Johnson V. M'intosh and the Expropriation of American Indian
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THE DARK SIDE OF EFFICIENCY- JOHNSON V. M7ZNTOSH AND THE EXPROPRIATION OF AMERICAN INDIAN LANDS ERIC KADESt INTRODUCTION .............................................................................1068 I. THE HISTORY OFJOHNSONV. M'INTOSH ...................................1073 A. Land Title and Alienability in Early America......................... 1073 B. The Purchasesof the Illinois and the Wabash Land Companies................................................. 1081 C. The LitigationofJohnson v. M'Intosh ................................1090 1. Prelude .........................................................................1090 2. Supreme Court Arguments and Holdings ..................1093 3. Marshall's Version of Indian Title ...............................1096 4. Legal Basis for the M'Intosh Rule: Custom .................1098 II. EFFICIENT EXPROPRIATION .....................................................1103 A. Custom and the Efficiency InterpretationofM'Intosh ............1106 1. Evolution of Efficient Customary Rules ......................1106 2. Contrasting Efficiency with Other Explanations of M'Intosh................................... 1108 B. GoverningEuropean-Indian Relations: Presentinga UnitedFront ..................................................... 1110 1. United Front in Land Purchases .................................1110 2. The Bargaining Game ..................................................1118 a. Bargaining "Tricks" Colorably Consistent with ContractLaw .....................................1119 b. Fraud,Overawing and Threats.................................. 1124 c. Why the Indians Could Not Use Tricks and Threats .....1127 d. The Americans' Use ofBoth Acceptable Tricks and UnacceptableThreats ........................................... 1129 t Associate Professor, Wayne State University Law School. Thanks to Douglas Al- len, Kingsley Browne, Frank Buckley, Steve Calkins, Bob Ellickson, Peter Henning, Jim Krier, Mike McIntyre, Jack Mogk, Carol Rose, Sandra Van Burkleo, Vince Wellman, and Ed Wise, for both encouragement and very helpful comments. (1065) 1066 UNIVERS17Y OFPENNSYLVANIA LAWREVIEW [Vol. 148:1065 C. Explainingthe Rarity ofFighting: The DeadweightLoss ofFighting............................................ 1131 D. Altering the Terms of Trade: NaturalAllies........................... 1141 1. Depopulation by Disease ............................................. 1141 2. Game-Thinning ............................................................ 1146 3. Understanding the Economic Impact of Game-Thinning ........................................................ 1151 E. Altering the Terms of Trade: Legal Rules to Attract Settlers and Deal with Externalities....... 1153 1. Attracting and Rewarding Settlers ............................... 1153 a. The Economics ofAttracting and Rewarding Settlers..... 1153 b. Legal Rules to Attract and Reward Settlers................... 1156 i. Compactness and the Rectangular Survey System ............................... 1156 ii. Special Programs for Special Abilities: Military Bounties ............................................... 1161 iii. Requiring Improvements .................................. 1163 iv. Disfavoring Large-Scale Speculation ............... 1164 v. Discounts to Attract the Masses ........................ 1168 2. Negative Externalities of Lawless Settlers, Speculators, and Traders ............................................. 1175 3. Positive Externalities of Trade ..................................... 1183 F. Puttingthe Pieces Together: The Algorithm of Efficient Expropriation........................................................... 1184 G. AnalogizingEfficient Conquest to Eminent Domain................ 1185 CONCLUSION ................................................................................. 1189 2000] EXPROPRIATION OFAMERICAN INDIAN LANDS 1067 Claims inJohnson v. M'Intosh LEGEND F Tracts Purchased by Illinois Company (1773) Tracts Purchased by Wabash Company (1775) *Townships Containing McIntosh Purchases of 1815 (at issue in case) Townships Containing McIntosh Purchases of 1819 (not at issue in case) 1068 UNIVERS17Y OFPENNSYLVANIA LAWREVEW [Vol. 148:1065 The Spaniards were unable to exterminate the Indian race by those un- paralleled atrocities which brand them with indelible shame, nor did they succeed even in wholly depriving it of its rights; but the Americans of the United States have accomplished this twofold purpose with singu- lar felicity, tranquilly, legally, philanthropically, without shedding blood, and without violating a single great principle of morality in the eyes of the world. It is impossible to destroy men with more respect for the laws of humanity.1 