$422 tenable. The offer was to prove merely | taken out to cover property, his own, or the fact of marine insurance, and not to prove its amount. It was an offer in bar of liability, and not an offer applicable to a reduction of the verdict. No suggestion of the latter object was made in the offer, and the evidence, if admitted as offered, could have no bearing upon the question as to how much the proportionate liability of the defendant would be reduced by virtue of the marine policies. The only specific offer to prove the terms of any marine policy, and the extent of the insurance under it, was made in the form of an offer of the deposition of one Phillips and the testimony of one Bowen, both of which were excluded on proper grounds, and complaint is made only of the exclusion of the deposition of Phillips. 6. It is assigned for error that the court erred in striking out the testimony in the deposition of Phillips, the clerk of Ralli Bros., who were claiming pay from the Memphis & Little Rock Railroad Company for 158 bales of cotton, to the effect that that cotton was covered by marine policies taken out by Ralli Bros. The policies of insurance mentioned in the testimony in the deposition were not attached to it. The testimony was objected to by the plaintiff as incompetent, because it was an attempt to prove by parol the contents of written instruments. It was stricken out by the court, and the defendant excepted. The ruling of the court was manifestly correct. There was no proof that the policies referred to were in Liverpool,for all that the witness Bowen said was that he was informed they were there; and, as to the copy which Phillips refused to attach to his deposition, all the evidence in regard to its identity is that Phillips said to the witness Bowen that such copy was a copy of the marine policy which had been issued on the cotton. This was, all of it, only hearsay evidence. 7. The court was requested by the defendant to instruct the jury as follows: "As this action is brought solely on behalf of the railroad companies on account of liability incurred through carelessness of the agents and servants of the companies, no cause of action accrued against the defendant until the actual payment by said companies of damages on account of the alleged fire, and the recovery cannot be greater than the value, on November 14, 1887, at Little Rock, of the cotton so burned and paid for, nor greater than the sum paid by the railroad companies; that is, if they have paid more than the value of the cotton, they cannot recover the excess from the defendant; if they have paid less than the value, they can recover only to the extent of the payment.' The court refused to give that instruction, and defendant excepted. This is alleged as error. It is urged that the Memphis & Little Rock Railroad Company has never paid any damages, and that the Missouri Pacific Railway Company had not paid any when this suit was commenced; and it is contended that no cause of action accrues, in a case of that kind, until payment of the damages by the railroad companies is made. But, as a bailee, under a policy | held by him in trust or on commission, may enforce the contract of insurance to the full value of the property destroyed, holding the proceeds primarily for his own benefit and the balance for that of his bailor, the right of action of the plaintiff accrued on the occurring of the loss.; The case cited by the defendant, (Railroad Co. v. Spratt, 2 Duv. 4,) does not apply to* the present case. That was a suit brought by a consignee of goods against a carrier. where the carrier was entitled, under a bill of lading given by it to the consignee, to insurance obtained by the consignee; and it was held that the consignee could not be compelled to proceed upon the policy of insurance before enforcing his claim against the carrier, even where it appeared that the insurer had agreed to pay its loss under the policy, and although it was alleged that the suit was prosecuted for the benefit of the insurer. But here the plaintiff is the assured. The insurance included the protection of the railroad companies. The premium was paid. The insured property was destroyed by fire. The condition of the liability of the insurer was complete, and its liability had fully accrued. The only question for litigation was whether the railroad companies were protected by the insurance. The defendant is called upon to perform only its agreement to pay the insurance money in case of the destruction of the cotton by fire. Its liability is not dependent upon the question whether the liability of the railroad companies has been discharged; nor is the plaintiff's right of action contingent upon the payment by the railroad companies of the value of the cotton burned, but it is contingent only upon the destruction of the cotton by fire under circumstances which impose a liability upon the railroad companies. We see no error in the record, and the judgment is affirmed. (133 U. S. 553) SEARL V. SCHOOL-DIST. NO. 2.1 EMINENT DOMAIN-HOUSE ERECTED ON ANOTHER'S LAND. In proceedings to condemn land for school purposes, it appeared that the school-district purchased the "squatter" title of the parties in possession, paying the