utility

right-of-way across Indian land)

because unaccompanied by Indian con-

sent; does that refusal violate

=j<

applicable decisions of this Court

concerning nondelegation and subdele-

gation of legislative power, pro-

cedural due process, and unlawful

amendment of federal statutes by

administrative regulation?

3. Does Indian sovereignty make

permissible the Secretary's grant of a

veto power to an Indian tribe whose

property would be subjected to an

interstate railroad right-of-way when

that right-of-way was granted by

Congress?

4. Was the Secretary's failure

to provide for standards, findings,

and review of Indian consent a viola-

tion of procedural due process?

LIST OF PARTIES TO PROCEEDING

[Rule 21.1(b)]

PETITIONER:

SOUTHERN PACIFIC TRANSPORTATION

COMPANY, a Delaware corporation

(SOUTHERN PACIFIC TRANSPORTATION

COMPANY is a wholly owned subsidiary

of SOUTHERN PACIFIC COMPANY, a

Delaware corporation).

RESPONDENTS :

1. JAMES G. WATT, SECRETARY OF THE

INTERIOR.

2. WALKER RIVER PAIUTE TRIBE OF

NEVADA.

(Brief Amicus Curiae filed in United

States Court of Appeals for the Ninth

Circuit in support of Petition for Re-

hearing en Banc of Southern Pacific

Transportation Company by Transwestern

Pipeline Company).

TABLE OF CONTENTS

[Rule 21.1(c)]

Questions Presented

for Review

List of Parties to

Proceeding

Table of Authorities

Reference to Reports of

Opinions Below

Statement of Grounds

Invoking Jurisdiction

Reference to Constitution,

Statutes Involved

Statement of the Case

Ar ent

A. Background of Pertinent

Statutes and the Consent

Regulation

1. The 1899 Act

2. The 1948 Act

3. The Consent Regulation

15

17

19

21

B. Argument 35

1.

The Consent Regulation

Does Not Apply to an

1899 Act Application 35

If the Consent Regulation

is Applicable to an 1899

Act Application, the Regu-

lation .s Beyond the Scope

of the Authority Given the

Secretary and is, Therefore,

an Unlawful Attempt to

Amend the Statute 40

If the Consent Regula-

tion is Within the Scope

of the Secretary's

Authority, Congress has,

by Granting such Autho-

rity, Unconstitutionally

Delegated its Legislative

Power to the Secretary 48

If the Delegation to the

Secretary is Permissible,

the Secretary's Subdele-

gation to the Indian

Tribe, of an Uncontrolled

Veto Power is Repugnant

to Fifth Amendment Due

Process Requirements 65

5. Indian Sovereignty

Does Not Cure the

Subdelegation 67

Cc. Conclusion 72

Appendices (Index to Appendices) 75

Appendix A i

Appendix B 1i

Appendix C vi

Appendix D x1

Appendix E xvil

TABLE OF AUTHORITIES

(Rule 21.1(c)]

CASES

Baker-Chaput v. Cammett,

406 F. Supp. 1134 (1976).

Carlson v. Landon,

342 U.S. 524 (1952).

Carter v. Carter Coal Co.,

1 P ;

Cherokee Nation v. Kansas

Railway a, Lee Cele 641

Clarke v. Boysen, 39 F.2d 800

(10th Cir. TeaOy.

58,

27,

DeCoteau v. District County Court,

420 U.S. 425 (1975).

Environmental Defense Fund v.

Ruckelshaus, 439 F.2d 564 (1971).

Espinoza v. Farah Mfg. Co.,

414 U.S. 66 (1973).

Eubank v. Richmond, 226 U.S.

137 (1912).

Fahe va Mallonee, 332 U.S. 245

aL :

ote

41

FEC v. Democratic Senatorial

Campal Comm. 454 U.S. 27

CISsiy- 63

FMC v. Seatrain Lines, Inc.,

ee ; 64

FPC v. New England Power Co.,

4i5 U.S. 345 qi574). 50, 54

Francis v. Francis,

203 U.S. loo (1906). 46

FTC v. Colgate-Palmolive,

380 U.S. 543 (1964). 64

Hampton & Co. v. United States,

276 U.S. 394 (1928). 54

Hampton v. Mow Sun Wong,

426 U.S. 88 (1975). 55, 59

Holmes v. New York Cit

Housing Auth. 398 F.2d 262

(2d Cir. 1968). 67

Industrial Union Dept. v.

American Petrol inst., 448 U.S.

607 (1960).

Kent v. Dulles,

1958). 46, 47

54

Morrill v. Jones,

106 U.S. 466 (1882). 46

-8<

Page

Morton v. Ruiz,

415 U.S. 199 (1974). 64

National Cable Television

Ass'n v. United States,

415 U.S. 336 (1974). fs

New York State Dept. of Social

Services v. Dublino,

413 U.S. 405 (1973). 63

Nicholas v. Kahn,

389 N.E.2d 1086, (1979). 67

>

NLRB v. Brown,

380 U.S. 278 (1964). 64

Oliphant v. Suquamish Indian

TT 435 U.S. 191 (1978). 70

Panama Refining Co. v. Ryan,

293 U.S. 388 (1935). 50,51,52

Reliance Electric Co. v.

Emerson Electric Co.,

404 U.S. 418 (1971). 63

Santa Clara Pueblo v. Martinez,

436 U.S. 47 (1978). 71

Schechter Poultry Corp. v.

United States, 295 U.S. 49

(1935).

50,51

Page

Seattle Trust v. Roberge,

278 U.S. 116 (1928). 67

SEC v. Sloan,

436 U.S. 103 (1978). 64

Skidmore v. Swift & Co.,

323 U.S. 134 (1944). 64

Soglin v. Kauffman, 418 F.2d

163 (7th Cir. 1969). 67

Soriano v. United States,

494 F.2d 681 (9th Cir. 1974). 64

Southern Pacific 36,41,

Transportation Co. v. Watt, 65,68,

700 F.2d 550 (1983). 71

Sunshine Coal Co. v. Adkins,

310 U.S. 381 (1940). 54

Teamsters v. Daniel,

439 U.S. 551 (1978). 63

United States v. Eaton,

144 U.S. 677 (1891). 46

United States v. Fort Smith &

W.R. Co., 195 F.211 (8th Cir.

1912). 41

U.S. v. Mazurie, 419 U.S. 544,

(1975). 68,69,70

@10e

United States v. Southern

Pacific Transportation Co.,

543 F.2d 676 (9th Cr. 1976).

United States v. United Verde

Copper Co., 196 U.S. 20

United States v. Wheeler,

313 (19

435 U.S.

Volkswagenwerk v. FMC,

390 U.S.

Washington v. Confederated

261 (1968).

Tribes of the Colville Indian

21

1904). 46

70

64

Reservation, 447 U.S. 134 (1980). 70

25 C.F.R.

Part

25

25

25

25

25

25

25

(2) fart? = 64) % fF

i’ i i i)

lle ee a i ee

169.

REGULATIONS

§161.3 (1981).

33

34,35

§§169.1-169.28(1982). 34,35

§169.3(

a).

§169.18.

§169.22.

§169.23.

§169.25.

§169.26.

-ll-

33

34

34

34,37,45

34

34

25 C.F.R. §§256.1-256.31 (1951).

25 C.F.R §256.3

Act

STATUTES

of 5 August 1882,

. 394, 22 Stat. 299.

of 15 February 1887,

130, 24 Stat. 402.

of 30 May 1888,

. 336, 25 Stat. 160.

of 8 May 1890,

198, 26 Stat. 102.

of 18 February 1895,

95, 28 Stat. 665.

of 6 March 1896,

- 42, 29 Stat. 44.

of 4 June 1898,

. 377, 30 Stat. 430.

of 18 June 1898,

- 465, 30 Stat. 475.

of 2 March 1899, ch. 374,

30 Stat. 990 (codified at

25 U.S.C. §§312-318)

("1899 Act").

i

56

56

56

56

56

56

56

56

passim

Act of 18 June 1934, ch. 576,

48 Stat. 987 (Indian Reorgani-

zation Act; "IRA") (Section 16

codified at 25 U.S.C. §476).

Act of 5 February 1948,

ch. 45, 62 Stat. 17 (codified

at 25 U.S.C. §§323-328)

("1948 Act").

5S U.8.6. $702.

5 U.S.C. §706.

25 U.S.C. §312.

25 U.S.C. §314.

25 U.S.C. §317.

25 U.S.C. §324.

25 U.S.C. §1331.

28 U.S.C. §2201.

28 U.S.C. §2202.

OTHER AUTHORITIES

Page

30,31,

32,39

passim

25

25, 67

28,43

41,43,44

42,44,45

30,57

25

25

25

Bill to Grant Indians Living Under

Tutelage the Freedom to Organi

ze for

Purposes of Local Self-Government and

Economic Enterprise: Hearings

on

$-2755 Before the Committee

on Indian Affairs, U.S. Senate,

73rd. Cong., 2nd Sess. 31 (1934).

Excerpt of Memo, Sol. I.D.

8 July 1936.

F. Cohen, Handbook of Federal

Indian Law, Univ.

New Mexico ed. undated).

47 ¥.R. 13327.

House Report No. 1896 from the

House Committee on Indian Affairs,

55th Congress, 3d. Sess. (1899).

H. Rep. No. 91-78, 9lst Cong.

lst Sess. (1969) "Disposal of

Rights in Tribal Lands Without

Tribal Consent".

K. Davis, Administrative Law

Treatise, : >

70 Mich. L. Rev. 955

(April 1972).

2 U.S. Code Cong. Serv. 1036

(1948).

71,72

27

38

50,54,

57,60

72

29

REFERENCE TO REPORTS OF

OPINIONS DELIVERED BELOW

[Rule 21.1(d)]

1. ADMINISTRATIVE AGENCY

A. Decision of the Assistant

Secretary of the Interior for Indian

Affairs, dated 19 June 1978, attached

as Exhibit "A" to complaint filed by

Southern Pacific Transportation Company

in the United States District Court for

the District of Nevada.

Included herein at Appendix B.

2. DISTRICT COURT

A. Summary Judgment, entered

14 August 1980, to which is appended

Order Granting Summary Judgment,

entered 25 July 1980.

B. Amended Summary Judgment

entered 28 August 1980.

Included herein at Appendix B.

ei$e

3. COURT OF APPEALS

A. Decision of the Court of

Appeals for the Ninth Circuit, filed

1 March 1983; reported at 700 F.2d 550

(1983).

Included herein at Appendix A.

-16-

STATEMENT OF GROUNDS ON WHICH

JURISDICTION OF THIS COURT IS INVOKED

[Rule 21.1(e)]

(i) The judgment of the Court of

Appeals sought to be reviewed herein

was dated and entered on 1 March 1983.

(ii) A Petition for Rehearing and

Suggestion for Rehearing In Banc was

filed on 14 March 1983.

The petition for rehearing was

denied and the suggestion for rehearing

in banc was rejected by Order filed

9 June 1983.

Petitioner filed a Motion for

Stay of Mandate on 14 June 1983.

By Order filed 27 June 1983

petitioner's motion for stay of mandate

was granted, predicated upon a petition

for writ of certiorari being filed in

f

the office of the clerk of this Court

on or before 14 July 1983.

(iii) The statutory provision

believed to confer jurisdiction on

this Court to review the judgment of

the Court of Appeals for the Ninth

Circuit is 28 U.S.C. §1254(1).

ai@e«

CONSTITUTIONAL PROVISIONS, STATUTES,

AND REGULATIONS INVOLVED IN THIS CASE

{Rule 21.1(f)]

Pertinent text of the following

is set forth in Appendices D and E.

oo United States Constitution

A. Art. = $6.

B. Amendment 5.

Be Federal Statutes

A. 5 U.S.C. §706.

B. Act of 2 March 1899, ch. 374,

30 Stat. 990 (codified at 25

U.S.C. §§312-318)("1899 Act").

c. Act of 5 February 1948, ch.

45, 62 Stat. 17 (codified at

25 U.S.C. §§323-328) ("1948

AGT").

o19<

Act of 18 June 1934, ch.

576, 48 Stat. 987 (Indian

Reorganization Act; "IRA")

(Section 16 codified at 25

U.S.C. §476).

2 Federal Regulations

A.

25 C.F.R. §§256.1-256.31

(1951).

25 C.F.R. §161.3 (1981).

25 C.F.R. §§169.1-169.28

(1982).

=20¢

STATEMENT OF THE CASE

[Rule 21.1(g), (h)]

SOUTHERN PACTFIC TRANSPORTATION

COMPANY (SP) submitted for filing with

the Secretary of the Interior (the Sec-

retary) an application to legitimize

its Central Nevada railroad right-of-way

through the reservation of the Walker

River Paiute tribe; the right-of-way

had, for technical reasons, been de-

clared invalid in 1976 by the 9th

1

Circuit. The application was pre-

pared and submitted pursuant to an

1899 statute” granting rights-of-way

through tribal lands to railroads.

1. Umited States v. Southern Pacific Trans-

portation Co., 543 F.2d 676 (9th Cir.1976).

2. Act of 2 March 1899, ch. 374, 30 Stat.990

(codified at 25 U.S.C. §§312-318) ("1899

Act").

e21l-

The right-of-way which SP sought to

validate has been in use for over 100

years; it is a part of the only railroad

service for Central Nevada shippers and

the U.S. munitions facility at Hawthorne.

The Secretary refused to file the

application, citing lack of tribal

consent.

At issue here is the legality

and/or applicability of an administra-

tive regulation requiring tribal con-

sent. That consent regulation was

enacted to regulate another right-of-

way statute governing administrative

grants of rights-of-way. We urge it

was improperly applied by the Secretary

to the Congressional grant of the 1899

Act and other special right-of-way

statutes. The regulation, as applied

-22-

by the Secretary, has the nationwide

effect of hindering and defeating the

creation or renewal of utility easements

(railroads, pipelines, electrical and

telephone transmission service) through

Indian reservations absent exorbitant

monetary tribute or other demands of

the tribes. The 1899 Act and the

special rights-of-way statutes contain

no tribal consent requirement. In

seeking tribal consent, SP found the

price unreasonable and subject to no

Secretarial supervision, review or

guidelines. After exhausting its

administrative remedies, SP filed suit

to compel the Secretary to accept and

process the application without prior

tribal consent. The District Court

for the Northern District of Nevada,

-23-

on cross motions for summary judgment,

ruled that tribal consent is not re-

quired as a condition precedent to

acquistion of a right-of-way under the

1899 Act. The tribe and the Secretary

appealed. The 9th Circuit reversed.

A petition for rehearing was timely

filed and denied.

The decision, if allowed to

stand, may lead to the District Court

granting a petition for ejectment in a

companion action, thereby eliminating

a segment of the only interstate rail

service to Central Nevada and the

Hawthorne munitions depot.

The effect of the decision below

is to permit the Secretary, without

express statutory authority, to subdele-

gate to an Indian Tribe the legislative

-24-

power to impose preconditions beyond

those specified in the 1899 Act. Addi-

tionally, under a broader view, the

decision will grant Indian tribes the

ability to frustrate utility operations

unless utilities meet tribal demands.

The effect of the consent regulation

as imposed by the Secretary will be

either termination of utility services

or increased cost to the consumer. ?

Federal jurisdiction in the

District Court for the Northern District

of Nevada was based upon 28 U.S.C.

§§1331; 2201, 2202 and 5 U.S.C. §§702,

706.

3. See Amicus Curiae Brief of Transwestern

Pipeline Company in support of petition

for rehearing in banc filed herein with

the Court of Appeals for the Ninth Circuit.

o25e

ARGUMENT

[Rule 21.1(j)]

A. BACKGROUND OF PERTINENT

STATUTES AND THE CONSENT

REGULATION

1. The 1899 Act.?+

The 1899 Act was passed at a

time in history when the transconti-

nental railroad network of this country

was being formed. Prior to its passage

a special right-of-way bill was utilized

with respect to each railroad line as

it passed over Indian land. The

number of such bills, time demands on

the Secretary of the Interior and the

Bureau of Indian Affairs for the

he Act of 2 March 1899, ch. 374, 30 Stat.

990 (codified at 25 U.S.C. §§312-318

("the Act").

=ZG<

consideration of such special bills,

and lack of uniformity in the substance

and procedure under such bills necessi-

tated a general statute providing for

railroad rights-of-way over Indian

land. The 1899 Act was passed to cure

these problems, and to promote the

growth and expansion of an interstate

railroad system in an expanding nation.

It was not passed to benefit or protect

Indians.»

- Clarke v. Boysen, 39 F.2d 800, 814 (10th

Cir. 1930).

3. See House Report No. 1896 from the House

Committee on Indian Affairs, 55th Congress,

3d. Sess. (1899), which accompanied H.R.

11868 (later enacted as the 1899 Act).

It is to be noted that this legislative

history of the 1899 Act contains no

indication that the purpose for its

passage was the protection of Indian

interests, a misconception utilized by

the Ninth Circuit as the basis for

"liberal" construction of the 1899 Act

@27e

The 1899 Act, by its express

language? is a grant jlirectly from

Congress of a right-of-way over Indian

land to any railroad company complying

with the requirements of the Act and

3.

(continued)

"in favor of the Indians". To the con-

trary, H.R. 1896 states that the statute

as framed (i.e., with no reference to

any requirement of Indian consent, but

containing provision for just compen-

sation to be determined and paid) was

fully protective of Indian rights and

interests.

Even if liberal construction in favor of

the Indians were proper, the rule is one

of statutory construction, applicable in

case of ambiguity; not a license to

disregard clear expressions of Congres-

sional intent. See DeCoteau v. District

County Court, 420 U.S. 425, 447 (1975).

The 1899 Act provides, at 25 U.S.C. 312:

"A right of way... [through

Indian land] ... is hereby granted to

any railroad. . . ." (Emphasis added)

@28@

with the implementing rules and regula-

tions prescribed by the Secretary.>

The Act has been characterized by

the Eighth and Tenth Circuits as a

condemnation statute; the Act itself

uses the phrase: "the property sought

to be condemned"; here, the Ninth

Circuit has held otherwise.

re The 1948 Act

6

The 1948 Act’ was enacted to

simplify and make uniform the provisions

by which the Secretary (as opposed to

Congress) could grant rights-of-way

over Indian land.’ Rights-of-way

Secretary of the Interior ("Secretary").

uw

6. Act of 5 February 1948, ch. 45, 62 Stat

17 (codified at 25 U.S.C. §§ 323-328)

("1948 Act").

7. See 2 U.S. Code Cong. Serv. 1036 (1948).

-29-

granted under the 1948 Act could be

for any purpose, whether solely of

local concern and effect or otherwise.

The 1899 Act, to the contrary, is

limited to railroad, telegraph, and

telephone rights-of-way.

The 1948 Act contains a provision®

prohibiting the Secretary from granting

a right-of-way under the 1948 Act across

lands of a tribe organized under the

9 without the consent of the tribe.

IRA

The consent requirement was included

in the 1948 Act to continue protection

provided for in section 16 of the IRA,

8. 25 U.S.C. §324.

9. Act of 18 June 1934, ch. 576, 48 Stat.

987 (Indian Reorganization Act; "IRA").

=30@

to prevent abusive disposition of

Indian lands by discretionary admini-

strative actions of the government.

10

10.

Section 16 of the IRA provides that the

constitution adopted by IRA tribes shall

vest in the tribe the right and power to

prevent the sale or disposition of tribal

land without the consent of the tribe.

It is obvious that neither section 16 of

the IRA nor the 1948 Act's consent require-

ment were intended to limit the ability

of Congress or officers of the government

acting pursuant to special mandate of

Congress, to create rights-of-way across

Indian lands.