INTRODUCTION One of the most critical deprivations that the American Indians suffered at the hands of the United States was the loss of their lands. Within two centuries of the first European settlements in North Amer- ica, the newcomers held title to almost every acre of the continent. At the root of most land titles in America today sits a federal patent. Government title, in turn, flows from "[t]he great case of Johnson v. M[]Intosh,"2 which held that the United States has the exclusive right to extinguish Indians' interests in their lands, either by purchase or just war. Mntosh was consistent with a long and uninterrupted line of statutes, regulations, and proclamations that barred private purchases of land from the Indians. Most discussion of MYntosh, and, more generally, of the larger process of expropriating North America from the Indians, has focused on normative questions about the relative evil or benevolence of the invading Europeans. De Tocqueville, contrasting Spanish "atrocities" with American legality and philanthropy, expressed the benevolent view that, unsurprisingly, was quite common in early America. E. de Vattel, a prominent eighteenth-century scholar of international law, noted with favor the American practice of buying lands even where, strictly speaking, the law did not require it: [W]e can not but admire the moderation of the English Puritans who were the first to settle in New England. Although they bore with them a charter from their sovereign, they bought from the savages the lands they wished to occupy. Their praiseworthy example was followed by 1 ALExIs DE TOCQUEVILLE, DEMOCRACY IN AMERICA 355 (Phillips Bradley ed. & Henry Reeve trans., Alfred A. Knopf, Inc. 1945) (1835). 2 Tee-Hit-Ton Indians v. United States, 348 U.S. 272, 279 (1954) (citingJohnson v. M'Intosh, 21 U.S. (8 Wheat.) 543 (1823)). In the M'Intosh opinion itself, ChiefJustice Marshall adverted to the "magnitude of the interest in [this] litigation." M'Intosh, 21 U.S. (8 Wheat) at 604. William McIntosh spelled and signed his last name with a "c" instead of an apostrophe, yet the Supreme Court used an apostrophe. 20001 EXPROPRIATION OFAMERICAN INDIAN LANDS 1069 William Penn and the colony of Quakers that he conducted into Penn- sylvania.' Other commentators, while also maintaining that Europeans ex- propriated with the best of intentions, at least tried to come to terms with the undeniably detrimental effect on Indians. "No government ever entertained more enlightened and benevolent intentions toward a weaker people than did that of the United States toward the Indian, but never in history, probably, has a more striking divergence between intention and performance been witnessed."4 Despite this failure to translate intent into effective action, leading scholars of this century have concurred with this sympathetic view. Felix Cohen, the founder of American Indian law as a distinct and scholarly field of study, noted that America paid for almost every square foot of the nation. He thus argued that "[w]e are probably the one great nation in the world that has consistently sought to deal with an aboriginal population on fair and equitable terms. We have not always succeeded in this effort but our deviations have not been typi- cal."5 Francis Paul Prucha, a leading historian of relations between the United States and the Indians, has argued that treaties and stat- utes evidence a sincere desire to protect Indian rights.6 Another his- torian, Don Russell, after debunking the myth that Indian massacres played a significant role in expropriating the continent by exterminat- ing its aboriginal inhabitants, argued that the United States behaved with at least relative humanity. "Much of world history tells of the movements of peoples that infringe on other peoples. Rarely have the infringed upon been treated with more7 consideration and humane- ness than was the American Indian." The opposite view, that European laws and practices amounted to a patently immoral land-grab, dates back at least to the years immedi- S 8 E. DE VATFEI, LE DROIT DES GENS, OU PRINCIPES DE LA LoI NATURELLE, APPIQU 5 A LA CONDUrIE ET AUX AFFAIRES DES NATIONS ET DES SOUVERAINS [LAw OF NATIONS OR THE PRINCIPLES OF NATURAL LAW APPLIED TO THE CONDUCT AND TO THE AFFAIRS OF NATIONS AND OF SOvEREIGNS) 85-86 (Charles G. Fenwick trans., Oceana Publications, Inc. 1964) (1758). 4 MILO MILTON QUAIFE, CHICAGO AND THE OLD NORTHvEST, 1673-1835, at 179 (1913). 5 Felix S. Cohen, OriginalIndian Title, 32 MINN. L. REV. 28, 34 (1947). 6 See FRANCiS PAUL PRUCHA, AMERICAN INDIAN POuCY IN THE FORiATIVE YEARS: THE INDIAN TRADE & INTERCOURSE ACTS, 1790-1834, at 248 (1962) ("For [the Indian policy of the United States] we must turn to the treaties made with the Indians, which uniformly guaranteed Indian rights... ."). Don Russell, How Many