full value of the land, relying on the erroneous advice of reputable counsel that this title was superior to that of the parties claiming under a patent, that it took possession and erected school buildings thereon, though notified by the parties claiming under the patent that it would do so at its peril; that the premises were necessary for school purposes, and were taken for that public use. Held, that just compensation did not include compensation for the improvements. In error to the circuit court of the United States for the district of Colorado. School-district No. 2, in the county of Lake and state of Colorado, filed its petition in the county court of that county against R. S. Searl, stating that long prior to the 1st day of July, 1881, it had been, and then was, a school-district duly and regularly organized; that on July 1, 1881, one Frances M. Watson was in the actual possession and occupancy, under 1 Affirming 38 Fed. Rep. 18. a deed of conveyance to her, of certain lots in a certain block of an addition to the city of Leadville; that on the same day one Schlessinger was in the actual possession and occupancy, under deed of conveyance to him of certain other lots; that said Watson and Schlessinger then were, and they and their grantors had for a long time prior thereto been, in the actual possession and occupancy of said lots, claiming the ownership thereof; that on that day the board of directors of the schooldistrict, having been duly authorized and directed so to do, purchased the lots from Watson and Schlessinger, and they were conveyed to the district, the said lots being contiguous, and together constituting but one tract or lot, not exceeding one acre; that the lots were situated within the boundaries of the school-district, and were purchased for the purpose of a school lot upon which to locate and construct a school-house for the benefit of the schooldistrict, and the people resident therein; that the school-district entered into possession and occupation of the land on July 1,1881, and proceeded to and did construct thereon a large, costly, and valuable school-house, and ever since that time had been and now is in the possession and occupancy of said land, using the same for the purposes of a school; that since the purchase and entry into possession by the school-district the defendant, Searl, had acquired the legal title to the lots composing the school lot, the full title to the same having become vested in him on the 2d day of February, 1884; "that he is now the owner of said property, and that the title thereto acquired by your petitioner as aforesaid has wholly failed; that your petitioner made the purchases, entered into the possession, and constructed the school-house aforesaid in good faith, believing that it had good right so to do; that said school-house is located with reference to the wants and necessities of the people of each portion of said district, and was at the time of said purchases and is now necessary for the school purposes of said district, and that said land and school lot contain no more than is necessary for the location and construction of the school-house aforesaid and the*convenient use of the school; that the compensation to be paid for and in respect of the property aforesaid, for the purposes aforesaid, cannot be agreed upon by your petitioner and the said defendant, the parties interested; and that the said defendant is a non-resident of the state of Colorado." Petitioner then averred that the value of the property did not exceed the sum of $2,000, and prayed that the compensation to be paid by it to defendant for and on account of said property be assessed in accordance with the statute. The defendant appeared, and on his application the cause was removed into the circuit court of the United States for the district of Colorado. Upon the trial before the circuit judge and a jury, it was "agreed and admitted, among other things, that the premises appropriated were necessary for the petitioner, and were taken for public use." And the following stipulation in writing was offered and | read in evidence: "For the purposes of the present hearing and trial only of the above-entitled action or proceeding, either in this court, where it is now pending, or in the supreme court of the United States, where it may be taken on appeal or writ of error, the following facts are agreed upon by and between the respective parties hereto, to-wit: First. That a receiver's receipt was issued for the Sizer placer, United States survey No. 388, on the 16th day of April, A. D. 1881, out of the district land-office of the United States at the city of Leadville, in the state of Colorado, to one Isaac Cooper, claimant. Second. That on the 18th day of May, A. D. 1881, a United States patent was issued to the said Isaac Cooper for the said Sizer placer. Third. That the land sought to be condemned in the present proceeding is a part of the said Sizer placer. Fourth. That since the 20th day of November, A. D. 1882, and before the institution of this proceeding, the said Isaac Cooper conveyed to the said R. S. Searl the said Sizer placer, and the said Searl by virtue thereof is now the owner and holder of the said patent title. thereto. Fifth. That