See: Bill to Grant Indians Living Under

Tutelage the Freedom to Organize for

Purposes of Local Self-Government and

Economic Enterprise: Hearings on S-2755

Before the Committee on Indian Affairs,

U.S. Senate, 73rd Cong., 2nd Sess. 31

(1934) where then Commission of Indian

Affairs, John Collier, referring to a

bill which provided the impetus for the

IRA, explained the need to curb such

administrative abuse:

"This bill takes its origin from the

absolute necessity of in some way correct~-

ing the trend of the allotment, stopping

the loss of the remaining Indian lands,

-3l-

It was not intended to and should not

apply where the right-of-way, as in

the 1899 Act, is created by Congress.

10. (continued)

making it possible to bring the remaining

lands into usable blocks so that they can

be effectively and economically operated.

This is the purpose of this bill.

keES

Paralleling this basic purpose is

another purpose just as basic. The bill

stands on two legs. At present the

Indian Bureau is a czar. It is an autocrat.

It is an autocrat checked here and there

by enactments of Congress; but, in the

main, Congress has delegated to the

Indian Office plenary control over Indian

matters. It is a highly centralized

autocratic absolutism. Furthermore, it

is a bureaucratic absolutism.

The result is that if the Indians

all over the country have had any rights

it has been by the whim of the Indian

office or the Secretary of the Interior.”

Contemporary administrative construction

of the IRA was in accord with this view:

"It is true that the United States in its

sovereign capacity may condemn tribal

land for certain purposes and may even

32

s The Consent Regulation

The consent regulation

provides in pertinent part:

"No right-of-way shall be granted

over and across any tribal land

bn without the prior written

consent of the tribe."11

10.

ll.

(continued)

appropriate tribal land by act of Congress

subject to constitutional requirements of

compensation. But the rights and powers

with respect to tribal property granted

by the Constitution... of the.

Tribes are effective against officers of

the United States not acting under direct

mandate of Congress. Indeed, unless

officers of the Department can be re-

strained by the Tribe from disposing of

tribal property, all meaning has vanished

from the provision in section 16 of the

Indian Reorganization Act. Pie

(Emphasis added)

(Excerpt of Memo, Sol. I.D. 8 July

1936); See also 70 Mich. L. Rev. 955,

966-969 (April 1972).

The consent regulation was first promul-

gated at 25 C.F.R. §256.3 in 1951 (more

than fifty years after passage ot the

1899 Act). It was later found at 25

C.F.R. §161.3(a) and, on 30 March 1982,

was redesignated as 25 C.F.R. §169.3(a)

(47 F.R. 13327).

o33<

It is found in Part 169 of

Title 25 of the Code of Federal Regula-

tions, which Part deals generally with

the subject of rights-of-way over Indian

12 the consent regulation is

lands.

general in its terms, and does not

specify any particular type or statutory

source of right-of-way to which it is

intended to apply.

Section 169.23 of the right-of-way

regulations, however, applies specifi-

cally to railroad rights-of-way granted

under the 1899 Act and states that

rights-of-way granted under that Act

shall be subject to the provisions of

Section 169.23 "as well as other

pertinent sections" of Part 169. It

12. See, e.g., uses described at 25 C.F.R.

§§169.18, 169.22. 169.25, 169.26.

is the position of SP that the consent

regulation is not pertinent to rights-

of-way granted by Congress under the

1899 act, }*

is not. among the "other

pertinent sections" of Part 169, and

cannot apply to SP's application.

B. ARGUMENT

1. THE CONSENT REGULATION

DOES NOT APPLY TO AN

1899 ACT APPLICATION

The Secretary refused to

process SP's application because it

was unaccompanied by tribal consent.

The Court of Appeals here decided that

Congress had authorized the Secretary

to establish preconditions inconsistent

13. (as opposed to rights-of-way sought,

e.g., under the 1948 Act, where the

Secretary makes the initial determination

as to whether to grant such right-of-way).

o38e<

with and beyond those specified in the

1899 Act.

The consent regulation was never

intended to and does not apply to

railroad right-of-way applications

under the 1899 Act, as demonstrated by

the following points:

a. For over fifty (50)

years of operation of the 1899 Act, no

consent regulation existed;?°

b. The consent regulation

was promulgated after passage of the

1948 Act;

C. The 1948 Act is (but the

1899 Act is not) cited by the regulations

14. Southern Pacific Transportation Co. v.

Watt, 700 F.2d 550, 552 (9th Cir. 1983).

15. See footnote 11, supra.

-36-

themselves as the statutory authority for

the consent regulation;+®

d. The present regulations

recognize that the 1899 Act and the

1948 Act serve as alternate sources

for the procurement of the same type

of right-of-way;?’

e. The Secretary's applica-

tion of the consent regulation to an

16. The stated authority for adoption of 25

C.F.R. §§256.1 - 256.31 in 1951 designates

specific statutes which included the 1948

Act but did not include the 1899 Act.

The consent regulation itself [§256.3(c)

in 1951] expressly states (footnote 1)

that it was taken from the 1948 Act.

17. 25 C.F.R. §169.23(a) (as of 1 April 1982)

recites, in substance: 1) that the 1899

Act authorizes grants of railroad rights-

of-way; 2) that rights-of-way granted

under the 1899 Act shall be subject to

the provisions of §169.23; 3) generally,

rights-of-way granted under the 1948 Act

for railroad purposes shall also be

subject to the provisions of 169.23.

a

1899 Act right-of-way application is

not, we submit, based upon his belief

that the regulation was ever intended

to apply under the 1899 Act. Rather,

it is because the Secretary, for

reasons of self-convenience, has

adopted a policy whereby he has decided

to ignore the existence of the 1899

Act and its Congressional mandate, in

favor of processing all right-of-way

applications as if they were directed

to his administrative discretion under

the 1948 act; +8

£. The consent regulation

has no purpose in an 1899 Act setting

because the protection from administra-

18. H. Rep. No. 91-78, 91st Cong. 1st Sess.

(1969) "Disposal of Rights in Tribal

Lands Without Tribal Consent", at pages

22 and 24:

@38<

tive abuse which the IRA, the 1948

Act, and the consent regulation were

intended to protect against, is inappro-

priate and unnecessary where (as under

the 1899 Act) Congress itself has deter-

mined that the right-of-way described

in the 1899 Act should be granted.

This Court may dispose of this

case by holding that the consent regula-

tion does not apply to a railroad right-

of-way application made under the 1899

18. (continued)

"Although the 1948 Act did not

repeal other right-of-way acts, its

practical effect was to eliminate

the necessity and desireability of

using such acts. 2:

"It is also a matter of policy

that all Indian rights-of-way will

be granted under the 1948 Act.

This, we believe, will greatly

simplify and standardize the right-

of-way procedures.”

a3Ge

Act and that the Secretary's refusal

to process such application based upon

lack of tribal consent was improper.

2. IF THE CONSENT REGULATION

IS APPLICABLE TO AN 1899 ACT

APPLICATION, THE REGULATION

IS BEYOND THE SCOPE OF THE

AUTHORITY GIVEN THE SECRETARY

AND IS, THEREFORE, AN UNLAW-

FUL ATTEMPT TO AMEND THE STATUTE

Assuming, arguendo, that the

consent regulation applies to an 1899

Act application, the regulation is

beyond the scope of the Secretary's

authority, and is invalid because:

a. The addition of a

tribal consent condition is improper

where, as here, the statute is in the

nature of an eminent domain statute,

providing for a taking of property for

a public purpose upon payment of just

compensation.

-40-

The district court in this action,

The Eighth Circuit?? and the Tenth

20 have all characterized the

Circuit

1899 Act as a condemnation statute.

The 1899 Act itself uses the phrase

"the property sought to be condemned. "*?

The Court of Appeals recognized

that its decision that the 1899 Act

vested the Secretary with authority to

require tribal consent was necessarily

inconsistent with the view that the 1899

Act was an eminent domain statute. +?

19. United States v. Fort Smith & W.R. Co.,

195 F.211 (8th Cir. 1912).

20. Clarke v. Boysen, 39 F. 2d 800 (10th

Cir. 1930).

21. 25 U.S.C. §314.

22. 700 F. 2d. at 554. The court acknowl-

edged the definition of eminent domain as

the power of the sovereign to take prop-

erty for public use without the owner's

consent.

ale

The decision of the Court of

Appeals in this case is in conflict

with the opinions of the Eighth and

Tenth Circuits characterizing the 1899

Act as a condemnation statute. This

conflict should be resolved by this

Court.

b. The 1899 Act authorizes

the Secretary to make "all needful rules

and regulations, not inconsistent here-

with, for the proper execution and carry-

ing into effect of all the provisions of

this act."23

By enacting the 1899 Act, Congress

decided that railroads with the intent

and ability to construct a railroad

line with facilities for the public

23. 25 U.S.C. §317.

=42<

convenience should be (and were)

24 conditioned

granted rights-of-way,

upon payment of just compensation to

the Indians for the right-of-way taken

and damages caused.*>

By the consent regulation, the

Secretary has decided that regardless

of the railroad's intent and ability

to meet these requirements of Congress,

no such right-of-way may be granted

unless the Indians consent to it.

Not only is the tribal consent

condition a requirement beyond those

specified in the Act, it is inconsis-

tent with the concept of the Congres-

sional grant upon payment of just

compensation. The consent regulation,

24. 25 U.S.C. $312.

25. 25 U.S.C. §314.

o43<

being "inconsistent with" the statute

itself, is beyond the scope of regula-

tion permitted by 25 U.S.C. §317 and

is therefore invalid.

C. The Secretary's authority

is to promulgate regulations which are

necessary for the implementation of

the rather specific policy dictated by

Congress in the 1899 Act. That policy

not only says nothing about the consent

of the Indians being a condition to

the grant, it contemplates objection

by the Indians and deals with the

problem by setting forth the means by

which just compensation will be deter-

q.26

mined and pai The detailed provi-

sions of the Act implicitly limit the

26. 25 U.S.C. §314.

-44-

scope of the Secretary's rulemaking.*’

The consent regulation does not "carry

into effect" any provision of the 1899

act. 2°

d. The Secretary's attempt

to limit the benefits of the statute

to only those railroads willing to pay

the price of Indian consent is an in-

valid attempt to rewrite the statute

by adding a requirement Congress did

not prescribe. Previous attempts by

the executive branch of government to

usurp the powers reserved to the

legislative branch have been invali-

27. The Secretary has promulgated a regula-

tion implementing the policy of the 1899

Act (25 C.F.R. 169.23 (1 April 1982)].

28. See 25 U.S.C. $317.

u4Se

29 so should this

dated by this Court;

regulation when applied to the 1899

Act.

e. In the briefs submitted

to the Court of Appeals, the Tribe

argued that the Secretary, under the

1899 Act, had “unfettered authority to

establish grant preconditions in addi-

tion to those established by the Act's

provisions."?°

31

In Kent v. Dulles, this Court

avoided serious questions of unconsti-

tutional delegation of the power of

29. Morrill v. Jones, 106 U.S. 466 (1882);

United States v. Eaton, 144 U.S. 677, 687

(1891); United States v. United Verde

Copper Co., 196 U.S. 207, 215 (1904);

Francis v. Francis, 203 U.S. 165 (1906).

30. Page 8 of Tribe's brief to Court of

Appeals for the Ninth Circuit.

31. 357 U.S. 116 (1958).

-46-

Congress to the executive branch by

holding that Congress had not, as was

there contended, given the Secretary

of State unbridled discretion to grant

or withhold passports for any reason

he might choose.

The right of exit from the country,

considered in Kent, and the free flow of

interstate commerce in this case, are

matters which are constitutionally

committed to the law making functions

of Congress. Congress has not, in

explicit terms, made any provision for

Indian consent, and has provided for

the granting of rights-of-way without

consent. This Court should not attri-

bute to Congress an intent to permit

the Secretary unchecked discretion to

add conditions to the statutory grant.

a4 Je

A holding, on any of the above

grounds, that the consent regulation

was invalid as being beyond the scope

of the Secretary's authority under the

1899 Act, will dispose of this case

without the necessity of reaching the

constitutional issues raised below.

a IF THE CONSENT REGULATION

IS WITHIN THE SCOPE OF THE

SECRETARY'S AUTHORITY,

CONGRESS HAS, BY GRANTING

SUCH AUTHORITY, UNCONSTI-

TUTIONALLY DELEGATED ITS

LEGISLATIVE POWER TO THE

SECRETARY

The Court of Appeals in this

case found it reasonable to conclude

that where Congress, in the 1899 Act

said:

"A right-of-way ... is

hereby granted to any railroad

company which shall comply with

[this Act and the regulations

prescribed hereunder]"

-48-

that what Congress meant was that the

Secretary should take it upon himself

to decide that the right-of-way so

granted by Congress should be withheld

if the Indians, for whatever reason,

did not care to have the right-of-way

exist.

The Court ignored SP's argument

that such an interpretation attributed

to Congress an unconstitutional delega-

tion of the legislative power of

Congress. Except to the extent of its

discussion concerning subdelegation of

authority from the Secretary to the

Indians (discussed infra) the Court of

Appeals did not discuss the issue.

Perhaps the Court of Appeals

agreed with observations by members of

this Court and legal commentators to

-49-

the effect that unconstitutional Congres-

sional delegations found in Panama Refin-

ing Co. v. Ryan, 293 U.S. 388 (1935),

and Schechter Poultry Corp. v. United

States, 295 U.S. 495 (1935) are a thing

of the past.°¢

We believe that the principle of

unconstitutional delegation of authority

not only has remaining vitality, but is

applicable in this case. When applied,

it will be seen that if Congress did

grant such unbridled power to rewrite

the statute, an unconstitutional dele-

gation would have been made. Such a

32. See FPC v. New England Power Co., 415

U.S. 345, 352, 353 f.n. 1; 2 K. Davis,

Administrative Law Treatise, §3.2 (1978)

(2d. Ed.).

-50-

finding, we urge, can be avoided by

properly interpreting the 1899 Act as

not granting such authority to the

Secretary.

In the approximate half century

since Panama and Schechter, supra,

unconstitutional delegation of legisla-

tive power has been suggested to

embody different principles. We

believe the following to constitute

some of the more important concepts.

Tested under any of the principles,

the purported delegation in this case

fails to pass muster:

a) Absence of Declared

Congressional Policy and Standards for

Action.

In Panama, this Court established

criteria for the lawful delegation of

a$i<

legislative power. The Court looked

to determine whether Congress had:

1) declared a policy with respect to

the subject of the legislation; 2) set

up a standard for the action of the

delegatee of the power; and 3) re-

quired any finding of fact by the

delegatee as a condition to his exer-

cise of the power. Finding none of

these, this Court declared the "un-

fettered discretion" sought to be

conferred on the President was an

unconstitutional delegation of legis-

lative power.?°

In the present case, the 1899 Act

contains no statement of policy concern-

ing either Indian preconsent or the

33. 293 U.S. at 415.

=a$2e

imposition of any preconditions to the

grant which are not specified in the

Act itself. Also, there are no stan-

dards to govern the Secretary's exer-

cise of his discretion imposing addi-

tional conditions generally or Indian

consent specifically. Finally, no

finding of fact is required before

these additional conditions may be

imposed.

By this test the action attributed

to Congress (authorizing the Secretary

to add requirements not specified in

the Act, such as Indian consent) would

fail.

b) Degree of Certainty as

to the Expressed Will of Congress.

It is proper to find that legisla-

tive power has been lawfully delegated

530

when it is unmistakably clear that

Congress intended to delegate the

power. Congress has neither the time

nor the expertise to legislate meaning-

ful standards in many areas of federal

34 However this Court

legislation.

has not hesitated to strike down

agency attempts to exert broad power

when it was not clear that Congress

intended such power to exist.?>

34. See, e.g., discussion in 1 K Davis,

Administrative Law Treatise, §3.3 (1978)

(2d. Ed.); Sunshine Coal Co. v. Adkins,

310 U.S. 381, 398 (1940); Industrial

Union Dept. v. American Petrol Inst.,

448 U.S. 607, 674-675 (1980) (Rehnquist,

J., concurring); Hampton & Co. v. United

States, 276 U.S. 394, 406-408 (1928).

35. Compare Hampton & Co. v. United States,

276 U.S. 394 (1928); Fahey v. Mallonee,

332 U.S. 245 (1947); and Carlson v. Landon,

342 U.S. 524 (1952) (clear manifestation

of Congressional intent to grant agency

discretionary power - delegation upheld)

with FPC v. New England Power Co., 415

-54-

Under this test, the 1899

Act does not permit any interpretation

that Congress irtended that the Secre-

tary could impose conditions which

defeat rather than implement the

statute. The legislative history of

the 1899 Act does not indicate that

Congress ever considered a tribal

consent condition. When Congress,

prior to enactment of the 1899 Act,

passed special statutes for railroad

construction it sometimes made such

grants subject to Indian consent. It

35. (continued)

U.S. 345 (1974), National Cable Television

Ass'n v. United States, 415 U.S. 336 (1974),

and Hampton v. Mow Sun Wong, 426 U.S. 88

(1975) (unclear manifestation of Congres-

sional intent, agency discretionary power

held improperly exercised although different

result indicated if Congressional determina-

tion were clear).

-55-

had no difficulty expressing its

36 The 1948 Act is an example

intent.

of a situation where Congress believed

an Indian consent condition should

exist (i.e., where the decision to

create a right-of-way was to be made,

in the first instance, by administrative

decision of the Secretary, rather than

by Congressional determination as in

the 1899 Act). Accordingly, Congress

included a consent requirement in the

36. Compare Act of 5 August 1882, ch. 394, 22

Stat. 299; Act of 30 May 1888, ch. 336,

25 Stat. 160; Act of 8 May 1890, ch. 198,

26 Stat. 102, and Act of 18 February 1895,

ch. 95, 28 Stat. 665 (Indian consent

required), with Act of 15 February 1887,

ch. 130, 24 Stat. 402; Act of 6 March 1896,

ch. 42, 29 Stat. 44; Act of 4 June 1898,

ch. 377, 30 Stat. 430; and Act of 18 June

1898, ch. 465, 30 Stat. 475 (no Indian

consent required - in the nature of

condemnation statutes).

afta

1948 Act.>/ The absence of a clear

expression of Congressional intent,

that Indian consent be either required

or permitted as a condition to the

1899 Act right-of-way grant, compels

the conclusion that no such condition

is permissible in this case.

c) Safeguards Against

Arbitrariness.

It may be that this Court should

acknowledge that one of the basic

purposes behind the nondelegation

doctrine is that administrators should

not have unguided and uncontrolled

discretionary power to govern as they

38

see fit. That acknowledgment might

37. 25 U.S.C. $324.

38. K. Davis, Administrative Law Treatise,

§§3.15, 7.26 (1978)(2d. Ed.).

oS Fa

be accompanied by recognition that

Congressional delegation of legisla-

tive power is a necessity of modern

government; protection of those persons

affected by the administrative exercise

of that power must be assured; assurance

would occur with the requirement that

a total package of standards and

safeguards (supplied either by the

legislative body or the administrative

agency) provide protection against

power being exercised arbitrarily.

This view is based upon the concepts

of procedural due process.

The interrelationship between

unconstitutional delegation of legisla-

tive power and due process has been

recognized by this Court. In Carter v.

-58-

39

Carter Coal Co. the attempted dele-

gation of legislative power was found

to be so obnoxious and arbitrary as to

constitute a denial of Fifth Amendment

due process protection.

In Hampton v. Mow Sun wong, 7°

Justice Rehnquist, in dissent, charged

the Court with deciding, on due process

grounds, what was essentially a question

of Congressional delegation of legisla-

tive power to an administrative agency. *}

Professor Davis observes that a

trend of authority is developing which

recognizes that the presence or absence

of safeguards and/or standards designed

39. 298 U.S. 238, 311-312 (1935).

40. 426 U.S. 88 (1975).

41. See 426 U.S. at 117, 119-123.

-59-

to protect against arbitrariness should

be the constitutional criterion for the

propriety of delegations of legislative

42

power:

"The non-delegation doctrine

was used over a period of four

or five decades to require

statutory standards; now that

the nondelegation doctrine has

largely failed, courts may sub-

stitute a requirement of admini-

strative standards or rules for

the former requirement of statu-

tory standards." 2 K. Davis,

Administrative Law Treatise,

§7.26, page 13l (1978)(2d. Ed.).

