Supreme Court of the United States

Wilson v. Shaw

1907 U.S. LEXIS 1526 · 204 U.S. 24 · 27 S. Ct. 233 · 51 L. Ed. 351

January 7, 1907 · Docket 43

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Headnotes

Generated summaries
  1. Headnote 1

    The plaintiff offered no evidence of any personal financial stake in the Treasury’s payments for the Panama Canal, and the Court held that without such a protectable interest the suit is barred.

  2. Headnote 2

    The Court noted that the $50 million in Treasury payments had already been made, rendering any question of their legality moot.

  3. Headnote 3

    The Court stated it has no supervisory control over the political branch in exercising its constitutional powers, so questions about the Panama Canal treaty and related congressional actions are barred.

  4. Headnote 4

    The opinion relied on precedents such as California v. Pacific Railroad Co. and Luxton v. North River Bridge Co. affirming Congress’s authority to authorize infrastructure across states and territories.

  5. Headnote 5

    The Court pointed to the ratification of the Hay‑Bunau‑Varilla Treaty and subsequent statutes as establishing indefeasible title to the Canal Zone, which the courts may not question.

  6. Headnote 6

    The plaintiff sought an injunction to stop Treasury payments for the Panama Canal but offered no evidence of any personal financial stake; the Court held that without a protectable interest the suit was barred.

  7. Headnote 7

    The Court emphasized that it has no supervising control over the political branch in matters of treaty acquisition and canal construction, making the plaintiff’s claims unreviewable.

  8. Headnote 8

    The opinion relied on precedents such as California v. Pacific Railroad Co. and Luxton v. North River Bridge Co. to confirm that Congress may authorize large infrastructure projects and create corporations to carry them out.

  9. Headnote 9

    The plaintiff sought an injunction to stop Treasury payments for the canal without demonstrating any personal financial stake. The Court noted the lack of a pecuniary interest and held that such a plaintiff cannot maintain the suit.

  10. Headnote 10

    The Court held that it has no supervising control over the political branch in its execution of treaty obligations and congressional authority concerning the Panama Canal.

  11. Headnote 11

    The Court cited precedents affirming congressional authority over interstate commerce and territorial projects, stating that Congress may pass laws to build national highways, bridges, and canals.

  12. Headnote 12

    The plaintiff’s complaint sought to enjoin Treasury payments for the Panama Canal but offered no evidence of any personal financial loss, leading the Court to find he lacked the required protectable stake.

  13. Headnote 13

    The Court held that it lacks supervising control over the political branch’s actions in acquiring the Canal Zone and implementing the canal project, rendering such disputes political questions.

  14. Headnote 14

    The opinion cited precedents such as California v. Pacific Railroad Co. and others to affirm that congressional power extends to authorizing large‑scale transportation works both within states and in the territories.

  15. Headnote 15

    The plaintiff sought to enjoin Treasury payments for the Panama Canal without demonstrating any personal monetary loss. The Court held that without a specific financial stake, the plaintiff had no protectable interest and therefore no standing to sue the government.

  16. Headnote 16

    If the relief sought concerns conduct that has already been completed, the case is moot.

    The Treasury had already paid the $50 million to the Canal Company and Panama. The Court noted that whether those payments were proper was a moot question, and therefore the suit could not proceed.

  17. Headnote 17

    The Court held that the judiciary has no supervisory control over the political branches in exercising authority granted by treaty and statutes to acquire and develop the Canal Zone, making such disputes non‑justiciable.

  18. Headnote 18

    The Court cited precedents such as California v. Pacific Railroad Co. and Luxton v. North River Bridge Co., affirming that under its commerce and territorial powers Congress may enact statutes permitting large public works and charter corporations for their execution.

  19. Headnote 19

    The opinion explained that the Hay‑Bunau‑Varilla Treaty and later statutes (33 Stat. 2234, 429, 843, 611) constitute full congressional ratification, rendering the title to the Canal Zone conclusive and beyond judicial review.

Opinion

Mr. Justice Brewer,

after making the foregoing statement, delivered the opinion of the court.