prior to the appl cation for a patent to the said Sizer placer,and up to the time when the said school board purchased the same and took possession thereof, the land herein sought to be condemned was occupied, possessed and improved, and the ownership thereof claimed, by persons holding under what was called and known as a 'squatter title.' Sixth. That on or about the 1st day of July, A. D. 1881, the said school board purchased and took conveyances of the land now sought to be condemned, with the buildings and improvements thereon, made and erected by the said squatter occupants, from said occupants, and paid therefor the sum of thirty-five hundred ($3,500) dollars. Seventh. That on or before the 30th day of July, A. D. 1881, the said school board went into actual possession of the lots described in the petition herein, and immediately commenced to build; and on the 30th day of January, A. D. 1882, prior to the institution of these proceedings, completed improvements suitable and appropriate for educational purposes, at a cost to the said school-district of forty thousand ($40,000) dollars, which property it has since possessed and occupied, and still occupies, for school purposes. Eighth. That at the time of the commencement of this action and the institution of these proceedings in condemnation, the land described in the petition herein, together with the improvements thereon so made by the school board as aforesaid, was of the value of forty thousand ($40,000) dollars. Ninth. That at the said times of taking possession, and at the time of the commencement of this action and the institution of these proceedings in condemnation, the land described in the petition herein, without the improvements thereon made by the school board, was of the value of three thousand ($3,000) dollars, and that the area of same is less than one acre. Tenth. That petitioner had knowledge of the issuance of a United States patent, covering the property sought to be condemned, prior to the pur *557 ments thereon. Second. That the value of said property at this date is $3,000." To the giving of this instruction, and to the refusal to give those prayed by the the defendant, the defendant, by his counsel, then and there excepted. The jury thereupon returned a verdict in the sum of $3,000, and judgment was rendered thereon that the petitioner, upon "the payment of the amount of the said verdict to the said respondent, or the deposit of the said amount in this court within thirty days hereafter, shall be, and it hereby is, invested with the fee in and to said premises; and, it appearing that the said petitioner is in possession, it is further considered by the court that, upon the payment or deposit of the said sum of money within the time aforesaid, [said petitioner shall,] retain possession of and hold the premises aforesaid, with all the rights and interests thereto belonging and appertaining. To review this judgment, a writ of error was sued out from this court. chase of the title which it subsequently | Colorado, together with the improvepurchased, and which was known as the squatter title. That prior to such purchase petitioner employed and paid reputable counsel to investigate said title; that the counsel so employed reported in favor of the validity of the so-called squatter title, and against the validity of the United States patent; that, believing said socalled squatter title to be better than the title conveyed by United States patent, petitioner purchased the same; that after said purchase petitioner subscribed to the funds of an association organized for the purpose of endeavoring to defeat said patent title. Eleventh. That, prior to the commencement of and during the erection of the school building now standing on the land sought to be condemned, the board of school directors of petitioner was notified on behalf of respondent, who at that time owned an equitable interest in the said property, and on behalf of respondent's grantors, that any building said school-district might erect on said lots would be erected at the peril of the said school district, and would be claimed, when completed by said respondent and his grantor; but the said school-district, having purchased the said lots of the squatters in possession as aforesaid, and believing that it had the better title thereto, proceeded, notwithstanding such notice, and made and erected said improve- | ments as aforesaid. And in view of the statute, (Dawson's Colo. Code, p. 80, § 253,) and for the purpose of putting as speedy an end to contention as possible, it is further stipulated that the foregoing values may be taken as the actual values at the time of the trial of this suit, and that the property sought to be condemned is for public use, and, within the meaning of the law, is necessary for the school-district. Twelfth. That R. S. Searl is now, and was at the time of the commencement of these proceedings, a citizen and resident of the state of Kansas." F. W. Owens and S. P. Rose, for plaintiff in error. C. S. Thomas, for defendant in error. *Mr. Chief Justice FULLER, after stating the facts as above, delivered the opinion of the court. Upon the conceded facts, unless the plaintiff in error was entitled