It can be seen here that traditional

concepts of fundamental fairness are

totally absent from the procedure to

42.

See discussion and cases at 1 K. Davis,

Administrative Law Treatise, §3.15

(1978) (2d. Ed.) and 1982 supplement

§3.15. It has been held that due process

is lacking when the administrative

agency fails to articulate, in writing,

objective ascertainable standards that

govern the exercise of its discretion.

Baker-Chaput v. Cammett, 406 F.Supp.

1134 (1976).

-60-

which SP has been subjected. Neither

the 1899 Act itself nor its legislative

history mention Indian consent as

a condition to the right-of-way it pro-

vides. No concept of an Indian veto

power over rights-of-way created by

an 1899 Congress attempting to expedite

and simplify the generation of a

national railroad network can be found

in the statute or its history.

No standards were imposed by Congress

to guide the Secretary's supposed

ability to condition the Congressional

grant.

These deficiencies have not been

cured by administrative action. The

Secretary administered the 1899 Act

for more than fifty years without any

statutory requirement of Indian consent

-6l-

and without a regulation requiring

such consent. When the consent require-

ment was promulgated the Secretary

gave no notice that it was to be

applied to 1899 Act applications.

Neither the regulation itself nor the

procedures adopted by the Secretary

(as evidenced by this case) make any

provision for adoption of standards by

which Indian consent is to be given or

withheld. There is no procedure for

review by the Secretary of arbitrary

tribal conditions or denial of consent.

No opportunity is provided for SP to

be heard because the Secretary will not

even consider an application unaccom-

panied by tribal consent. The Secretary

nullified the 1899 Act benefits provided

by Congress. He granted the Indians

@62-

the unfettered ability to prevent the

statutory benefits unless the price of

their consent is paid.

We urge that the Court of Appeals

was wrong to have held that the Secre-

tary had such power and properly exer-

cised it in this case.”

If Congress

had granted such power, the grant

would, under any test, violate

43. The Court of Appeals relied upon the

“administrative deference" rule in find-

ing the Secretary's interpretation of the

1899 Act to be reasonable. In so doing,

the Court ignored these principles:

i. Courts are the final authority

on statutory construction, they need not

rubber-stamp administrative decisions.

FEC v. Democratic Senatorial Campaign

Comm. 454 U.S. 27, 32 (1981); Teamsters

v. Daniel, 439 U.S. 551, 566 n.20 (1978);

See Espinoza v. Farah Mfg. Co., 414 U.S.

86, 94-95 (1973); New York State Dept. of

Social Services v. Dublino, 413 U.S. 405,

419-420 (1973); Reliance Electric Co. v.

Emerson Electric Co., 404 U.S. 418, 427

(1971).

constitutional principles of nondele-

gation and due process.

The proper interpretation of the

1899 Act avoids such a holding. The

District Court was correct when it held

that Indian consent is not required as

a condition precedent to acquisition

of a right-of-way under the 1899 Act.

43.

(continued)

2. Courts must reject administra-

tive statutory construction frustrating

the mandate of the Act. SEC v. Sloan,

436 U.S. 103, 118 (1978); FIC v. Colgate-

Palmolive, 380 U.S. 374, 385 (1964);

NLRB v. Brown, 380 U.S. 278, 291 (1964);

Volkswagenwerk v. FMC, 390 U.S. 261, 272

(1968); FMC v. Seatrain Lines, Inc., 411

U.S. 693, 745 (1973).

3. The weight to be given to an

interpretative regulation depends upon

the thoroughness evident in its considera-

tion, the validity of its reasoning, and

its consistency with earlier and later

pronouncements. Skidmore v. Swift & Co.,

323 U.S. 134, 140 (1944); Morton v. Ruiz,

415 U.S. 199, 237 (1974); Soriano v.United

States, 494 F.2d 681, 683 (9th Cir. 1974).

estén

4. IF THE DELEGATION TO THE

SECRETARY IS PERMISSIBLE,

THE SECRETARY'S SUBDELEGA-

TION TO THE INDIAN TRIBE,

OF AN UNCONTROLLED VETO

POWER IS REPUGNANT TO FIFTH

AMENDMENT DUE PROCESS

REQUIREMENTS.

Even if Congress is found to have

lawfully delegated to the Secretary an

ability to add conditions beyond those

specified in the 1899 Act, the Secretary

cannot lawfully delegate that power to

the Tribe.

The Court of Appeals justified

the subdelegation because the regula-

tion did not relinquish to the tribe

the final authority to approve; it

32

merely delegated a power to disapprove.

The Court did not speak to the fact

44. 700 F.2d at 556.

=65@

that the Secretary, under this proce-

dure, will not process an application

or otherwise implement the statute

unless the Indians decide that he may.

By withholding their consent the tribe

prevents the effectuation of the

Congressional plan. The Secretary will

not even inquire into the reasons for

their action.

The power which the Secretary has

granted the Indians knows no boundaries.

The Secretary has adopted no standards

by which Indian consent is to be given

or withheld. He has provided no

guidelines or standards to enable him-

self or this Court to determine whether

the withholding of Indian consent is

based upon arbitrary exercise of

Indian discretion. Moreover, no

-66-

review of the exercise of that discre-

tion is provided for.*°

SP contends that the Secretary's

action constitutes a subdelegation

violative of due process*° and requir-

ing review and correction under 5

U.S.C. §706(2)(A), (B), and/or (C).

_ INDIAN SOVEREIGNTY DOES NOT

CURE THE SUBDELEGATION.

The Court of Appeals found justifi-

cation for the Secretary's subdelegation

to the Indians in this Court's statement

45. See Nicholas v. Kahn, 389 N.E.2d 1086,

1091 (1979); Holmes v. New York City

Housing Auth., 398 F.2d 262 (2d Cir.

1968); Soglin v. Kauffman, 418 F.2d 163

(7th Cir. 1969); Environmental Defense Fund

v. Ruckelshaus, 439 F.2d 584, 598 (1971).

46. Seattle Trust v. Roberge, 278 U.S. 116,

122-123 (1928); Eubank v. Richmond, 226

U.S. 137, 143-144 (1912).

a§Je

47

in U. S. v. Mazurie that limitations

on delegation of legislative power are

"less stringent in cases where the

entity exercising the delegated autho-

rity itself possesses independent

authority over the subject matter".

Moreover, the Court stated: "nor

must such a subdelegation rest on

express statutory authority". 7

The Court's approval of this sub-

delegation was in error because:

a. In Mazurie this Court up-

held an express Congressional delegation

of legislative power to Indian tribes,

to regulate the introduction of liquor

into Indian county. Here, the delega-

47. 419 U.S. 544, 556-557 (1975).

48. 700 F.2d at 556.

-68-

tion of power to the Indians was made

by the Secretary alone.

b. In Mazurie there were

safeguards against Indian arbitrariness

in that the Indians could exercise

their delegated authority only pursuant

to ordinance approved by the Secretary.

Here, there is no provision for prior

or subsequent Secretarial review of

the Indians' exercise of power. This

Court has expressly reserved decision

on the question of whether and to what

extent the Fifth Amendment would be

available to correct arbitrary or

discriminatory tribal exercise of its

delegated federal authority.*?

Cc. Mazurie involved control

of liquor in Indian country - a matter

49. 419 U.S. at 558, f.n. 12.

=-69-

of local control over tribal life.°°

Here we have an interstate railroad.

Authority over interstate commerce is

reserved to Congress.

Implicit divestiture of Indian

sovereignty has been held to have

occurred in areas such as this, involv-

ing relations between an Indian tribe

31 Because

and nonmembers of the tribe.

an attempt by the tribe to exclude an

interstate railroad is inconsistent

with the overriding interests of the

national government, its power to do

so is implicitly divested. >“

50. 419 U.S. at 557.

51. Oliphant v. Suquamish Indian Tribe, 435

U.S. 191 (1978); United States v. Wheeler,

435 U.S. 313 (1978).

52. Washington v. Confederated Tribes of the

Colville Indian Reservation, 447 U.S.

134 (1980).

@FQe@

d. The Court of Appeals

justified the subdelegation because "a

tribe has independent authority to

regulate the use of its own lands". >?

Powers lawfully vested in an

Indian tribe are not, in general,

powers delegated by express acts of

54

Congress. A tribe's inherent powers

of limited sovereignty are subject to

defeasance by the supreme legislative

55

power of the United States. Thus,

53. 700 F.2d at 556.

54. F. Cohen, Handbook of Federal Indian Law,

122 (Univ. New Mexico ed. undated).

55. Cherokee Nation v. Kansas Railway Co.,

135 U.S. 641 (1889). See also Santa Clara

Pueblo v. Martinez, 436 U.S. 47, 56 (1978):

". . . Congress has plenary authority to

limit, modify, or eliminate the powers of

local self-government which the tribes

otherwise possess. . . Title I of the

ICRA, 25 U.S.C. §§1301-1303, represents

an exercise of that authority.”

«Jie

as

statutes of Congress must be examined

to discover limitations on, not sources

56

of, tribal power.

By the 1899 Act, Congress expressly

exercised its plenary power over tribal

lands and granted railroad rights-of-way

across Indian lands. The retained

sovereign power to exclude railroads

from Indian land was thereby divested.

Cc. CONCLUSION

The Ninth Circuit in this case

has reached a result contrary to the

clear mandate of Congress. It has

approved a procedure violative of

constitutional principles of delega-

tion of powers and due process prohi-

56. F. Cohen, Handbook of Federal Indian Law,

122 (Univ. New Mexico ed. undated); 70

Mich. L. Rev. 955, 955-956.

@720

bitions against arbitrary exercise of

discretion.

If not corrected by this Court,

public utilities attempting to utilize

rights-of-way across Indian land,

created by specific Congressional

Acts, must choose between complying

with uncontrolled Indian demands,

terminating service, or increasing the

utility cost to consumers.

(Signature Page Follows)

Respectfully submitted,

FOLEY, MC INTOSH & FOLEY

Professional Corporation

By => Robert J. Foley

Robert J. Foley

By — William R. Foley

William R. Foley

ECHEVERRIA AND OSBORNE,

CHARTERED

By /s/ Peter Echeverria

Peter Echeverria

By = Nathan M. Jenkins

Nathan M. Jenkins

Attorneys for Petitioner,

SOUTHERN PACIFIC TRANS=-

PORTATION COMPANY

-74-

APPENDICES

[Rule 21.1(k)]

[Index to Appendices)

APPENDIX A:

¥ Decision of the United

States Court of Appeals,

Ninth Circuit, decided

1 March 1983, published

at 700 F.2d 550 (1983). i

APPENDIX B:

i. Decision of the United States

Court of Appeals, Ninth Circuit,

decided 10 September 1976, pub-

lished at 543 F.2d 676 (1976)

(companion case). ii

a. Decision of the Assistant

Secretary of the Interior

for Indian Affairs,

dated 19 June 1978. iii

@75@

Summary Judgment, entered

14 August 1980, by the United

States District Court, District

of Nevada, to which is appended

Order Granting Summary Judgment,

entered 25 July 1980. lv

Amended Summary Judgment,

entered 28 Auc st 1980, by

the United States District

Court, District of Nevada. Vv

APPENDIX C:

1.

Note: A copy of the judgment

sought to be reviewed is included

at APPENDIX A.1l. vi

Petition for Rehearing and

Suggestion for Rehearing in

Banc, filed by Southern

Pacific Transportation

Company on 14 March 1983 in

the United States Court of

Appeals for the Ninth Circuit. vii

Order denying rehearing and

rejecting suggestion for re-

hearing in banc, dated 9 June

1983 by the United States Court

of Appeals for the Ninth

Circuit. viil

Motion for Stay of Mandate

Pending Application for

Writ of Certiorari, filed by

Southern Pacific Transporta-

tion Company on 14 June 1983

in the United States Court of

Appeals for the Ninth Circuit. ix

eTTeo

Page

Ss. Order on Motion for Stay of

Mandate, dated 27 June 1983,

by the United States Court

of Appeals for the Ninth

Circuit. x

APPENDIX D:

se United States Constitution,

Art. I, §8. xi

Be United States Constitution,

Fifth Amendment. xii

. 5 U.S.C. §706. xiii

4. Act of 2 March 1899,

ch. 374, 30 Stat. 990

(25 U.S.C. §§312-318)

("1899 Act"). Xiv

5. Act of 5 February 1948,

ch. 45, 62 Stat. 17

(25 U.S.C. §§323-328)

("1948 Act"). XV

Page

6. Act of 18 June 1934, ch. 576,

48 Stat. 987 Section 16,

(Indian Reorganization Act;

"TRA") (25 U.S.C. §476). xvi

APPENDIX E:

1. 25 C.F.R. §§256.1-256.31

(1951). xvil

2. 25 C.F.R. $161.3 (1981). Xxvill

x 25 C.F.R. §§169.1-169.28

(1982). xix

o79@

APPENDICES

APPENDIX A

Decision of the United States

Court of Appeals, Ninth Circuit,

decided 1 March 1983, published

at 700 F.2d 550 (1983).

“In thw instance we conclude that the

universal ese of parents w secure Lhe

mivantages vf lugher qducatuon for thew

chikiren and Ww offess whenever posmbie

the imcreasing quest of such educaton,

makes the application of the regwirauon

requirements of the Securities Act em-

phalics!ly necessary here. While there is

nw showing of fraud of misrepresentauion

of any kind and it may well be that the

founders of The Foundation are them-

selves actuated by a sincere desire ww aud

their fellowman and to foster the educa-

tuon of the youth of this nation, the op

portunities for wrongdoing with such a

broad and fertile field of prospective in-

vestors ure unlimited.”

American Foundatioa at 881.

In support of the American Foundation

and Waddle decisioas, this court is mindful

of the Supreme Court’s admonition in SEC

v. CM. Joiner Leasing Corp., 320 U.S. 344,

351, 64 S.CL L2v, 123, 88 L.Ed. 88 (1943),

that “the reach of the Act does not stop

with the obvious and commonplace,” and

the oft-quoted directive in SEC v. WJ.

Howey, Co., 323 U.S. 283, 299, 66 S.Ct. 1100,

1103, 90 L. Fad. 1244 (1946), that the concept

of security “embodies a flexible rather than

a slalc principle, one that is capable of

amlaplon Ww meet the countless and variable

schemes devised by those who seek the use

of the money of others on the promise of

profits.” We are also aware that the de-

sign of the securities laws and their purpose

for requiring registration of all securities in

the absence of statutory exemption is to

protect investors by promoting and requir-

ing a full disclosure of information thought

lw be necessary Ww persons desiring to make

informed investment decisions. SEV vy.

Ralston Purina Ca, 346 US. 119, 78 S.Ct

G61, 97 LEal. 1494 (19638).

For these reasons we conclude that the

CAP pre-need college tuition plans are in-

veaiment contracts within the definitional

bounds of the Guam Uniform Securities Act

and are, therefore, subject to the registra-

tion requirements of such Act.

AFFIRMED.

700 FEDERAL REPURTEK, 4 SERIES

SOUTHERN PACIFIC TRANSPORTA-

TION COMPANY, Mtaiatiff-Appetiee,

v.

James G. WATT, Secretary of the Interi-

or, et al, Defendant-Appellant,

and

Walker River Paiute Tribe of Nevada,

Defendgat-Intervenor- Appellant.

Nes. 30-4506, 40-4506.

United. States Court of Appeals,

Ninth Circuit.

Argued and Submitted Jan. 14, 1982

Decided March 1, 1983.

Railroad sought review of adminiwtra-

tive denial of its application for railruml,

telephone and telegraph right-of-way across

tribal lands for lack of tribal consent Ww

right-of-way. The United States District

Court for the District of Nevada, Bruce RK.

Thompson, J., grants! summary judgment

for railroad, and tribe am! Secretary of the

Interior appealed. The Court of Appeals,

Canby, Circuit Judge, held that Secretary

acted within his power in reyuying by regu-

lation that tribal consent be obtained for

acquisition of nyht-of-way.

Reversed and remanded.

1. Indians <=10

Statute which grants mght-of-way for

railway, telegraph ami telephone line

through any Indian reservation Ww uny ruil

road which complies with applicable statu

tory provisions and rules and regulation

was intended fully to protect Indian inter

esta and must be liberally construed in fa

vor of Indians 2 USCA. §§ 312-318

2 Indians & 15(2)

Under statute which grants rightwf

way for any railway, telegraph and tele

MOUTHERN PACIFIC TRANSP. CU. v. WATT

551

Cite as 708 F 26 656 (1983)

phone line through any Indian reservation

Ww any railrow! which complies with statulo-

ry provisions and rules and regulations, Sec-

retary of the Interor acted within his pow-

er in requiring by regulation that tnbal

consent be oblained for acquisition of nght-

of-way by railroml. 25 USCA. §§ 312-

31s

3. Indians & 10

Statute which grants right-of-way for

railway, telegraph and telephone line

through any Inmlian reservation to any rail-

road that ees ulics with statutory provisions

and rules.’ regulations does not consti-

tule yrant -< railroad corapanies of power

of eminent domain since statute contains no

expres grant of power of eminent domain

nor is it necessary lo imply such a grant to

make statute effective. 2 USCA.

§§ 312-316.

4. Public Lands «71

Once grant in praesent, which was ju-

dicially created to establish prorities among

rival private claimants to federal lands, is

approved by desgnated government offi-

cial, it relates back Uo date grantee com-

menced proceedings lo obtain UUle and cuts

off all claamants whose nghts were initiated

luter but relation back of title applias only

as aguinst olher invervening claimants and,

us against United States, no vested right

arises until requirements are met and grant

has been approved by designated official.

5. Constitutional Law @=62(5)

Indians #= 15/1)

Congress notay vest in administrative

officinl the authonty Lo establish diseretion-

ary conditions with which prospective

grantees must comply in order to make

Krunts effective and trigger relatiqn beck

of Utle, and Congress did exactly that in

slaiule which grants mnght-of-way for rail-

way, Wleyraph ani telephone line through

any Indian reservation to any railroad

which complies with statutory provisions

and rules and regulations

thereunder, USCA. §§ 312-318

thority w an indiana ibe is enaiggees to

suldelewation W stale or local government,

which is nol per se improper, am! such a

subdecleyalion neud nol rest on express slal-

ulory authority

7. Indians © 15(2)

Secretary of the Interior’s regulation

requinng that tribal consent be obtained

for acquisition of ryght-of-way was not ab-

dication of Secretary's power lo alminwter

statute which grants right-of-way fur ruil-

way, telegraph and telephone line Lhrough

any Indian reservation W any railroml! thal

complies with statutory provisions and rules

and regulations prescribed thereunder but,

rather, constituted effort by Secretary w

incorporate into decision-making process

the wishes of a body with independent au-

thonty over affected lunds, and thus redele-

gution was proper, 25 USCA. §§ 312

318.

Laura Frossard, Atty, Dept. of Justice,

Washington, D.C. Yvonne T. Knight, Na-

tive Americans Rights Fund, Boulder, Colv.,

for Watt.

Nathan Jenkins, Reno, Nev., William R

Foley, Robert J. Foley, Foley, Melntosh &

Foley, Albany, Cal., for Southern Pacific.

James McCartney, Houston, Tex., for

amicus curiae Transwestern Pipeline Co.

Appeal from the United States District

Court for the District of Nevada.

Before FLETCHER, POOLE ani CAN-

BY, Circuit Judges.

