Review of John Z. White's Public and Private Property |
[Reprinted from Land and Freedom, July-August, 1935]
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In this timely and interesting book, Mr. White presents a legal
viewpoint of the effect of grants of land by the State to individual
owners. It is a common belief that because of deeds of land in "fee
simple" to individuals which extend back to the sovereignty it is
impossible for the State now to recover the value of the land without
doing violence to constitutional provisions protecting private rights.
The author makes clear the distinction between a contract and a
grant by the State. The Darmouth College case, the Charles River
Bridge case and other cases famous in history, are discussed in detail
to show the tendency of the courts to preserve to the State those
sovereign rights and powers without which democratic government
is impossible.
Tenure of land is a public thing a delegation of a sovereign power.
Failure to guard the sovereign power expressed by land holding and
to permit the value of the land holding power to be privately
appropriated is a derogation of sovereignty and tends to destroy democracy.
If an aristocratic society is desired nothing needs to be done. The
manor house theory of tenure of land is exemplified today in Franklin
D. Roosevelt who is to the "manor born." It is quite in keeping
with President Roosevelt's tradition to see nothing incongruous in the
large land values held by Vincent Astor. There is nothing of the
hyprocrite in the President in this respect nor inconsistent with his
warfare against those who grind the face of the poor or take
speculative profits without regard to the upkeep of the nation at large. The
ownership of the manor house and manor lands, to Mr. Roosevelt,
carries with it not only the duty of seeing to it that all the manor
people, tenants and workers, are fed and clothed but also the
consciousness that failure to meet this duty is destructive of the manor
family itself. So the Mitchells and the Wiggins who take profits
without responsibility are met with righteous Rooseveltian indignation,
whereas the landed families who give benevolent consideration
to the tenantry receive a complacent blessing.
Against such a benevolent aristocracy Mr. White shows the necessity
of preserving to the State its full sovereignty over land if
democracy is to endure.
Land cannot be owned. It can only be used.
A labor product can be owned outright in the sense that it can be
consumed. Eggs can be physically eaten up.
A land title is a franchise for use. Land cannot be consumed.
In this distinction lies the fundamental difference between a grant
of land and a bill of sale of goods.
The proposition that land grants and franchises are the same in
legal principle is sound law.
This being so, it follows that nothing more is granted than is
directly contained in the terms of the grant. A franchise grant is
strictly construed in favor of the sovereignty.
A grant of land made in 1735, for example, contains no contract
that conveys away values created in 193S. What is granted is contained
within the four corners of the document. Nothing is contained
in any deed ancient or modern that requires the community in 1935
to deliver the beneficial use of a school house, a library, a paved street
or other public service upon the land without collecting the cost
therefor.
Chief Justice Marshall in 1810 in a Georgia land case held that a
grant by the State is a contract. In 1840, however, Justice Miller,
supported by Chief Justice Chase and Justice Field, dissented in
Washington University vs. Rouse (8 Wall. 443). He said:
"We do not believe that any legislative body, sitting under a State
constitution of the usual character, has a right to sell, to give, or to
bargain away forever the taxing power of the State ... To hold
that any one of the annual legislatures can, by contract, deprive
the State forever of the power of taxation, is to hold that they
can destroy the government which they are appointed to serve, and
that their action in that regard is strictly lawful."
The tendency of the courts is in the direction of the sound doctrine
quoted. The power of the State to tax is paramount over private
rights.
Private possession of land, necessary to preserve the fruits of labor,
does not of itself impair sovereignty. It is only when we permit the
profits arising from this exercise of sovereign power to flow into
private pockets that such impairment occurs.
Democracy may delegate its police power to a magistrate without
impairing its sovereignty but if it were held that the magistrate
acquired a vested right to his office and could administer the office
for his private gain it would be a derogation of sovereignty.
Franchises for the use of streets by utility companies are no longer
granted in perpetuity or for years without a valuation to be paid for
use.
The true legal concept of the tenure of land as a franchise for use
subject to valuation is growing in consciousness and is tending to
dispel the idea that the State having granted land is without power
to collect the value of the use.
This book is a strong plea for the recognition of those legal principles
which constitute the foundation of democratic government and without democracy, cannot endure.
It is well worth a studious reading.
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