to be compensated for the school-house in question, the instruction limiting the recovery to $3,000 was correct, and the judgment must be affirmed. The constitution of the state of Colorado provides "that no person shall be deprived of life, liberty, or property without due process of law;" and "that private property shall not be taken or damaged, for public or private use, without just compensation. Article 2, §§ 15, 25, pp. 34, 35, Gen. St. Col. 1883. Did the just compensation thus secured to the owner of property, taken in the exercise of the power of eminent domain, include in this instance payment to the plaintiff in error for the improvements made by the school-district in order to carry out the specific use and purpose for which the land was required? Couíd plaintiff in error properly insist that the loss of the school-house was an injury which he sustained by reason of the taking? The argument is that the moment the school-house was com The bill of exceptions also states that "the said defendant, R. S. Searl, introduced further evidence tending to show that he became the legal owner of the premises on the 2d day of February, 1884, and commenced his action of ejectment on the 24th of March, 1884, which was at issue and set for trial in this court on the 11th day of June, 1884; that petitioner filed bill for injunction and obtained writ of injunc-pleted it belonged to the owner of the land tion restraining trial of ejectment suit on the 7th of June, 1884, and commenced these proceedings on the 9th of June, 1884.” The defendant requested the court to give to the jury a number of instructions, which are omitted in view of the grounds of decision here. The court refused these instructions, and charged the jury generally, and instructed them that the form of their verdict should be as follows: “We, the jury, find-First, that the accurate description of the property sought to be condemned in this action is lots 812, 814, 816, 818, and the north 13.6 feet and the east 35 fect of lot $10, North Poplar street, and lots 211 and 213 East Ninth street, in Coopers' subdivision of the surface of the Sizer placer, U. S. survey No. 388. situate in the county of Lake, and state of by operation of law, and therefore tha he was entitled to be recompensed for i upon condemnation. The maxim quicquid plantatur solo, solo cedit, is not of universal application. Structures for the purposes of trade or manufacture, and not intended to become irrevocably part of the realty, are not within the rule, (Van Ness v. Pacard, 2 Pet. 137,) nor is it applicable where they are erected under agreement or by consent, the presumption not arising that the builder intended to transfer his own improvements to the owner. And courts of equity, in accord with the principles of the civil law, when their aid is sought by the real owner, compel him to make allowance for permanent improvements made bona fide by a party lawfully in possession under a defective title. Story, 560 562 facts is that the district acted throughout in good faith, as the opposite of fraud and bad faith, and, although it may have been wholly mistaken, the intention guided the entry and fixed its character, and it cannot be held to have been such a trespass as to justify the claim that the school build came part and parcel of the land as to entitle the owner to recover its value. Plaintiff in error knew when he obtained the title that the land was in necessary use by the public for a purely public purpose, and that no intention of parting with the structures could be imputed; and no notice of what his grantor or himself intended to insist on could destroy the good faith in fact, which the conceded belief of the district imparted to its conduct. Eq. Jur. § 1237. The civil law recognized the principle of reimbursing to the bona fide possessor the expense of his improvements, if he was removed from his possession by the legal owner, by allowing him the increase in the value of the land created thereby. And the betterment laws of the several states proceed upon that equi-ing, erected in similar good faith, so betable view. The right of recovery, where the occupant in good faith believes himself to be the owner, is declared to stand upon a principle of natural justice and equity; and such laws are held not to be unconstitutional, as impairing vested rights, since they adjust the equities of the parties as nearly as possible according to natural justice; and in its application, as a shield of protection, the term "vested rights" is not used in any narrow sense, but as implying a vested interest of which the individual cannot be deprived arbitrarily without injustice. The general welfare and public policy must be regarded, and the equal and impartial protection of the interests of all. Cooley, Const. Lim. *356, *386. But if the entry upon land is a naked trespass, buildings permanently attached to the soil become the property of the owner of the latter. The trespasser can acquire no rights by his tortious acts. In Wright v. Mattison, 18 How. 50, this court, in considering a statute of the state of Illinois in protection of persons "in the actual possession of lands or tenements under claim and color of title made in good faith," reiterated