CANBY, Circuit Judge:

The Walker River gute Tribe of Neva-

da (Tribe) and the Secretary of the Intenor

552

§§ 312-318 (1976)) (1899 Act or Act). We

disagree and reverse the grant of summary

judgment in favor of Southern Pacific.

l. Facts

The relevant facts are undisputed. Since

1852 Southern Pucific and its predecessors

have operated a railway and adjoining lele-

phone and telegraph lines over lands within

the Walker Kiver Indian Reservation. In

1976, this court held that Southern Pacific

“does not have and has never had a valid

mght-of-way across lands within the orig-

nal 1874 executive order boundaries of the

Walker River Reservation except through

the lands ceded by the Tribe to the United

States in 1906." United States v. Southern

lucific Transpor.,, 543 F.2d 676, 609 (9th

Cir. 1976) (Southern Pacific J). As « result,

vi Apml 28, 1977, Southern Pacific filed an

application with the Western Nevada Agen-

cy of the Bureau of Indian Affairs for a

railroad, telephone and telegraph nght-of-

way through 10.89 miles of tribal lands

within the Walker River Indian Reserva-

wn. Southern Pucific sought the right-of-

way under the provisions of the 1899 Act.

On May 4, 1977, the Agency Superintendent

rejected the application without filing it,

because it did not include evidence that the

Tribe had consented to the right-of-way.

Southern Pacific appealed the Agency Su-

perintendent’s decision within the agency,

and the decision was upheld at all adminis

trative levels.

Seuthern Pacific sought review of the

agency action in federal district court. The

Tribe intervened as a party-defendant. Af-

ler cross mutions for summary judgment,

the district court egtered judgment in favor

for a mght-of-way under the 1888 Act. The

ne >

Act itevlf vests in the Secretary the

ain © en aundittin, elaine

Sieh ae, at va reread mghte-of-way

706 FEDERAL REPORTER, 24 SERIES

across Indian tribal lands. They argue that

the district court erred in characterizing the

1899 Act as an eminent domain statute and

4 grant in praesentii The Tribe argues in

the alternative that even if the 1899 Act is

&@ grant in preesenti, that fact woul! not

preclude the Secretary from establishing

condiuons with which prospective yrantees

must comply before « grant becomes ef fec-

tive. We conclude that the 1899 Act is not

an eminent domain statute. We further

conclude that the 1899 Act—whether a

grant in praesent of not—authorizes the

Secretary W establish, by regulation, yrant

preconditions, including one of tnbal cun-

went. The Secretary has exercised thul au-

thority and promulgated « regulation pro-

viding that “[njo mght-of-way shall be

granted over ami! across any tribal Jund

without the prior consent of the Uribe.” 25

CPLR. § 16Lidw) (1981). We reject South-

ern Pacific's contention that the regulation

constilules an unlawful redeleyation of the

Secretary's authority

{1} In interpreting the 1899 Act, we are

guided by our eurlier determination in this

case that the Act was intended fully to

protect Indian interests. Soutiern Pacific

I, 543 Pad at 682; see H.R.Rep. No. 1896,

55th Cong., dd Sess. 2 (1899). [It must

therefore be liberally construed in favor of

the Indians. Ji/; see Bryan v. Itasca Coun-

ty, 426 U.S. 373, 392, 96 S.Ct. 2102, 2112, 48

L.Fal.2u 710 (1976). We must also bear in

mind that the construction of a statute ren-

dered by the agency charged with its aad-

ministrauion w ordinarily entitled Ww sul-

stantial deference. United States v. Ruth-

erford, 442 US. 544, 563, 99 S.CL 2470,

2475, 61 L.Ed. 2d 68 (1979); Udall v. Tuil-

man, 380.U.S. |, 16, 86 S.Ct. 792, 801, 13

L.ExL2d 616 (1966); Central Lincoln, Peo

ples’ Utility Dist. v. Johnson, 673 F.2d 1076,

1078 (9th Cir.1982); Adams v. Howertun,

673 F.2d 1086, 1040 (9th Cir.), cert. dened,

— US. , W2 SCL 494, 78 L.Ed 2

1878 (1962). Our review is limited Ww sleter-

muning whether the Secretury's interyreta

tien @ reasonable. (Central Lincuin, 673

F.2d at 1078, Columina Basin Lami Protee-

ten Assue'n v. Schlesinger, vans F.2d Sub,

00 (8th Cir. 1881).

SUUTHERE PACIFIC TRANSP. CO. v. WATT

553

Cite an 708 F 24 660 (1983)

A. The 1899 Act

[2] The 18¥9 Act provides in part:

A right of way for « railway, telegraph

amt Wlephone line through any Indian

reservalion in granted to any railroad

company organized under the laws of the

United States, or of any State or Ternto-

ry, which shall comply with the provisions

of spctions 12 S14 of [the 1899 Act] and

such rules and reyulauions as may be pre-

senibed thercunder.

2 USC. § 32 (1976). Provisos follow

that establish certain conditions that the

Secretary inust awure have been fulfilled.

The distinct court held that the 1898 Act

grants lo a railrom! the power of eminent

domain lo condemn nghteof-way through

Indian reservations and that “([t}he concept

of tribal consent us a pre-condition to the

grant of a right-of-way is the very antithe-

sis of the exercise of the power of eminent

domain.” The district court also held the

1499 Act to be a grant in praesenti subject

lo the performance of conditigns precedent

and conditions subsequent. Therefore, in

the district court's view, the Act does not

‘vest in the Secretary authority to establish

grant preconditions beyond thase contained

in the statute but rather expressly specifies

the conditions the SecreLary must find to be

satisfied pnor lo approving an spplication.

The Secretary and the Tribe challenge the

distmet court's determination that the 1899

Act is a grant of the power of eminent

domain and « grant in praesent. They

argue that Section 312 of the Aet delegates

w the Secretary authority to promulgate

legislative rules and, thereby, the authority

W establish yrant preconditions by regula-

tion. We conclude Chat the interpretation

advanced by the Secretary and the Tribe is

both reasonable and in aegard with our obli-

gation Ww construe the L80@ Act liberally in

the Trite's favor Having coeciuded that

the interpretation mivanced by

tary of Interwr, the head of

ther inte the meaning of the provisions of

the Act. “|Whe need aut find that [the

Seeretary's| construcuun is the only reasen-

able one, or even that it is the result we

would have reached had the question aren

in the first instance in judicial proceedings.”

Udall v. Tallman, supra, 380 U.S. at 16, 46

S.Ct at B01, quoting Unemployment Com-

pensation Comm'n of Alaska v. Aragon, S29

U.S. 14%, 67 S.Ct. 245, 91 Led. 16 (1946).

[t w enough that the Secretary's interpreta-

tion is reasonable, and there are several

grounds for concluding that it is.

The plain language of the Act supports

the interpretation of the Secretary and the

Tribe. Section | provides that a rghtof-

way “is grantal” Wo a railrom!l company

that complies “with the provisions of see-

tions 312 S18 of Lhis title [the 1899 Act] and

such rules and reyulatigns ax may be pre-

senbed thereunder..." 85 US.C.§ 312

(1976) (emphasis added). Thus, section |

may be read W establish two. sources of

comlitions precedent: the statutory provi-

sions and the Secretary's regulations. That

remling of section | is reinforced by the

fact Uthat section 7 directs the Secretary lo

“make ull needful rules and regulations, not

inconsistent with sections 312-318 of this

title, for the proper execution and carrying

into effeet of all the provisions of said

sections.” Jd. at § 317. The grant of rule-

making authority in section | would be

superfluous if it did not confer authority lo

promulgate requirements, beyond those

specified in the Act. Furthermore, the use

of the phrase “rules and regulations, not

inconsistent with sections 312-318 of this

title” (emphasw added) in section 7 (§ 317)

rather than such « phrase as “rules and

regulations, in furtherance of Lhe provision

of sections 312-318 of thw title” supports a

broad interpretation of the grant of rule-

making authority.

Nothing in the legislative history of the

UY Act suggests that the interpretation

weged by the Secretary and the Tribe ws

yarensonable. Thai history is silent vn the

qumstion of Lhe scope of Lhe authonty vest-

ed in the Seeretary by the Act. See Hit

Rep. 1806, 56th Cong, dl Sess. 1 2 ( 18UB);

42 Cong. Hee. 1768-66, 1640, A061 42, 2471

TS ( LBB).

554

The construction we approve here is also

consistent with the 1948 General Rights-of-

Way Act, Publ. No. s0-407, 62 Stat. 17

(codified in 26 U.S.C. §§ 823-828 (1976))

(1948 Act), which provides that “[njo grant

of w right-of-way over and across any lands

belonging to # Uribe organized under (the

Indian Reorganizauion Act of 1984)' _..

shall be male without the consent of the

proper tribal official” 25 USC. § 324

(1976). We recognize that interpretation of

the 1899 Act must rest primarily on i own

language und legislative history. Never-

theless, the [R9Y Act and the 1948 Act both

pertain to rights-of-way across [ndian lands

and share a common purpose: the preserva-

tion and protection of Indian intwrests.

The Supreme Court has expreasiy approved

the construction of statutes affecting reser-

vation Indians in light of intervening egw

lation. Bryan v. Itasca County, supra, 426

U.S. at 346, 96 S.Ct. at 2108; sme Mue v.

Salish & Kootenai Tribes, 425 U.S. 463, 472-

75, 96 S.Ct. 1684, 1640-42, 48 L.Ed. 06

(1976). Furthermore, the legislative history

uf the 19483 Act suggests that the drafters

of that Act believed that, at least after

adoption of the 1948 Act, no right-of-way

acroes lands of a tnbe organized under the

1934 Act could be granted without tibal

consent. See S.Rep. No. 828, 80th Cong., 2d

Sess., reprinted in (1948) U.S.Code Cong. &

Ad.News 1033, 1036. See also Escondiio

Mutual Water Co. v. Federal Energy Reyu-

latory Comm'n, @@2 F.2d 1223, 1282 (9th

Cir. 1982).

B. Grant of Eminent Domain Power

(3) In reaching the conclusion tha! the

1899 Act vests in the Secretary authoniy ww

require Unbal consent prior Wo processing of

a right-of-way application, we necessarily

reject characterization of the 1800 Act as a

.

E

Le

3

ss

700 FEDERAL REPORTLK, 4d SERIES

well settled that the power of eminent do-

main may be delegated by Congress W a

povale corporation. Custis v. Georyelown

& Alexaniria Turnpike Co, W US. (6

Cranch) 232, 3 L.Ed. 208 (1810) (Marshall,

CJ.); 1 Nichols, supra, at § 3.23, ut 3 212

A grant of the power, however, must lx

conferred “in express Lerms or by necensary

implication.” Wealern Uniwn Tel. Co ¥

Penn RR. Co,, 195 US. 540, 564 40, 5 5,00

133, 49 L. Fal. 312 (1904); 1 Nichols, supra,

at § 3.214], at 440; scconl, 3 C Sands,

Sutherland Statuwry Construction § 64.06,

at 128 (4th ed. 1974).

Comparison of the 1899 Act with contern-

poraneous acts held Ww be emiment domain

statutes reveals Lhat the 1X¥9 Act does not

contain the language charucterwiic of «

grant of the power of eminent domain

The Act of February 14, L8H, ch. 15, B

Stat. B5 (held to be « grant of the power of

eminent domain in Noble v. Oklahoma City,

297 U.S. 481, 490, 56 SCL 562, 566, 80 Lil.

816 (1936)), and the Act of March J, Ley,

ch. 453, 30 Stat 1968 (hek! to be a grant of

the power of eminent domain in United

States v. Ft. Smith & WR. Co,, 195 F. 211,

212 (8th Cir.1912), both provide that a

named railroad w “invested and empowered

with the right of locating, constructing,

owning, equipping, operaling, using, und

maintaining » cuilway” and “iw suthorued

to lake and use” a mghtof-way for railway

purposes and “to lake and use” land for

slalion purposes, Nowhere in the LAY Act

is Uhere language conferring on @ railroad

_ the right to condemn or the right Ww Lake

and use. The operative language of the

1899 Act is the phrase “w granted,” which

imports not u delegation of the power of

eminent domain but rather o« direct convey-

ance, condilwaal or not, by Congress or an

minugistrative agency. Thus, the Ly Act

contains no expres yrant of the power of

eminent domain, qur i it Meceunary lo un-

ply such w yrant Ww make the Act effective

We therefore conclude Ural the district

court erred in hulding thet the 1K) Act

SOUTHERN PACIFIC TRANS. CO. v. WATT 555

Cine as 700 F236 860 (1983)

was @ yrant of the power of eminent do

main.*

C. Grant Jn Praesent

[4] The istrict court also held that the

1899 Act was a yrant in praesent, We find

it unnecessary to resolve that question.’

The doctrine of in praesenti grants was

judicially created Ww establish priorities

among oval private claimants to federal

lands. A yrant in praesent: “imports the

transfer of a present interest in the

lands desiynalal” by the act. Van Wyck v.

Knevals, 106 U.S. 360, 365, 1 S.Ct 886, 337,

27 L.bal. 201 (1882). The words “ie hereby

granted” are characteristic of an in

seni grant. Noble v. Oklahoma City, su-

pre, 297 US. at 490-91, 56 S.Ct at 566

Once Lhe grant is approved by the designat-

ed government official, it “relates back to

the imitiatory right [the date the grantee

commence! proceedings to obtain title], and

cuts off all claimants whose righta were

initiated later.” Stalker v. Oregon Short-

line RR, 25 US. 142, 149, 32 S.Ct 686,

685, S6 Leal. 1027 (1912); scoord, Van

Wyck v. Knevals, 106 U.S. at 366, 1 S.Ct at

337. The relation back of title applies only

@s against olher intervening claimants. As

againat the yrantor United Staves, no vest-

(mth Cir 1¥l2), Clarke v. Boysen, 38 F 2d 800,

414 (10th Cir), cert. demded, 242 U.S. 868, 5!

Sct. 75, 75 LEd. 768 (1830). Those state

ments, relied on by the district court here, were

neither well considered nor necesaary to the

decisions in which they appeared Ft. Smuh

arose under a different gatute (also paseed in

1508), and Clarke, in tts relevant portions, con-

cerned the question whether the 1888 Aci ap-

plied to reservation lands ggeviously ceded to

the United States

The distinct court in the present case also

relied 06 provimons fos determining compensa-

thon for rights-of-way in the abeeace of con-

sem, in section 3 uf the 1888 Act, 25 U

§ 514 (1976), as well as a footnotes in

itandbook of Indian Law referring to

uf railway companes to condema Indian

+ Conen, Haudbouk of Federal indian Law 06

nm. 76 (1942) Both of these references are to

ed right arises until the requirements are

met and the grant has been approved by

the designated official. Stalker v. Oregon

Shortline K.R., 225 US. wt 149, 32 SCL at

688; Shepley v. Cowan, 91 U.S. 380, 338, 23

L.Ed. 424 (1876).

{5} Nothing in this scheme of in prue-

senl granus, nor in i purpose of prolecung

grantees against intervening private claims,

necumsarily limits the right of the grantor

United States ww condition the grant It is

Urue that in the typical in praesenu grant,

the determination of the Secretary Uhal the

grantee has complied with the conditions of

the grant is a ministerial function. Neither

authonty nor logic requires Uhat this be the

case, however’ We have been shown no

sufficient reason Wo conclude that Congress

is unable to vest in an administrative offi-

cial the authority lo establish discretionary

condiuions with which prospective grantees

must comply in order to make Uhe grants

effective and Uigyer the relation back of

title, Our examination of section 312 con-

vinces us thal Congress has done exactly

that. Congress’ action is effective whether

or not the Act provides for grants in prac-

seni. That is all we need to decide about

the meaning of the Act.

not inevitably treated the same. See Yellow-

fish v. Stillwater, 6A1 F.2d 926 (10th Cir. ive)

3. We disagree with (the district court's reading

of our prior decision, Southern Pacific |, supra,

as ‘impliedly recognizing that the [1480] Act is

a grant in preesenu of a mghi-of-way “ta

Southern Pacific | we did not reach the ques-

on whether the | 60¥ Act is a gram in praesen-

1) We did point out that the granting clause of

the 1800 Act differed significantly from that of

the 1875 Act, « statute previously held to be «

grant in preesent:. 543 F 2d at G81. We fur.

ther noted that to qualify as « grantee under

the 1608 Act, a rairoad must comply with

requirements nut found im the 1875 Act. id

We thea held that Southern Pacific's predeces-

sors did not comply with the compensation

requirement of the 1890 Act and, therefore,

fatied Lo acquire « right-of-way under that Act.

id. ot 092-93. To reach that result m Southern

Pacifc |, 4 wes unnecessary for us to decade

wheu.-r (he edilitional requirements cuntained

‘in the /688 Act were cunsistent with the char

acterie ics af « grant @ pressanti.

556

D. Hedelegution of the Secretary's Au-

thonty

Southern Pacific contends that if the

1899 Act is construed w authorize the Sec-

relury W establish conditions precedent to

the grant of a right-of-way under thal Act,

the Secretary, by requiring tribal consent

under 2 C.F.R. § 161.) (1961), has im-

properly redelegated that decimonal author-

ity to the Indian tribes. We conclude that

thé challenged redelegation is permissible.

[6] Subdelegation of administrative au-

thomty Ww an Lnadian tribe is analogous to

sulxlelegation to @ slate or local govern-

ment. “Indian tribes are unique aggregs-

lions Possessing aliributes of sovereignty

vver both their members and their Lerritory

, Uney are ‘a separate people’ possessing

‘the power of regulating their internal and

sxciul relations "" United States v

Mazurie, 419 U.S. 544, 557, 96 S.Ct. 710, 717,

42 Led2d 706, 716-17 (1975) (citations

omitted), Subdelegation of «iminwtrative

wuthonty Wo @ sovereign entity is not per se

improper. Jd; see United States v. Math-

ersun, 3467 F Supp. 779, 781-83 (E.D.N-Y.

1973) (uphoiding regulation imsued by Su-

perintendent of Fire Island National Sea-

shure requiring persons seeking to operate

motor vehicles on certain national seashore

lands Wo secure first a permit from the local

municipality), aff'd mem., 498 F.2d 1399 (2d

Cir. 1974). Nor must such a subdelegation

rest on ¢xpremp slatulory authority. See

Fleming v. Mohawk Wrecking & Lumber

Co, SAL US. Ill, 120-22, 67 SCa 1129,

1134, 9 LB 1875 (1947); Tabor v. Joint

Bd for Enrollmen’ of Actuaries, 566 F 2d

706, 708 n. 5 (D.C.Cir. 1977).

700 FEDERAL REPORTER, 24 SERIES

over, while the loca) jurudiclions in Mather-

gon had no source of power separate from

the regulation W cuntrol the use of nalional

seashore lamis, a Uibe has independent au-

thority lo reyulate the use of ils own lands

The Supreme Court ha» stated that the

limitauons on Congressional! delegation of

leyislative power are “lew stringent in case

where the entily exercumng the delegate

authonly itself possesses independent au-

thority over the subject matter.” [/nited

States v. Mazurie, 419 US. at 556-57, 96

S.CL at 717 (citation omittad) Applying

thal principle W the redeleyution of leymla-

tive authority by an wiministrauive butly,

we conclude Uhal the redclegation embadies

in 26 CFR. § 161.3 is not improper.

Ill. Conclusion

The Secretary acted within his power in

requinng by reguiauion thal tribal consent

be obtained fur the acyuewlon of mghteof-

way pursuant W the 160Y Act, 3 USC

§ 312 (1976). The summary judgment in

favor of Southern Pacific is reversed ami

the case is remanded Ww the district court

for further proceedings consistent with Lhe

opinion

REVERSED AND REMANDED.

Billy iri GLOVER, Plaintiff-Appeilaat,

v.

Bruce TOWER, Public Defendes of Deeg:

las County, Oregon and (iary Habrect,

Public Defender of the State of Uregoa,

Ie fendants- Appellees.

Ne. 51-3199.

United States Court of Appeals,

Niath Cirewit.

Argue! and Submittal Vee 7, We

Decided March |, 1988.