If the bill was only to restrain the Secretary of the Treasury from paying the specific sums named therein, to wit, $40,000,000, to the Panama Canal Company, and $10,000,000 to the Republic of Panama, it would be sufficient to- note the fact, of which we may take judicial notice, that those payments have been made and that whether they were rightfully made or not is, so far as this suit is concerned, a moot question. Cheong Ah Moy v. United States, 113 U. S. 216; Mills v. Green, 159 U. S. 651; American Book Company v. Kansas, 193 U. S. 49; Jones v. Montague, 194 U. S. 147.

But the bill goes further and seeks to restrain the Secretary from paying out money for the construction of the canal, from borrowing money for that purpose and issuing bonds of the United States therefor. In other words, the plaintiff invokes the aid of the courts to stop the Government of the United States from carrying into execution its declared purpose of constructing the Panama Canal. The magnitude of the plaintiff’s demand is somewhat startling. The construction of a canal between the Atlantic and Pacific somewhere across the narrow strip of land which unites the two continents of America has engaged the attention not only of the United States but of other countries for many years. Two routes, the Nicaragua and the Panama, have been the special objects of consideration. A company chartered under the laws of France undertook the construction of a canal at Panama. This was done under the superintendence and guidance of the famous Ferdinand de Lesseps, to whom the world owes the Suez Canal. To tell the story of all that was done in respect to the construction of this canal, prior to the active intervention of the United States, would take volumes. It is enough to say that the efforts of De Lesseps failed. Since then Panama has. seceded from the Republic of Colombia and established a new republic which has been recognized by other nations. This new republic has by treaty granted to the United States rights, territorial and otherwise. Acts of Congress have been passed providing for the construction of a canal, and in many ways the executive and legislative departments of the Government have committed the United States to this work, and it is now progressing. For the courts to interfere and at the instance of a citizen, who does not disclose •the amount of his interest, stay the work of construction by stopping the payment of money from the Treasury of the United States therefor, would be an exercise of judicial power which, to say the least, is novel and extraordinary.

Many objections may be raised to the bill. Among them are these: Does plaintiff show sufficient pecuniary interest' in the subject matter? Is not the suit.really one against the Government, which has not consented to be sued? Is it any more than an appeal to the courts for the exercise of governmental powers which belong exclusively to Congress? We do not stop to consider these or "kindred objections; yet, passing them in silence must not be taken as even an implied ruling against their sufficiency. We prefer to rest our decision on the general scope of the bill.

Clearly there is no merit in plaintiff’s contentions. That, generally speaking, a citizen may be protected against wrongful acts of the Government affecting him or his property may be conceded. That his remedy is by injunction does not follow. A suit for an injunction is an equitable proceeding, and the interests of the defendant are to be considered as well as those of the plaintiff. Ordinarily it will not be granted when there is adequate protection at law." In the case at bar it is clear not only that plaintiff is not entitled to an injunction, but also that" he presents no ground for any relief.

He contends that whatever title the Government has was not acquired as provided in the act of June 28, 1902, by treaty with the Republic of Colombia. A short but sufficient answer is that subsequent, ratification is equivalent to original authority. The title to what may be called the. Isthmian or Canal Zone, which at the date of the act was in the Republic of Colombia, passed by an act of secession to the newly formed Republic of Panama. The latter was recognized as a nation by the President. A treaty with it, ceding the Canal Zone, was duly ratified. 33 Stat. 2234. Congress has passed several acts based upon: the title of the United States, among them one to provide a temporary government, 33 Stat. 429; another, fixing the status of merchandise coming into the United States from the Canal Zone, 33 Stat. 843; another, prescribing the type of canal, 34 Stat. 611. These show a full ratification by Congress of what has been done by the Executive. Their concurrent action is conclusive upon the courts. We have no supervising control over the political branch of the Government in its action within the limits of the Constitution. Jones v. United States, 137 U. S. 202, and cases cited in the opinion; In re Cooper, 143 U. S. 472, 499, 503.

It is too late in the history of the United States to question the right of acquiring territory by treaty. Other objections are made to the validity of the right and title obtained from Panama by the treaty, but we find nothing in them deserving special notice.

Another contention, in support of which plaintiff has presented a voluminous argument, is that the United States has no power to engage in the work of digging this canal. His first proposition is that the Canal Zone is no part of the territory of the United States, and that, therefore, the Government is powerless to do anything of the kind therein. Article 2 of the treaty, heretofore referred to, “grants to the United States in perpetuity the use, occupation and control of a zone of land and land under water for the construction, maintenance, operation, sanitation and protection of said canal.” By article 3, Panama “grants to the United States all the rights, power and authority within the zone mentioned and described in article 2 of this agreement, . . \ which the United. States would possess and exercise if it were the sovereign of the territory within which said lands and waters are located, to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights, power or authority.”