the rule that color of title is matter of law, but good faith in the party claiming under such color is purely a question of fact; and held that, while defects in the title might not be urged against it as destroying color, they might have an important and legitimate influence in showing a want of confidence and good faith in the mind of the vendee, if they were known to him, and he therefore believed the title to be fraudulent and void. The court approved of the opinion of the supreme court of Illinois in Wood ward v. Blanchard, 16 Ill. 424, in which it was said by SCATES, C. J., that "the state of mind of the party in relation to such ti tle was an existing truth which must be ascertained and found as a fact in the cause. Many independent facts and surrounding circumstances may be admissible in evidence, and legitimately considered as establishing or impeaching the state of mind in its good faith, honest belief or trust in, or dependence upon, such title." And this language was quoted by the court from that opinion: "Good faith is The circuit court was not dealing with an action of ejectment or trespass, but simply with a proceeding in the exercise of the right of eminent domain. That right is the offspring of political necessity, and is inseparable from sovereignty, unless denied to it by its fundamental law. It cannot be exercised except upon condition that just compensation shall be made to the owner, and it is the duty of the state, in the conduct of the inquest by which the compensation is ascertained, to see that it is just, not merely to the individual whose property is taken, but to the public which is to pay for it. Garrison v. New York, 21 Wall. 196, 204, Kohl v. U. S., 91 U. S. 367, 371. The occupancy here was in no respect for a private purpose or pecuniary gain, but strictly and wholly for the public use. There could be no presumption that this public agent intended to confer public prop-doubtless used here in its popular sense, as erty upon a private individual nor were the circumstances such as to impart the character of willful trespass to the entry by the district, or impose liability to the forfeiture of improvements made in discharge of its public duty. It is among the agreed facts in the case that the premises appropriated were necessary for the schools, and were taken for that public use; that though the district had knowledge of the issuing of a patent covering the property, yet it purchased the adverse title of the party then in possession, believing it to be better than the patent title, and upon the advice of reputable counsel, who had, on investigation, reported against the validity of the patent, and in favor of the validity of the title purchased, and paid $3,500, which was $500 more than the actual value, without the building, was admitted to be when the trial took place; and that, notwithstanding notice that it was proceeding at its peril, it erected the building in reliance upon such belief that it had the better title. The only legitimate inference from these | the actual, existing state of the mind; whether so from ignorance, scepticism, sophistry, delusion, fanaticism, or imbe cility, and without regard to what it should be from given legal standards of law or reason. Ewing v. Burnet, 11 Pet. 41; Pillow v. Roberts, 13 How. 472. As re-. marked by BECKWITH, J., in McCagg v. Heacock, 34 Ill. 476, 479: "The good faith. required by the statute, in the creation or acquisition of color of title, is a freedom froin a design to defraud the person having the better title;" and "the knowledge of an adverse claim to or lien upon property does not, of itself, indicate bad faith in a purchaser, and is not even evidence of it, unless accompanied by some improper means to defeat such claim or lien." We are of opinion that plaintiff in error could not successfully contend that the school-district should be treated as a naked trespasser. And as the actual value of the land at the time of the trial must have included whatever increase may have inured by reason of its adaptability to school purposes, and every other element *563 *565 entering into its cash or market value, as tested by its capacity for any and all uses, it follows that the true criterion of recovery was adopted. It is not denied that the school-district, when it filed its petition, was entitled to acquire the property in the exercise of the power of eminent domain; but it is said that it could not do so prior to February 13, 1883, the date of the passage of an act rendering such action on its part lawful. Sess. Laws Colo. 1883, p. 263; Gen. St. § 3044, p. 893. But we cannot perceive that this affects the precise question before us. Inability to condemn indicates that possession was not taken with the view of proceedings to that end, but that is conceded, on the other ground, that the school-district believed that it had the better title, and erected its building accordingly. When it came to possess and exercise the power, the inquiry was limited to such compensation as was just, and did not embrace remote or speculative damages, or payment for injuries not properly susceptible of being claimed to have been sustained. It was ruled in Secombe v. Railroad Co., 23 Wall. 