Plaintiff filed pro se action alleging

that public defenders why representa! him

oe

APPENDIX B

Decision of the United States

Court of Appeals, Ninth Circuit,

decided 10 September 1976, pub-

lished at 543 F.2d 676 (1976)

(companion case).

ii

od

676

For curls to require strict adherence lo

legal principle. in the award of pecuniary

damages is « vscicss oxercise Uf there are

no legal principles W guide the district

courts in the award of nce-pesuniary

damages indeud, © avoid having its

le«) wwarude ova lurned, Gutrict courts

will be oncouraged to minimize pesuniary

damages

By cutting back on some of the noa-pecuni-

ary awards here we wish it to be uader-

stood thal there must be some limit on

these incalculable damages Al the same

time, we are unwilling to go as far ae the

Government suggesta. Under the Act, son-

pecuniary damages, like pecuniary dam-

eget, should be substantially compensatory.

e.sential compensatory purpose of the stat

ute. On the facts of this case where sub

stantial grief and luse of affection aad com-

After a careful review of seach award,

and in the light of what we heave said

abov., we conclude that the amounts the

plaintiffs shall recover are the fellewiag:

3 FEDERAL. KEPOKTEK, 24 BEKIES

The judgment of the dwirict court ws af.

firmed om Une issue of limbility and modified

on the issue of damages The cause is

remanded with diructions lo enter s modi-

fied judgment in the amounts herein wt

ferth. Neo costs will be sllowed

(==>

UNITED STATES of America, Plaintiff,

The Walker River Paiute Tribe of Nevads

ead Robert lienton et al,

Platatiffe Appeliaats,

’.

BOUTHERN PACIFIC TRANSPOKTA-

TION COMPANY et al,

Le fenden te A ypetioes

UNITED STATES of America,

Piaiauf!- Appellant,

’

BOUTHERN PACIFIC TRANSPORTA-

TION COMPANY « al,

le femdanio A ppations.

Nes. 74-3333, 75-1008.

United States Court of Appesks,

Niath Cirewit

Bept 10, 1976

Action was brough| by Indian tribe and

class of individual of land tre

Fi

At

i}

bij

r

i

-E

f

]

i

k

[

f

UNITED STATES v. SOUTHEKN PACIFIC TRANSP. CO.

677

Cie os 143 F 24 078 (1878)

individual allollces since their claims could

not Le aggregated for purpose of determin-

ing ® jurisdictional amount, that the 1876

Act applied lo executive order Indian reser-

vations, that railroad did not scquire «

right-of-way under the 168 Act, that rsil-

toed dil weyuire @ right of-way through

nonirmyable lands ceded by tribe in 1906,

and that therw aould not be an implied

in-fact or impiled in-law license to railrued

to operate line through reservation.

Affirmed in part, reversed aad remand-

ed in part

1. Courts 406(148)

Where aetion was brought by Indias

tribe and allottses against railroad charging

Lreapass and district court in effect decided

only issue of liability on trespass claims

without deciding what would be appropri-

ale, judginent was sot final as to one entire

claim and therefore not appealable until the

district judge certified the appeal uader

statute. 2 USCA. $6 1291, 128a[b).

2. Courts = 336

Defendant's challenge of allegation re-

garding the requisite jurisdictions! sinount

im controversy, made in ite opposition to

plaintiff's metioa for summary judgment,

was timely, and shifted burdes to plaintiff

alluttoes of Indian lands to show that it did

nut appear to « legs! eortelaty thet their

claims were for less thas the required

anuunt 2 USCA § 1881; Ped. Rules Civ.

Proc. rule 1&(h\X3), MB UBCA.

3. Courts @= 406(2)

Court of Appeals is bound to coasider

Juredictional defecta sua sponte.

4. Courts o= $28.4(4)

In action by Indiana tribe and certain

individual allottess against railroad for

\respass, it was error to aggregate allottecs’

claims lo determine whether the requinite

$1U.UU0 juneuetional requiremest was met

2 USCA. § IM8L

& Courts o> 828.408)

Clase members may aggregate their

clarme ls smtiely ameuat ia esalroversy re

quirement only whem Unew elasme are jeint

and commoa and not separate and distinct

2% USCA. § 1381.

6 Courts = 325.4(2)

Test for aggregating claims of one

plaiatiff against multiple defendants for

purypan of aulis/ ying amMvuAl in ponliowes 7

requirement w casentinlly the seine as that

for aggregating claims of multiple plain-

tiffe against one defendant, plaintiffs

claims against defendant must be commoa

and undivided so that defendants’ liability

je joint and not several. 28 UBC A. § 183!

1. ladians @ 13/1)

Allotment of tribal lands are made Ww

individus! Indians in severally and in (rust

for sole use and benefit of Indias Ww whom

allotment shal! have been made.

& Courts © 324.4(4)

Claims of Indian alloitees against rail-

road with respect to trespass arose only

with respect Ww status of each as individual

allottee of portion of reservation, and their

claims could sot be aggregated for purpose

of satisfying necessary § = jurisdictional

amount. 2 USCA § 1381.

®. United States 1204

United States bringing action against

railroad with respect to alleged trospass ow

Indian reservation aud land of allottecs had

capacity to sue for protection of allotted

land.

16. Indians & 1K(1)

Agreements betwees railroad’s prede.

cessor and Indian tribe with relation w

railroad mght-ol-way through reservation

did purport to convey claim to Indian lands

from aa Indias tribe aad were invalid ua-

der Une then applicable statute protubiting

any conveyance of land from any !ndiag

nation or tribe walees made by treaty o

qtanuntinn extenes tata guemunns te Gaal

tation. 1% USCA. § IT1.

1k. ladiens <3

Abrugstica of Indiana realy nghts ve

der cuugreesunally reiasned plenary puwers

to control the uss of Wika! leads, to grant

adverse interest cad te eatinguenr |adiee

678

title completly is not lightly inferred from

congressional acts

12. Indians +3

Abrogatiwn of treaty rights is subject

to constitutional limitaGons that such prop-

erty rights cannul be Lakew without pay-

ment of just compensation.

13. Indians @ 12

With respect to cxecutive order reser-

vations Indians have exeluaive right te poe

seasion but Lille to lands remains with Unit-

ed States; with respect to Congress’ plena-

ry power to coutrol use, grant adverse in-

leresls or extinguish Indian tile executive

order reservations do not differ from treaty

or slatulery reservations except thal so

long «os Congress has not recognised com-

pensable intercats in Indians executive or-

der reservations may be terminated by Con-

gress or the executive without psymeat of

compensation. 2% USCA. §§ 71, 306; 48

USCA. § 150; Cont. art 2 § 2 ao 2

14. Indians 4-6

Statutes enacted fer protection of Indi-

one must be Lroadly qeastrped ia the Indi-

* favor

15. Indians ¢= 12

Congress by enacting 1876 statute re

lating to rnilroad rights-of-way through

public Innds of United States but aot apply-

ing to any lands within the limits of any

Indian rcacrvation intended to exelude ex-

ecutive order reservations from

of Act. General Railread Right of Way

Act, § 6, 43 USCA, § O88

$43 FEDERAL REPORTER, 24 SERIES

17. Public Lands @7, 15(2)

While executive branch has broad au-

thority lo withdraw public lands from dis-

position under public land lawe fur Lenefit

of Indians and Ww manage dinjrsition of

Indian lands, seurce of this authority is

congicssivnaal we quaccenes in ity e4ereie,

and since authority is delegated by Con-

gress its cxorciae can Iw regulated by Coa-

gress.

18. Indians @ 1/2

Approval by Secretary of the Interior

of maps showing railroad right of-way

through Indian rvservation created hy exec-

utive order with no mention of any allera-

tion of reservation Loundaries did wot oper-

ate to torininale reservation to extent of

right-of-way sought; no right of-way wos

acquired through reservation umler the

1875 act by the urroncous approval of mays

by Secretary of the Interior. General Iail-

road Right of Way Act, § 6, @ USCA.

§ 938.

19. Indians @ 12

Under 1809's genera! statute granting

rights-of-way through Indias reservations

to any railroad, which shall comply with

provisions of act, grantee is not identified

merely by filing articles aad prosfs of or-

ganization as under the 1876 ast, but

grantec must iv addition comply with all

provisions of 1899 act including require-

ments that mape be filed and approved aad

compensation be paid to ladiaa; construc-

tion of railroa! is clearly sot sufficient ww

acquire a right-of-way under the 1809 act

25 U.BC.A. § 812; General Railroad Right

of Way Act, 6§ 1, 4, 5, 43 UBCA. §§ 984,

987, 038.

28. Indians o= 13

The 1800 uct granting raliveads right-

;

UNITED STATES v. SOUTHERN PACIFIC TRANSP. CO.

679

Cite an 643 F 34 676 (1978)

tary of the Interior's approval, 25 USCA.

§ 312

21. ludians @ 15(2)

Where railroad’s predeccasor construct-

ed railroad through Indian reservation be

tween 1880 and 1882 following segotiations

lures Uy ith }diane and peyment uf com-

pensution and the agreements were later

“approved” by the Commissioner of Indiana

Alfaurs and the Beeretary of the laterior

before submitting the same to Coagress for

ratifwcation, whieh never occurred, the

right-of-way was not ecyuired under subse-

quently enacted 1899 act, since railroad’s

fuiled to comply with the requirements of

act and the regulations thereunder. 25 US

CA § 314

22. Indiane @- 12

Under 1888 ect granting railroads

right-of-ways tareugh Indian reservations

upon compliance with act, including pay-

ment of coumpcesation to Indians, compen-

sation should be determined as of date of

grant of right-of-way. 2% USCA. § 814

23. Indians @= 13

The 1902 egt providing for ceding of

nonirrigeble lands within ladian reserve-

tion which were then open to public settle

ment “under existiag awe,” as implemeat-

ed by the cession agroement and presiden-

lial proclamation, constituted special statu-

lury exception te bread exclusion of Indian

rearvations from application of 1875 act

granting railroad right-of-ways through

pulle lands Lut exeapting Indian reserve-

Lions, and applied to the ceded lands within

reservauion, and eines reiiread had siready

Lecn constructed whea cession became ef-

fectiwe « rightof-way was obtained

through the carled lands wader the 1876 act

al time of seamtoa. General Hailruad Right

of Way Act, $4 1-4, 48 UBCA. §§ O84

SUY, Act May 37, 1902, 32 Seat 260.

2. Indians @ 13

l9ud eonntea ef noaurigable lands with-

1m Inches reservetieas pursusal to olalute

sitered beendectes of reservation se that

eeled lands wave a0 longer within the lim-

‘le of (he reservation and thus available fer

failrvad nghtef-way great under 187) act

granting railroads the mght-of-ways

through vullic amis bul capresely excluel-

ing ludian reservations General Raslroa!

Right of Way Act, §§ 1, 5, 43 USCA

§§ O34, UR, Act May 27, 1002, 82 Stat. 261,

Indian Genera! Allolment Act, § | ot seq,

BH USCA. § 33! ot sq.

26. Indians o 10

Where United States holds land in

trust for the Indians, the Indians should

reesive benefit of compensation for right-

of-way granted just as Ubey receive com-

pensation for land taken by settlers.

26. Indians 12

Where Indiana had been paid in full fur

coded nonirrigalte lands within boundaries

ef omgina! ruscevation and the cued lands

were neither hell in trust for Indians nor

reserved for other purpuses in connection

with Indian service, the 1808 act rulating to

railroad right-of-ways through Indian res-

ervationsa shoukd not apply simce the lands

were “public lands” available for right-of-

way grents under the earlier 1875 act

General Railroad Right of Way Act, $$ |- 6,

42 USCA. §§ 984-859.

37. Public Lands = 93

Railroad nght-of-way mey be obtained

wader the 1575 act graating railroad rights

of-way through public lands by comstrucloa

of the railroad without any filing of maps.

General Railroad Right of Way Ast, § 5, <8

USCA. § 938.

28. Indians @12

Where agreements betweea railroad

aad Indians reapocting railroad rightf-

way through Indian reservation were inef-

fective to grant right-of-way to railruad, s

license could not be inferred as an implied

in-fact contract because of failure of rail-

road to comply with slatules governing con-

tracts with Indien Uribes and aa implicd-in-

law license could act be inferred since to

confer cunsiructive hosase would rua coun-

te be invalid. % USCA. §% S81, &, IT);

Aat July 22, 1700, § 4, 1 Seat 128

650

29. Indians o> 15(1)

License cannot be inferred from the

alleinpted granting of an easement in vio-

Intion of statute generally prohibitiag indi-

viduals from ecquiring lands privately from

indiens. % USCA. § 177.

Yvonne T. Knight and Daniel H. lerael

(both argued), of Native American Rights

Fund, Koukles, Cole, for appellants ia 14-

3554, for appellees in 75-1080.

John Zimmerman, Atty. (argued), of U. S.

Dept. of Justice, Washington, D. C., for

appellant in 75 10M.

Donal! Oskley Key (argued), of Keat-

fiwid, Cul, for appellees in 74-8888.

Before GOODWIN and WALLACE, Cir

evit Judges, aad WILJIJAMS,* District

Judge.

WALLACE, Circuit Jedge:

This case arises out of a coafroatation

between the “manifest destiny” of the

westward movement ef American civiliza-

tion and the rights ef the aative American

Indians to their lands, It raises important

issues of Indiana law gad requires the inter-

pretation uf a century ef Indian aad publis

land policy

1. These claims ere not barred by the

Matuic of buwtations, 28 U.S.C. § 2416;

lau Grande Vand of Milesten ladiane v

\. berigatwa Datrict, 314 F.24 446 (tm Cis),

denied. 423 U S. 674, 06 B.Cr. 143, 46 L.Ed 2d

106 (1¥/5)

% The clase wee cartified

2KUK IME), Fed B CivP

S43 FEDERAL REPORTER, 2d SERIES

Southern Pacific and its predecessors since

1882 It is now alleged thal the railway is

and has always been a trespasser.’

The Tribe and a class of individual allot-

tece* of land traversed by the railway

brought suit eccking, among other Uhings, «

declaration that the 1880 and 1882 agrce-

meats granting Southern lacific's predeces-

sor the right-of-way are woud and thal ihe

Indiane own the right-of-way, a permsacat

injunction aguinet fulure Wespees, money

damages for (trespass and punitive damages.

The United States instituled a second suit

in ite own right and on Lehalf of the Tobe

and lows secking to quict Lille We the

right-of-way in the United States for their

use and benefit, ejoctment,’ and damages

for trespass. The district court ordered the

twe actions cunsolidated. The theory of

both suits was that Southern Pacific and its

predecessors nevor obtained a valid right-

of-way through the resorvation.

{1} The district court granted a partial

summary judgment fur the Indians and the

United Statca. 1t ruled that Southern Pa-

cific did not have a valid easement for the

railway or adjoining Wwlephone and tele-

graph lines but that it did have a license for

a railway from the time the railroad was

constructed in 1882 Ww the filing of the

complaint in this suit Tho trial judge

certified the partial summary judgment as

appealable pursuant to 23 U.BC. § 120a(b).

The Tribe and alloitces aad the United

States appealed and we exorcised our die

This change of position by the government cun

cores us. We cannot be ublivious to the fect

that Unie ratiruad line services @ United Sistes

should be examined by the @istrict court on

semead =

& The trial jucdye heid that there wes o genuine

tseve of fect a8 to whether (ne license extendrd

to the ielepie me and iciegiaph lines fe aunde

mw Ramage on danages ku the pertud efter the

filing of the cosngdainis aad before the eniry of

jeg seret of on the prupwisty of ea tajunc tion,

ejectment os ciher relief Theses weues were

reserved fur tel

UNITED STATES v. SOUTHERN PACIFIC TRANSP. CO.

681

Cite an 643 F 2d 676 (1976)

cretion to cnlertaim the appeals’ We re

vorec the decision on the claima of the class

of allottces and remand with directions to

dwnuss for lack of jurisdiction unless an

alternate ground for jurisdiction can be

found. We affirm im part and reverse in

port the belding that Southern Pacific nev-

er scquired an easement, and reverse the

finding that it had « license.

1 Pactual aad Procedural Background

The Walker River Reservation was for-

mally established by executive order of

lresent Geant o@ March 19, 1874 On

April 13, lanO, in consideration of the pay-

ment of $250 and a promise of frve trans

portation for the Indians and their pruducts

slong Une railway as long as the railruad is

operated Lbrough the reservation, a special

counci! of the Tribe orally granted D. O

Mille and Associates, later incorporated as

the Carson & Colorado Railroad Company, a

right-of-way through the reservation. On

January 6, 1881, the Carson & Colorado

fied maps ef definite location with the

lepartineat of tae Interior seeking thereby

\o obtain a mght-ef-way under the General

Maslrvad Right ef Way Act of 1876, ch. 152,

1S Stat 482 (codified at 43 US.C §§ 83-

tary on January @, 1881.

sctually constructed in 1831 and 1882

On August 9, 1@R2, the Carson & Colora-

do entered jeto s written agreement with

the “chiefs, headimen and beads of a majori-

& lke disirict judge originally found no just

aapra

eh

Hie

haut

fe

it

fit

Ai

ty of familica” of the Tnbe Although re-

citing Uhat the Carson & Colorade believed

that “it had honestly and in gud faith

complied with all legal requirements” foe

obtaining a nght-of-way across the reserva-

tion, the ayreement granted a right~f-way

for the railroad “aa now constructed!” in

consxieratiwon of the payment of §/, a

promise of free transportation, and certain

additional promises, The agreement was

expressly made subjoct to final ratification

by Congress Although four bills were in-

trodueed for that purpose, Congress never

ratifie! the agreement

In 1902 Congress acted to enable part of

the reservation to be opened to settlement

& serics of statutes and an agreement

allotments of irryable lands and cash pay-

mente were made to individual Indians,

tribal grazing and timber lawis were set

aside and the Indians “cede{d)

and relinguish{el| wo the United Sistes ail

right, title and interest” to the remaining

lands in the reservation In 1906 the relin-

quished lands wore opened by presidential

prociamation to esliloment “subject tu dis-

posal under the existing laws of the United

States’ In 1925 the Central Pacific Mail-

way Company (successor to the Carson &

Colorado and predecessor of Southern Pa-

cific) filed amended mays of definite loca-

tioa with the lepartment of the Interior

for the stated purpose of obtaining the ben-

efits of the 1X76 Act These maps were

approved in 1926. Part of the ceded lsads *

were restored to the reservation in 1836.

ead of Southern Pacific are new before us As

we interpret the Gistrict judge's order. the ie

sues that should br decided now are ihe same

es those which were belure us on the ianial

appeels, in adutiwn, it ls necessary ww deck

the tsnues raised Dy Suuthern Pacific in osder

Pruperty to disp» ee of tLe issues reiecd in these

spyesis Dy the Trite end ailotiess and the Una.

od States

@& 1 C. Kappler, Indien Affause Loews end Tree

ties BBB (2d ed 1904) We have held tha the

(OSSTV etka: wes OC ually eelebhemdd Ly sche

tetsotive action in 1688 Uinued Sietes ȴ Welk

or River rigstiwn ius. 104 F ad 334. 338 (mA

Ce 1058)

%. Seep 63 war

682

The tre.pas claime of the Tribe and al-

luttces and the United States relate to 60.47

miles of Southern Pacific's railroad line.

This chali:.gucd segment represents the

part of the line within the original 1874

executive order reservation boundaries.

Alter the lyue ceason and allotmeuts, 25.72

miles of the line crossed ceded lands, 17.75

miles traverse! tribal lands and 7.0 miles

intersected allotted lands. Lands contain-

ing 13.25 miles of line were restored to the

Tribe in 1956

ll. Jurisdiction of the District Court

The district court had juriadiction over

the Tribe's claims pursuant to 28 USC.

§ 1362 and over the cisims of the United

States pursuant to 23 U.S.C. § 1845. Nei-

ther statute reyuires aay minimum amouat

in controveray.

