Miller v. Anderson

• Decision Date: 06 November 1893
• Docket Number: No. 362,362
• Citation: 37 L.Ed. 1028,14 S.Ct. 52,150 U.S. 132
• Parties: MILLER et al. v. ANDERSON et al
• Court: U.S. Supreme Court

150 U.S. 132

14 S.Ct. 52

37 L.Ed. 1028

MILLER et al.

v ANDERSON et al.

No. 362.

November 6, 1893.

Statement by Mr. Justice BREWER:

This case comes to us on error from the supreme court of the state of Alabama. On the 3d of June, 1856, congress made a grant of public lands to the state of Ala- bama to aid in the construction of certain railroads. 11 Stat. 17. This grant was renewed and extended by an act of April 10, 1869. 16 Stat. 459 By a joint resolution of the legislature of the state of Alabama, approved January 20, 1858, (Acts 1857-58, p. 430,) certain railroad companies were made the beneficiaries of this grant. The Alabama & Chattanooga Railroad Company was formed by a consolidation, under the authority of the state, of two of these companies, and became thereby one of such beneficiaries. On February 11, 1870, an act was passed, (Acts 1869-70, pp. 89-92,) loaning $2,000,000 of the bonds of the state to this company, and providing for the execution of a mortgage by the company on all its property, including the land grant, to secure this loan. The bonds were delivered to the company, and on March 2, 1870, the mortgage called for by the last-named act was executed. Thereafter, the railroad company, defaulting in the payment of its obligations to the state, was thrown into bankruptcy, and its property, including this land grant, was, on judicial sale, after proper proceedings in the district court of the United States, purchased by the state in satisfaction of such obligations. The title thus acquired the defendants in error hold under a conveyance from the state, made by virtue of what is called the 'debt settlement' act of the general assembly, (Acts 1875-76, pp. 130, 149,) and they were proceeding to enforce their right to the lands in controversy in this suit by an action of ejectment.

The title of the plaintiffs in error arose in this way: Joab Bagley claimed to have purchased the lands in controversy from the Alabama & Chattanooga Railroad Company, under two contracts, of date, respectively, September 13, 1870, andJanuary 24, 1871, with one Daniel J. Duffy, its agent. There was some dispute in the testimony as to whether Duffy was duly authorized to act as the agent of the company, and also whether the company ever in fact received the moneys paid by Bagley; but for the purposes of this suit it may be assumed that Duffy was authorized to sell, and that the company received the moneys. No conveyance, however, was made by the company to Bagley. This suit was commenced in July, 1884, by D. B. Miller, who claims under sundry mesne conveyances from Bagley, in the chancery court of Jefferson county, Ala., against John Swann and John A. Billups, trustees, and others, the object of which was to enforce the specific performance of the two contracts of September 13, 1870, and January 24, 1871, and to enjoin the further prosecution of the action of ejectment. On the 20th of June, 1885, the chancellor entered a decree in favor of the complainant, which decree was reversed by the supreme court of the state. 82 Ala. 530, 1 South. Rep. 65. An amended bill having been filed, the case was again submitted to the chancellor, who, on November 12, 1888, entered a decree dismissing the complainant's bill, which decree was affirmed by the supreme court on the 2d of May, 1890. 89 Ala. 631, 7 South. Rep. 771. Subsequently to the commencement of the suit, Miler died, and the suit was revived in the names of his executor and heirs. The two original trustees have also died, and Frank Y. Anderson and W. J. Cameron have been substituted as their successors.

Ellis Phelan, for plaintiffs in error.

J. A. W. Smith, for defendants in error.

Mr. Justice BREWER, after stating the facts in the foregoing language, delivered the opinion of the court.

It is contended by defendants in error that, whatever questions may be found in the case, the decision of the supreme court of Alabama was upon a question not of a federal character, and one broad enough to sustain the judgment, and, therefore, that this court has no jurisdiction, and should dismiss the case. Hale v. Akers, 132 U. S. 554, 10 Sup. Ct. Rep. 171; Hopkins v. McLure, 133 U. S. 380, 10 Sup. Ct. Rep. 407; Blount v. Walker, 134 U. S. 607, 10 Sup. Ct. Rep. 606; Machine Co. v. Skinner, 139 U. S. 293, 11 Sup. Ct. Rep. 528; Henderson Bridge Co. v. City of Henderson, 141 U. S. 679, 12 Sup. Ct. Rep. 114; Navigation Co. v. Reybold, 142 U. S. 636, 12 Sup. Ct. Rep. 290.

As the mortgage to the state was executed some months before the contracts with Bagley, the title held by the state of Alabama under the bankruptcy proceedings would prima facie be paramount to that acquired by Bagley. Wilson v. Boyce, 92 U. S. 320. To avoid this, it was contended that under the act of February 11, 1870, and the mortgage of March 2, 1870, the railroad company, the mortgagor, was given the right to sell these lands; and the question which was considered and determined by the supreme court of the state, and the vital question, was whether the act and mortgage gave such authority. The act of February, 1870, provided that 'the said Alabama and Chattanooga Railroad Company shall have the privilege and right of selling said lands or any part thereof in accordance with the acts of congress granting the same.' The mortgage contained the same provision. In respect to this, the supreme court of the state thus expressed itself: 'This...