108, 118, in relation to the taking of private property by a railroad company under the power of eminent domain, that "prior occupation without authority of law would not preclude the company from taking subsequent measures authorized by law to condemn the land for their use. If the company occupied the land before condemnation without the consent of the owners, and without any law authorizing it, they are liable in trespass to the persons who owned the land at the time, but not to the present plaintiff." Plaintiff in error obtained the legal title February 2, 1884, and this petition was filed the 2d day of June of that year. If he suffered injury by being kept out of possession, for which he could recover damages, they could not be assessed in this action, and there is nothing in the record to show that any claim to that effect was made. Chapter 31 of the General Laws of Colorado treats of eminent domain, and constitutes chapter 21 of Dawson's Code of Civil Procedure, referred to in the record. Section 253 provides that, "in estimating the value of all property actually taken, the true and actual value thereof at the time of the appraisement shall be allowed and awarded," and that "in all cases the owner or owners shall receive the full and actual value of all property actually taken." Dawson, Code 1884, p. 80. This means, of course, the value of the owner's real interest. It was agreed that at the time of the trial the actual value of the land, "without the improvements thereon made by the school board," was $3,000; so that, as before stated, the sole question is whether the circuit court erred in holding that the defendant could not be allowed for the improvements. We think that in this there was no error. In our judgment, the technical rule of law invoked to sustain the defendant's contention that he owned the schoolhouse was inapplicable, and the value of the improvements could not justly be included in the compensation. Numerous well-considered decisions of the state courts announced the same result. Justice v. Railroad Co., 87 Pa. St. 28, 32; Jones v. Railroad Co., 70 Ala. 227; Lyon v. Railroad Co., 42 Wis. 538; Railroad Co. v. Goodwin, 111 Ill. 273; Navigation Co. v. Mosier, 14 Or. 519, 13 Pac. Rep. 300; Morgan's Appeal, 39 Mich. 675. The judgment is affirmed. (133 U. S. 697) BOESCH et al. v. GRAFF et al. (March 3, 1890.) PATENTS FOR INVENTIONS-ASSIGNMENT-INFRINGEMENT DAMAGES. 1. S., by an absolute assignment, transferred, for a certain consideration, title to a patent, and on the following day he and the assignee entered into a contract, reciting that, instead of the consideration mentioned in the assignment, the assignee should pay certain sums on future dates, and if he should fail to do so the title to the patents should return to S. Held, that the transaction was not an executory contract to assign, but an absolute assignment, and vested the legal title to the patent in the assignee. 2. A dealer residing in the United States cannot purchase in another country articles patented there, from a person authorized to sell them, and import them to and sell them in the United States, without the license of the owners of the United States patent. 3. În a suit for infringement of a patent on lamp-burners, the evidence showed that complainants, during the time of the infringement, sold 6,000 of the burners, after reducing the price, and that defendants sold only 114 of them. În competition with complainants, defendants seld various other kinds of burners, not protected by complainant's patent. Held, that the evidence was not sufficient to show that the reduction of price by complainants was caused by defendants' infringement, and they should recover only for the profits made by defendants in the infringing sales. Appeal from the circuit court of the United States for the northern district of California. J. J. Scrivner, for appellants. J. H. Miller, for appellees. FULLER, C. J. Albert Graff and J. F. Donnell filed their bill in the circuit court of the United States for the northern district of California against Emile Boesch and Martin Bauer, to recover for infringement of letters patent No. 289,571, for an improvement in lamp-burners, granted on December 4, 1883, to Carl Schwintzer and Wilhelm Graff, of Berlin, Germany, assignors of one-half to J. F. Donnell & Co., of New York, all rights being averred to be now vested in the complainants. Claim 1, alleged to have been infringed, reads as follows: "In a lamp-burner of the class described, the combination, with the guide tubes, of a ring-shaped cap provided with openings for the wicks, said cap being applied to the upper ends of the guide tubes, so as to close the intermediate spaces between the same, substantially as set forth." The patent was granted December 4, 1883, but prior to that, November 14, 1879, January 13, 1880, and March 26, 1880, letters patent had been granted to Carl Schwintzer and Whilhelm Graff by the government of Germany for the same invention. After a hearing on the merits, an interlocutory decree was entered, finding an infringment, and referring the case to a master for an accounting. The opinion will be found reported in 33 Fed. Rep. 279. A petition for a rehearing was filed, *698 |