(2] The district court found that it had

jurisdiction over the claims of the class of

allottees pursuant to m@ USC § 138),

ceeded $10,000 “per plaiatiff,” but Southern

Pacific challenged this allegation in its op-

position ww the plaintiffs’ mation for sum-

mary judgment This challenge was time

ly, Fed. RCiw P. 1ah8), aad shifted the

burden Ww the allottess to show that it

not appear to a legal certainty that

claims are fur leas than the

amount. Gibbs v. Buck, US.

S.Ct. 725, 83 L.Ed. 1111 (1088); Saeiat Paul

Mercury Indemnity Ca v. Red Cab Ca

U.S. 288, 284 49, 68 BOL $88, 88 LEA

(1938). '

does

ther

& WUSC § 1582, which would hove grovidsd

portale int ovhwet regand te omeunt mm com

(revere, hw e out Dy a bedien Tribe wes ant

“tis PEDENAL REPOUTER, 2d SERIES

tional defects sua sponte. Mansfield, C &

LM. Ry. v. Swan, 111 US 379, $84, 45 CL

610, 28 I. Ed 462 (1884). We conclude that

the district court erred in aggregating the

allotices’ claims to determine whether the

jurisdictional amount requirement was inet

The claims of Uc claw of alloticcs bevel

therefore Le dismussed unicss it appears to

the district court on remand that there is no

legal cortainty that the claim of cuch allei-

tee does not exceed $10,000 or unlecas some

alternative j@Pisdiclional base can be

found.

(5) Class members may aggregate Urir

claims to satisfy the amount in controversy

requirement only where their claims are

“joint and common™ and not “separate and

distinct.” Zaha v. Internativnal l’aper Co,

44 US. Bl, We Hw SA MS SB

L. d.2d 611 (1973); Sayder v. Harr, 904

U.S. 832, 886-87, #9 S.Cr. 1063, 22 L Ed Qi

819 (1960) The district court aggregated

the ailottecs’ claims solely ou the authority

of Skokomish Indian Tribe v. Frasce, 30

F.2d 656 (#ih Cir. 1960) The Bkokomish

Tribe claimed certain tidelands unde a

treaty and executive order The Tribe

brought « trespass and quiet Ulle action

against a number of defendants whe

claimed adverse interests in the lands Jur-

lediction was asserted under 2% USC.

$ 1831" The complaint alleged that the

juriatictions! amount requiremeat wee met

but there was no allegation that the re-

quirement was met as Ww each defeadant

We concluded that the claims ageiast the

various defendants could be aggregated aad

UNITED STATES v. SUUTTIIERN PACIFIC TRANSP. CO.

683

Cie om 143 F 26 678 (1878)

liable to the Tribe® But whatever factors

may have dictated that conclusioa are clear:

ly not iavolved hare. Our case is contrullud

by Potrero Hid Community Actioa Commit

tee v. Housing Autherity, 410 F 2d 974 (9th

Cir. 1966). There, a clase of lenunts in «

focally financed, ow-rent housing project

sought a judgmeat directing local euthori-

lus to make improvements allegedly re

quired by terms of the tenants’ leases and

of the financing agreement with the federal

governinent. Jurisdiction was asserted un-

der @ USC. § 1831, but the minimum

amount in coatroversy requirement could

be satisfied only if the claims of the indivudl-

ual tenants wuld be aggregaled We said

thal aggregation ia proper only if the ten-

auts’ claims “derive from rights which they

hold in group status.” 410 F.2d at 978 In

spite of the commen questions of law and

fact involved, we then cuncluded that “their

rights appear lo arise oaly from the status

of each as individual lessee of a portion of

the project,” id, and therefore the claims

could nut be aggregated. See also City of

Inglewood y. City of Les Angeles, 461 P 2d

G45, 963 (Oth Cir. 1972); Alfonso v. Hiliabor-

ough County Aviation Authority, 08 Pad

724, T26 Z1 (Sth Ole. 162)

(7,8) This aealpels preduses a similar

result here. Although the allottecs’ claims

present commana questions of law aad fact,

their rights lo euclude Wrespessers are not

held in any group status Allotments of

tribal lands are made to the individual |adi-

ans “in severalty” and “ia trust for the sole

use and benefit of the Indias to whom such

®. The test for aggregeting Claime of one plain

multiple plaintiffs ageinat ome defendant the

plaints claims against Une defendants must

be cummeon and undivided so Unal (he defend:

ants lsbaity ie join and act several Waker

v Northeastern RR, 147 US. 370, 373-74, 13

SCi 348,37 L.Ed 208 (1883, 14 C. Wrigm, A

Miler & & Cooger, Federal Practice ead Proce

Gure § 3704, at 417 (1878)

1@ See D Cris, The Dawes Act and the Alici-

Ment of indian Lands & 1@ (1873), reprinced

wih munor changes. from Hearings on HR

7902 Before the |ieuse Comepitias ca indian

allotment shall have beea made ke

Genera! Indian Allotment Act of 1587

(Dawes Act), ch 119, $6 1, 6, 2% Stat Set

89 (codified at 25 USC. §§ 881, 84s) The

primary purpose of the allotment policy was

Ww break up tribal life aad encourage Lud}

gua to live indija adeully on their own indi

vidual lands Each allottse has the “full

possemsory right” to his allotment, whick

becomes an aleolule right of ownership

when the trust period expires and fee pat

ents are issued =F Cohen, Handbook of

Pedera! Isdian Law 20 (Univ. of NM.

Press reprint of 182 «d) Thus we cow

clude thal, as in Putrerv Lill, the stlottecs’

rights “arwe only [rom the satus of each as

individual | Hotice) of a portion of the [roe

ervationf and thew claima cannot le

agyregated for purjuecs of saliafying be

juradicbenal amount

The allotices argued in the distinct court

vy. Narragansett Kacing Assccisison, 414

F.2d 311 (let Cir. 1966), cart denied, sué

US 1087, © SCt 62 2 LEd2c tH!

(1970), Bass y. Kockefelier, 331 ¥ Supp. 94d

(BD.NY), vacated as moot, 464 F.2d 1500

(ad Cir. 1971) To whatever extent those

decisions would produce s differsat resuk

agyregelud, Zeha ¥.

Co, supra, Sayder v. Harris, supra, and

the Potrero Hill decision in our creuit.”

Affains, Tid Cong. 26 Sees, 8 wt OS

(1a)

i. There is elec on argument that the rule of

cor (OK2) showld sutomatically quality fa

tnat there is “ttle Rope” for (Mis argument to

prevail in light of the Court's “unswerving ad

nerence” im Zahn and Snyder to the radeticas

654

{9} Thus we conclude that the distriet

court erred in holding that the allottees’

claims could Le aggregated for purposes of

satisfying the juriadictional amount re

quirement. Wo therefore reverse the deci-

sion ws W the cluims of the allottees and

remand with directions to dismiss unless the

district court concludes that there is not a

legal certainty titat the claim of each allot-

twe dota nut excoed $10,000 or unless juria-

diction exists pursuant to some other stat-

ule which does not require a minimum

amount in controversy.”

Ill. The Coutentions of the Partics

The Tnbe and the United States object to

the district court's conclusion that Southern

Pacific and its predecessors enjoyed a

leense and that uatil its revocation by the

filing of the complaint io this case, it had a

right to have its railway run through the

reservauion. However, whether Southern

Pacific had « license is immaterial if it in

fact hud = valid easement and so we are

firet called upon to disouss that issue.

{10} All parties agree that Southern Pa-

cific did not obtain a valid easement for

railroad right-of-way by virtue of the 1880

and 1652 agreements alone. At the Ume of

those agrecments, § 3116, Rey.Stat (now 26

U.S.C. § 177) (hereinafter referred to as

“section 177”), provided in pert:

No purchase, grant, lease, or other coa-

voyance of lands, or of any Uile or claim

theretu, from any Indian nation or tribe

of Indians, shall be of any validity ia law

or equity, ualess the same be made by

treaty or eoavention entered into pursu-

ant to the Constitution.

of members of @ Rude 23(b)\(2) ciass could act

be aggregated. 410 F.2d at 876, 978.

12. The Tribe and aliatiees moved wo amend

their complaint in the Uriel court to assert juris

diction of the allottess’ claims uader 25 U S.C.

$ 345. The disrict coun emp never

ruled on this motion, the decisés

judgment nated thes tn tight of the court's con.

clusion that jurisdiction existed under 28

USC § 1331, the issue of jurisdiction under 25

USC § 5 need not be reached We decline

tw consider af this time whether jurisdiction

migm be proper under 26 USC § 3450 On

femand, he ladjase will have an opportunity Lo

S43 FEDERAL REPORTER, 2d SERIES

The 1840 and 1482 agreements purport to

convey a claim w Indian lanisa from an

Indian tribe and are therefore invalid under

section 177.

But section 177 is not applicable to the

severvign United States and Congress cleur-

ly has authority to deal with Indian lands.

See Federal Power Commission v. Tuscaro-

ra Indian Natio. 362 US. %, 11% 24, #0

8.Ct. 648, 4 L.Ed.2d 684 (1960). Southern

Pacific thus argues that it acquired « right-

of-way pursuant to certain acts of Con-

gress. Firat, it claims that since the Walk-

er River Reservation was created by execu-

live order, it acquired @ right-of-way umice

the 1875 Act by Ming mapa in 1881. Even

though the 1875 Act is expressly not appl

cable to “any Indian reserva-

tion,” § 6, 16 Stat. 483 (48 USC. § 938),

Southern Pacific argues either that the Act

does apply to executive order reservations

or that the ruservation was terminated to

the extent of the right-of-way by the ap

proval of maps. Second, Southern Pucific

argues that it obtained a right-of-way fur

the railroad «3 constructed through the rca-

ervation under the Act of March 2, 1899, ch.

874, 80 Stat. 990 (codified at 26 UBC.

$4 812-16) (hereinafter refurred w as the

“1889 Act") upon Une Act's passage in 1899.

Finally, Southern Pucifie argues that it

obtained a right-of-way under the 1876 Act

through the lands ceded by the Indians to

the United States and opened by the Presi-

dent tw disposal under the public land laws

either in 1926 when amended mays of loca-

tion were approved or im 1906 when the

lands were opened to settlemeat.

amend thew complaint, 28 U.S.C. § 1653, and

the district court should have the firs opportu-

aity w consider (he issue.

We note that even if the district court does

not have juriscdkction over the class action by

the allotices, (he Linked States has raised sient

lar Wespass clans with respect to aillotied

tands, although is seeking somewhat differ-

emt relief The cuurt has jurisdiction to deter

mune the claims raised by the United States and

the United States hes the capectty to sue fur

the prutection of sliciied lands) Heckman ¥

United States, 224 US. 413, 32 6.Cr 424,

Led 620 (1012)

UNITED STATES ¥. SOUTHERN PACIFIC TRANSP. CO.

GAS

Cire we 43 F 26 668 (1878)

We rcject the first two of these contcn-

tose amt affirm the duirict court's hokling

that Southern Pacific dues not have @ com-

picte ecospment We reverse the district

court im part, Bowever, and hold thai Sowth-

ern Pacific Bas @ valid easement Unrough

tee lands ceded im luU6.

Alter determining the threshold issue of

ecascment. we must next decide whether

Southera Pacific had a license The Tribe

and tbe United States argue thal section

177 forteda inferring a license from the

iss and 1882 agreements and allendant

curcumetasces We sccept thus contention

aad reverse the dusirict court's holding that

& iceoee should be inferred.

1V Kught-of-way Under the 1875 Act

The 1875 Act mw a genera! slalule grast-

me & mghtef-way “ihrough the public

lands of the United States” to any railroad

company which files its articles of incorpo

ration and proofs of its organization with

the Seeretary of the Interior. Ce. 162, § 1,

1S Stat 468 (43 USC § 634) There is also

& prowmes for the filing of maps of its

route Jd § 4 18 Stat 483 (48 UBC

§ #07) Sewthers Pacific claims to have

complied with (hese requirements Indeed,

the Tribe and Use United Sistes admit that

ime Secretary of the Interior approved the

requisite certifieates and a map of the rail

road in LSS].

The Tribe aad the United States argue

thet Sowthern Pacifie did not acquire a

mghtof-way by virtue of this approval,

however, since the 1875 Act expressly does

sot apply “Lo any lands within the limits of

any . lndvan reservation, :

votens gush right of way shall be provided

for by weaty-stipulation or by act of Con-

grease heretofore passed.” 4 Jd § & (48

USC. § su All parties agree that no

wen WealpeGpulation or act of Congress

ti9u

Sowthers Pacific has two closely related

reaponsen §=Pirst, it argues that “Indiana

reservation” as used in the sistute refers

only Wo reservations cxtablinhed by treaty or

Slatule aud nut bo reservalions cstaldwhed

by excculive order, therefore, the 1X76 Act

dues apply the Walker River Reservation.

Second, Southern Pacific argues that even

if the 1875 Act does not apply to cxceutive

order reservations, the eppruval of wap. Ly

the Seeretary of the Interior had the effect

of terminating the reservation by the Bxec-

wlive to the extent of the right-of-way

shown on the maps so thal the 1575 Act

then can apply lo grant the railroad a right

of-way through the terminated part of the

reservation Both of these arguments are

based on the special leyal status of Indian

reservations create! by exzeculive onier

Befie examining the argumenu, the sls-

tus of this type of reservation shuwld be

clarifieg

A. Special Status of Executive Order Kes-

ervauions

The historic foundations of Indiaa law

are imsiructive. In the era of colonial impe-

maliam, the Eurupean powers agreed “that

discovery gave tile Ww the government by

whose subjects, or by whose authority, it

was made, against al] other Eurupeas

governments, which Uthe might be consuin-

mated by possession” Johason vy. Meln-

tosh, 21 US (8 Wheat) 543, 678, § L.Ed

631 (1823) While the natives rotained the

right to occupy their aboriginal lands, title

and domiuion were im the discoverer who

had the exclusive right Ww extinguish the

indian Utle by purebase or by conquest.

The United States has recognized these

principles and has always asserted the

myhts originally sequired by the European

powers by discovery. Id at 572-74, 687-49,

& L.Ed. 68).

{11,12} The earty practice of the United

States was to deal with the Indians by

Wreaty Great tracts of Indian lands were

purchased and the Indian tribes ware grad-

wally moved westward. Even though Indi-

an rights to possess tribal lands might be

1h Whee co@fied the ure “passed prier to March 3. 1875" was substtuted for “heretofore

pesced~

686

guerantced by treaty, Congress retains ple-

Mary authority to control the use of such

lands, to grant adverse interests aad to

exUinguish Indian tithe completely See Co-

hen, Peceral Indian Law, supra, at 94-96.

Abroyaton Of Indiwa treaty rights is nul

hghtly inferred from congressional acta,

however. See yenerally Wilkinson & Volk-

man, Judicial Neview of Indian Treaty Ab-

rogation’ “As Long as Water Flows, or

Grass Grows Upon the Earth”"—How Long

# Time Is That?, 63 Calif.L. Rev. 601 (1975).

Abrogation of treaty rights is aleo subject

to constitutional limitation—such property

rights cannot be taken without payment of

just compensation. United States v. Creek

Nation, 25 U.S. 108, 110, 6 SCr 61,

L.Ed. 1351 (1935)

In 1871 Congress banned any further use

of the treaty power in dealing with the

Indians. Act of March 8, 1871, ch 120, § 1,

16 Stat. 566 (codified at 2 UB.C. § 71)“

After the period of weaty-making, much of

the reaponsibility for reserving parts of the

public domain for Indian use shifted from

Congress to the Executive. Although Indi-

an reservations had been created by execu-

tive order as early as 1855, see Cohen, Ped-

eral Indian Law, supra, at 299, the authori-

Moet of these doubts have sow beea re

solved. The Supreme Court has held that

Congress delegated to the President

power lo reserve public lands from disposi

tion under the publie land laws for Indians

4659, 85 S.Ct. 408, 50 L.Ed. 673 (1915); one

Grisar v. McDowell, 78 UB. (6 Wall.) 868,

Comsituen (art. I, § 2, cl 2) to rauty weeties

See Antoine v Washiagtua, 420 US 184, 202,

$5 S.Ct 844, 43 LEd 3d 129 (1878), & Tyler. A

tlistory of ladies Policy 79 (1873)

S43 FEDERAL REPORTER, 2d SEKIES

381, 18 1. Pd 463 (186K) The courts hove

held thal a8 lony as oA cacoulive ortler

creating « reservation romains in of fect |

lmlian Wthe Wo the roservelion lands de-

serves Um samme prulechon as Use Indian

Hille to icetfvetivns cicaled by treaty

Slatute Spalding v Chandier, 1% US

904, 04, 16 SCL 360, OW LEd 4 (1896).

Gibson ¥. Anderson, 181 Fo &, 41 42 (Yh

Cir, 1904), McFadden vo Mowalain View

Mining 4 Milling Co, WI ¥. 670, 673 (oth

Cir, 1899), rev'd un otber gruundas, 180 U &

638, 21 S.C4. 4h, 45 L.Ed 656 (1901) Con-

grees ales, at least in practicon, has not du

criminale! agninet cxzeculive order renerva-

twas, Sew Note, Trilal Property later: sts

in Maoeulive-Order Keservationss A Com

pensable Indian Kyucht, @ Yale LJ 627, bi

(1960)

One distinguuhing tea ture vf Indes

rights in executive order reservations has

appeared, however Before Congress pro-

hibited fulure changes im Indian renerve-

tions by executive order,” « was common

practice for the Presidest lo terminate or

reduce in ste execulive order reservations

without payment of compensation See 4

OpAlly Gen. 151, 186-89 (1924) The leyal-

ity of thus practice was finally settled when

the Supreme Court held that although Coa-

gress hai delegeied to the President tie

power lo creale reservalions, it bad never

dolegated thu power lo confer cuinpensable

property interests in the Indiana Shows

Tribe of luciana v. United States, 316 US.

$17, 026 26, 64 BC. 1006, 86 LE 1H)

(1942). There the Court found no congree

sional recognition of the existence of com-

pensable (rihel property jaterests in a reser:

vation created by excoutive order in 1475

and Larmioated io 1HH4 It Unerefore bold

that no right Le compensation eristed upoo

Une termination of such & reservation. /d

at 831, 62 SOL 1006.

1& The (restion of mew executive order reserve

ous wes protutied by Uwe Act of June WO.

1918 ch 4 6 27, 4) Seat 34 (ccebfied ot

USC § 150) amd «henges in Une Benendasios of

sour reeer s by eaeculive wer wert

prubiiaied by the Act of March 3. (827. ch 298%

6 4, 44 Stet 1347 (covehied & 25 USC § 388d)

UNITED STATES vy. SOUTHERN PACIFIC TRANHY. CO.

687

Che os 143 20 676 (16/6)

Although it has been argued Unat in 1927

Congress recognized compensable tribal

property Wteroala in executive order reser-

vations, se Note, Tribal Property Interests,

supra, 6 Yale LJ. at 687, none of the

parties contend that Congress had recog:

nivel any euch rights of the Walker Liver

‘Trike Ww ite reservation a of 188] wheo the

railroad was conatructed.

[13) Thus, the statue of executive order

reservations can be summarized as follows:

the Indians have the exclusive right lo pos

session but tithe to the lands remains with

the United States. Congress has plenary

authority Ww control use, grant advorse in-

toreste or extinguish the Indian title, In

theme renx cla, execulive order reservations

du not diffur from treaty or statutory rescr-

vations. ‘The one difference is that so lung

as Congress has not recognized compensable

interusts in the Indians, executive order ree

ervations may be terminated by Congress

or the Exeeutive without payment of com-

pensation. Ie light of thie background, we

now ture te the specific argumeata ad-

vanced by Beuthern Pacifie :

B. Does the 1876 Act Apply to Executive

Order Reservations?

(14, 16) The first issue raised by Bouth-

ern Vaclfie fo a matter of statutory con-

struction whish le easily resolved ia favor of

the Indiana. Bauthern Pacific asserts at

the owlest that the 1875 Act should be

erally construed o effectuate ite pur-

jose © Great Northern Ry. ¥. United

States, $16 UB. 282, 272, 62 B.CL 629, 66

L.Ed. 886 (1942); Great Northera Py. v.