Other provisions of the treaty add to the grants named in these two articles further guaranties of exclusive rights of the United States in the construction and maintenance of this canal. It is hypercritical to contend that the title of the United States is imperfect, and that the territory described does not belong to this Nation, because of the omission of some of the technical terms used in ordinary conveyances of real estate.

Further, it is said that the boundaries of the zone are not described in the treaty; but the description is sufficient for identification, and it has been practically 'identified by the concurrent action of the two nations alone interested in the matter. ' The fact that there may possibly be in the future some dispute as to the exact boundary on either side is immaterial. Such disputes not infrequently attend conveyances of real estate or cessions of territory. Alaska was ceded to us forty years ago, but the boundary between it and the English possessions east was not settled until within the last two or three years. Yet no one ever doubted the title of this republic to Alaska.

Again, plaintiff contends that the Government has no power to engage anywhere in the' work of constructing a railroad or canal’. The decisions of this court are adverse to this contention. In California v. Pacific Railroad Company, 127 U. S. 1, 39, it was said:

“It cannot at the present day be doubted that Congress, under the power to regulate commerce among the several States, as well as tó provide for postal accommodations and military exigencies, had authority to pass these laws. The power to construct, or to authorize individuals or corporations to construct, national highways and bridges from State to State, is essential to the complete control and regulation of interstate commerce. Without authority in Congress to establish and maintain such highways and bridges, it would be without authority to regulate one of the most important adjuncts of commerce. This power in former times was exerted to a very limited extent, the Cumberland or National road being the most notable instance. Its exertion was but little called for, as commerce was then mostly conducted by water, and many of our statesmen entertained doubts as to the existence of the power to establish ways of communication by land. But since, in consequence of the expansion of the country, the multiplication of its products, and the invention of railroads and locomotion by steam, land transportation has so vastly increased, a sounder consideration of the subject has prevailed and led to the conclusion that Congress has plenary power over the whole subject. Of course the authority of Congress over the Territories of the United States, and its power to grant franchises exercisable therein, are, and ever have been, undoubted. But the wider power was very freely exercised, and much to the general satisfaction, in the creation of the vast system of railroads connecting the East with the Pacific, traversing States as well as Territories, and employing the agency of state as well as Federal corporations. See Pacific Railroad, Removal cases, 115 U. S. 1, 14, 18.”

In Luxton v. North River Bridge Company, 153 U. S. 525, 529, Mr. Justice Gray, speaking for the court, said:

“Congress, therefore, may create corporations as appropriate means of executing the powers of government, as, for instance, a bank for the purpose of carrying on the fiscal operations of the United States, or a railroad corporation for the purpose of promoting commerce among the States. McCulloch v. Maryland, 4 Wheat. 316, 411, 422; Osborn v. Bank of United States, 9 Wheat. 738, 861, 873; Pacific Railroad Removal cases, 115 U. S. 1, 18; California v. Pacific Railroad, 127 U. S. 1, 39. Congress has likewise the power, exercised early in this century 'by successive acts in the Cumberland or National road, from the Potomac across the Alleghanies to the Ohio, to authorize-the construction of a public highway connecting several States. See Indiana v. United States, 148 U. S. 148.”

See also Monongahela Navigation Company v. United States, 148 U. S. 312.

These authorities recognize the power of Congress to com struct interstate highways. A fortiori, Congress would have like power within the Territories and outside of state lines, for there the legislative power of Congress is limited only by the provisions of the Constitution, and cannot conflict with the reserved power of the States. Plaintiff, recognizing the force of these decisions, seeks to obviate it by saying, that the expressions were obiter dicta, but plainly they were not. They announce distinctly the opinion of this court on the questions presented, and-would have to be .overruled if a different doctrine were now announced. Congress has acted in reliance upon these decisions in many ways, and any change would disturb a vast volume of rights supposed to. be fixed; but we see no reason to doubt the -conclusions expressed in those opinions, and adhere to them. The Court of Appeals - was right, and its decision is

Affirmed.