Sivinke, 261 UB 119, 184, 48 B.CL. 816, 67

l..had. 664 (1888). Binee, however, the spe

cific provision in question ls an exclusion of

Incian reservations from the “public lands”

available under the statute for railroad

rights-of-way, a different rule of construc

ton come inte play: statutes enacted for

the protection of Indians must Le broadly

construed in the Indians’ favor, See Ao-

twine v Washlagwa, 420 U.S. 104, 190-200,

16. See note 13 supra.

95 SCL 044, 43 Lal. 2d 128 (1975); Morton

vy. Kuia, 415 U.S 199, 236, 04 8.08 1055, 39

L.Bal.zd 220 (1W74), After exanining the

language of the IM76 Act, ita legislative

history and the interprotations placed upon

it by Congres and the Departmant of the

luterioe in the byght of this rule of wunsrue

tion, we conclude thut Congress intended to

exclude oxecutive order reservations from

application of the Act.

The 1876 Act, by ils owa teria, doos “not

apply to any lands within the limits of any

, Indian reservation, un-

leas such right of way shall be provided for

by troaty-stipulation or by act of Congruss

heretofure passed" Ch. 162, § 6, 16 Stat

443 (45 U.S.C, § USM), The exclusion fiom

the Act of any Indian reservation obvivusly

must include executive order reservations

Southern Pucific points to the “treaty aliyu-

lation or hy act of Congress heretofore

passod” language as limiting “any

Indian reservation” to treaty or atatulory

reservations, Hut Southern Pacific has Lak-

en the phrase completely out of context.

The phrase appears in the clause “unless

such right of way shall be provided for by

treaty-stipulation or by Act of Congress

rad ” Manifestly, it le the “right of

way” and not the “Indian reservation”

which must be provided for by treaty or

prior act of Congress.

Southern Pacific next elaime that the ref.

erence to treaty-stipulation or prior act o/

Cungross at lenst creates an ambiguity

since “by definition, as w exocutive order

reservations, Congress would not have

‘horetofore paseod’ legislation.” This sug-

gestion le without merit. While it ie true

that Congress by definition would not have

“heretofore passed” legislation establishing

executive order reservations, it does not

follow that Congress by definitwa would

not have “heretofore passed” legislation

granting rights-of-way across such reserva-

tions, While we cannot cite esamples of

such logisiation passed before 1875," there

17. Most of the large western executive order

reservatiuns were not created until after ia7i

See | Kappler, supra note 6, a 601 094

688

are numerves creampies of such legulaton

enacted after 1876. Thus the language of

the slatule in no way inconsistent with «

congreawonal intent Wo exclude el) Indus

recervetoan, ineudiog caveulive order ree

ervulions, [rom spplcauen of Une led Act

Even if we were conclude thal the

1875 Act « ambiguous on this poist, how-

ever, our examination of the legislative hw

tory of the Act and Une subsequent later-

pretatwns of it by Congress and the De

partment of the Ipteror kads us W con-

tlruc it as not applying lo cacculive order

reservauons The mauve was extensively de-

belid wn the floor of the Senate. The

original Senate bull did not expewealy exerps

Indian rescrvations from its applicalica.

When such on amendment was offered, sev-

eral Seuuluee obpetted, contending nal be

cause of (he great extent of eascy live order

reservauons in Une territories aad Une “fugi

live and floating” sature of ladias proper-

ly mgnhle im ewok reservations, a blanket

prohibilion ef right-of-way graats \hrough

these reservalions Would unnecessaniy im-

pede raiiroad development im the unsetiied

West Thus Seater Sargent offered as

allernalve amendment which would have

allowed (he Bearetary of the laterior We

approve nghlof-wey grants Larough exece-

live order reservations, 2 Cong Rec 2088-

ew (1874).

The views represeated by this proposal,

however, faded te carry the day The oppo

ions response was Unal even Uhough (he

federal guvernment may have lhe power lo

Lerminale an exoouUive order reservation or

sancliwn an invasion of such @ reservation

by « raiiruad, \ wowld aot be wise lo do so

as a mathe of polcy jd at 2900 (remarts

of Senatuc Hamilwea)

1& See ne 20 nifre

18. See 5 Faec Moc No l7, 4th Comg. it Sena

4 5 (ie85) The Commmntassoner of indian Al-

laws wae Wo Une Becreury of he interes on

Lecenser 4, (882:

Se.uee 5 of the [1875 Act) eupressly ex-

COlueg Inen teserveuces ents

hah git of wey shall be provided for by

Uesty “iyelauems of by act of Congress

heretutue peseed.” ead ao week provision

Deimg coleoi um (he Case of the Wadher River

M3 FEDERAL REPOKTEN, 24 SERIES

These it appears thal the problem of exec.

wlive order reservaluns was explicilly

browg ht Lo the alleution of Congress in the

debates leading to the 1876 Act. The Aci

was nevertheless phrased 66 as nol lo apply

Ww “any lodian reservelwn” 1.

is therefore not open to Southers l’acific w

argue nat the purpose of ihe Act would Le

better effectuated if it dal ajyly Wo execu-

uve order reservalwns (hal iseue was re-

solved againat Southern Macifie aud in fa-

vor of the Trike by Congress in 1#76

This conmairuction of the Act ie consitent

with (he trlerpretalwn placed upon it hy

Une Secre leary of Une Interwor Contrary te

Sowthern Macifu's argument Uset the be

partment of the lotecwe bee slways con-

sxlered Une Secretary's approval of maya in

sl as coeferring « veld rightol-way un-

der the 1875 Aci, the Secretary of the Line

comaderud (he approval of maps a mistake

As soon as (he fact Lhal the railroad crossed

the Walker River Reservation was brou,hi’

we the Secretary's allention, he directad

Unal a8 agretmen| belween the Indians and

railroad tw drawn up and submitted to Cou-

gress for ralifeatos.” To thie day the

Bureau of Indian Affairs has no record of

any grant of « mgbtof-way under a treaty

or comvenUice pursusat lo % UBC. § 177,

or under any Other congreesioaal act, gencr-

al of special.

The construction of the LETS Act adopted

here «@ also comment with the inlerprets-

on of Une Act apparently accorded Ww it Ly

Thus in the years after passage

of the 1#76 Act, bul before passage of the

1699 Act generally granting railroad rights

of-way acrom Indian reservations, Congress

passed o number of special statutes grant-

ing mghteecf-way lo apecifie railrunds acruse

specific saeculive order reservations”

Reserv aiion («Mech was creaied by

sancwllve Order), K appeared Ww this offi «

thet (he eutharty WO greet «@ right of wey

Unrewg? Une reservation rested in Congices

noe

kd a 4) The Secretary sgreed and imsirucied

the Ikan offee Wo ottamn an agreement fu

whee Wy Congres id

Bg. Act of Augum 5, 16M2. ch 306, 22 Sime

758 (gm of wey ecruss the Payego Keservs:

UNITED STATES v. SOUTHERN PACIFIC TRANAP. CO.

689

Clas an 043 ¥ 2d 076 (1878)

That Congress did mot consider the 1876 Act

applicable lo executive order reservations is

made even more clear by a clause in at least

one of thase atalutes to the effect that “all

the provisions of (the 1876 Act] are hereby

declured to be applicable [to the right-of-

way granted by this special slututs] Lo the

auive extent as though the lands in said

reservalion, were open to settioment and

sale” Act of March 6, 1896, ch. 42, 2 Stat.

45 (granting right-of-way across the Col-

ville Reservation, established hy executive

order of President Grant, July 2, 1872, 1

Kappler, supra note 6, at 916). If Congress

considered the 1876 Act applicable ww execu-

tive order reservations, this clause would be

superfluous.

(16) We hold that the General Raliroed

Right of Way Ast of 1876 dows not apply te

execullve order reservations and that the

attempted compliance with that Act in 1881

by the Carson & Colorado and the Interior

Departineat was therefore not effective to

perfect a right-of-way through the Walker

River Reservation.

C. Was the Reservation Terminated by

Approval of Maps?

Southern Pacific's second argument is

more subtle, It claims that even if ihe 1876

Act does not apply lo executive order reser-

vations, it still obtained a right-of-way un-

der the Act when the maps of definite

location were approved by the Becretary of

the Interior in 188). It asserte that the

Secretary had the authority to return lands

reserved by executive order to the public

domain for disposition uader the public land

(lon est ablaned by executive order of President

Great, July 1, 1674, | Kappler, supra acte 6,

605), Act of February 16, 1887. ch 10,

Stat 04 (right-of way across he Fort Berthot

Keservetiva established by executive order of

Viesidem Hayes, July 13, 1880, | Kappler,

ptm, ot OBS, Act of May WO, 1848. ch 336,

Sat 160 (right-of way across ihe Cueur d’Al

tie Reservation established by executive order

of Presiden Grant, November 6, 1873, | Kap-

pier, qupra, et 657), Act of May &, 1800, ch.

tee, 40 Beat. 102 (right-of-way acruee the Col-

Ville Keservetion established by executive 01 er

Of President Grant, July 2, 1872, | Kappler,

supra, of 016), Act of February 16. 16u5, ch.

85, 28 mum sis (ight af-way scross the Sea

lawe and that the effect of the Secretary's

approval of maps in 1881 was to Lerminate

the reservation to the extent of the right

of-way sought. Once the ruservation was

terminated! in the manner, the 1K75 Act

could simultaneously apply W grant the

reilruml the rightol-way sought

(17, 18] We reject this argument We

note that while (he execulive branch han

broad authority to withdraw publi lands

from diepumition under the public land laws

fur the benefit of Indiana and to manaye

the disposition of Indian lends, see [ated

States v. Consolidatld Mines & Smelting

Co, 466 V ds 482, 44% 44 (Bth Cir. 1971),

United Biaive v. Harnedal! Oli Co, i127 Vdd

1018 (10th Cir. 194%), the source of this

Butherity le sungressional acquiescence in

\te exercise. See United States v. Hidweat

Oil Co, supra, 2346 UB. at 472-75, 8 S3.Ci

809; Sioux Tribe af Indiana v United

States, supra, 816 U.B at 826, 62 S.Ci. 1006.

Since the authority ie delegated py Con-

gress, its exercise ean be regulated by Con-

gross. In 1876 Congress granted rights-of-

way to railroads through public lands but

specifically provided that the grants not Le

made through Indian resorvationn This

provision implicitly dealed the Secretary

whatever authority he might previously

bave had to lerminatle an executive order

reservation Ww the extent of & requested

railroad right-of-way merely by appreval of

mapa of definite location. Were we to hoki

otherwise, we would completely subvert the

determination of Congress that railroad

right-of-way should sot be granted

Carioe Givisiun of the Whule Mountain hese: va.

Uon, established Uy esecullve order of Prea-

dem Grant, December 14, 1874, | Keppler, su.

pra, at B12 15), Act of Marek 6 lens. cr 44,

26 he (rigs cf way ecross the Culvi

Reservation), Act of Juwe 4, 1888. ch 377,

Sigs 430 (same), Act ul June 16, ibee, ch 406

475 (seane)

These wccial shatuies typically granted

righs of wey sarrewer than the 100 fee on

each sie of ihe rued greated by the 1675 Aci

(43 UBC § O44) The statutes else typnelly

made wane pi uviemm for oldaiung the hitens’

Cuneent te Cunstruction of Une (ailrued and fur

the payers uf campenesiion

690

through excculive order reservations under

the IK75 Act

We recoynicn Chat even after 1876, the

Presidcnt or the Secretary of the Intenor

could still aller the boundaries of, of even

eatiogur lh) completely, an Gacculive unter

reservation in order lo make way for o

railromd [hut thet cloarly is not what was

Firet, the Secretary's approval

of ninps does not purport lo lerminale the

reservelion The affidavit submitted with

the iaps Ly the president of the Carson &

Colorado recites “thet the maps have been

preparcd W be filed fer the approval of the

Secretary of the Interior, in order that thu

company may vbtaln the benofits of the

(1870 Act)" The Seeretary’s approval le

then nuted on the same page: “Dept. of the

Intwrior, 20th January 1881. Approved, C.

Behurt Bocretury.” The maps clearly \adi-

cate the Walker River Reservation bounda-

ries with no mention af thelr belny altered.

Secundly, the Searetary obviously did not

intend hie epprovel gf the maps to Lermi-

nate the reservation to the extent of the

right-of-way Aa pointed out earlier, he

considered hie approval ef the maps « mis-

take aud instructed the railroad to procure

an agreement with the Indiass te be rat

fied Ly Congress. ©

Finally, even if the Searetary intended to

terminate the reservation, he could nut do

ew by such informal means as approval of

nape subinitted under the 1876 Act. We

have held that ruvesation of withdrawals

frum public land fey reservation use may

not he accomplished “by cireumatances or

procedures leas formal thas those altending

[the withdrawal, or else) confusion would be

encouraged in the field of property law, a

field in which certainty has undisputed ad-

vantages.” United States v. Consolidated

Mines & Smelting Co., supra, 466 F.2d at

406. The Walker River Reservation was

created when the Indiana Commissioner

asked the Commissioner of the General

Land Office Ww respect the reservation in

fulure public surveys aad to direst the local

land offwes to respest. the reservation on

their hooks in the meadtime. Bee United

Biates v. Walker River Irrigatioa Distriet,

dune here

B43 FEDERAL, REPORTER, 24 SEKILS

U4 F.2d 844, 34K (9th Cir, 1980). These

actiuna wore later ratifiuod by exuculive or-

der of Vresident Grant, March 19, 1874 1

Kappler, supra tule 6, at Boe

In contrast, the approval of maps in 1881

Which all yedly trrinated part of the rea

ervution was nut accompanied Ly these fur-

malities, Never was there « directiva to

the General Land Offices Unt the reserva:

tivn boundaries hud leon changed, nor was

there an eacculive order rauifying the act

We conclude that no rightofwey wae ac

quired through the Walker Kiver Reserva

twa under the 1M76 Act by urroneous ap

proval of maps by thu Secretary

V. Right-of Way Under the 1800 Act

In 1800 Congress onacted a general slat

ule granting rights-of-way through Indian

reservations lo “any railroad company or:

ganized under tho lawe of the Unitud

Statos, or of any State or Territory, which

shall comply with the provisions of thie Act

and such rules and regulations as may be

preseribed thereunder . oe awe

March 2, 1800, ch 874, § 1, 80 Btat. 900

(codified at 25 USC § 812). Southern

Vacifie contends that it aequired a right-of-

way under the 1408 Act upon Its becoming

effective either by: (1) construction of the a

railroad in 1882, ur (2) “de facto” compli

ance with the requirements of the Act in

1881 and ins,

The district court began its analysis of

these contentions by noting: “Since the

railroad lines here in question were built

between 1480 and #62, the queation with

respect W the Act of 1690 becomes whether

it le to be given retroactive application”

The court thun concluded Uhat the 1899 Act

did not contain the clear expression of in-

tent required lo construe @ slatule as retro-

active, This reasuning, however, does nut

meet Bouthern Pacific's argument. It is

not contending that the 186@ Act applied

retroactively lu grant » right-of-way effec

tive from the railrosd’s construction 1A

1842 It contends only that it acquired «

right-of-way under the Act upon ite becom:

ing effective in 1800. This argument leaves

opea the claime of the Tribe and the United

UNITED STATES vy. SOUTHIERKN PACIFIC TRANSP. CO

er ee eee

Sistes thal Ue railroad was @ Urespesser

from 12 Ww 1889, bul it does mot call for

retroactive application of tne 1808 Act

Hut even Uwugh we do nol accept Une de

Lrict cuurl's reasoning, we reach (ne tame

ssult and reject Southern Pacific's claiow

thal ik acquired @ mghi-of-wey suger Vie

lsyy Act

birel, we reject the contention thal con-

struction of the railroad alone w suffiment

to acquire @ might-ol-way under the Act.

Southern Pacific relies on cases decided un-

der the 1875 Act, section 1 of which pro

vules. “(A] right of way through (he public

lands fe hereby grante! Ww any

failruad compesy whch onal

have filed with the Secretary of the later

or a copy of ite apicles of incorporauon,

aud due pevols of ibs organisation

Ww the exteas of one hundred feet oo each

side of Ue eemtral line of said road

Cw 168, 16 Stat 442 (9 UBC.

§ 634) The courts have held inal (Ble is 8

grant in presses © 48 unidentified

grantee of an vaspecified rghtol-way

The grantee la identified by filing iw arti-

clea and proofs ef organisation. The right-

of-way may be speaified in advaace of con-

sirucuios by the filing and approval of maps

of locaion pursyant to section 4 of ine 1575

Act. 16 Stat. 483 (43 U OC. § 987); James

towo 4N. BR v. Jones, 177 UB 126, 181,

@ SCr 608, 44 L.Ed 666 (1900) Alterna

Uvely, Une right-of-way may be specified by

actual comatruction of Use railroad without

ever fling maps Jd at 18082 @ BCo

14a -

{19} Southern Pacifie argues thal since

the language, requiremeats, principles and

policies of the 1808 Act are similar ur Wen-

ical to those ef Une 1875 Act, Une 1809 Act

should be construed io the same way 68

right-of-way may be sequired by filing tne

company's articles and proofs of organita-

tiwn and by actual construction of tha rail

road This eonteation le wholly without

merit. The granting clause of the 1800 Act

signifeantly differwat from what of Ue

1675 Act. Section } of ime 1899 Act grants

the right-of-way “Ww any railroad company

which shall comply wilh the pro

691

viswona of (hu Act " Cry 374, 0

Stat We (2 UBC § S12) The granke

ender the Act uw therefore mot dentifnd

merely by fing articles and prowfe or or-

gacmaion as umder the 1875 Act, the

grentce imuel im edditeon cumply with all

lew pews samuecs of Act is wali thes

Quiremonta (nal tonya he (bel wad approved

end that cotmpeteaton Le pad We the fmt

ans. Id 9 3 WSiet WI (BUSC § S14)

Construction of the ralrosd w clearly ot

sulficrent Ww sequire a right-of-way grant

wader he las Act

Southern Pacific s second contention, Vat

the Lew Act appdce to railroads constru t

od before pesage of (he Act where (hire

was “de facw™ compliance wilh Lhe require

ments of the Act uw more difficult The

Tribe and ine United Sistas coatond (hal

the 1899 Act showld be construed as fot

applyieg Wo railroads slready comslructal

whether or not (mere was de facto compli-

acca with Ube requirements of Ue Act

They cle Une language of Une Act and the

regvlavons promulgated Unerwunder as Undi-

calling Unat cooly ‘ines Lo be camstructed ia

tae future are included

We do mot fied much apeletapee in Lhis

language, however Bome ef the provisions

ciled do mot refer lo construction at al! bul

only nacify comiitions precedent to Bffec-

Uveness of tne grant Por example, section

3 of the Act provides that “before the grant

shall Uecome effective a map

must oe filed with and approved

by the Secretary and the compa-

Ay must make payment to the Secretary

for ine benefit of the tribe

" Id (2% USC § 814) This pro

vision by ilee!! dues mot preclude the grant’s

becoming effective long after construction

ef the ralrved

Ouner provuione seem lo presume thal

tne railroad Wo te constructed in the future

wilhowl petssarly ptwcleding ayy lcaloa

of the Act wo om existing railroad = Por

example, here w & proviso im section | of

Une Act “[iPael mo right of way shall ln

qraaud wet) the Secretary

me eetisleed Ural the company [has

Lhe) imteat aad ability We con-

692

struct mail road ." Id, 8 Stat. 10

(2446 USC § 812) This provision obviounly

contemplates an spplication made in ad-

vance of construction, but intent and ability

to Construct cannot be mure uffectively

demonstruted than by completed construc:

hivn

Tho language of the 1876 Act generally

contuinplulus that the railroads would be

construckxl ly the future but that Act

peverthvluss has been beld to apply ww rail

ruads constructed before 1876. Rio Grande

Wo oky v. Stringham, 8 Utah 113, 110 ww,

110 F 848, 670-71 (1010), aff'd, 280 U.B. 44,

36 S.Ct 5, 66 LB. 186 (1015) That deci-

sion, however, was baged on an inferred

contemporaneous interpretation of the Act

by the Socretary of the lilerior, Here the

Tribe arquce Unat the Becretary iaterpretud

the 1899 Act a not applying to previously

constructed railroads, Thus in 1001 the Le-

partmont of the Interior Wok the position

thal it wa» necessary for Congress w ratify

an ayreenont between the Devile Lake

Tribe anil the Jamestown & Northern Rail-

way granting @ rightal-way scruss the rus

ervalion for # previously constructed rail-

rowl The sjwnsuring congressman ex-

plained (het the bill was necessary “Lecause

the generul law passed since (the last truaty

with the Tribe --presumably the 1890 Act}

On the subject is not applicable to thie par-

bieular lucauion.” 84 Cong. Rec 8482 (1901)

(remarks of Mr. Spalding).

Buuthern Pacific properly notes that the

Devils luke epimnle dows nut provide a clear

picture of the Department of the Interior's

position The Jainestown & Northern had

contracted with the Indiana for a 200-fuot

rightol-way, see Act af March 8, 1901, ch.

869, 31 Stat. 1447, but the 1800 Act yrants

only 100 feet If the Jamestown & North-

ern insisted upon 200 feel, congressional

ratification would be necussary even if the

company could aequire 100 feet under the

1699 Act Thies possibility is aa consistent

with the documents cited by the Tribe as its

contention that (he Department of the Inte-

ror dul nut cousider the 1800 Act applicable

WwW auy previwusly constructed railroad.

Therefore, we do not rest our decision on 6

3 FEDERAL KEPOKTER, 24 KEKIES

contemporanoous edininintrative construc:

tion of the 1°90 Act which holds that Act

inapplicable te pre existing railroads

Without deeulingg whether the 1499 Act

Mahe apply oom pre-esioting railroad in a

we hold that Southern Uwerfie's

predecaseure slid vol comply with the boos

Act hore Section Doof the Act requires

Vat the conijany pay the Ladiane full con

pensation “which compensation ehall be ck

lurmined under the direction of

the Beocretary of the Interior, in such man

ner as he may prescriin.” 80 Btat GO! (25

UBC. § 314) The regulations provide,

“{T)he United States Indian agent, or «

special Unitud States Indian agent, or tndid

an inepwctor, will Le desiguated to detor-

mine such compunnation and damages, sul-

ject W the approval of the Sccretary of th

Interior.” 44 L.D. 463 ( Liswd). ‘

prayer CAs

(20, 21] outhern Pacific contends that

it complica! with those requirements Ly pay:

ing the Tribu $760 pursuant W the LKMO and

1882 agreements, It appears frum congres

sional documents ciled by the parties that

the Commissioner of Indian Affaire and the

Secretary of the Interior “approved” the

1682 agrecinent before submitting it to

Congress for ratification §. Exec Duc

No.17, 49th Cong, let Sean. 1, 2 (1846) At

we real the Act and regula\ens, however,

Vhey do not alluw fur indepemlent neyotia-

tions between the railrogd aos the Indians

even If thw compensation le later approver”

hy the Bwerelury of the Inturwe The lhuvy

Act was mount to protect fully Indian inter

eala, soo Hl Kk Kep No 1806, fhth Cong, 34

Beas. 2 (1500), and we are thus obliged to

comatrue the Act and the regulations siret-

ly in the Indians’ favor Alaska Pacific

Fisheries vy United Slates, 26 US 7H, 9,

89 B.Cr. 40, 65 Leet (58 (101K). The regu

lationa require that the cumpenagtion be

determined la the firek Wnatance by the

United States Inilian agent or uther desig

nates! official, subjoct lo the Latarjor Sevro-

tury’s approval, We cannot permit South-

ern Pacific W byjuss (hin procedure which

wes apparcnily designed W preclude ay

proval wilhuwul the recommendation of an

—E—

UNITED STATES ¥. SOUTHERN PACIFIC TRANSIT. CO

693

Cua ee A Fd O78 (1878)

imypartiel ladan expert who has personally

evalueld the situation

{22} We also conclude that the compon-

sation shoul! be determined as of the ‘late

the grant of the right-of-way le W be effoe

Here Southern Pacific seeks a grant

oe te LU, bat the Cortpenaabiont Wid

ni yoliated and paid in 1640 and 1KAZ The

the right-of-way may have

change siguifiewatly in the intervening 17

ysars Thus we cannot conclude that the

procedure for determining compensation

followed! here aghieved even de facto com-

phance with the 1808 Act We therefore

reject Southera Paaific’s argument that it

acyuired « rigtthod-way under the 1600 Act.

tive

elie

value of

VI. Kightof-Way Through Lands Coded

in 1906 ;

(23) We naxt consider whether Bouth-

ern Pacific obtained « right-of-way under

the 1875 Act Larough reservation lands cud-

ei to the United States in 1906.

In an annual appreprations bil in 1902,

Congress acted le enable part of the reser-

vation W be opened to settioment. The

Secretary of the Interor was directed Ww

allot ine irrigable lands on the Walker Kiv-

er Reservation to the resident Indians

‘Twenty acres were to be allotted to each

fumily head and the remainder Wo other

ludians, nut to exeued 20 acres each. When

the majority of beads of families had ac-

capled allotments and agreed Ww relinquish

Ure nun-irrigable pert of the reservauion,

each family mead allotice was Ww receive

$500 and the relinquished lands were to nw

vpened Ly presidential proclamation “to sel-

Uement, lw be disposed of under existing

laws” Funda w pay the Indians were ap

propriated Ast of May 27, 1902, ch. 488, 82

Stal 260-61 Congress later directed the

Secretary of Une Interior to set aside, before

Une lands were opened lo setement, non-ir-

rigable grusing and timber lands for use hy

the Indians in common Resolution of June

19, 1902, No. 81, 82 Stat. 744 (grazing); Act

of June 21, 1906, ch. 8504, 34 Biat 358

(timber).

4). These aikaamenys were made w the prede

Coseures Wi Uteremt of (ne slletions Genied par:

On July 24, 1004), the Lratiane agtoed, in

cunaideration of the alluimenl © ent cash

payments provulud hy the 1902 Act, to

“cade, grant wid relinquieh to the United

States all right, title moc interent” bo the

remaining rosurvation Innde lly jreowlen

tial pre Intooteon oof Sentenmber 26, uti,

tinge fr Hhequished lnaimia were vial le

eettloment, (lol le euljoet by Dispersal wel

the oxrsting lawe uf the United Stuua” B44

Stat. 8257 Sa

Part of Southern Iacific’s line crowscs (he

relinguished lands 1t argues that it ac

quired « valid rightolway through (hese

bande under hw 1H76 Act either when the

lands were opened wo seliiement or whee

amendud mape of definite location were

approved in 1026

The district juige rejected both of Less

contentions § ile concluded first thal (he

reservation lWwundariaa had nol lnee

changed by the relinquishment and that,

therefore, (he coded lands were ati!! “within

the limita of any Indian reserva:

tion,” whieh would prevent an casenicat

due W section 6 of Une 1876 Act, 16 Stat

448 (48 USC § 085) Bul (he dliatre\ court

also hal that the United States luok an

unrestriclud! title lo the coded lands and at

not take aa Lrustee for the lndiary. There.

fore, the coded lande were “juiblic lends”

within the meaning of section | of Une |#/6

Act, 18 Stat 482 (48 USC § 084), and a

railroad easement could |e secured. Paced

with Ue apparent conflict belween tecliune

1 (rightof-way «ranted through “publ

Janda”) and 6 (Indian roeaerveations exclude!)

of the 1876 Act, the diatrict court held Uma

section 6 supersedes and controls No

right-of-way could therefore be obtained

through the coded lands

While Uhia result may soem acceptable at

firat blush, it appears unreasonable upon

examination of the interface belween the

1875 and 1800 Acts. If Ue coded lanis

remain “within (he Umits of any

Indian ruservation” and therefore (he ex-

clusion in the 1876 Act prevents a rightel-

Ucipation in the oui See pp 642 66), ou

pra

O41

way, Ven jewoumably the 1500 Act grant

Ind Hig hleofeway “through Indien reserve:

hou,” BO Stat 090 (26 UBC § 812), dows

apily Tha wader the district court's ree.

x, Nivwal we be ollaia a piphtiot

way Uirowgh eweh ceded lamdle, it must, pwr

suant lo ihe 1ea0 Aet, pay the Indians full

Colapensabion for the nyghtol-way and com-

viy with @ wumber of ulher requirenenu

fur the Uenefit and protuction of the Indi-

acs Yet under the terme of the camsiwoo

syreement, the Indians have already been

pont in full for the ceded landa by Caan

poymente and ipdividual allotments and

Vey Rave relinquished “all right, tithe and

\ulereel” in (nese lande Thus, as the die

(rel Court ialerprets (be 1878 Act, applica.

ten of Une M@ Aet would reeult in a

windfall uf duuble payment to the Indians

ard unnecessarily burdensume require

(0c 0te for oULaing @ railroad right-of-way

The only alternatives to obtaining 4

Fyltof-way wader the 1B0® Ast would be

Ww eek @ speelal act of Congress of to

forego a right-of-way allogether The first

alernative ie inconsielent with the purpose

of the two gemaral railroad right-of-way

ae Ww free Congress from the burden of

sy ilicabions for special righof-way \oqiala-

bon See IK Rep. No 1806, bbth Cong, dd

Sees | (i8W) The seeuad @ contrary Ww

‘he congressional poiley of encouraging

waters me ilememt hy promoting the exten:

nol rallromde. Bee United States ¥ Den-

wr GRO Ry, UOUB 1 B14 CO 11, 87

Lbal ¥76 (\ ie)

However, we are mot compelled Lo reach

(he reoull. Assuming first, as the district

judge del, (hab Ue reservation Loundarios

were not altered by Une 1908 cession, the

Apparent conte between sections | and 6

vf (he 1675 Act enn be resolved by constiru-

Ing A elatule which la even more spocific.

‘The (002 siatute lmitiaUing Une cession neyo

Valens provided that all son-irrigable

lands in the reservation be purchased for «

UM) sum and opened Lo seitiement, “lo be

22.) The aicy of afctmen and sale of surplus

feeervalin) lande wea repudiaied in 134 by

(Ne linea Recrganisaiion Act ch 676, 48 Sai

O44 (sanded and codified w 35 USC 4 4)

el wey)

HS FEDERAL REPORTER, Wd KRIS

Uispoecd of under existing lawa” 82 Star

261) Since the elated jwrpoee of thu etal.

wile 8 We open tle corel lancle Ww eutth jon nt,

we conclusle (hal the “wating laws" whieh

Con res , ' ! we ft ee A

larcde ary Wine lnwe relating by the digas

on of pall letels, imeluding, we the cis

Wet jurige recoguived, Ue 1876 Act ‘The

1¥02 statute, as iniplernented by the cession

agreement tet jncewlential proclaiiatun,

COMM Lalas & Bpmcial alalulory exception W

Une brued eachuson of Indian rescrvalious

from apylcation of the 1876 Act. While iw

general Une 1675 Act dows not apply to lands

“withia (he limite of any Indian

reservation,” we aunclude Ubat it applica w

the coded lane within the Walker Hiver

Reservation bwcause in 1W2 Congress ex.

presaly directed that it should.

(24) But even if the 1002 elatule is am.

diguous on thie point, we reach the same

reeult, We find thal, contrary lo the dm

Wiel judge's aseuinplion, the 1006 comin

tiered the Boundaries of the reservation ae

thal (he caer lancle were po longer "within

the limita of” thw reservation The coded

lande wore (hus available for a right-of-way

arent under secuow | and not within Ube

eaciusion of section 6 of the L876 Ack y

The 1906 cession i# @ special variant uf «

genoral policy embodied in the General Ia

dian Allutenent Act of L887 (Dewus Act), cd

119, 24 Stat S88 (eutified at UBL § A381

ot ooy)™ The lewea Act granted (be

President dani evonary power lo allut ruser

valion lands lo (he reawlent Indians in sev

eraity, The Indians were Wo receive paleaus

inalienable for 25 years and the benefits of

United States citmenstup, The kiea was

“civiliae™ the indian by forcing him w

abandon tribal life and lake up the ways of

the while farmers Aa ancillary benefit lor

western land intorvets was Liat the “eur

plus” reservation laude remaining after al-

wimente were to be purchased frum (ne

Indiana aml opened lo setihuument ®

23. For on extended (restnmen of alkoiment pol

cy, eee generally Cala, The Dawes Act ond Oe

Alona of indian Lands, supra nie 10

UNITED HTATEHS v. SOUTIILRN PACIFIC TRANSP, CO.

695

Cite we O49 F ba O78 (1078)

In vuw of the dimerelionary nature of the

proowlontial power vader the Dawoe Act to

va fescevationa for allotment, Congroas

has from tone Wo time onmectod special login:

lakun W aeeure that « particular reserva:

bon was subject W allotment Mate v

iS US, OBL, AG 07, MB Bs

S7 L bal Gl 92 (1979). The etatulus opening

the Walker Kiver Ruservation W settlement

are eaninples of such special legislation

Although Une ullumate aim of the general

jwley of allolment waa the abolition of

Inlinn Pemervalions, & reservation was not

necussarily acminated or diminished by the

firet step of allotment and sale of surplus

lande The effect af opening @ reservation

ws bel liement un the reservation boundaries

hae invel frequently bwon discussed in (he

content of exclusive foderal jurisdiction

over promeulions for certain crimes com:

mitted withia “Indian country,” dufinad ww

include “all land within the limi of any

tndian puservation.” 18 UBC. § LIBI(a)

Mual of Une cases have helt Unat reservation

Lountariee are aut changed by allotment

aul selo of surplus lands, Rog, Matus v

Arnott, supra, 412 U.S. at 408 606, 08 BCL.

v240, Seymour v Buperintendent, 368 U 3.

Bi, 62 BC 4a4, 7 L.Ed dd 846 (1062),

United States ex rel Condon v Erickson,

4/6 b ad dea (Bth Cir 1078) But the cases

have not anounced a fined rule. Kather,

\ney Nave comaluded Uhal @ congressional

determination tw tarminate (and inferen-

ally W diuiowh) an Indian reservation

Must be eapress or be clear from the eur-

a4 Asal Shoop Co v United States, 162 US

156 40S Ci 24), O41 ba B07 (1820), chad by

(hoe Gietrct court, te nat We the Contrary There

(ie (Cow todtans of Montane had coded part of

thew ceeervetion lands W tne Unied States

ver language Virtually Wentical (o that used

Uy (ee lie here = Sheepowners (hen pastured

he 9 OM sheep On (he coded landae without

thee Losier Comeeat and the United States sued

ful (Mt Matulury penalty provided by Kev Siat

14) i) (oom 2S USC 6 17¥) The beue wae

wl whether (he laade were within the limite of

* (eeervetion, dt whether ihe lands “be

beveled) (0 any Indian of lndian iribe” The

ture bad met paid the lndiane @ fMaed

ou far Une lends Dut inetead promised 10 use

‘he pivwmeds of any sales Ww settlers for ine

ociene Genet The Court held thet as long

+) Ue Untied Mates retained Uile Ht Reid it in

rounding circumstances and legislative hee

tory Matta y Annet, supe, 412 US at

OOF, OU St 24ah

Wesed upon thease Gasca, He raay huwe ap

pearud to Che diatriek judge at the tine he

decided (his cane tliat @ apecial allovnient

obakule weld bart cy be

frubul a clan Ul & roaervation had hewn

berminated of dininishod by the eletule

Hut suleejuent te Unie docmion, the Se-

prome Court distinguished Matta and Sey

mour and foun! an implied intent lo diininwh

& reservation in @ eywcial alluiment statue

DeCoteau v District County Court, 420 8

426, 06 BC. 108%, 48 Ld 2d Bou (1075)

Allwr examining all Une cirournstances of

thie caso, we conclude Usat tha 1906 cession

did aller the Walker River Keservelen

boundaries by removing the relinquished

lands from “within the hails of the reser

valion The moat significant ciroumalenca

lwading ue Ww thie conclusion are the lan:

guage and verme of Une cassion agro ment

iuelf and the subeequeat reatiiont of

these lania by Congress aud the Interter

Department

(25,26) The cussion language of the

agreement here i virtually identical Ww Wo

language construed in DeCoteau The

Tribe agrecd Ww “code, grant and relyqumh

all right, tle and intercnt” As

the Court noted in DeCeoteau, thie language

la “preciasly suited” Lo the purpose of ter-

minating tho resryation elatus of the aed

ed Inncla, [dat 446, 06 SCt 10K2™ Aloo

trust for ihe indiana The lame thus “be

longled) to” Une linheme willin the oeetiog of

the statude reyardions uf ine ceerrvatinn Matus

of (he lane

Neunher i@ Clarke ¥ Toye WP ld ms

O12 15 Chan Cie (RRO), alee citeet by Une de

iret Cut, (0 ine comirary | The farts of that

Cate were similar tu Unie in Abk Shee ine

Shoshone end Arapahoe tribes cevled pat of

thee reservation tu the United States pro

ceeds from the sales ul (Rete lands weir to be

opted to the Indiena’ benefit Act of March 4

1Q05, cm 1442. 3) Stet 1010) Before the cab

lands were mid « seltroad allenipted Ih ae ain

Oo right of way wroler ime BOR Act Later yur

chesera contended thet ihe Mgt of wey was

invelid bev auee ihe bmw Art Gil fet apgly ty

Ue coded lands The court rejected this fun

tention, nut because ihe lands were oil) part of

teed ot

66

as Th Cotcau, Uhe ayroement here veala in

sum certtan ($300 per family

heal alludtce) for the cealed lamte, instead

uf jercly prowling that Uhe uncertain fu

ture procends of sales of the opened bande

| fiw the Ladiane’ benefit ®

the ‘Trike «

be apy

Finally, (he logwletive history of @ lator

Statute ating land, including significant

ehiounts of land coded in 1006, lo the Walk-

er liver MKoservetioa indicates that Con-

wrens and (ie Interior Department treated

(he earlier cosmon a having diminished! Whe

reservalion A letter from the Secretary of

the Interwr proposing an addition Ww the

diminihed rweervalen stated: “The pro-

posed addilwn embraoas vacant publiode

main lands adjsoent lo the preseat Walker

iver Keservation” 8. Rep.Nol/60, 74s

Cong, dd Seas (1086), The slatute autho-

mul Ue Secretary of the Interior “lo sat

wae ere . of re

puble~tomain as an addition” to

ihe reservation, Act of dune Bd, 1886, ch

608, § 1, 40 Stat. 1806-07, The order imple

menting ihe *lalule recited that “ihe lands

are oot asite amd made @ part of

the exislog Waleee River Reservation

Specifically, a later order re-

plored « portion of the relinquished lands

the reservativn it umilar language: be

following described lands

herehy Hep Peso

Walker liver Reservallea »

(Emphases added.) Pinally, a map of the

an inden reservetion, Wut Veceuse the Lends

were reserved “for other purposes in connec:

ion with Ube laden services,” to which the | ae0

Act ele applies §§ 1, Bu 60 GS USC

$412) Tee reeult & just on Une fects of that

ase) where (ne United Status holds ine lands

um foe Une bane, the indians should

reconvene Benefit of compensation for a right

ul wey granted just 60 UNey receive compense

thon for tends (ehee Dy eattera Bua bere, the

indians Neve been pel im full for Ue coded

lant ef (ne lands are matiher meld le (rue for

the lodiane newt (eserwed “for ether: purposes a

Cometh wih Une Indian service” There

fore, Une |8W0 Act should not apety in it

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